Australian Internet business sites have failed a key consumer test - privacy policies - a 'sweep' by the Australian Competition and Consumer Commission has found.
"Consumers are often wary of leaping into cyberspace with their credit cards because they fear such details may be disclosed - or misused - by other parties," ACCC Chairman, Professor Allan Fels, said today.
"Companies wanting to do business on the Internet should review and upgrade - or even create - a privacy policy so that consumers not only feel safe, but are safe.
"The sweep of 229 Australian sites was part of a wider, international 48-hour sweep by 48 agencies from 19 countries. More than 3,000 sites were examined for disclosure of physical addresses, e-mail or telephone contact, itemised costs and specification of currency quoted, restrictions on purchases (such a age or geographic limits), refund and warranty policies and the privacy policy.
"Australian businesses scored well on disclosure of their physical addresses, e-mail contacts, with nearly nine out of ten giving this information, and slightly fewer for a telephone contact.
"However only three out of ten 'allowed' for returns, exchanges and refunds. Fewer disclosed their privacy policy. This must be rectified.
"Australian e-tailers must remember that the consumer protection laws apply to them, just as much as they do to main-street stores and mail-order companies.
"Cyber-stores do not work in a laissez-faire environment. They cannot take consumers rights away. Consumers will shy away from using sites they do not trust or believe are eroding their rights.
"It is in a cyber-store's interest to be seen to be consumer-friendly, open and easy to use.
"The ACCC found three sites of particular concern: a site which tried to repudiate statutory rights, a site claiming a cure for all advanced cancers and a site inferring an affiliation or endorsement by the ACCC. All sites are being, or have been, altered.
"On a global scale, the Australian e-tailers compared well with their overseas competition in the areas of address, e-mail and telephone contacts but lagged behind on itemisation of costs, statements of applicable currency, restrictions on purchases and privacy and refund policies.
"The ACCC is considering holding a further sweep later this year, probably concentrating on 'miracle' cures and health claims. A past sweep has shown that such dubious claims have proliferated on the Internet. Where Australian-based, the ACCC has been taking action, including court action. It will continue to watch this area closely".