The European Consumer's Centre Network (ECC-Net) launched a joint network report on electronic commerce on the 16th of June 2008 in Brussels. The report analyses the e-commerce complaints received and handled by the ECC Network during 2007.

This report shows that whilst electronic commerce offers plenty of advantages to consumers throughout the European Union, it also shows that the sector still gives rise to an important number of complaints from consumers. The report seeks to identify these problem areas.

The largest problem area observed during 2007 relates to the delivery of orders. In fact from the 10,386 complaints reported to the ECC-Net during 2007 (complaints on transport and accommodation services are not included in this figure), 50% relate to delivery problems, with problems relating to the actual product or service being second in line with 25%. Other complaints related to contract terms (11%), price and payment (6%), redress (4%), selling techniques or unfair commercial practices (2%), deceit (1%) and others (1%).

Within the area of 'delivery', the main problem reported referred to the non-delivery of the product. Another factor which emerged from the report with regards to non delivery was the fact that traders often directed the liability on the courier or the postal service. With regards to complaints relating to the 'product or service', 52% of the complaints in this area related to defective products and 30% of cases related to the fact that the product was not in conformity with the order. Other problem areas in this category related to the product not being as ordered (12%), that the product caused damage (2%), refusal to sell the product or provide the service (1%), unsafe products (1%) and other factors (2%).

Whilst the most common complaints refer to the purchase of electronic goods, problems relating to second hand cars and tickets for events have also been reported. It has also come out from the report that the purchasing and selling of cars has become a common target area for online fraudulent activity. With regards to ticketed events the main problem in this field arises due to the fact that often tickets are purchased from unauthorized websites claiming to be authorized agents of the event manager.

A recurrent problem that emerged from the report relates to the problem of online fraud. This problem in fact appears to be becoming more widespread, with new scams appearing all the time. Some of these scams include fake webtraders; alleged wins of lotteries and also scams relating to the online selling of second hand cars, amongst others relating to online auctions and fraudulent escrow companies. This area of online fraud constitutes serious criminal conduct and consumers are advised to contact the police in these instances as the ECCs do not have the statutory powers to deal with such cases. Various ECCs have embarked on educational projects in order to build consumer confidence and trust when it comes to shopping online.

The European Commission is currently in the process of reviewing the body of consumer protection legislation in order to enhance consumer protection in the area of e-commerce and to include many problem areas that fall outside the scope of the Directive on Distance Selling, such as internet auctions. Current legislation and enforcement practices also need reviewing in light of the growth in new technologies. The ECC Net is also intervening in order to see the development of Alternative Dispute Resolution mechanisms.

The ECC Network welcomes this rapid growth in online trade as it offers increased choice and value to consumers. It also offers access to an enormous marketplace without geographical restrictions. The report concludes that however, there must also be a concurrent improvement in consumer rights education, in particular in traders' recognition of their legal obligation, if the full potential of this market is to be realized.

The full report can be downloaded from the ECC Malta website www.eccnetmalta.gov.mt/home