Buyer beware warning would save consumers from advertiser fraud

Advertisers and media houses feed off each other—revenues from advertisements pay staff and content generation, production and distribution costs, while media platforms serve as channels for messages to create demand for products and services and drive consumer spending. 

However, dishonest or fraudulent advertising goes against the public interest and the media’s core principle of truth, and can cause the very audiences the media serves inconvenience, stress and financial losses.

Mr Mungai, a reader of the Business Daily, reports having recently fallen prey to an advertiser. He writes: “I responded to the attached advert appearing in the Business Daily online thinking that I’m safe in the Business Daily, but I lost some cash in form of transaction fees to someone by name... I’m surprised it can happen on your platform.”

The reader applied for a Sh35,000 instant mobile loan in response to the advert, and was advised to send Sh241 and Sh191 for processing fees. He was then informed that the borrowed money would be sent to his mobile money account within 24-48 hours, which did not happen.

Online platforms are teeming with scammers like the one Mr Mungai fell for. However, his disappointment is that the advert he responded to was on a credible platform, which gave him a higher level of confidence.

Warning in large print

His letter raises several questions: Can a media platform vouch for the credibility of all the advertisements it carries? Is any precaution taken to protect consumers, or are they left entirely at the mercy of the advertisers? What recourse do consumers who fall prey to fraudulent advertisers or false advertising have?

We put these questions to the legal department at the Nation Media Group, and the first response was to point us to a warning in large print at the top of the Notices/Classified page of the Daily Nation that states: “Readers are advised to make appropriate enquiries and take appropriate advice before sending money, incurring any expense or entering into a binding commitment in relation to an advertisement. Nation Media Group shall not be liable to any person for loss or damage incurred or suffered as a result of his or her accepting or offering to accept an invitation contained in any advertisement published in the Nation”.

A similar cautionary note should be placed on all NMG digital platforms that carry advertisements, as well as on television and radio.

A Kenyan court has held that expecting a media platform or company to guarantee the credibility of advertisements would be too heavy a responsibility. It is impossible to achieve such a task, thus the caveat emptor.

The media platform is like a mall that hosts many shops for businesses to showcase and sell products or services where the responsibility for quality rests with the businesses. The media house has the freedom to contract the advertiser, and it is up to consumers to apply the precautionary measures they take while dealing with any advertisement on other digital platforms.

Pull down advertisement

However, the Nation takes a little more care to protect consumers. It takes and keeps the personal data of individuals placing adverts, including the telephone numbers and ID numbers, and would co-operate with the police or the anti-corruption agency in case of an investigation into fraud or false advertising. Some people have been known to withdraw their advertisements because of this requirement. The Nation can only pull down an advertisement after being formally notified by investigating agencies. This is to guard against possible malicious accusations or sabotage by business rivals.

In cases, such as Classifieds, where advertisements are placed digitally and payments made through mobile money, the orders are subjected to filters before being cleared for publishing. If advertisers who have paid decline to provide the required data, the orders are cancelled and the cash sent back to the mobile phone account.

For advertisements that have the potential of injuring an individual’s or company’s reputation, such as auctioneers’ announcements or those announcing someone’s sacking, the Nation demands copies of supporting documents, in addition to an indemnity that would protect the company in case of court action.

Fortunately, Mr Mungai’s problem is more an exception as most advertisements carried on NMG platforms are credible.

Contact the Public Editor to raise ethical concerns or request a review of published material. Reach out: Email: [email protected]. Mobile Number: 0741978786