BBC NEWS | Business | 'Safe' net trading scheme to shut

The Which? Web Trader scheme, a voluntary code of practice for online traders in the UK, is to close at the end of January.

It is now up to business and government to set up an alternative scheme

Paul Kitchen, Consumers' Association

The scheme was set up by the Consumers' Association in July 1999 to promote consumer confidence in online shopping.

But the consumer group said it had become too costly to run, and it was now the turn of businesses and government to step in and set up an alternative scheme.

Since the free scheme launched three-and-a-half years ago, it has received more than 8,000 applications from e-traders, of which 2,700 were accepted.

It has also resolved more than 2,000 disputes on behalf of consumers.

'Safety net'

Paul Kitchen, head of online at the Consumers' Association, said: "The scheme has succeeded in increasing consumer confidence and has promoted higher standards in e-commerce.

Which? Web Trader logo

"As well as providing a great service to consumers, Which? Web Trader has delivered a boost for business.

"There is still a need to increase consumers' confidence about shopping online and we think it is now up to business and government to set up an alternative scheme to build on the successful work."

Which? Web Trader will close on 31 January, 2003, when logos will be withdrawn from traders' sites.

What do you think about the decision? Is it a major setback to shopping on the web, or are there alternatives? Should the government or business step in and set up a new web trader scheme?

Your comments:

This is a major set back for online shopping, for too long the government has shirked it's responsibilities to develop a safe internet for the 42% of the British public that are online. If the present government doesn't step in to fund this or a similar system then it will be a great lose to the online community.
Mark Watkins, England

I purchase almost exclusively online and I tend to use traders approved by the Which? Web Trader scheme if possible. Although I personally wouldn't be put off online purchasing if the scheme ceased I think it provides a 'comfort feeling' for those new to online trading. Funding should be made available to Which?, maybe from government or business, to enable the scheme to continue. There are a lot of advantages to business and purchasers using e-commerce especially with the rise of broadband use and it should be encouraged if the UK is to trade competitively online.
Stu Pollock, UK

It's a great shame to hear that Which? will be closing. I make a lot of purchases over the web from the weekly food shop to gifts. With the ever increasing risk of false sites and internet fraud, seeing the stamp of approval from the likes of Which? provides a good level of confidence in the confidentiality of personal data and also a good guarantee that goods will be received as ordered plus a good level of service. There is a strong level of need for such an organisation be it government or business. Consumers should demand this level of confidence from Web Traders and subsequently Web Traders should be making steps to provide that confidence, whilst also being a good advert for them. I don't think it will affect consumer spending over the web though as most credit cards offer a good level of protection over internet fraud. However, why should rogue sites have the opportunity to scavenge off unsuspecting consumers? An authentication of an approved site is a must, and a government run organisation would provide more confidence than a new business organisation - but why can they not fund Which? as they are the most recognised authority on value? This would be the most sensible step.
Pete Janes, England

Which should have looked at ways to fund the scheme, which particularly helps new businesses establish credibility on the net, and for which they would and should be prepared to pay. Some such system of accreditaion is needed.
John Drummond, UK

the Government should step in to the breach left by the Which Web Trader scheme. quote here

Paul Newbery, England

It is bad for small businesses, well known businesses it will not affect, but smaller traders who do not have a well known and trusted name will certainly lose trade as now people will not know if they are trustable.
Ed Manning, UK

I was surprised that Which? Web Trader didn't approach the accredited members and ask us if we would pay a membership fee or make a donation. The way they helped new businesses to establish proper terms and conditions was invaluable.
James S-K, England

I think there should be some statutory body to run this kind of scheme. Similar schemes exist for other aspects of business (e.g. ISO standards, British Standards, TickIT, etc.). This is the way web trading should go, too. I applaud the Consumers' Association for getting the ball rolling, but now it's up to someone else to carry the torch for good standards.
David Hazel, UK

