11/05/2009 - Online security restricting shopping
The trading watchdog has said a third of internet users are reluctant to hand over their credit card details while shopping online because of security fears.
A report by the Office of Fair Trading shows 30% of internet users do not shop online because of a lack of trust meaning online markets can not reach their full potential because of low consumer confidence.
Chief executive John Fingleton said: "Online retailing is the future for many businesses and increasingly important to the economy.
"If consumers are not confident online, demand will grow at a slower rate. So we must tackle these concerns right now if the online market is to grow at its full potential."
However, despite concerns figures show there have been some positive changes since 2006, with 54% of online shoppers saying they think it is safe compared with 26% three years ago.
Gareth Thomas, minister for consumer affairs, added that despite concerns, UK consumers spend more than their European neighbours.
He said: "It is encouraging that the OFT's survey shows increasing consumer confidence when buying online - but people still have concerns.
"That is why we will be setting out proposals in our forthcoming consumer White Paper to better protect people from fraudsters."
Copyright © Press Association 2009
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