E-Commerce Model Misses Mark

Date: 18 May 2000

The Federal Government's Best Practice Model for Business: Building Consumer Sovereignty in Electronic Commerce fails to increase the confidence of consumers using the Internet, Shadow Minister for Financial Services and Regulation, Senator Stephen Conroy, and Shadow Minister for Consumer Affairs, Lindsay Tanner, said today.

Mr Tanner said the Government has taken the easy option.

"Because the Code of Conduct is voluntary, it will not stop practices such as spam e-mail," Mr Tanner said.

"If a business wants to use these practices, they will simply not sign up to the code."

The model requires businesses to provide consumers with information about their internet security so that consumers may make a judgement about the risks of making a payment transaction over the internet.

Senator Conroy said the Code would do nothing to relieve consumer concerns about whether Internet transactions are safe.

"If you are not an expert in encryption technology, you will simply not be able to satisfy yourself as to the security of transactions," Senator Conroy said.

"Putting the onus on consumers to satisfy themselves about security will simply lead many consumers to reject the Internet for transactions.

"The Government had a major opportunity to use the Electronic Commerce Model to require businesses to disclose fees at the time a transaction takes place.

"On one hand, the Government is saying that it wants disclosure of bank fees at the time of a transaction for ATM users.
"Yet, on the other hand, when the Government has a chance to ensure that internet users are fully informed about their fees on Internet transactions, they fail the test," Senator Conroy said.

For more information or comment please contact:

Senator Stephen Conroy on 0418 383 965
Gordon Noble 0407 364 630
Lindsay Tanner/Peter van Vliet: 03 9347 5000 / 0408 188 055

For further information

Contact:	Peter van Vliet
Union:	Labor Council of NSW
Phone:	0408 188 055
WWW:	http://workers.labor.net.au/

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