consumer privacy and trust

IFIP Summer School 2016 on Privacy and Identity Management

Consumer Privacy and Trust

24 August 2016, Karlstad University

Jolanda Girzl Konsument Europa/ECC Sweden

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European Consumer Centres • Centres in 28 member states,

Norway and Iceland. Started in 2005. ECC Sweden - independent unit within the Swedish Consumer Agency (SCA). (5 200 cases 21/8)

• Co-financed by the European Commission and the Member states, Norway and Iceland 50/50.

• Goal - inform European consumers so they can take full advantage of the opportunities offered by the Internal Market.

• 2015: over 90 000 cases of which 38 000 were complaints.

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European Consumer Centres • Aim – to promote consumer confidence in cross-

border transactions. • Offers free information and advice on consumers

rights to consumers within the EU + Norway and Iceland.

• Mediates between consumers and traders on cross-border problems.

• Provides feedback to the European Commission and other stakeholders based on practical experiences of case-handling.

• Assistance for the extrajudicial resolution of cross-border complaints.

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European Consumer Centres

• Promotion of alternative dispute resolution (ADR) and online dispute resolution. Regular exchanges with ADR-bodies, notified and non notified ADRs.

• Public information campaigns, reports, projects, surveys, publications and consultations.

• Points of single contact for consumers under the Services Directive and for consumers and professionals on issues related to e-commerce.

• ODR contact points - some Member States have confered the responsibility to their ECC-office.

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Consumer ECC-EU Norway or Iceland

Handling of complaints using ADR/ODR schemes

Consumer Trader EU, Norway or Iceland

Alternative Dispute Resolution (ADR) National Enforcement Bodies (NEB) Consumer Protection Cooperation (CPC)

National Traders

Trader ECC-EU Norway or Iceland

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Topics

• E-commerce – shopping online

• Air passenger rights • Internet services,

subscription traps • Timeshare and

Holiday clubs • Car queries, car

rental and car evaluation services

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Travel related queries and complaints • Air passengers rights • Delayed and cancelled flights • Denied boarding • Problems with luggage: delayed, damaged, lost

E-commerce • Online services • Adds in social media, test packages

and subscriptions contracts • Counterfeits – clothes, cosmetics • Online shopping; faulty or

undelivered goods • Safe payment methods: SSL-https, ()

Typical cases

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Abonnemangsfällor

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Reports from ECC-Net

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ECC-Net launched a guide on

consumer rights for online traders

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Cooperation EU-Networks • Consumer Protection Cooperation (CPC) –

Swedish Consumer Agency (SCA)

• National Enforcement Bodies (NEB) – SCA

• SOLVIT – Solve problems caused by the misapplication of Internal Market law by public authorities

• Enterprise Europe Network

• Europe Direct

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• Provide mutual assistance through notification, complaint referral, investigative assistance and information sharing, subject to appropriate safeguards.

• Cross border enforcement cooperation in various ways at different levels (national, regional, international).

• It can be coordinated or uncoordinated and cover several activities (sharing best practice, internet sweeps, coordinated investigations, or joint enforcement actions leading to penalties/sanctions).

• Key to success - creating a culture of proactive and appropriate information sharing which may include information which is non-confidential or confidential.

Enforcement in cross-border cases

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Disputes cross-border cases National Board for Consumer Disputes

2011 2012 2013 2014 2015

Total 9 358 11 531 11 301 11 396 12035

Complainant from other country

169 167 218 261 292

Trader from other country

484 634 724 1 055 1 211

Total cross-boarder

653 801 942 1 316 1 503

Total cross-boarder in percentage

6,98 % 6,95 % 8,34 % 11,55 % 12,49 %

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ePrivacy Directive • The review of the ePrivacy Directive is one of the key

initiatives proposed under the Digital Single Market (DSM) Strategy.

• Aims to reinforce trust and security in digital services in the EU. Focus on ensuring a high level of protection for citizens and a level playing field for all market players.

• A retrospective evaluation of the performances of the current legislation against criteria such as efficiency, effectiveness and EU added value under the REFIT Programme (Regulatory Fitness and Performance Programme).

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ePrivacy Directive

The largest number of responses came from Germany (25.9%), UK (14.3%), Belgium (10.0%) and France (7.1%).

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ePrivacy Directive

Preliminary findings observed in the Public Consultation

Are special privacy rules for the electronic communications sector necessary?