There are many big advantage in the scheme continuing with the Consumer Association. It already exists, a new scheme would have set up costs. People already have confidence in it, a new scheme would need to rebuild that confidence. If a new scheme were to be run directly by an Industry body many would doubt its independence while the Consumer association is known to be independent. If a new scheme were to be run by governemnt it would undoubtedly become unwieldy. A good solution would be for the government to provide temporary funding to the Consumer Association to keep their scheme running while a Public/Private financing deal is investigated, eg CBI providing half the costs and government the other half. The CBI could raise a levy on its members who use e-commerce.
Warwick Gibbons, Greece

I purchase quite a lot on the Internet. I am always wary of new sites that I have not used before and the WebTrader scheme gave me some reassurance. I think there needs to be some regulation because on the Internet you do not neccessarily know where the merchant is and whether the UK Trading Standards laws protect you as a consumer.
Simon Ward, UK

I believe that the Which Web Trader scheme is a very valuable service and has helped promote confidence in shopping on the net. It will be sorely missed if not replaced by another independently run scheme. I think that the Government should step in to the breach left by the Which Web Trader scheme.
Paul Newbery, England

I think the scheme should continue and charges should be introduced. Which? may feel this would breach their no advertising policy, but surely it would be better than closing the scheme.
Rhodri Evans, Wales

This scheme is an excellent model for providing customers with a degree of security whilst giving retailers relevant benchmarks and standards to meet. I do not however believe that Government should be expected to pay for this. Arguably the people who take the greatest benefit are the accredited retailers and as such they should collectively bear the costs.
Matthew Searle, UK

Which is a trusted organisation. If they have approved only 2700 out of 8000 applicants then, implicit in this, is the need for such an organisation to police trading on the Net.
Brian Ackroyd, England, UK

It might be an idea for local Chambers of Commerce and Industry to become involved in this. As an online retailer myself, I have joined my local Chamber, and advertise the fact that I have joined. This, at least, shows that I have a bona-fide business, even though it doesn't provide any protection for my customers it displays a serious intent to trade fairly.
Rob Anthony, UK

It seems pretty clear that a joint funded scheme is required to keep the scheme going for now, progressively moving to one funded by the organisations. I imagine that with a membership of only 2700 it is not yet viable to raise the necessary operating capital through subscription fees alone, i.e. the fee would be prohibively high, although clearly there is benefit to the organisation of being a member and should expect to pay towards the scheme. If a sensible fee could be levied with the government funding the remainder, then as more organisations see the benefit of joining the government contribution can be reduced. Once again we need some joined up thinking from the government that links its policies (e.g. Broadband Britain) with how it spends its budget to help realise these objectives.
Ian, England

I am a merchant who has been part of the web traders scheme for over 2 years. I am very disappointed that the scheme is to close, I have on several occasions been told by my customers that it gave them enough confidence to buy online, many for the first time

Phil Creasey, UK

Paul Newbery is exactly right, the government should take over the scheme to encourage the economy and fairness online in the UK.
Andrew MacCormack, Soctland

Why on earth should the Government get involved? Whatever happened to "caveat emptor", and the acceptance that it was part of running a business to build up your reputation and trustworthiness? Given the speed with which word of mouth operates on the net it is actually probably easier for internet traders to get a good reputation than those in the High Street. Why does everyone expect someone to hold their hand these days?
Alex, UK

"Which" did not give approval to 5,300 out of 8,000 applications, surely this points to the very basic need of some kind of watch-dog in the area of e-commerce? Surely, companies would be willing to pay towards a scheme that vets businesses in order to weed out the unreliable?
Eric Morrissey, Wales

I have had call to use Which WebTrader and the service was excellent. I found the company totally unhelpful in every way, until I contacted Which WebTrader - they turned a problem into a solution and forced the company to fix my problems. Sad to see it go - this areana requires an independant guide like Which - Definitely sadly missed.
Anonymous, United Kingdom

This is a very sad day for the Consumers' Association.

