Retailers who rip you off are ‘paying Google to come top of search’

RIP-OFF retailers that break consumer laws on refunds and returns have been paying Google to make sure that they appear at the top of searches.

An investigation by Which? found that online retailers that regularly get over a million clicks a month are subjecting their customers to unreasonable charges and unfair terms and conditions.

The probe found that some of the most serious consumer breaches included charging customers £300 "restocking fees" to return goods and making consumers pay return postage to Hong Kong.

With Christmas shopping well underway and Black Friday just a few days away, Which? is warning consumers to be wary of shopping deals towards the top of a Google search.

Some of the retailers Which? investigated included eGlobalCentral UK, Wowcamera, TobyDeals and Techinthebasket.

They were all among the top results when searching for popular items such the Samsung Galaxy Note 10, Apple iPhone 11 and Apple AirPods.

The companies are based in various countries - but all are subject to certain UK consumer laws because they are classed as marketing directly to British consumers.

eGlobalCentral UK is based in Hong Kong but gets almost 90 per cent of its web traffic from the UK.

On its website it states that customers will be charged £15 if an order is cancelled after it has been processed and reserves the right to charge a restocking fee of £30-£300 if the terms of its returns policy are not met.

The tech seller says it will only accept returns of goods “in brand new condition” and in the original packaging, but the terms and conditions make clear that the only address provided “does not accept any return of goods”.

TobyDeals, which is also based in Hong Kong, said customers could face a £20 administration fee if they cancel after an order has been processed and warned of a £50 restocking fee for any missing accessories.

Both eGlobalCentral UK and TobyDeals said faulty goods must be returned within 14 days - less than half the period permitted by law.

TobyDeals also specified that the customer must bear the expense of shipping the item back to Hong Kong, which is likely to cost around £15.

In response to the Which? investigation, Toby Deals has agreed to make changes and ensure future compliance with UK consumer law.

The consumer group said that UK-based Techinthebasket and Wowcamera also breached consumer laws, but these were less serious.

Wowcamera updated its returns policy to bring it into line with the regulations after Which? shared its findings.

Google has also responded to the investigation, and says that it has removed the listings that breach the rules.

A spokesperson said: "We require the merchants who use our platforms to adhere to local law.

"As such, we have disapproved and removed their Shopping Ads in the UK.”

In the last three months of 2018, Google raked in $32.6 billion from advertising revenues across its various platforms, including Google Shopping.

Google Shopping generates revenue using a cost-per-click (CPC) model, so retailers only pay when a customer clicks through to their website.

Retailers can bid on how much they are willing to pay per click, but higher bids usually secure the top search results.

While the CPC model is common, Which?’s research suggests it allows dodgy retailers to buy a  slot at the top of search results, where their listings are likely to attract unsuspecting customers.

Google said it uses a combination of algorithmic and human review to check retailers using its Shopping Ads.

Adam French, Which? consumer rights expert said: “This is a significant gap in consumer enforcement, that reinforces why the next government must carry out a major overhaul of the system to reflect how people buy goods and services today.”

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