ABSTRACT
This research paper delves into the practice of certain companies taking advantage of digital tablets for contract signatures, electronic receipts, and online user manuals as a means to conceal valuable information from customers. By examining the historical context of shady companies, analyzing the advantages and disadvantages of utilizing digital technology for such purposes, and investigating documented reports of non-tech savvy individuals being exploited, this paper sheds light on the potential risks and implications associated with this deceptive practice. The findings underscore the need for increased awareness, transparency, and consumer protection measures to safeguard individuals from falling victim to such nefarious tactics employed by unscrupulous entities within the business realm.
Keywords: digital contracts, electronic receipts, online user manuals, consumer exploitation, dead sea skin care
INTRODUCTION
Over the past few decades, new technology has transformed the sales industry. It has made it easier to perform a number of tasks, such as analyze data, personalize communication with clients, sell remotely, and engage with customers and potential customers (Radivojevic 2023). This has resulted in what Radivojevic (2023) calls “… a more efficient selling process and improved bottom lines, while the everyday job of salespeople will be simpler, more streamlined, and freed from some annoying, repetitive tasks that normally take a lot of their time” (Radivojevic 2023).
Yet, there has also been a rise in sales companies who use aggressive and fraudulent practices to sell expensive products to individuals who may not be able to afford them. Let us look at dead sea skincare companies as an example. These companies are said to use minerals from the Dead Sea region (between Jordan and Israel) in their products (Dai 2023). These minerals (e.g. magnesium, calcium, potassium, and bromide) are reported to be especially rich and very beneficial to skin (Dai 2023). Here in Toronto, there is a company that sells dead sea skincare products, called Orogold Cosmetics. One recent news story about this company involves an elderly woman who “agreed to buy a skincare device” after being approached by Orogold salespeople in the mall, who offered her free samples (Foran 2019). Little did she know that she contractually agreed to pay approximately $10,000, “$202 a month for the next three years”, for the purchases she made in store that day (Foran 2019). The store also had a no refund policy, yet it allegedly offered the woman a full refund once she informed CTV News of the incident (Foran 2019).
Cosmopolitan Magazine – Philippines also reports that a woman was drastically deceived during a purchase interaction with a dead sea cosmetics company. According to this middle-aged woman, a saleslady sprinkled her with compliments as she walked by in the mall, recommended some skin care products, and told her that she could pay for the products in installments over two years (Parpan 2019). This customer later checked her bills and realized that she was charged much more than she agreed to -160,000 pesos — approximately $11,900 CAD –, as opposed to 105,000 pesos, which is approximately $7,800 CAD (Parpan 2019). When she returned to the store to ask for a refund, the store allegedly called mall security on her, so she contacted a lawyer, who advised her to file a legal claim against the skincare company (Parpan 2019). This goes to show that shady sales companies are all over the world, practice similar techniques, and even younger populations fall for their alleged misrepresentations, which makes vulnerable populations such as the elderly and those with intellectual disabilities particularly susceptible.
So the questions is, in what ways do nefarious sales companies use digital technology to exploit the non-tech savvy? I argue that these companies take advantage of digital tablets for contract signatures, electronic receipts, and online user manuals to hide valuable information from customers. This could be seen when examining the history of certain sales companies, the pros and cons of the digital technology itself, as well as documented reports of customers being convinced to sign contracts without being fully aware of a product’s terms, conditions, and warnings/disclaimers.
RESEARCH FINDINGS
Digital Contracts
Digital contracts have become very common these days, as they can create and store agreements more efficiently than old fashioned paper contracts. Here, electronic signatures are used in place of handwritten signatures and carry the same legal weight (Shcherbyna et al. 2021). To create a digital contract, it is first drafted using software that allows the company to customize the terms and conditions (Qerimi 2018). The contract is then signed by both parties and stored in digital format, often in cloud-based storage or digital contract management systems; this allows for them to be easily retrieved if necessary (Qerimi 2018).
One of the major advantages of digital contracts is efficiency, as this method cuts down on paper usage and manual paperwork and allows for swift communication by making it easier to locate certain information quickly (Shcherbyna et al. 2021). Digital contracts are also cost-effective because there is no need to store them, print them, or mail them (Shcherbyna et al. 2021).
