The Competition Bureau ExperienceBUILDING TRUST IN THE ONLINE

ENVIRONMENT: BUSINESS TO CONSUMER DISPUTE RESOLUTION JOINT

CONFERENCE OF THE OECD, HCOPIL, ICC

The Crown Plaza Promenade Hotel

The Hague

11-12 December 2000

Illustrating B2C Complaints in the Online Environment

Presented by Competition Bureau, Industry Canada

Mail58,0%

Oral, Telephone13,1%

Unknown5,1%

Magazine/Catalogue4,8%

Newspaper4,5%

Other/Contest/Mtgs/Y Pages/Coupon3,0%

Flyer/Pamphlet /Brochure2,7%

Internet2,2%

TV/ Radio/Fax1,7%

Sticker/Product Tag/Package1,6%

Employee(s)/Oral, door to door1,5%

In-Store Advertising0,9%

Sign0,9%

Total: 10862

FBP Complaints byRepresentations

From January 1st to October 31, 2000

United States45.9%

United Kingdom

21.9%Middle East

6.9%

Africa3.4%

Australia3.1%

South East Asia2.0%

Switzerland1.6%

South America1.5%

South Pacific Islands1.3%

New Zealand1.2%

Italy1.0%

Caribbean0.9%

France0.8%

0.7%

Netherlands0.3%

Other Countries

4.8%

Total: 3495

FBP Complaints fromOther Countries

From January 1st to October 31, 2000

Turkey0.4%

0.7%

France

TurkeyTurkey

0.6%Germany0.5%

Austria0.5%

Japan

Pakistan

India

Business Opportunities

18,3%

Health0,8%Financial

3,3%

E-Commerce

17,4%

Communications2,5%

MLM

22,0%

Adult Services1,2%

Travel2,1%

Internet Access Services

5,0%

Nigerian Scam12,9%

Real Estate0,8%

Sweepstakes2,5%

Internet Auction2,9%

Miscellaneous

8,3%

Total: 241

Internet ComplaintsBy Categories

From January 1st to October 31, 2000

Most Common Areas of E-Commerce Complaints to Canada’s Competition

Bureau• non-delivery of goods

• time for delivery

• non-disclosure of charges/costs

• product attributes

• retail versus on-line pricing

OECD Guidelines - Internet Sweep Results

• Competition Bureau carried out internet sweep in August 2000

• Reviewed 292 websites

• Included diverse categories of e-merchants: sports and fitness, books, C.D.’s, health & beauty products, clothing

Selected Results:

• 77% disclose full purchase cost

• 45% explain liability/warranty

• 52% describe return, exchange policy

• 65% describe taxes, other charges

• 26% provide consumer complaint procedures

• 16% describe dispute resolution mechanisms

Conclusions - From Our Experience

• Internet use is gradually growing

• Consumer issues are multi - jurisdictional

• Consumers using internet report range of complaints

• Information disclosure is an area for potential consumer concerns

• Dispute resolution mechanisms are not widely available