Ecommerce Europe proposes a one-stop-shop for policy coordination

Thursday, 20th March 2014

According to this, Ecommerce Europe’s President, François Momboisse, addressed the European Commission and Council to propose a one-stop-shop for better policy coordination and asked for an integrated perspective on key business factors in the ecommerce industry.

"Ecommerce Europe, in order to get rid of fragmentation and separation, proposes the creation of a one-stop-shop for ecommerce by having an integrated and coherent approach covering consumer trust, security, privacy, online payments, e-logistics and sustainability. In the following months Ecommerce Europe will outline its suggestions to facilitate the establishment of a one-stop-shop on these five key elements for the industry."

"Last year, the e-commerce industry in Europe had a total turnover of EUR 358 billion and it was one of the few industries that grew with double digits. It has huge potential for further growth and creating jobs in Europe. However going cross-border is still a big challenge for web shops in Europe today. With the one-stop-shop Ecommerce Europe asks the European Commission for better policy coordination for online sales issues. Today, a patchwork of policies is spread over various departments of the Commission: They are all dealing with different aspects of our business. A one-stop-shop would be a viable solution for merchants and policy makers.”

“It is clear that the e-commerce market is a major opportunity for years to come. The next President of the European Commission must be a digital President. Digital needs to be his or her priorityand that of every other member of the College.”

UK retailers to register online sales of USD 75 billion in 2014 - report

Thursday, 20th March 2014

According to this, UK retailers are expected to reach online sales up to USD 75 billion (GBP 45 billion) in 2014, up by 16% on online consumer spend compared to the previous year.

"The study indicates that in 2014 online sales will grow by 16% in the UK, with the average shopper expected to spend more than USD 1.662 (GBP 1000) online. Results point out that the UK, France and Germany will be accounting for 81% of the online sales in the eight European markets expected in 2014. The UK is expected to account for more than a third (34%) of all online retail sales in the eight European markets surveyed in 2014."

"The survey reveals that currently, 46% of European consumers and 55% of American consumers shop online. Out of Europeans, 71% of Swedes and 67% of Brits use the internet to shop. Research also shows that in the UK, the internet accounted for 12.1% of all retail sales in 2013 and that it is expected to grow to 13.5% in 2014. The same source unveils that online shopping is less popular in Southern Europe, although it is growing. Therefore, one in five people shop online in Italy (20%), while one in three (32%) use the internet to shop in Spain. Around half of people in France (52%), Poland (51%), Netherlands (49%) and Germany (45%) shop online."

"On average, European shoppers will make 15.2 online purchases in 2014 with a typical basket size of USD 81.45 (GBP 49), while US shoppers will make 15.6 online purchases, with an average spend of USD 118 (GBP 71). In the UK, shoppers are expected to make 18 purchases online in 2014, spending an average of USD 98 (GBP 59) each time."

Vietnam: e-payment usage gains trust among consumers

Tuesday, 18th March 2014

According to this, Vietnamese consumers have shown interest in electronic card ownership and use.

"The main findings indicate that 53% of the interviewees believe that the smartest way to deal with money is by use of credit cards, as compared to debit cards and cash, which were mentioned by 38% and 30% of respondents, respectively."

"Credit and debit cards share equal status in relation to consumer’s trusted means of dealing with money, according to the results of the 1,200 interviews conducted in Ha Noi, Hai Phong, Da Nang and HCM City. In addition, 42% of respondents felt safe carrying credit cards, while only 20% felt safe carrying cash. Around 19% felt vulnerable while carrying cash and 4% felt vulnerable carrying credit cards. Also, 4% of the population within the four cities mentioned above own credit cards, whereas the rate for debit cards stands at 42%."

Influencing B2B Technical Buyers [Infographic]

Friday, 14th March 2014

[caption id="" align="alignnone" width="736"] Source Smartinsights[/caption]

Ads that appeal to children under scrutiny in Germany

Thursday, 13th March 2014

According to E-comlaw.com, the German e-commerce industry will have to test online advertisements for products that typically appeal to minors against the rationale expressed in a recent judgment of the German Federal Court of Justice.

"The Court considered a German language online ad for virtual items drafted in the informal German imperative address and enabling purchases via a hyperlink to an online shop as a ‘direct exhortation to buy’ to children and thus unlawful. The decision is not yet legally binding."

"In a default judgment of 17 July 2013 (case ref. I ZR 34/12), the reasons for which have only just been released in January 2014, the German Federal Court of Justice (‘FCJ’) ruled that operator Gameforge Berlin AG (‘Gameforge’) has to cease and desist from advertising the purchase of virtual items in its ‘free-to-play’ online game ‘Runes of Magic’ by way of the following ad (freely translated into English): ‘Grasp the special opportunity and add that certain “something” to your armour & weapons’ (‘Schnapp Dir die günstige Gelegenheit und verpasse Deiner Rüstung & Waffen das gewisse “Etwas”’)."

"The proceedings had been initiated by the Federation of German Consumer Organisations. On its homepage, Gameforge used the aforementioned ad as part of a promotion named ‘Pimp your character-week’ (‘Pimp Deinen Charakter-Woche’). The ad was hyperlinked to an online shop where the actual purchase of virtual items could be affected via text message or credit card."

"The FCJ held that such an advertisement, seen in its overall context, constitutes a direct exhortation to children to purchase within the meaning of Section 3 para. 3 of the German Act against Unfair Competition and No. 28 of the Annex to the same, which implements No. 28 of the Annex to the Unfair Commercial Practices Directive (2005/29/EC) (the so-called ‘Black List’). The FCJ based this position on the combination of various linguistic aspects in the ad, namely the continued deployment of the informal German imperative form (which alone and by itself, however, would not suffice according to the FCJ) and the use of certain commonly used Anglicisms, which the FCJ considers as typically used by children. The FCJ considered the exhortation as ‘direct’ because the actual online shop was accessible via a hyperlink included at the end of the ad."

"The case touches upon – but unfortunately does not solve – two severely disputed questions regarding the interpretation of No. 28 of the Black List, namely the questions as to (i) whether the term ‘children’, as used in No. 28 of the Black List, comprises all minors under 18 years or only children under 14 years, and (ii) whether a ‘direct’ exhortation requires that the ad itself contains the price and the features of the advertised product. In light of the specific circumstances of the case, the FCJ held that the case did not require an actual decision on either of these questions and, therefore, no consultation of the European Court of Justice was required."

"The judgment is not final and binding. Following Gameforge’s objection to the judgment, the FCJ will now have to review the case again. In light of the detailed reasons already provided by the FCJ, however, it appears questionable whether the FCJ will change its position."

"The decision has received extensive attention in Germany and has been strongly criticised, in particular given that casual, simplistic language, including Anglicisms, are commonly used in the overall context of online games and does not per se indicate that children are specifically targeted."

"As a result of the judgment, it is clearly to be expected that German consumer associations and potentially also competitors will carefully watch online ads for products that typically (also) appeal to minors. Apart from observing the further developments in German case law, e-commerce providers should in any event pay great attention and caution to the exact wording of online ads used in the German market, including the choice of German grammatical forms (in particular when translating international marketing language into the German language). In order to mitigate the risk of being held unlawful, advertising language should be drafted and contextualised so as to – as clearly as possible – address ‘anybody’, rather than specifically minors, avoid the informal German address, and it should neither include the price and features of the marketed products nor contain a hyperlink to an online shop. These recommendations should be observed with in-game ads as well as with other online ads or smartphone ads in the wider context of e-commerce and m-commerce scenarios."

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