Milo, UK

Yep, it's a great shame this has had to close.... but operating this kind of scheme is no different to operating any other kind of business... There was no revenue stream; it's shelf life was always going to be limited unless this issue was resolved... it never was! Quite frankly I object to the thought of my tax money being used by central government to fund this kind of venture, which is incapable of tackling the global issues of trade. Secondly, the internet is global and the puchasing power of UK users is also global. Many of the most successful web-traders are non-UK (Amazon, e-Bay, et-al). What is in it for them to sign up to this kind of scheme? Professionalism and honesty are built around trustworthiness and only each individual trader can persuade an individual purchaser of this.
Mark, UK

There was a Which Web Trader scheme? I'd never heard of it and so it has never influenced my web shopping. 8000 applicants over three years hardly seems like a ringing endorsement - and perhaps indicates the real reason this is being shut down - it has not identified a real commercial need.
Phil Gray, UK

It wouldn't be difficult for the Consumers' Association to hive the scheme off into a separate, non-profit, independent company, with appropriate conditions in its Articles of Association to ensure that it continues to operate to a high standard and for the consumer's benefit. This independent company could then make appropriate charges to fund its continuing the scheme. There's no doubt that traders want it, and most would be prepared to pay for it.
John, UK

Seems the government has missed the ball. Instead of spending goodness knows how much calling up reserves etc. to support Bush, how many years could be funded for a scheme which really does inspire confidence and protect UK citizens?
Ian Platt, Japan

Which? should be ashamed of themselves. It's all very well saying that Government and Industry should pay for and run their own scheme but couldn't CA say that about everything they do? Testing services and goods for example - Which? don't need to do this as manufacturers can do it themselves!!!!! Campaigns about this that and the other - Which? doesn't need to do it as these organisations (Banks and Utility Companies) can regulate themselves!!!!!! Where would we the Consumer be if this was Which?'s attitude to the rest of their work? This is a very sad day for the Consumers' Association.
Milo, Northampton, UK

The Which Webtrader scheme has set the standards for responsible online trading. Hence in recent years we have actively sought to gain retailers who had already passed the fairly stringent requirements of the Which Webtrader

I will sorely miss the icons, which promote a sense of confidence in online shopping

Kate, UK

scheme (of which we ourselves are an enthusiastic member). Since we became a "floated" dot-com on the OFEX market back in 2000 it has been absolutely crucial to maintain the highest possible standards of retailers, product data and customer service standards, and without the Which scheme we would undoubtedly have unwittingly taken on retailers who would have had a negative impact on our operations. I believe any reputable online trader would quite happily pay an inital application fee and a subsequent annual membership fee (once accepted) in order to increase the trust of consumers in this pioneering way of transacting business. The maths speaks for itself... if 8,000 companies had paid perhaps a £50 application fee with subsequently 2,700 of them paying, say £150 per year, this excellent initiative would now be building on its success rather than disappearing just when we need it most.
Dominic Allonby, England

Any idea that the Goverment should take over the Which? scheme is ridiculous - we are trying to promote confidence here! I will sorely miss the icons, which promote a sense of confidence in online shopping, and also help to identify those sites based in the UK. Which? should charge a small fee to online traders and continue.
Kate, UK

The sad thing about the demise of the Which Scheme is that it will harm small traders. I purchase a lot over the internet, and will happily trust the large high street names that have an internet site, however I will look for additional reassurance when using small sites that I have never heard of before - the Which scheme gave me this. Hopefully something will fill the void, as there is a definite need for something.
John Brown, UK

This decision, however valid the CA's reasons, is a body blow for consumer confidence in online shopping. It would not have the same validity amongst consumers if the online retailers had anything to do with its operation. The Government should fund this or a similarly independent scheme. It would get my vote!
Dave Parker, UK

With the Which? scheme closing, and Shopsmart diappearing in the same month what is happening to e-commerce in this country? Where can I now find links to reputable online stores so I can shop safe?
Graham Miller, England

The government want to encourage net use and so need a scheme like this. If this one goes they will have to replace it at some time to boost confidence and therefore encourage internet use. A replacement would be far more expensive than funding this respected existing one. The government should fund it to keep it going in its current form. Well done to the Consumers' Association for setting this up and giving it credible backing but couldn't you have given more warning so that the debate could have had enough time to possibly get the government to react?
Matthew, UK

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