• 83% of the citizens/civil society - clear added value in having special rules for the electronic communications sector to ensure the confidentiality of electronic communications, underpinning trust in technological developments and the digital society and economy.

• 73% also for traffic and location data. Support the need for special rules on billing, calling and connected line identification, automatic call forwarding and directories.

• Industry responses: 31% see a need for rules on confidentiality and 26% see a need for rules on traffic data.

• Almost all public authorities responding see the need for special rules in all of the areas listed.

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ePrivacy Directive

Preliminary findings observed in the Public Consultation

Has the current Directive achieved its objectives? Ensuring free movement of personal data, equipment and services in the EU.

• 76% of the citizens/civil society organisations do not believe/only to a limited extent, that the ePrivacy Directive has achieved its objectives of ensuring full protection of privacy and confidentiality of communications.

• The scope of the ePrivacy Directive is too limited, it does not include instant messaging, voice over IP ("VoIP") and email applications.

• The rules are too vague, leading to differences in implementation and unequal protection across Member States.

• Compliance and enforcement are low.

What is needed to ensure trust in cross-border cases?

FLASH EUROBAROMETER 397 “Consumer attitudes towards cross-border trade and consumer protection”

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Consumer trust • Consumers are more confident in making domestic online

purchases (61%) than from other EU countries (38%).

• At least half of all respondents in 18 Member States, plus Norway and Iceland are confident to purchase online from domestic retailers or providers. Norway (81%), Denmark and the UK (both 80%), Ireland, the Netherlands and Sweden (all 75%).

• Confidence in purchasing online from retailers or providers in other EU countries is less widespread. Ireland (62%), Luxembourg (56%), Malta (55%) and Denmark (51%).

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Consumer trust • Most consumers (71%) are confident that retailers and

service providers respect their rights as consumers.

• The majority of consumers trust non-governmental consumer organisations to protect their rights as a consumer (62%).

• 61 % trust public authorities to protect their rights as a consumer.

• Consumers value trust marks.

Seals or labels that represent a certification of the webshop by looking at, for example:

- the validity of its business model, - financial stability, - support of the after-sales support.

Aim to assure consumers that a particular online seller has been validated by a trust mark provider and is found to be safe. Source: Commission Final Report “EU online Trustmarks Building Digital Confidence in Europe”

Trust marks

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An ECC-Net web survey showed that: • Security, unfamiliarity with services and credibility are

amongst the major concerns of consumers. • Consumers do not know of European trust marks. • Consumers value trust marks but lack knowledge about

their characteristics and reliability. As such, trust marks are a form of branding, especially important for SMEs, as these are often not a well-known brand of their own.

• No overview information aimed towards consumers. - No possibility to compare trust marks. - Hard to assess a single trust mark.

Trust marks

Sid. 30 Sid. 30 Source: ECC-Net Trust marks report 2013 ”Can I trust the trust mark?”

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Source: ECC-Net Trust marks report 2013 ”Can I trust the trust mark?”

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Source: ECC-Net Trust marks report 2013 ”Can I trust the trust mark?”

Sid. 33 Sid. 33 Source: ECC-Net Trust marks report 2013 ”Can I trust the trust mark?”

Sid. 34 Sid. 34 Source: ECC-Net Trust marks report 2013 ”Can I trust the trust mark?”

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Consumer reviews

Consumer reviews in electronic commerce, are product reviews on shopping sites used to give customers an opportunity to rate and comment on products they have purchased directly on the product page, price comparison sites and in social media.

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How much can one trust a review on an independent website that gives a positive account of a company's product or service?

18%

82%

Do you read consumer reviews before a purchase?

No

Yes

Consumer reviews

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Results from studies and research • Consumers tend to trust what they read, 8 out of 10 say they trust

online reviews as much as personal recommendations.

• Consumers are more sensitive to notes on the trader’s website than on social media or forums.

• Research has found that reading three negative reviews is enough to change the mind of 63% of consumers about making a purchase.

• 4 in 10 respondents say a single negative comment online can dissuade them from making a purchase.

• 51% say non-branded blogs or social media made them change their mind about a product or service they had intended to buy.

Thank you for your attention!

For further information: Jolanda Girzl

Director European Consumer Centre Sweden/Konsument Europa

Tel: +46 54 19 40 52

Mobile: +46 76 110 40 52 www.konsumenteuropa.se

jolanda.girzl@konsumenteuropa.se