Lack of Consumer Trust Holds Back E-commerce 09/08/00 In marked contrast to the previous story, according to recent research carried out by MORI for the National Consumer Council, consumers' lack of confidence in the strength of online security is hindering the expansion of Internet shopping in the UK. The research reveals that key consumer concerns centre on releasing credit card and personal details online, lack of opportunity to check goods before paying and the risk of fraudulent suppliers. These fears are compounded by widespread ignorance about legal rights and redress for consumers when things go wrong. According to National Consumer Council Director, Anna Bradley, "It is especially worrying that Internet users are more - not less - likely to harbour doubts about shopping online. For instance, almost four out of ten adults see the need to release credit card details as a major disadvantage of Internet shopping. Among Internet users, more than half feel the same way. This heightened awareness is evident across the board - from delivery problems and not being able to touch goods to releasing personal information. Unless the total online shopping environment - sites and payment mechanisms - is made more secure, some consumers will never have the confidence to explore the opportunities." To overcome the consumer barriers to the expansion of Web shopping identified by the research, the National Consumer Council is calling for: Secure payment mechanisms which provide a safety net when things go wrong. Strengthening existing protection for credit card transactions that go wrong. High standards of customer service from Web retailers - from website quality to order information, final delivery and 'Rolls-Royce' redress systems- that will foster greater consumer confidence; A government-backed publicity campaign to promote knowledge and awareness of consumer rights, how to get redress and where to get information and advice. Ms Bradley added, "Our research shows that consumers try to minimise the risks by shopping from online channels run by established, well-known brands and retailers. Twenty-eight per cent of Internet users say they would look for a recognised brand name. While 22% would feel safer shopping on the site of a high-street retailer." The research, based on face to face interviews among almost 2,000 adults across Great Britain and 10 in-depth discussion groups, also reveals that consumers are confused about their online shopping rights. Among Internet users, 44 per cent believe they have less legal protection when shopping on the Web than in the high street. Their coping strategy is to pay by credit card - a compromise between the risks of shopping online and the extra protection the card provides. But only half the adult population has a credit card. That leaves the other half without an easy way to pay that comes with built-in redress. Patricia Hewitt, Minister for e-commerce, commented, "The Government is very keen to see enhanced consumer confidence. Along with business and consumer bodies we are taking a range of steps, for example on codes of practice and TrustUK. This report will help us to focus on shoppers' specific worries and we shall be studying it carefully." Other key findings of the report included: 26% of GB adults have access to the Internet-either at home or at work. Only 3% of GB adults say they regularly shop online. 85% of GB adults consider the High Street to be the safest place to shop; 35% think that the Internet is the riskiest. Among Internet users, 55% think online shopping is the most risky. Among Internet users, 54% express concern at releasing credit card details online. Among Internet users, 51% say being unable to physically inspect the goods before paying is a main disadvantage. Among Internet users, 30% believed that there was a risk from fraudulent suppliers. Further details about the survey and the findings can be found on at www.ncc.org.uk The research was conducted by MORI in three phases: a qualitative stage based on group discussions; a structured questionnaire asked of a cross-section of the population; and additional 'booster' interviews in Scotland and Wales. The qualitative stage took place during February and March 2000. In total, MORI conducted nine group discussions and three paired depth interviews with a total of 83 participants in various locations round the country. The main quantitative survey was conducted as part of MORI's Omnibus between 13 and 17 April 2000. A nationally representative quota sample of 1,950 adults were interviewed face-to-face, in their own homes. The final 'booster' stage consisted of a total of 1,021 interviews representative of the adult populations of Scotland and Wales, between 22 April and 16 May 2000. This was also conducted face-to-face, in respondents' homes.