Of all the Internet users in the world, almost three-quarters are not shopping online, according to UK market research firm Mori. Further research shows 46 percent of users are reluctant to use credit cards online because they fear fraudsters might use their details, according to the National Consumer Council.
With fears about privacy and the security of shopping online preventing sales, vendors are now offering trust marks.
Trust marks are icons displayed on a Web site to reassure the visitor that the company running it offers an acceptable level of customer service and consumer protection. They are also called integrity seals, site hallmarks, privacy seals, integrity marks or kite marks. When the user clicks on the icon, a statement appears indicating the site's participation in the trust mark programme and its commitment to a code of practice.
Typically, these trust marks set standards for disclosure of online terms of sales, privacy, security and customer policies, but not all trust mark vendors offer identical guarantees. Some empha-sise privacy, some credit card security and others focus on specific business areas.
Umbrella marks
The different aspects of consumer protection addressed by different marks can cause confusion for IT departments. Which should a firm apply for? There is a confusing proliferation of marks, making it hard to decide which are worth having. Different marks require firms to go through different processes to win the right to display them, and costs vary too.
Firms trying to get to grips with these issues can turn to TrustUK, a non-profit organisation run by industry and endorsed by the government to encourage consumers to buy online with confidence. It attempts to provide an umbrella mark, pulling together the various e-commerce accreditation schemes and hallmarks, to ensure they are safe for consumers. A Web trader showing the TrustUK mark must observe best practices, including ensuring that payments are secure; helping the consumer to reach an informed buying decision; offering clear terms of agreement and instructions on how to cancel orders if necessary; delivering goods or services ordered within the agreed time period; ensuring protection for children; and providing a formal complaints procedure.
A committee decides whether a code of practice from a mark vendor meets the standards set in TrustUK's criteria, and considers appeals from consumers who feel an approved firm has not handled their complaint in the approved manner.
However, Colin Lloyd, chairman of TrustUK, says the organisation's work has been held back by a lack of consumer recognition, because there has been almost no marketing budget to establish the brand. 'The problem is that it's done on a shoestring,' he says. 'We are working with the government as to how we could fund a marketing campaign, but we would need £5 million a year for the next five years.'
Meanwhile Clicksure, an e-commerce hallmark firm, charges companies to display its seal. Applicant retailers pay for an assessment to see how well the business measures up to best-practice standards and areas for improvement are highlighted. Once corrective action has been taken, independent assessors verify the quality of the operation. Sites that are successful can then display the Clicksure mark. Member sites are often reviewed and are sent updates about changes to e-business law and procedures.
To be awarded the Clicksure mark, businesses must be creditworthy, legally registered and have a physical address. They must provide clear information about their products, charges, refund policies, terms and conditions, and business contact details. Customers should also be notified about the site's privacy practices. Initial assessments cost roughly AUD$13,500. Displaying the awarded Click-sure mark costs about AUD$3,000 for the first two years and AUD$8,400 for each subsequent year.
In a similar fashion, the BetterWeb programme from PricewaterhouseCoopers is a Web standards and consulting scheme that focuses on the four areas where consumers perceive most risk in online transactions: sales terms, privacy, security and customer complaints.
BetterWeb compares firms' policies against its own best-practice BetterWeb Disclosure Standards and provides a report summarising any recommended changes. Once accepted, sites are granted a licence to use the BetterWeb Seal. The annual fee is £10,000 (about AUD$30,000)per site, excluding additional consulting or assistance necessary to complete Web site upgrades.
