With consumer confidence a key to the development of e-commerce, promoting more effective alternative dispute resolution is a major challenge, Australian Competition and Consumer Commission Chairman, Professor Allan Fels, said today.
"One of the key themes which emerged from the ACCC's E-Commerce Conference in November was that consumers are unsure whether goods and services bought on the Internet will arrive, or how much they will be billed on their credit cards", he said. "In return, businesses are asking why they should invest in e-commerce if consumers aren't going to use it.
"It is important that in addition to being able to take action under the Trade Practices Act 1974, consumers have recourse to alternative dispute resolution – whether it is through the company's own complaint-handling service, or via an independent, third party process".
In an ACCC submission responding to a Treasury discussion paper on various issues on using alternative dispute resolution in on-line transactions, Professor Fels said it brought together the various stakeholders including consumer associations, small to medium enterprises and larger businesses to discuss developing effective resolution for Australian consumers on-line. The submission is available on the ACCC website.
"The ACCC believes that to make alternative dispute resolution work there must be:
- a greater understanding of the major incentives for industry to establish and maintain alternative dispute resolution schemes
- education of consumers about the benefits and potential risks of e-commerce, and information about the alternative dispute resolution process
- further clarification of the Benchmarks for Industry-Based Customer Dispute Resolution Schemes to better meet the needs of on-line customers
- close cooperation with other jurisdictions to develop dispute resolution processes which are effective in cross-border transactions.
"The ACCC is pursuing this issue on an international level through the International Marketing Supervision Network and the Organisation for Economic Cooperation and Development.
"Whether through action by law enforcers, or through effective alternatives, Australian consumers should have access to redress if they encounter problems when purchasing on-line. The ACCC will continue to work with domestic and foreign Governments, industry and consumers to encourage the development of effective redress in on-line transactions", Professor Fels said.