CyberLaw Blog

Archive for the ‘consumer protection’ Category

EU – 60% of cross border internet shopping orders are refused, says new study: “(RAPID)
There are widespread problems with refusals of orders for EU consumers trying to purchase goods online in another Member state, according to a new European Commission report on cross border consumer e-commerce. An extensive independent mystery shopping exercise was carried out for the Commission where shoppers across the EU tried to purchase a list of 100 popular products ?for example cameras, CDs, books, clothes – from a cross border provider. Over 11,000 test orders were carried out. The research found that 60% of cross border transactions could not be completed by consumers because the trader did not ship the product to their country or did not offer adequate means for cross border payment.

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(Via QuickLinks Update.)

EU – More action needed to fight spammers and protect online privacy, says Commission: (RAPID)
The European Commission has repeated its call for EU countries to do more to tackle online privacy threats to the public. A Commission-funded study found that although in recent years several EU countries have taken some measures to enforce Europe’s ban on spam, including fines for spammers, the number of prosecuted cases and sanctions imposed on lawbreakers vary considerably. The study confirms the need for the legislative improvements proposed under the reform of the EU’s Telecoms rules: clearer and more consistent enforcement rules and dissuasive sanctions, better cross-border cooperation, and adequate resources for national authorities in charge of protecting citizens’ online privacy.

(Via QuickLinks Update.)

Proposed age law for online retail faces Parliamentary scrutiny: “A proposal that will force online retailers to take extra steps to ensure that young people cannot buy or access inappropriate goods or material will move one step closer to becoming law on Monday.”

(Via OUT-LAW News.)

UK should do more on spam and spyware, says EU report: “The UK is not doing enough to deter spammers and combat the use of malicious computer code to damage users’ computers, according to a study commissioned by the European Commission.”

(Via OUT-LAW News.)

Big differences in big banks’ security – Which? Computing magazine – Press – About Which?

27 August 2009

Some of Britain’s biggest banks appear to be leaving their customers’ online accounts vulnerable to fraud because of poor security, says Which? Computing.

Online accounts at Abbey and Halifax have weaker visible security measures in place than some of their rivals, while Barclays’ security is excellent, say Which? Computing experts.

Halifax has one of the least secure log-in procedures. It asks for three pieces of information to confirm a customer’s identity. As each entry is typed in full, this makes the information vulnerable to a simple keylogger, a virus that sits on a computer and tracks every keystroke with the aim of collecting passwords.

Keylogging software is blamed for online banking fraud more than doubling in 2008. It soared to £52.5m last year, up from £22.6m in 2007.*

In contrast, Barclays and Lloyds TSB ask customers to use drop-down menus. Simply using menus rather than the keyboard stops keyloggers from quickly capturing passwords. Barclays customers who forget their PINsentry device** must enter a five-digit passcode and two characters from a memorable word.

Browsing to another site can be unsafe with some accounts. Customers of Abbey, Alliance & Leicester, HSBC and Halifax are not immediately logged out if they browse, which means someone else could take over the session, leaving accounts vulnerable if accessed on a shared computer.

Which? Computing also found significant differences in how well money transfers appear to be protected. Abbey, First Direct, Halifax and HSBC have no visible security controls for money transfers, so if a banking session is hijacked, a criminal can enter the amount they want to.

Sarah Kidner, Editor, Which? Computing says:

‘There are surprisingly big differences between big banks’ visible online security systems. Some simple measures, like the use of drop-down menus, could improve safety considerably. The banks may say it’s the hidden security measures that count, but to have real confidence in an online account, customers need to see security in place.’

- Ends -
Notes to Editor

*According to the UK Payments Administration (formerly APACS).
**A device which generates a random password each time a customer logs in to their account.

How good is your bank’s consumer-facing security?
Barclays: Excellent.
First Direct, Lloyds TSB, Nationwide, NatWest, RBS: Good.
Alliance & Leicester, HSBC: Average.
Abbey, Halifax: Poor.

Guide to EU small claims procedure for cross-border disputes below €2,000: “A consumer protection group has published a guide to taking legal action against anybody in the European Union for a fixed cost and without the need to hire lawyers. The guide is designed to help people use the EU’s small claims procedure.”

(Via OUT-LAW News.)

ECJ says online retailers can almost never charge for use made of returned goods: “Online retailers can only charge a consumer for the use they made of a product which they then returned if it was used in bad faith or for ‘unjust enrichment’, the European Court of Justice (ECJ) has said.”

(Via OUT-LAW News.)

Over half of Europe’s electronics retail sites break the law, says Commission: “An investigation of hundreds of European websites selling electronics has found that 55% of them appear to break consumer protection laws. Those sites are under further investigation, the European Commission has said.”

(Via OUT-LAW News.)

eBay not liable for L’Oreal fakes sold in UK: “Ebay won another important legal victory this morning when the High Court
ruled the internet auction group is not legally accountable for the sale of
counterfeit L’Oreal cosmetics on its UK website.”

(Via Law News from Times Online.)

Retailers want to retain consumers’ right to reject faulty goods, say law commissions: “Businesses as well as consumers have backed the UK Government’s attempts to retain shoppers’ right to return faulty goods for an immediate refund. A consultation has found that retailers as well as shoppers back the stance.”

(Via OUT-LAW News.)