Call for action as traders fight online counterfeit sellers

Dar es Salaam. Electrical equipment shop owners are raising concerns over the increasing number of online sellers of counterfeit products.

They say it is damaging the market by promoting low-quality goods and, in some cases, defrauding customers.

Traders raised these concerns on Friday, February 22, 2025, during a meeting of Sony Africa Company leaders and Tanzanian traders aimed at understanding the challenges they were facing and designing resolution measures.

Speaking during the event, Kariakoo trader, Ms Doreen Francis, said that electrical products advertised and sold through online platforms are often priced unrealistically, misleading potential buyers.

"When customers express interest, they are quoted a low price. However, upon visiting our stores and seeing a higher price, they assume we’re overcharging, unaware of the difference in product quality," she explained.

"They then hastily purchase cheaper alternatives online, some of which are counterfeit," added Ms Francis.

She also noted that some online sellers are scamming customers by asking for advance payment, and then disappearing once the money is sent.

Ms Francis urged consumers to buy from reputable stores to ensure they receive authentic products, which come with warranties and the assurance of a return policy if issues arise.

On the government's role, Ms Francis called for the registration of online sellers to make it easier to curb criminal activities.

She noted that the lack of regulation is harming legitimate businesses and facilitating the spread of counterfeit products.

Ms Francis was echoed by another trader, Mr Samir Ahmed, who said it was the right time for the government to intervene.

He called for a reduction in taxes to make electrical products more affordable for consumers.

Mr Ahmed pointed out the complex taxation system, explaining that many customers fail to understand the pricing structure.

"Customers often see a lower price online and don’t realise that the price we offer includes various costs such as warehouse tax, employee wages, and other government taxes," he said.

"They don’t understand why the price is higher in stores compared to online sellers,” he added.

However, Mr Ahmed also stressed the importance of continuing public education on the significance of paying taxes, as many Tanzanians still struggle with this concept.

The Sony Africa Director, Mr Preman Pondhen, addressed the purpose of the meeting, which was to understand the challenges facing traders and find ways to resolve them.

"We hold these meetings annually to hear traders' concerns and to introduce our new products," said Mr Pondhen.

African countries have been calling for global tax reforms that would address challenges brought by digitalisation over traditional tax systems.

This is because many corporations operate online without paying taxes in the countries where they do business, thereby depriving these nations of crucial revenue that could support their development.

In Tanzania, the United Nations Tax Convention (UNTC) reforms to promote Domestic Resource Mobilisation (DRM) in African countries is overseen by the Interfaith Standing Committee on Economic Justice and Integrity of Creation (ISCEJIC).