More to do to improve consumer trust online

Almost one in three internet users are not shopping online, with a lack of trust in the internet the biggest reason, a new OFT report shows.

Of these internet users, 30 per cent identified lack of trust as the main factor holding them back, whilst 20 per cent cited fears over personal security and 15 per cent said they did not trust companies that sell online.

While consumer confidence is gradually improving, overall levels are still too low for the market to reach its full potential. Even for those who do shop using the internet, which were roughly half the people interviewed, 72 per cent say they still have concerns over doing so and 38 per cent are at best only slightly aware of their online consumer rights.

New figures also released by Consumer Direct show that more people than ever are seeking guidance about internet shopping transactions. Enquiries about online purchases now account for 10 per cent of calls to Consumer Direct compared to 6 per cent in 2006.

John Fingleton, OFT chief executive, said: “Online retailing is the future for many businesses and increasingly important to the economy. If consumers are not confident online, demand will grow at a slower rate. So, we must tackle these concerns right now if the online market is to grow at its full potential.”

Consumer Direct offers these tips for buying on the internet

* Shop around. That great deal might well be on offer somewhere else - and cheaper.

* Use retailers and services you know about - or ones that have been personally recommended to you.

* A company might have a great website, but that doesn't mean it's law-abiding.

* Make sure you know the trader's full address - especially if the company is based outside the UK. The internet makes buying from abroad easy so it’s important you know your rights.

* Don't assume an internet company is based in the UK just because its web address has 'uk' in it - check out the physical address and phone number.

* Take into account the shipping, postage and packing costs. Weigh them up against the parking and travelling costs you would have to pay if you went to the high street.

* Although shopping from overseas websites is relatively safe it may be difficult to enforce your contract if things go wrong. If the item or service is over £100 then consider paying by credit card.

* Look for websites that have a secure way of paying - these show a padlock at the bottom of the screen when you are filling in the payment details.