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While many businesses and consumers turn to e-commerce platforms to find affordable, reliable refurbished IT equipment, the lack of industry standards and oversight has given rise to a darker side of this market.
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Unethical e-commerce retailers often take advantage of unsuspecting buyers, peddling subpar products, cracked software, and questionable business practices that not only harm consumers but also tarnish the reputation of the entire refurbished computer industry.
Wale Arewa, the CEO of Xperien, has called for urgent action – he says industry experts, environmental advocates, and conscientious consumers must unite to implore e-commerce giants to step up and take a stand against these unethical refurbished computer resellers.
Arewa shares his thoughts below.
Proliferation of unethical refurbished computer resellers
The IT refurbished industry has emerged as a crucial player in promoting sustainability, affordability, and accessibility. It offers a lifeline to those in need of affordable computing solutions, contributes to the reduction of electronic waste, and champions the principles of the circular economy.
However, beneath the surface of this promising sector lies a pressing concern: the proliferation of unethical refurbished computer resellers.
While many businesses and consumers turn to e-commerce platforms to find affordable, reliable refurbished IT equipment, the lack of industry standards and oversight has given rise to a darker side of this market.
Unethical resellers often take advantage of unsuspecting buyers, peddling subpar products, cracked software, and questionable business practices that not only harm consumers but also tarnish the reputation of the entire refurbished computer industry.
The urgency of this issue has prompted a call to action, with industry experts, environmental advocates, and conscientious consumers uniting to implore e-commerce giants to step up and take a stand against these unethical refurbished computer resellers.
The IT refurbished industry urgently needs to look into the challenges posed by unscrupulous vendors, explore the impact of their actions, and discuss the crucial role that e-commerce platforms can play in championing ethical business practices within the industry.
Call for governance
Regrettably, the IT Refurbished industry operates without the oversight of a professional trade association or institution that would enforce a strong code of ethics and industry standards. This absence of regulatory oversight presents a significant risk, as it may attract rogue operators and tarnish the reputation of the industry.
To be considered ethical and legally compliant, refurbished computer resellers must adhere to various legislative requirements. These include compliance with the Value-Added Tax Act of 1991, the Income Tax Act of 1962, the Second-hand Goods Act of 2006, and the Consumer Protection Act of 2008. These legislations ensure that resellers pay their fair share of taxes, do not engage in the sale of stolen goods, and protect consumers from faulty products.
Furthermore, ethical resellers should only offer genuine Operating Systems, such as Microsoft 10, rather than “cracked” versions or discontinued OS options like Windows 7. The use of genuine software not only adheres to legal requirements but also ensures that customers receive reliable and secure systems.
A significant portion of refurbished IT equipment is sold online through e-commerce platforms and order fulfillment service providers. Industry giants like Takealot and Mass Stores have the potential to play a crucial role in ensuring the sustainability of the industry. By refusing to support illegal or non-compliant resellers, these platforms can prevent the promotion of criminal and unethical vendors.
For the IT refurbished industry to thrive and make a positive impact, it is essential that we bridge the gap of a professional trade association. Instead of relying solely on external regulators, the industry must engage in self-policing. This approach encourages businesses to be more accountable, ethical, inclusive, and transparent.
Environmental, Social, and Governance (ESG)
It will drive responsible business conduct, enhance in Environmental, Social, and Governance (ESG) performance, and bolster the IT refurbishment sector. Ultimately, this means cultivating a culture of integrity, fairness, and inclusion that goes beyond mere legal requirements, embodying a commitment to what is not just legal but what is right.
The world has witnessed a growing interest in ESG principles, as businesses and industries seek to align their operations with sustainability goals and societal well-being. This convergence of ESG principles with the IT Refurbished industry has opened the door to a range of exciting possibilities.
Wale Arewa, CEO, Xperien
Notably, it can usher in a new era of environmental sustainability, promote social equity, and offer cost-effective solutions for bridging the digital divide among underserved communities. However, the realisation of these benefits hinges on the establishment of strong governance and adherence to ethical standards within the refurbished computer industry.
The IT refurbished industry plays a pivotal role in extending the lifespan of used computers, reducing electronic waste, and mitigating the environmental impact of electronics disposal. By refurbishing and reselling pre-owned IT equipment, we not only conserve valuable resources but also reduce the carbon footprint associated with manufacturing new devices.
Moreover, this industry offers cost-effective alternatives to brand-new equipment, making it an essential tool for providing access to technology for disadvantaged communities. These advantages are not only practical but also serve the broader ESG agenda.
The future
The intersection of ESG principles with the IT Refurbished industry holds the promise of a sustainable and socially responsible future. To realise this potential, it is imperative that the industry establish strong governance, adhere to legislative requirements, and prioritise ethical standards.
By doing so, we can ensure that the IT Refurbished industry remains an essential force for environmental sustainability, social equity, and economic inclusion. Only by working together to uphold these values can we fully unlock the potential of this industry and create a brighter, more sustainable future for all.
