One in three consumers in major electricity networks is exposed to unfairness - this is according to the fairness study published by Consumer Council As part of the "Fairness Index" that was recently launched in collaboration with the Research and Economics Administration at the Ministry of Economy.
The study reveals worrying findings regarding the behavior of sellers in stores, handling complaints, and taking responsibility for the products sold. Half of the complaints about product defects or malfunctions end with the fault not being fixed, or not being fixed to the consumer's satisfaction. One in three buyers who experienced a product defect or malfunction encountered a supplier's denial of liability. Approximately 40% of buyers who encountered a product defect or malfunction were exposed to unfair service following the fault.
On the other hand, it is perhaps encouraging to discover that the public does not remain indifferent and "punish" unfair stores: the majority of the public (64%) will not be tempted by low prices and will prefer to shop at a fair store. 76% of consumers who encounter unfairness will not return to the store, 75% of them will stop shopping there, 70% will complain to the store's salespeople, and 58% will publish negative advertising.
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""There is a feeling of disdain for the consumer and a renunciation of responsibility for quality products and reliable, good service," says Attorney Ehud Peleg, CEO of the Consumer Council. "Consumers need to be constantly alert, carefully check all information, and increase sharing and comparisons of purchasing experiences. For its part, the state should decide on a national effort to change the culture of unfairness in Israel.".
The "fairness index"" Launched The Consumer Council about six months ago, with the aim of giving the consumer public a well-established tool to assess the state of fairness in businesses, each time in a different industry, with the first industry sampled being food chains.
The study was conducted in June-July 2014 through a telephone survey among a representative sample of 716 men and women who had purchased some kind of electrical product (except computers and computer equipment) in the past year.
The study examined their exposure to what they perceived as unfairness in the field of electrical and electronic products. 25 events were defined that express different aspects of unfairness in the field, according to 4 areas:
■ The store: Confusing information about discounts or promotions, hiding information about the product or the terms of purchase, transportation or installation, a seller's recommendation of a particular brand out of vested interests, and more.
■ Installation: Unreasonable waiting time for installation or repair services, demand for additional payment for transportation and delivery even though they were included in the price paid, and more.
■ Cancellation of a transaction or return of the product: The store's refusal to cancel a transaction within the time limit set by law.
■ Product faults and defects: Events such as the supplier's denial of liability or the supplier's failure to take responsibility for recurring faults.
Who is fair, who is less?
The study shows that about a quarter of electricity grid customers Avi Sofer (26%) believe that the network is unfair. Following it in the ranking, 4 networks that present similar findings of the perception of unfairness: Shekham Electric (18%), Electricity storage (17%),A.L.M. (17%) and Electric Lounge (16%).
In practice, in terms of the frequency of cases of unfairness on the network, Machsani Elektris ranks first with 36%. Next is ALM with 32%, and in third place is Avi Sofer with 31%.
It is in private stores, and not in chains, that the incidence of cases of dishonesty is the lowest, standing at 27%.
What are people complaining about on every network?
■ Electrical warehouses: Behaviors such as confusing information, discrepancies between promises and reality, misleading promotional signage, errors at the checkout, and concealment of information regarding product specifications or transportation conditions were highlighted.
The chain's response: "Electricity Warehouses works tirelessly to serve its customers with dedication, efficiency and reliability. In addition, the chain allows cancellation of a transaction up to one month from the date of purchase.".
■ Avi Sofer: Here, more customers complained about concealing information regarding alternatives and related products that must be purchased, as well as about not providing a warranty certificate.
The chain's response: "We will draw lessons accordingly, the results of the survey will be passed on to all stores, and all deficiencies will be corrected. It should be noted that Avi Sofer's customer base consists largely of repeat customers, who are satisfied with the service and prices at the chain.".
■ ALM: Negative behaviors such as refusing to provide a price over the phone, biased recommendations, and failure to clarify the customer's needs stood out.
The network did not respond by the time the news was published.
■ Shekham Electric: Problematic signage and "not value for money.".
The network's response: "When the survey arrives, we will take it very seriously.".
■ Electricity Lounge: A high percentage of the chain's customers complained about the provision of partial information regarding warranty.
The chain's response: "Electricity Lounge works in accordance with public trust guidelines. Every complaint is handled completely to the customer's satisfaction. This is the only chain in Israel that provides double responsibility, that of the importer and the store, and allows every customer to contact it with any problem, and the chain is committed to solving it. The chain will continue to operate according to these criteria.".
Store or chain?
Perhaps due to personal acquaintance with customers, perhaps due to the absence of commercial behavioral practices common in large chains, such as problematic incentives for sellers based on sales volumes - it is precisely the private stores where customers report fewer instances of unfairness towards them.
Ultimately, we have to remember that they also sometimes present a good alternative, even if they don't advertise. It's easy to forget their existence in the abundance of airtime and advertising pages that pump up the competition between the big players.
Where to buy electrical products?
Exactly two months ago, we published a two-article series in this section dealing with electrical networks, which reflected exactly the same deficiencies that emerged in the Consumer Council's research: unprofessional sellers, promotion of house brands at the expense of other brands, product mismatches to customer needs, and more.
As the study shows, there are fewer cases of dishonesty in private stores. However, many consumers actually shop in chains.
In the field of electricity, buying from a private store has an advantage: first, because of the responsibility the store owner feels for his business and his need to generate loyalty and repeat customers. Second, because of the expertise that characterizes a salesperson who has been in the field for years, unlike some salespeople in electrical stores, who change quickly.
The bottom line is that every purchase - in any chain or private store - is a "new leaf." The choice of point of sale should be informed and not driven by old habits.
