Your Internet Business: Earning Consumer Trust

On the pages that follow, you'll find a guide for on-line merchants to protecting consumers and earning their trust.

The information presented here is based on principles* developed by representatives from businesses, consumer associations and governments across Canada.

These principles cover in detail what Internet merchants should do to provide their customers with reasonable protection in the areas of information provision, contract formation, privacy, security of transaction and personal information, redress, liability, unsolicited commercial E-mail, and consumer awareness.

Telling consumers who you are

Display your company name, legal identity and address prominently on your home page, along with detailed contact information. Consumers like using methods other than E-mail to contact companies, so if you have a toll-free number include it. At the very least, list your regular phone and fax numbers and your mailing address.

Letting consumers "kick the tires"

Consumers can't make a hands-on inspection of your wares, so offer as much detailed information as you can about your products and services (including any applicable safety warnings and care instructions). Describe them in simple, plain language and be accurate and truthful.

Customer-friendly ordering

Provide customers with a clear, multistep purchasing process.

For example, set up a separate screen on your site for an order form or "shopping cart" that allows consumers to identify the items they are thinking about buying and choose their transaction option. Once they've listed all their items, they then click on the "Send" button to finalize their order. If you don't have a multistep purchasing process, then you should provide a "cooling off" period during which customers can change their mind. If you want to provide repeat customers with a faster way to buy, see the next page.

Show the full price of the items, the terms and conditions (see "Clear terms and conditions of sale" for more on this) and methods of transaction. Customers should be able to print a copy of the transaction for their records.

As well, if there is a delay between purchase and delivery, you should consider providing the terms and conditions of sale, customer service contact information, transaction arrangements and safety and care instructions at the time of delivery.

Quick-buy option for repeat customers

Repeat customers, who have already created an account and a password, may want a more convenient way to order your products. A quick-buy feature provides these customers with a clear and simple purchasing process, but requires a straightforward method of changing or cancelling an order within a reasonable period of time after the purchase. Providing this option makes your secure transaction system (see "Your secure transaction system") and privacy policy (see "Protecting customers' personal information") even more important to your customers.

Clear terms and conditions of sale

Consumers need to know all the terms and conditions that apply to their purchase, for example:

the full price and the currency in which the price is calculated
shipping charges
taxes
customs duties and customs broker fees
any other charges that will be added to the full price
delivery arrangements
limitations on where the product is for sale or can be shipped
cancellation, return and exchange policies, warranties if applicable and any associated costs.
Put all the terms and conditions in one easy-to-find place on your site. Also provide customers with a way to print a copy of the terms and conditions for their files when they make their purchase.

Your secure transaction system

Be up front about your transaction system and the degree of security it provides for your customers' financial information. State who provides the security for you and how it works. If your security service provider has a Web page, put a link to it on your site.

Protecting customers' personal information

Protect the privacy of your customers by developing a privacy policy and posting it on your site. The best model to base your policy on is the Canadian Standards Association International's (CSA) privacy code.

Examples of private sector codes are the Canadian Association of Internet Providers' privacy code and the Canadian Marketing Association's code of ethics and standards of practice.

If you are going to use any of the personal information you collect about your customers, by selling your mailing list, for example, get their consent first.

Certifying your Web site

One way to reassure consumers is to have a reputable third party endorse your business. A number of Internet approval programs are emerging. They range from those that simply verify that your business exists at its claimed address to comprehensive auditing services.

Responding to customer complaints

You can also enhance consumer confidence by providing an effective, but simple, process for handling complaints, concerns and inquiries.

If you carry a number of expensive items, consider working with a third-party dispute resolution service, such as a mediator or arbitrator.

Mistakes in purchasing a product do occur, so if a customer is unintentionally billed, reverse the transaction for free.

Unsolicited commercial E-mail

Although E-mail makes it very easy to reach a large number of customers, sending out unsolicited commercial E-mail (spamming) is likely to do more harm than good to your company's reputation. If you have previously sold an item to customers or they have enquired about your merchandise, they may not mind you sending them new information. However, you should give customers the means to refuse further E-mail, and you should respect their wishes.

Educating your customers

Use your site to help inform consumers about safe and responsible Internet shopping. Make available pointers on what to look for before buying from an on-line merchant.

Your on-line business checklist

When you're building your Web site, or fine-tuning your existing site, include each of these elements to ensure maximum consumer comfort:

full name of the business
mailing address
address(es) of your retail location(s)
telephone and fax numbers (be sure to mention if the numbers are for specific purposes, such as general information or sales)
E-mail address(es) (the same applies here)
detailed product information, including sizes, dimensions, colours, materials, model numbers and uses
customer-friendly ordering process
detailed list of terms and conditions of sale that customers can print
secure transaction system and information about it
privacy policy, including a place where customers can give you permission (or not) to use their personal information for purposes unrelated to the transaction
third-party certification information, if applicable
customer service area listing warrantees, your return policy, and your process for answering questions and handling problems and complaints.

Publication information

For additional copies of this publication or a copy of Principles of Consumer Protection for Electronic Commerce: A Canadian Framework, please contact:

Information Distribution Centre
Communications Branch
Industry Canada
Room 205D, West Tower
235 Queen Street
Ottawa ON K1A 0H5
Tel.: (613) 947-7466
Fax: (613) 954-6436
E-mail: publications@ic.gc.ca

This publication can be made available in alternative formats upon request. Contact the Information Distribution Centre at the numbers listed above.

Working Group Participants

The following organizations participated in the Working Group on Electronic Commerce and Consumers:

Action réseau consommateur
Alliance of Manufacturers & Exporters Canada
Cable Television Standards Foundation
Canadian Association of Internet Providers
Canadian Bankers Association
Canadian Marketing Association
Competition Bureau, Industry Canada
Consumers' Association of Canada
CSA International
Information Technology Association of Canada
Ministry of Consumer and Commercial Relations, Government of Ontario
Ministry of Government Services, Consumer Affairs Division, Government of Alberta
Office de la protection du consommateur, gouvernement du Québec
Office of Consumer Affairs, Industry Canada
Option consommateurs
Public Interest Advocacy Centre
Retail Council of Canada

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Internet Business Guide