These contracts can be instantly accessed from almost anywhere, which adds convenience and flexibility (Qerimi 2018). Advanced encryption techniques and authentication measures help to ensure that only authorized individuals can access the contract, and so there is also sense of confidentiality and security (Qerimi 2018). Lastly, digital contracts leave behind a trail of actions, e.g., date and time of signature or version history, which provides a sense of transparency (Qerimi 2018).
There are some drawbacks to employing digital contracts though. For example, not all countries/jurisdictions have the same compliance standards for them, which is illustrated in the Scherbyna et al (2021) article, a Ukrainian publication. According to docusign.com, “Electronic Signature has been recognized by law in Ukraine since 2003.” E-signature legality can be checked on the aforementioned website by selecting a country from the drop-down menu. In their literature review, Shcherbyna et al. (2021) find that the legality of e-contracts/e-signatures varies throughout Europe, particularly Ukraine, Germany, France, Austria, and Britain. The authors also discuss the quest for common e-commerce standards and conclude that although it would be nice to have some international unity in this regard, the legal weight of an e-contract is in fact the same as that of a traditional paper contract (Shcherbyna et al. 2021). Another downside of these contracts is security risk, as there remains a chance that computer hackers can access the information contained in these digital contracts, resulting in a data breach or loss of data (Qerimi 2018).
Generally, it can be said that there is no guarantee that both parties are tech-savvy, and this could cause struggles with navigating and understanding the contract signing process. In my opinion, dTop of Form
Bottom of Form
igital contracts are less likely to be read in detail than paper contracts are, and many customers do not take the initiative to print out their digital contracts on their own, leading to them not having a full understanding of the contract itself, especially if a paper version is not given to them.
Digital contracts therefore have an advantage in terms of efficiency but also have barriers and threats such as data security risks and increased chance for miscommunication or misrepresentation because the customer may lack immediate access to a physical copy of the agreement. Shady sales companies can therefore capitalize on the latter by verbally stating whatever they think the customer wants to hear in order to get them to sign a lucrative sales contract.
Electronic Receipts
Similar to digital contracts, electronic receipts also save on paper use and are considered by the general public to be eco-friendly; they are a digital (e-mail or mobile) version of a paper receipt and are e-mailed or texted to the customer following a transaction.
One key benefit of electronic receipts is convenience, as this type of receipt eliminates the need for paper clutter and manual filing, enabling customers to access and manage transaction records digitally from anywhere at any time (Daily 2020). They are said to be significantly efficient as well, as they automate record-keeping, simplifying expense tracking, and facilitating quick search and retrieval of transaction details for businesses (Daily 2020).
Unfortunately, there are cons to using electronic receipts. Some of these include dependency on technology, as electronic receipts rely on digital infrastructure and connectivity, posing challenges for users in areas with limited internet access or technical proficiency (Daily 2020). There are also privacy concerns. Some customers may be wary of sharing personal contact information to receive electronic receipts due to qualms about data collection and unsolicited marketing (Daily 2020). Last, as with anything online, there are data security risks. Whether these receipts are stored on devices or in cloud storage, they are vulnerable to computer hackers, malware, data breaches, etc. (Daily 2020).
From my perspective, unethical companies may take advantage of the electronic customer receipt option by using this method as an opportunity to include fees or fine print that the customer is not immediately aware of. Afterall, with many companies no longer giving receipts for small purchases, many consumers do not even double-check their in-person transactions to ensure correctness. Many times, they simply tap or swipe their bank card, and are on their way.
Online User Manuals
Online user manuals are said to offerconsumers easy access to guidance and support for the products that they purchase; they are digital guides or documentation provided by manufacturers or sellers to help users understand the features, operation, and troubleshooting of a product (Ackermann 2023). Consumers can access online user manuals through the manufacturer’s website, product page, or dedicated support portals (Ackermann 2023). They can be presented in various formats, such as PDF files, web pages, video tutorials, mobile apps, etc. Ackermann 2023).
