EU seeks to bolster cross-border e-commerce

A Europe-wide trust mark will guarantee the quality of goods bought online

The Internet Market Committee, part of the European Parliament, has approved proposals for a new European trust mark designed to give consumers confidence when shopping online and improve e-commerce in the European Union (EU).

A report by MEP Arias Echeverria entitled Completing the internal market for e-commerce noted that cross-border trade can be difficult as some traders refuse to accept orders from other countries.

The EU will now establish a Europe-wide trust mark that will guarantee the reliability and quality of goods placed on the cross-border electronic market to improve the ability for consumers to buy from across the EU region.

MEPs said that this would be based on EU law, supervised by the European Commission and backed up by standards and enforcement mechanisms at a national level.

However, they added that any European trust mark scheme would have to go through an impact assessment and be implemented in co-operation with existing labels.

The Internet Market Committee also said that more needs to be done to educate consumers about their e-trading rights.

The EU added that the importance of e-commerce also makes it vital to ensure broadband access throughout the region by 2013, including rural, remote or peripheral areas, as part of the Digital Agenda.

Patti Freeman Evans, research director at analyst firm Forrester, welcomed the trust mark proposal, saying that it could increase the number of citizens shopping online.

"Around 50 per cent of people in the EU shop online, but issues of trust and security are a big concern to many. A mark that encourages people to buy across borders could well help many to be more confident buying online," she said.

"It will also help reputable firms to increase their customer base and strengthen their brand presence online with existing customers."

However, Freeman Evans added that the EU will have to make sure that the mark is well enforced so that consumers are aware of its significance.

"The mark needs to have some meat behind it so that the EU can follow up on any issues that arise. Similarly, it must not be too complicated for organisations to join, otherwise they may not want to go through the red tape when signing up," she said.