The OFT has published its strategy, entitled "Protecting Consumers Online", which aims to enhance the level of online consumer protection offered in the UK.
With an estimated £50 billion spent by online consumers since the registration of the first "co.uk" domain name almost 25 years ago, the UK's internet economy is in a relatively strong position. However, in order to support continued growth in this important sector, the OFT's current strategy stresses the importance of maintaining a high level of consumer trust as a pre-requisite to a successful internet economy.
The Government had previously identified barriers to consumer protection in its 2009 Consumer White Paper, which called for a "more coherent approach" to online consumer protection. Following subsequent review and a period of consultation, this current strategy forms the OFT's initial response.
In order for the UK to maintain a suitable level of online consumer protection into the future, the strategy outlines several areas in need of some level of improvement, including regulatory enforcement; consumers' awareness of their rights; and, importantly, business compliance with consumer protection regulations.
The strategy recognises the pivotal role that businesses play in developing consumer confidence. However, previous reviews had identified a lower than desired level of business compliance with consumer protection regulation. To remedy this, the strategy aims to provide more effective guidance to businesses on how to comply with the various, often complicated, consumer protection regulations.
The strategy also utilises the key role that web design firms play in determining how online businesses engage with their consumers. Accordingly, an initiative is proposed for the OFT to provide guidance and to work along with web designers, ensuring that the websites of online businesses are compliant with consumer protection law from the design stage.
"The great strength of the internet is in its ability to innovate rapidly", the OFT notes. With an estimated 40% of the UK population still not transacting online, innovations are not likely to be short on the ground. However, consumer confidence must be maintained in order to support this future growth and development - and businesses themselves have a significant role to play in this process, and, indeed, have much to gain.
The OFT's "Protecting Consumers Online - a Strategy for the UK" is available by clicking here.
Disclaimer
The material contained in this article is of the nature of general comment only and does not give advice on any particular matter. Recipients should not act on the basis of the information in this e-update without taking appropriate professional advice upon their own particular circumstances.
