Spring 2009

Only 7 per cent of consumers in the EU made cross-border purchases in 2008 – up 1 per cent from the previous year – though the figure for the UK alone was 12 per cent.

These are among the statistics included in a new report, Barriers to E-commerce, produced on behalf of EU consumer commissioner Meglena Kuneva. It echoes a similar finding in the recent Borderless report by Colum Joyce, covered in the last F&E.

According to the new report: 'Most retailers still seem to operate on the assumption that the internal market is partitioned along national lines. The range of possibilities is enormous, yet in practice, consumers end up being refused sales or redirected back to their country of origin.'

It suggests that a variety of practical and regulatory obstacles militate against more cross-border internet shopping, including language barriers ('these remain an issue for most traders and consumers'); logistical problems over the inter-operability of postal and payment systems; and regulatory barriers in terms of consumer law, VAT rules, selective distribution law, intellectual property protection and legislation on waste disposal.

 

Consumers are also wary of issues connected with payment, delivery, complaints, guarantees and refunds.

At least one barrier is being tackled by the EU. According to Commissioner Kuneva: 'We must see to it that adoption of the internet platform will not be unnecessarily slowed down by a failure to remove important regulatory barriers or to address important trust issues for consumers.'