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| Online Redress | | | |
The government-industry-customer Working Group on Electronic
Commerce and Customers, spearheaded by Industry Canada’s Office of
Customer Affairs, developed the Principles of Customer Protection for
Electronic Commerce. The principles address information disclosure, personal
information protection, contract formation and fulfillment, delivery
and redress, among other things. Businesses that adhere to the principles
are less likely to have problems that will result in customer complaints.
Principle 5 specifically pertains to redress, stipulating that “customers
should have access to fair, timely, effective and affordable means for
resolving problems with any transaction.”
Online redress mechanisms are another way of addressing complaints
about purchases made both online and in the conventional offline
marketplace. There are opportunities and challenges associated with
developing effective online redress initiatives (see box, opposite). Individual
merchants can develop internal online complaints-handling systems,
and then supplement them with external online redress systems.
When developing online redress programs, organizations should keep the
following points in mind.
- Online redress offers opportunities for faster communications, secure
negotiations and unmediated computerized assistance.
- Computer software can be used to enhance the redress process.
- Online mediators need to be skilful in written communications and
distance negotiation, not just verbal interaction.
- There is no ability online to physically inspect goods, and it may be
difficult to generate the same type of cooperative atmosphere as is
possible in face-to-face mediation.
- It is difficult to authenticate the identity of the parties, confidentiality
(when necessary) may be difficult to protect, and evidence difficult to
submit. Such challenges must be met without compromising accessibility
of customers.
- Online redress providers should be prepared for a sudden increase in
the volume of requests every time they improve online accessibility.
Online Redress: Opportunities and Challenges
Online redress offers firms a number of opportunities for enhanced
redress-related communications with customers,when compared
with traditional redress mechanisms, including the following:
- potential for faster and more efficient communications
- convenience
- less emotionally fuelled than face-to-face meetings
- less intimidating
- more of a level playing field for parties, since they have equal
presence
- an automatic record of proceedings, which facilitates tracking
of progress
- ability to easily publicize non-compliance
- potential for innovative uses of technology to improve redress
mechanisms (e.g. automatic translation, real-time conferencing
and computer-assisted negotiation).
In addition to these opportunities for enhanced communications,
online redress presents a number of significant challenges, including
the following:
- no visual or verbal cues to assess credibility of parties
- less than 100 percent reliability of e-mail as means
of communication
- electronic system only works when both parties have compatible
equipment and there are trained and capable personnel responding
promptly to complaints
- less pressure to settle online than there is in a face-to-face meeting
- difficult to accommodate customers with poor literacy skills or
who do not have access to e-mail
- challenges accommodating linguistic and cultural differences
between parties
- need to ensure the security of confidential communications and
documents
- need to devise simple methods of authenticating parties’ identities
- publicity can attract huge volumes of complaints, leading to a
need to filter out unworthy complaints
- need to offer high-quality service at affordable rates to customers,
without compromising independence.
While online redress mechanisms may be part of Trustmark systems, they
need not be. A number of online redress programs stand alone, used by
any number of merchants and their customers, whether or not those
merchants participate in more comprehensive Trustmark programs. For
example, one company provides a stand-alone program (one of several
redress-oriented services offered by the company).When businesses
cannot resolve a problem internally, they can turn to this company’s
online mediation service, which features trained and qualified mediators.
The company reports that it successfully resolves more than 80 percent
of its online cases. Large commercial ventures with high profiles may be
particularly good candidates for the services of stand-alone redress
programs as a complement to their own internal complaints prevention
and handling initiatives.
Summary
Introduction
Market-based Customer Complaints Handling Initiatives
Preventive Customer Complaint Handling Initiatives
Internal Complaints Handling Initiatives
External Private Dispute Resolution Initiatives
Comprehensive Complaints Handling Systems
Characteristics of Effective Online Trustmark Programs
Online Redress
The Need for Effective Customer Complaint Handling Initiatives
Customer Complaint Handling Initiatives and the Law
Developing and Implementing Complaint Handling Initiatives
Elements of Successful Customer Complaint Handling Initiatives
Where Can I Get More Help?
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