Most e-commerce sites breach UK laws, says survey

The research, commissioned by on-line legal documents provider Clickdocs, was carried out among a random selection of web sites from 20 different market segments, all selling on-line to UK consumers.

The researchers claim that 63% of sites are failing to comply with the Distance Selling Regulations. In most cases this means customers not being told how long it will take for items to be delivered, not being given details of how to cancel an order or sites charging unreasonable penalties for returns.

Most importantly, from a customer perspective, is a site's ability to offer secure on-line methods of payment. The research found that, while 93% of sites are secure, the remainder are not, raising the risk of credit card fraud.

It is a mandatory requirement of any business that collects personal data about customers to be compliant with the Data Protection Act, and by definition this covers all e-commerce sites. Whilst a total of 68% of sites claim to be compliant, only 18% are actually registered, say the researchers.

Several sites were found to be simply copying and pasting standard text from other sources. In at least two cases, registration numbers are quoted that do not exist. Consumers who use sites not fulfilling Data Protection requirements are at risk from unauthorised sharing of personal details.

The Data Protection Act also requires that customers be informed of what happens to any data collected. Only 51% of sites were found to have any privacy statement. Only 7% of those surveyed have included a P3P privacy statement that allows users to check privacy information about a site by clicking a button on their browser. P3P is a fairly new global standard, though not a legal obligation.

The Clickdocs research also highlighted that even the simplest identification requirements are lacking:

• 55% of companies do not provide the name of the limited company or of the proprietor;
• 16% give nothing other than the website name;
• 46% of limited companies give their registration number, as required by the E-commerce Directive but 22% do not even provide a proper street address;
• 12% neglect to include a telephone number, or rely on a mobile number; and
• 10% do not provide a dedicated e-mail address or rely on a response form for all communication.
• Clickdocs also claims that 41% of sites have "unsatisfactory" terms and conditions.

Jon Aslin, Director of Clickdocs, said:

"Web site design and programming has improved enormously in the last few years. Our research highlights just how much effort has gone into ensuring sites look good and are easy to navigate (92% are regarded as satisfactory in their overall appearance and ease of use). It is therefore surprising, and indeed disappointing, that the small amount of time and investment that is required to address the basic commercial and legal basics has not been spent to make UK e-commerce sites a positive experience for customers."