eUK

Consumer trust and confidence on-line

Colin LloydDMA

Competitiveness White Paper

“that by the year 2002 the UK will have the best environment in the world for electronic trading”

DTI

Key Deliverables

Trust and confidence from UK consumers and businesses

Favourable trading environment for companies operating and entering eUK

Help for SME’s

eUK USP’s

Favourable regulatory environment.Advanced state of self regulationCritical mass of consumersEnglish language‘British’ ethicsStable - vis: Financial ServicesBritish marketing creativity

Draft directive on ‘certain legal aspects of e commerce’

Calls for:

“A system of self-regulation to achieve suitable controlled environment within which e-commerce can thrive”

Alliance for Electronic Business

DMA - CBI - CSSA - FEI - e-centreComprises 12,000 member companies

DMA ‘Alliance’ responsibility.

Data ProtectionConsumer Trust and Confidence

Consumer Strategy White Paper

Key components

Existing Industry Codes

•Key principles•OFT

E-Commerce Codes and Safeguards

What is needed?

Single accrediting body for e-commerce self regulation On-line codes Digital Hall Mark E-Mail preference service Privacy Policies Best Practice

DMA summit meeting

DMA (Chair) - Consumers AssociationIMRG - Inst. Chartered AccountantsInternet Ad. Bureau, ASAInternet Watch FoundationNat. Fed. of Consumer GroupsBBA - ICC - MOPS -IBM- AOLMicrosoft - DTI - OFT - Oftel

The Digital Hallmark

“the digital hallmark initiative aims to increase consumer confidence in internet shopping by allowing websites which comply with a code of best practice to display an on-line hallmark. It will be led by the private sector, building on work of private sector bodies including the AEB and CA”‘DTI’

Trust issues

Balance consumer protection with business needs

Meet reasonable expectations of consumers

Open/transparentConsistent,flexible and stable

Components of a Trust Mark

AuthenticationAuthentication

VerificationVerification

Adherence to CodesAdherence to Codes

RecourseRecourse

PolicingPolicing

Privacy policyPrivacy policy

Adherence to industry Codes

British Code of Advertising and Sales Promotion

Sectoral industry codes DMA - ABTADMA children's on-line codeICC CodesConsumer organisation codes

Privacy

Adherence to Data Protection DirectiveOn-line privacy policy statement

Privacy policy generator

Opt-out facilities Children's privacy policy

E-mail preference service

SPAMGlobal opt-out scheme to recognise

consumer choiceLed by US DMAUK interfaceGlobal adoption

Recourse

Timely complaint processingCross border complaint resolution

protocolsCountry of origin /destination principlesLegal certainty

Recourse Authorities

Use proven existing structures: ASA DM Authority Consumers Association Self - Regulatory and regulatory infrastructure

Revocation proceduresOn-line directory of accreditation's

EC Directives affecting e-mail

Data Protection

Data subjects given the right to objectRequires opt -outProcessing data - fair and lawful if right to

object is used.

Distance Selling Directive

Article 10 (2)Distance Communication may only be

used where there is no clear objection from the consumer (vis: opt out)

Electronic commerce

Article 7 (2)Member states shall take measures to

ensure that consumers can have themselves entered in an opt-out register which service provider must check regularly

Financial Services Distance selling

Use of telephones, electronic mail automated calling systems requires prior consent.

eUK Challenge

Create a world class on-line self regulatory/regulatory framework

Government, regulators, industry and consumer groups must work together for the UK to No.1.