Study: Trustmarks Provision in Europe
Luca Alessandro RemottiIntrasoft International
The Trustmarks Study• Elaborate the issue of confidence towards cross-border e-commerce:
which are the tools available to overcome trust barriers?• Survey trustmark providers in Europe, US and other relevant
markets• Online and off-line trustmarks classification. Operational, technical
and regulatory features and verification/certification policies• Assessment of the impact of trustmarks on the consumers and on
merchants: the effect on cross-border eCommerce• Provide input to EU policy making on
– EU-wide trustmarks schemes– the Stakeholder platform for EU online trustmarks.
The Trustmarks Study is carried out by a Consortium led by TNO (NL) and involving Intrasoft International (Lux).
Trustmarks in the Digital Agenda for Europe: Action 17
• The DAE:– Trustmarks play a key role in informing customers on the rules,
procedures and warranties of online merchants– They guarantee the quality and security of the online
transaction and boost consumer confidence– Become one of the factors for the development of cross-border
eCommerce in the EU– The European Commission elaborates different policy options
for EU online trustmarks, and– Works out the alternatives for cooperation platforms for the
governance of EU trustmarks systems
Our empirical analysis
• Extensive research on an initial set of 75 trustmarks in– Europe (EU 27)– North America (US)– Asia (Japan, Philippines, Singapore, Thailand, Vietnam)
• Desk research on 48 trustmarks, many of them only theoretical or not active, or deactivated
• 16 in-depth interviews with the more “mature” trustmarks, as a basis for a best practice approach, also considering the geographical dimension.
What are Trustmarks?• A trustmark is a label issued by a body which is
verifying/certifying certain parts of the online trading process:– SSL certification– Regulatory basis for the online shop– Transparency of information– Privacy assurance– Dispute resolution system– Money back guarantee– Consumer rating– Publishing revocation– Third party accreditation
Where are mature Trustmarks?
One trustmark
Two trustmarks
Four trustmarks
Three trustmarks
Typical certification steps• SSL certification• Validity of webshop• Administrative check• Legal check of sales regulation• Check of sales procedures
– Transparency– Privacy– Redress procedures– Test order/Mystery shopping, simulated purchase
• Auditing– Periodical review of characteristics– Physical on-site visit
• Third party certification
Trustmarks
A service from the market to the market
The Trustmarks Landscape• There are trustmarks all over Europe and all over the world• Their geographical distribution is uneven• Their size and level of “maturity” is extremely variable• There seems to be a correlation between the maturity of
trustmarks and the maturity of online trade• Their features and verification/certification patterns are
very heterogeneous• Many of them do not carry out marketing activities towards
consumers and have a limited marketing activity toward their subscribers
Cross-border nature of trustmarks
Trustmarks subscribers
• From less than 50 (boutique-trustmarks)• To over 5000
Barriers trustmarks can address
Buyer’s perspective Merchant’s perspective
Complaints resolution, redress Deliver a trust brand
Confidence and trust Improve market presence and scope
Payment security (SSL and process)
Payment security assurance
Delivery (Stock management) Guidelines and best practices for eCommerce
Personal data protection Risk of fraud and non-payment
Transparency of information and pricing, extra charges
Merchant Location and identification
Awareness of regulations and rights
Barriers for which Trustmarks have a limited
scopeBuyer’s perspective Merchant’s perspective
Legal protection of consumers outside the DSS
Cross-border payments
Delivery (Logistics part) Legal and regulatory issues (only related to consumer protection)
Frauds/Scams
Cross-border delivery
Barriers outside the scope of trustmarks
Buyer’s perspective Merchant’s perspective
Language barriers Language barriers
Delivery times external to the merchant
Cross-border regulatory issues on VAT, consumer protection and eCommerce, regulations on copyright
Environmental issues Cross-border logistics
Enforcement of hard regulations
Potential Market Failures
• Awareness of consumers and merchants• Heterogeneous setup of trustmarks
features: certification, ADR, ODR, regulation
• Focusing of trustmark capabilities in respect to barriers
• Certification schemes and supervisors• Lack of (cross-border) marketing
Preliminary Conclusions for policy making options
• The trustmarks platform– Minimum features– Connect trade, buyers and trustmarks providers– Identify market failures– Identify and disseminate best practices
• Set up a third party verification entity• Launch and promote cross-border awareness actions• Integrate ADRs and ODRs into trustmarks schemes• Issue cross-border “hard” regulations on online trade