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7 December 2000, Finland

Hello.

Can you explain how Government can influence the growth of
e-commerce? What can or should Government do to make the general public feel safe shopping online?

Imran.

Dear Imran:

Your is a good question. Sadly, I haven't got a good answer. I've got a couple fair answers instead.

In fact it is a very debatable point. Many people feel that the best thing government can do to promote e-commerce is to let it be. They claim that the Internet is an open and free environment and government meddling can only damage such an environment. In short, they see the Internet as the ultimate free trade zone and reckon that the market place will eventually solve problems relating to trust and confidence. Moreover, consumers will eventually be swayed by the competitive prices, wide choice and convenience more effectively than by government persuasion.

Others argue that there is a clear lack of trust and confidence in the Internet and it is the government's job to promote Internet use and e-commerce through "awareness raising activities." These are simply activities designed to make people aware of e-commerce and, hopefully, do e-commerce. Take a look at http://europa.eu.int/ISPO/ecommerce/issues/awareness.html for more information on awareness raising.

Others go further and say that governments need to protect their consumers through strict legislation. Not only would this save consumers from being cheated by evil companies, but would also promote trust and confidence among consumers. (However, if laws are overly protective of consumers in a way that is costly for vendors to comply with, the result is likely to be fewer e-businesses). Frankly, I think such people are bonkers. But don't tell them I said so!

Good luck,

Dr. Ecommerce