Trust still an issue for online retailers

The onus is on UAE and regional online retailers to encourage trust in internet shopping, says a legal consultant who specialises in technology.

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The onus is on online retailers to encourage trust in internet shopping, said a legal expert who specialises in technology.

Concerns over the safety of using credit and debit cards online are often cited in surveys as a reason against shopping via the internet.

"It is one of those areas which is lagging behind the rest of the world and I think online payment is an issue out here in terms of development and growth of e-commerce," said Robert Flaws, a senior legal consultant in the intellectual property and technology team at DLA Piper Middle East.

"I think it's really up to the online payment gateways to improve their service offerings. Online retailers can be smart by offering some particular types of online payment cards."

Some telecoms companies in the UAE have got around people's mistrust in online payments by offering customers alternative ways to top up their mobile phones.

"They have got round that whole issue by doing things like pin-less recharge where you can top up your mobile phone with a particular card, like putting money onto a card, so you sort of circumnavigate online payment gateways," he said.

Online retailers should make sure their terms and conditions are robust, while taking steps to make sure their have good website hosting agreements in place. Using reliable website partners who can help to prevent attacks and loss of data is another must.

"It's just really a matter of proper communication. I think if consumers were clearly informed on a website about what is happening with their data, this is what we will be doing, these are the protections we have in place and this is what will happen if anything does happen to the site. It's just a trust and relationship issue," said Mr Flaws.

However, security is not the only area where online retailers have to be aware.

"I think a lot of companies and organisations can tend to be a little bit naive about the regulatory environment over here," said Mr Flaws.

"They seem to think you just take, say the US terms and conditions, or the UK terms and conditions, set those up, then you should be fine with compliance with respect to the UAE and unfortunately that's not the case."

The UAE has particular rules and regulations about the storage of data and online transactions. And breaching someone's confidentiality is a criminal offence, he added.