SG-based eCommerce firm Mdada sees new wave of complaints against it

Singapore-based eCommerce firm Mdada continues to be hit with complaints by consumers over late or incomplete deliveries, defective or incorrect products and delays in receiving refunds, according to the Consumers Association of Singapore (Case).

This comes after it received 44 complaints against MDADA between 1 January 2022 and April 30, 2023, according to Melvin Yong, Case' president. 

Don't miss: Actor Pornsak Prajakwit abruptly resigns from eCommerce firm Mdada, Mdada releases statement of disappointment

In response to the complaints, Case told MARKETING-INTERACTIVE that As more and more consumers partake in online shopping, CASE has introduced a Standard Dispute Management Framework for E-marketplaces for consumer disputes to be resolved equitably and efficiently.

The framework covers various aspects of dispute resolution pertaining to clarity and accessibility of information, timelines for complaints to be processed, and mechanisms to protect consumers’ monies.

Case said:

We call on e-marketplaces like Mdada Pte Ltd to adopt the Framework to give consumers greater assurance when shopping via their online platforms.

Currently, frustrated consumers are also taking to Mdada's Facebook page to complain about issues such as a refund status being outstanding for a month and that they are getting no response for defective goods. 

MARKETING-INTERACTIVE has reached out to Mdada for more information.

This is not the first time that the firm has received backlash over overdue orders. Last year, celebrity hairstylist Addy Lee, co-founder of Mdada, apologised to customers for a backlog of overdue orders in a livestream on Facebook.

In the livestream taken from Europe, Lee explained that Mdada had run into logistical issues caused by the pandemic, which resulted in delayed goods, according to The New Paper. He added that the company has not made money at all from the trip to Europe as it had failed to calculate the administration fee and GST, which amounted to 12% for some customers. Mdada later said that all food items that can no longer be consumed will be refunded, while customers will receive a weekly update on their orders’ delivery status.

The apology came after Shin Min Daily News (SMDN) detailed the experiences of customers who waited for two months for their orders to arrive. Lee also reiterated during the livestream that Mdada had a delivery timeline of 40 working days.

Since then, the firm has been embroiled in controversy after one of its co-founders, actor-host Pornsak Prajakwit, announced, rather abruptly, that he had decided to leave Mdada. The Thai-Chinese personality announced the news on his Instagram and Facebook pages on January 2 in a lengthy post that claimed that differences, including a generational gap, was the reason why he chose to leave.

“In the past two-and-half years, I got to know so many new supporters through my Japan, South Korea and United States trips. It has been so fruitful and I count my lucky stars for my good fortune,” he wrote in his caption. “Come 2023, I have lofty dreams and ambitions. I want to be the ideal live-streamer - one with a personal touch, one whom everybody can entrust his/her purchases, and one who is there to entertain as well.” he continued.

Addressing his sudden departure from Mdada, Prajakwit said in an interview with local news site AsiaOne that he left due to differences between himself and co-founders Chia and Lee. He acknowledged that he shared a lot of things in common with his co-founders, Chia and Lee, but that considering the “generation gap”, his departure could not be considered to come as a surprise.

He added in the interview that he and his co-founders had vast differences in points of view when it came to corporate governance which eventually soured the relationship. He also continued by saying that Mdada was under a new management but that this was due to internal promotions and not external factors such as an acquisition. He clarified that Chia took up directorship and that when he left as chief executive officer, Lee took up the role. At that point, Prajakwit said that he assumed he left on good terms and that the three remain friends.

Mdada then released a statement on its social media platforms that said it was “deeply disappointed” about Pornsak speaking to the media about his decision to leave “without first giving them a proper chance to address his alleged concerns.” The statement continued by saying that Pornsak did not mention his concerns when he resigned as director and CEO in October last year. The statement added that it was “deeply concerned by any suggestion or innuendo that Mdada or its key shareholders are in any way untrustworthy with customers’ purchases or orders, or that Mdada is lacking in corporate governance”.

The statement also added that issues the company faced in the delivery of good sold on its platform happened from time to time due to “extrinsic factors outside of Mdada’s control”. It continued by saying that these issues included logistical problems such as the weather and COVID-19 restrictions.

“This episode has not only affected Mdada’s reputation and value, but has also hurt Chia, Lee and all employees of Mdada who work tirelessly to serve our loyal customers and fans. Only Prajakwit will be able to explain why he decided to do so,” the statement said.

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