E-commerce - Overview - Consumer Protection

Contents 1 Introduction 2 The Guidelines for Consumer Protection in the Context of Electronic Commerce 2.1 The Six Concepts Outline for Consumer Protection 3 References

Introduction

Approximately one fifth of total e-commerce is accounted for by business-to-consumer transactions (OECD, 2000: 55). Consumer and user trust is essential for its future development. Therefore, cooperation by business and consumer organisations in developing a united approach to the development of consumer protection strategies for e-commerce is a vital step in improving consumer protection and consequently consumer confidence in this new way of doing business (Australian Competition and Consumer Commission, 2005).

The Guidelines for Consumer Protection in the Context of Electronic Commerce

The Guidelines are established to encourage a global approach to consumer protection in the e-marketplace, a sector that is international and borderless (Rayport, 2000:58). These guidelines are able to facilitate on-line commerce consumer protection mechanisms without causing barriers to trade and by increasing consumer confidence in e-commerce, assist in worldwide economy (Australian Competition and Consumer Commission, 2005).

The Six Concepts Outline for Consumer Protection

• Transparent and Effective Protection

Consumers are to be protected regardless when shopping through the e-marketplace or through local stores. This will ensure consistency and gives assurance to the consumers while shopping (Australian Competition and Consumer Commission, 2005).

• Fair Business, Advertising and Marketing Practices

Fairness and equality are important during business transactions. For examples, advertising should be clear and understandable for people of all ages. Consumers are to be respected and businesses should take special consideration (language, information) when targeting different target markets (Australian Competition and Consumer Commission, 2005).

• On-line Disclosures About the Business, the Goods and Services, and the Transaction*

When purchasing goods online, disclosure should include complete and accurate information about the business, about the goods or services for sale and about how the transaction is made. This will keep the consumer well-informed and awareness of the transaction going on (Schneider, 2002:119).

• Confirmation Process

The confirmation process for a sale should give the consumer a chance to see what he has agreed to buy and to change his mind if he wants before the purchase is completed (Australian Competition and Consumer Commission, 2005).

• Secure Payment Systems

Payment systems need to be secure and consumers should be taken through a step by step procedure to assist them (Australian Competition and Consumer Commission, 2005).

• Education

These guidelines also encourage governments, business and consumers to work together to educate consumers about electronic commerce, to foster informed decision making by consumers participating in electronic commerce, and to increase business and consumer awareness of the consumer protection framework that applies to their on-line activities (Australian Competition and Consumer Commission, 2005).

References

1. Rayport, J. F. (2002) Introduction to e-commerce, Boston: McGraw-Hill/Irwin marketspaceU, ISBN 0072510242.

2. Schneider, G.. P. (2002) E-Commerce, Massachusetts:Course Technology-Thomson Learning, ISBN 0619044160.

3. Australian Competition and Consumer Commission (2005)"E-Commerce", retrieved 26 October, 2005

Yipshinyi 12:01, 28 Oct 2005 (EST)