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OFT report says consumers and businesses could get more out of the internet

85/07    19 June 2007

The OFT has today released its report into internet shopping.

Download Internet shopping: an OFT market study (pdf 1.17 mb).

The report concludes that the rapid growth of internet shopping is a success story that benefits both consumers and businesses across a range of markets, but that both could do more to make the most of the opportunities it provides.

The UK internet shopping market is estimated to be worth over £21.4bn, and last year over 20 million people shopped online with nearly a third of them spending over £1,000. But the report also found that some shoppers could find better deals by searching more effectively, many could do more to protect themselves online, and most do not know that they have cancellation rights when shopping on the internet.

The OFT also found that many businesses did not know their obligations under the Distance Selling Regulations (DSRs) which provide additional protection for shoppers when buying online. Some businesses could also do more to address consumers' concerns about privacy and security.

The OFT will now work with consumer groups, businesses and other public bodies to:

• ensure that businesses have easy access to clear information and advice about selling online
• advise shoppers how to protect themselves from security and privacy threats
• make sure businesses address shoppers' concerns in terms of avoiding the most frequent problems by providing contact details and a secure environment, and
• improve compliance and enforcement, to make the internet a safer environment for buying and selling, and build consumer confidence in internet shopping.

This work, to be developed over the next six months, aims to find the best ways to ensure that shoppers can feel confident and protected when buying online. More details will be announced by the end of the year.

John Fingleton, OFT Chief Executive, said:

'The internet has added a welcome new dimension to competition in the economy, as well as providing convenience for shoppers and new opportunities to compare prices and find new products. However, if online shopping is to continue to flourish, the awareness and the protection of consumers' rights need to improve. The OFT is committed to working with businesses, consumer groups and other bodies to make sure that consumers can shop with confidence online.'

The annexes to the report are on the market studies page.

NOTES

1. A press pack, interviews and case studies are available to media through the OFT press office.

2. See annexes for key data and key advice to businesses and consumers.

3. The DSRs give extra protection to consumers who purchase goods and services without face to face contact with the trader. In particular, traders are required to provide their contact details, and shoppers can cancel a purchase, provided they do so within seven working days of receiving it and they take reasonable care of the item. Download A guide for businesses on distance selling (pdf 127 kb).

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