Purchasing goods and services abroad via Internet is a very convenient and increasingly popular form of transaction among the European consumers. The on-line shopping market in Europe grows, however, also the number of problems which the consumers encounter increases. The Consumers still lack knowledge about their rights and methods of safe use of Internet stores, and are therefore more endangered by the problems resulting from unreliability or even dishonesty of some Internet sellers. These are the main conclusions of this year’s European Consumer Centre Report entitled “The European Online Marketplace - analysis of Consumer Complaints 2004” that was presented today and that deals with the problems of the European consumer in the cross-border on-line shopping.

The European Consumer Centres network notices a clear increase of consumer interest in shopping over Internet. In 2004 a 36% increase of such information request was noted in relation to the year 2003. The number of consumer complaints connected with cross-border on-line shopping increases (a 45% increase in relation to the year 2003.) The problem most frequently reported by the consumers concerns delivery of ordered goods (41% complaints), including mainly failure to deliver the order (as much as 31% of complaints.) Damages and defects of delivered products (25% complaints) come as second.

The number and sophistication of fraud connected to electronic trade is also growing at a disturbing rate. Here, mainly deceitful electronic mail, false lotteries, false internet deposit companies, false internet sites, using the identity of legal companies by false Internet companies, etc. should be mentioned.

A separate group of problems filed by the consumers refers to Internet auctions. The buyers on these auctions are often unaware that they are protected by consumer law (including mainly the Directive 97/7/EC on the protection of consumers in respect of distance contracts), as they often participate in transactions where both the buyer and the seller are private persons.

The Polish electronic trade market enters the growth phase. According to Money.pl and Gemius e commerce 2005 Analysis and Forecasts the indicator of the number of on-line customers in Poland amounts to approximately 42.3%, which places Poland near the European average, amounting to 49%. Additionally, the very same research shows that the e-commerce market is one of the fastest developing and most perspective markets in Poland with the average annual revenue dynamics (of the recent 4 years) at the level of 171%.

The European Consumer Centre in Poland also notes a significant interest of the Polish consumers in the e-commerce subject area (approximately 10 requests for information.) The main problem of the Polish consumers with cross-border on-line transactions within the framework of the uniform market concerns returning the defective goods. This is often connected with the consumer’s insufficient knowledge on the credibility of the foreign Internet undertaking and the proposed terms of the transaction as well as language difficulties in communicating with the undertaking.

EXAMPLE OF THE CONSUMER CASE SOLVED WITH THE ASSISTANCE OF ECC
A consumer purchased a digital camera in a French Internet store, through filling the form on the Internet webpage. The terms of transaction and terms of warranty have been presented on the Internet site, also in the Polish language. The consumer paid 8000 zloty. The article was delivered promptly, and the customer immediately received the requested additional information. After two months the consumer reported the camera to be defective. The undertaking “forced” the customer to send the merchandise to the service in France, at his own expense. Then, the undertaking demanded a 150 zloty expertise fee and 1200 zloty for repair. Because the dispute has been reported to the ECC, the undertaking returned the incurred costs to the consumer and offered his a promotional voucher for purchase of new equipment.

In order to avoid problems, the on-line buyer should keep the following issues in mind: Check the credibility of the undertaking:

• Choose Internet stores with an established reputation or recommended by trusted persons, specialist magazines, etc.;
• Select stores that have safety certificates, for instance EuroLabel, TrustUK and other;
• Make sure who is the owner of the website and where the seller is headquartered, whether the data contained on the Internet site is complete and corresponds with data contained in official trade registers.
  1. Check transaction terms:
• Check whether all indispensable information is available on the Internet page;
• In particular, check what is the policy of the undertaking with respect to complaints, return of goods and payment;
• Select websites offering secure payment systems (secure connections, lock icon);
• Avoid payment “in advance” in a form of money transfers, as it is difficult to determine the financial flows;
• Check whether the seller has indicated a total price - including all taxes. Check the amount of additional, possibly hidden costs, such as VAT, duty, costs of delivery, shipment or parcel.
• Check the terms of guarantee and availability of guarantee and post-guarantee services in Poland.
  2. Respect the protection of privacy:
• Check the principles of personal data protection, the so-called privacy policy specified on the store’s Internet page;
• Do no disclose personal and financial data through electronic mail.
  

Efficient information and consumer consultancy networks such as the European Consumer Centres, certification systems (for instance EuroLabel, Trust UK) and systems of alternative online dispute resolution (ODR) should be the response to the problems of the consumers connected with electronic cross-border trade. Establishing consumer trust to the on-line marketplace requires cooperation of social partners - institutions, consumer and business organizations. Participation of the last ones in particular in processes of self-regulation and development of ODR systems is indispensable. Construction of such mechanisms is in the interest of the industry as such, as it can be translated into increase in sales.

According to the Internet Ombudsman from Austria, Juergen Gangola: ODR really works, the facts speak for themselves: Since 2000 in Austria, as much as 90% of the reported consumer problems have been solved within a week, and 75% were solved with alternative methods (conciliatory courts, mediations, etc.) Over EUR 1 million have been recovered without additional costs on the consumer side and the judiciary system. To date over 100 companies obtained the Internet Ombudsman’s certificate in Austria.

The European Consumer Centre shall continue informational, educational and consultancy actions, aiming to expand the knowledge about the rules governing the electronic trade, which shall enable the consumers to shop outside the borders of their own countries with greater confidence.

Additional Information:
European Consumer Centre
Plac Powstańców Warszawy 1
00-950 Warsaw
Tel. +48 22 5560118
faks +48 22 5560359
www.konsument.gov.pl
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