Survey highlights pitfalls of shopping on the Net

Web-surfing and shopping are increasing in popularity across the world. According to the findings of a survey conducted by Consumers International and the European Commission, Internet shopping needs development and regulation.

The Consumers@shopping study compared online shopping internationally by examining websites in 17 countries and using only established traders and easy-to-find sites.

Although in theory the Internet should deliver convenience, speed and choice, the study revealed that service is often unreliable and the choice of goods available is limited.

The researchers ordered 151 items and found that one in 10 items never arrived, more than half the products ordered arrived without receipts and 73 per cent of traders failed to give crucial contract terms. In 71 per cent of cases researchers were billed for products before they arrived.

Most worrying were the findings that more than 25 per cent of sites gave no address or telephone number and 24 per cent were unclear about the total cost of the item that was ordered. Only 32 per cent of sites provided information on how to complain if something went wrong.

In the area of information and redress, the study concluded that "retailers need to improve the quality of information they provide on key issues such as delivery charges, order progress and their own policies on privacy, returns and redress. In many cases the consumer is offered no information at all on these aspects".

Unlike other surveys, Consumers@shopping has a lengthy recommendation section to guide international and national policy makers, Internet retailers and their industry bodies in the right direction.

"There are still many obstacles to overcome before consumers can shop in cyberspace with complete trust. There is a very real need for some cyber-rules of commerce," the report concludes.

In the Republic, the European Consumer Centre (ECC) emphasises that consumers need to be given the same level of protection as when they shop in the conventional manner. It warns consumers to be extra wary and to scrutinise an online purchase contract carefully. When shopping on the Internet, consumers should make sure they have information on the following: name and address of the company; country where the company is based; total cost of item and receipt/proof of purchase, says the ECC. Unfortunately, very little consumer protection is available to online shoppers.

By mid-2000 it is hoped that a European directive to be implemented across the EU will redress this shortfall. Under the directive, consumers must be given basic minimum information in writing before the contract comes into being, including the identity of the supplier and his/her address, price of goods or services and other charges. The directive also gives the purchaser a cooling-off period of seven days in which to withdraw from the contract without giving any reason, says the ECC.

The consumer advisory service says that in the Republic, where electronic commerce is forecast to grow from £10 million (€12.7 million) in 1997 to £400 million in 2001, the need for a proper regulatory environment is paramount, particularly relating to security issues, discrimination against electronic signatures and electronic contracts and the controversial area in which national law governs Internet transactions.

Public consultation is currently taking place in the Department of Public Enterprise on drawing up this important regulatory framework. Concerned consumers may view the consultation paper on electronic signatures, electronic contracts and related matters online at www.ecommercegov.ie