A neat advantage of online user manuals is that manufacturers can easily update online user manuals to reflect changes in product features, specifications, or troubleshooting procedures, ensuring that users have access to the most current information and support resources (Ackermann 2023). Some other positives include the convenience of being able to access the manual at anytime from anywhere, and the ability to use search features to locate information quickly (“Explaining the Advantages…” 2024). Environmental sustainability is brought to attention again, as it is more eco-conscious for companies to direct customers to online manuals rather than printing and providing traditional paper manuals (“Explaining the Advantages…” 2024). I always find it to be innovative and refreshing when a company uploads YouTube tutorials on the use of their product.
One can postulate that the cons of directing customers to online user manuals include internet accessibility issues. Users may not be able to obtain important product information in a timely manner if they do not have access to the internet at the time, if they do not have the proper device to view it on, or if they struggle with a certain disability. Those who are not tech savvy may also have issues navigating through a website containing the product information in order to locate specific information.
As one can see, online user manuals offer numerous benefits such as searchability, multimedia support, and space efficiency. However, they also present challenges related to accessibility, experience variability, and compatibility issues. Sales companies that sell products and direct customers to online manuals rather than including paper manuals deprive customers of the opportunity to see product warnings, important instructions, etc. immediately.
LIMITATIONS
One limitation of this paper is the inability to find peer-reviewed journal articles specifically relating to digital technologies such as digital sales contracts, electronic receipts, and online user manuals, and their use during in-person sales transactions. The tech companies that do provide this information online may not be credible due to implicit bias. The lack of empirical information currently available suggests that perhaps scholars are behind the curve in regard to such research; after all, digital contracts have only recently become the new norm.
It is also important to note that companies such as Orogold Cosmetics do not have published records relating to lawsuits against them that are easily accessible. It is therefore difficult to discern whether courts have been siding with the customer or allegedly shady dead sea skincare stores in situations such as those mentioned earlier in this paper, whereby a customer believes that the price of a product was misrepresented to them yet has signed an electronic agreement. To be fair, one can even argue that the onus lies on the customer to advocate for themself and thus refuse to sign a contract that is not clear, easily, and immediately accessible… or even presented on paper for that matter.
IMPLICATIONS AND FUTURE OUTLOOKS
As for the future of technology in sales? The rise of digital technology for e-commerce has definitely contributed to the efficiency of sales companies. However, there is a lack of understanding regarding the impact of this newer digital technology on certain consumers (Agnihotri et al. 2023). Further research is needed on the use of specific digital e-commerce tools in an in-person sales setting, and how they impact the consumer. Research is also needed into how sales companies may abuse these digital tools for increased profit.
For society, human interaction in retail remains of prime importance, as it is the salespeople who create engaging and hopefully positive experiences for customers (Pappas et al. 2023). Salespeople are often seen as knowledgeable/experts in their field, and therefore consumers trust and rely on their recommendations (Pappas et al. 2023). In my opinion, they have a duty of care to ensure that the customer’s holistic needs are being met, which includes trust, transparency, and peace of mind in regard to the retail process. In fact, salespeople play a crucial role in the sales industry and are paramount when it comes to avoiding and calling out unethical sales practices.
The downsides of such digital technologies for the consumer underscore the need for increased awareness, transparency, and consumer protection measures to safeguard individuals from falling victim to nefarious sales tactics (e.g. misrepresenting information to the customer by taking advantage of e-contracts, e-receipts, and e-manuals.
CONCLUSION
Daily (2020) states, “As we move into a digital world, we will see more retailers, medical offices, businesses and a host of venues taking advantage of digital processing of transactions.” It is therefore imperative that we acknowledge that certain companies may take advantage of digital tablets for contract signatures, electronic receipts, and online user manuals to conceal valuable information from customers, simply to increase their likelihood of making a sale.
To conclude, it is necessary for individuals to be aware of the potential deception and for regulatory bodies to enforce transparency and consumer protection measures. By shedding light on this deceptive practice, it encourages accountability in the business industry to safeguard individuals from falling victim to exploitation. Increased awareness and proactive measures are essential to combat the shady sales tactics employed by unethical companies and ensure a fair and equitable marketplace for all.
References
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