×

We've got news for you.

Register on SowetanLIVE at no cost to receive newsletters, read exclusive articles & more.
Register now

Consumers warned about Milo Designs’ scam

A bedroom set from scam company Milo designs.
A bedroom set from scam company Milo designs.
Image: via Facebook

*Linda thought she had scored a bargain when she got a 30% discount on a R20,000 white king size bedroom set for her new home. 

She had just moved into her new house in Sebokeng, Vaal, in July 2022 when she came across Milo Designs on social media network Facebook. 

The page had a range of luxury furniture that came at a discount. 

“After getting the house I was still excited and I wanted to reward myself with new furniture. Seeing all this furniture on Facebook was exciting and I couldn’t pass on a good bargain,” said Linda.

She then made inquiries to buy the bedroom set, which came with a headboard, pedestals and bed storage base.

She made a R14,000 payment via electronic transfer. 

“I was told that the item would be delivered within 14 days but this did not happen. A month went by and there was still nothing from the company. Whenever I called them, I’d be told stories about their trucks breaking down or them being out of stock,” said Linda.

She then asked for a refund but she was told this was impossible because of the company’s cashflow situation and that she would be charged a penalty.

“That’s when I lost it,” said Linda.

Last week, the National Consumer Commission (NCC) warned South African consumers to exercise caution when transacting with Milo Designs, saying “the supplier seems to be a scam purporting to be an online store that designs and sells furniture, using different social media platforms”.

The commission said it had received complaints from consumers who claimed to have been scammed by Milo Designs after paying for the goods (furniture) advertised on their social media pages.

“Consumers allege that they have paid between R10,000 and R1.2m per transaction. Their Facebook page describes Milo Designs as a supplier that ‘manufactures unique furniture with world-class standards to satisfy the requirements of the most…(sic). The Facebook page was created in 2014 and has about 264,000 followers,” said the commission in a statement.

Sowetan phoned Milo Designs on different number but could not get through.

The commission’s spokesperson, Phetho Ntaba, said it had since started investigating the company and its preliminary assessment indicated that the company operated a scam.

The operators ... are not cooperating with the commission. Acting National Consumer Commissioner  Thezi Mabuza said both [directors] had no intention of delivering the goods or refunding the consumers. The commission arranged several times to meet and serve them with an investigation certificate to no avail. In most cases, they cancel meetings on the eleventh hour, making it difficult to finalise our investigation. Addresses provided by these persons show dilapidated buildings,” said Ntaba.

“The Commission also discovered that the images of the furniture they claim to manufacture are in fact not from SA but obtained from suppliers based in countries such as Columbia and Canada. The Commission has confirmed that these images were stolen from other sites like Pinterest, Instagram, and Facebook.

“We call upon South Africans to exercise extreme caution when they transact with Milo Designs as their modus operandi is to advertise the goods and take money from consumers with no intention of delivery.”

Ntaba said it was the supplier’s responsibility to deliver the goods to the agreed place on the agreed date and time.

Consumers are urged to exercise caution when transacting online.

“Anyone who might know the whereabouts of these individuals is urged to notify the commission,” said Ntaba. 

Sowetan did a company search on Milo Designs and nothing came up, which mean the company is not registered with the Companies and Intellectual Property Commission.

About a year ago Sowetan Consumer did a story about Manicaa.com, an online company that used Milo Designs’ modus operandi and did not refund its customers.

The company had its business address in Motor City in Midrand, Johannesburg.

However, the location turned out to be an empty parking lot and none of the business owners in the centre knew about Manicaa.com.

The NCC investigated the company and sister entity Karibaa. 

“Manicaa did present themselves to the commission and were formally served with Notices of Investigation for them and Karibaa. They have also since responded in writing to an elaborate questionnaire directed at each of the entities. Investigators are now going through the responses.

“They had indicated that the South Gauteng High Court had appointed a liquidator to take over the liquidation of Manicaa.com. The investigators have requested the liquidation order, whether interim or final. We are still waiting for that order,” said Ntaba.

*Not her real name

Would you like to comment on this article?
Register (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.