The Office of Fair Trading (OFT) study will examine four representative ‘case study’ sectors: domestic electrical goods, music sales (including downloads), airline ticket sales (including accommodation bought at the same time), and online auctions.
These sectors have been chosen because they represent at least a third of all online spending and are key examples of the internet as a growing and developing marketplace.
John Fingleton, chief executive of the OFT, said, The internet is fast becoming a hugely important channel for consumers and businesses. Its rapid evolution means that we need to ensure that the consumer protection regime gives current and future users the confidence to realize the internet’s potential for shopping.
Around 130,000 UK businesses now sell online, in a market representing about 2.5% of all household spending (over GBP18 billion a year in total). In the last five years, UK internet retail sales rose by over 350%, compared with growth of only 20% for all retail sales. In 2005, the typical online shopper spent GBP560, and forecasts suggest that this could grow to over GBP860 per year by 2010.
Throughout the course of the study the OFT will consult widely with businesses, trade bodies, consumer groups and public sector organizations. The organization expects to publish its findings in spring 2007.
