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E-business security, privacy and legal requirements

E-business has issues that you are less likely to find with more traditional means of doing business. Entire relationships are built in e-business without any kind of face-to-face communication. However, e-business does expose you and your customers to risks, such as theft of your customer lists and customer credit card information, fraudulent purchases, misunderstanding with suppliers and customers due to lack of personal communications, and loss of customer trust.

Do not consider the risks as reasons to give up on e-business. There are strategies and methods that can help you reduce the risks to yourself and your customers. Be aware of the risks and take steps to deal with them before they become problems.

Develop customer trust

Give your customers the protection and confidence they require to use your e-business.

• Canadian Code of Practice for Consumer Protection in Electronic Commerce
  
  http://cmcweb.ca/eic/site/cmc-cmc.nsf/eng/fe00064.html
  Learn about good business practices for selling your goods and services online.

Building Consumer Trust Online

Before setting out to develop a website for your business, take some time to think about how you will use it to build consumer trust. After all, for your website to be successful, you need a high conversion rate of visitors to customers. Only if your visitors trust the message imparted through your website will they decide to become clients and buy your goods or services.

Earning trust is important because the impersonal nature of doing business online can lead to uncertainty and hesitation on the part of the consumer. If you are an online retailer, for example, your clients must surrender personal details when placing an order, without any real guarantee of getting something in return. The consumer is taking a risk (sharing personal and financial information) based on faith (that you will ship them the product they want), so you have to earn the transaction.

These are a few elements that you can combine to build trust:

• Online branding to reinforce your message
• Website design that is professional and practical
• Targeted content designed to lead to sales
• Security and privacy features to protect the client

Always consider the client's needs. The more time and effort you invest in the branding, design, content and security of your website, the more trust you will develop among your visitors and eventual clients. The more trust you build, the better your overall branding becomes. A seemingly abstract concept leads to concrete value.

You will not earn consumer trust solely through your trustworthiness, but by being credible. Credibility is a combination of trust and expertise, so you need to back your product or service with competence and quality. Why not have your business' credibility reflected in your website? If a visitor to your website feels positive about it, this attitude could lead to a positive behaviour: online interaction. The visitor becomes a user and you may gain a client.

Elements of online branding

Consumers want to do business with companies that have good reputations, so you need to reflect your image in your website. Use your Web presence to keep your message in the minds of your audience.

Other information to include online:

• Visitors want to know who owns the site, so be upfront about who you are by including an "about us" section and a company profile. This information adds a human element that makes it easier to establish a relationship and puts consumers more at ease.

• Include any professional affiliations or memberships as further validation of your legitimacy and competence.

• Ensure that contact addresses, phone numbers and emails are readily available. Keep in mind that the clients' favourite channel of communication might not be the Internet, despite their use of your website, so a mailing address or a toll-free phone number gives them another option. Providing a physical address also shows an element of permanence that will make you stand out against any fly-by-night businesses that have only an online presence.

If you present consumers with the option of a contact form only, you may be limiting important communication, as clients may doubt your readiness to deal with complicated issues that do not fit within the constraints of a form. They may be able to express themselves more clearly within an email message.

In a time of user-generated content, posting reviews from trustworthy sources could prove to be a real boon. Endorsement from other respected businesses is valuable, as are honest customer reviews, which need not all be glowing. In fact, publishing a variety of opinions shows that you seek feedback and are prepared to either act on it or stand by your process.

Of course, if you ensure that your product or service meets client expectations, you will incur positive feedback. Remember that the consumer experience takes place before, during and after the purchase. Investing in follow-up service, such as an email to touch base after the order has been received or a feedback form, closes the transaction and leaves the consumer with a good impression.

Website design

The design of your website is intrinsic to building consumer trust. Think of how you react to various websites while exploring the Internet — what design elements draw you in and keep you on a website longer than you had expected? What aspects of the design made you leave almost immediately? A simple exercise in analysis may allow you to realize which features help — and which ones hinder.

After your explorations, you may agree with the following statements:

• A clean, attractive design that looks as professional as possible shows that a business is willing to invest in courting its clientele.

• If a website appears shoddy and cheaply constructed, consumers will take it less seriously.

• Good websites will prevent visitors from being visually assaulted by busy pages or a heavy look, even when there is a lot of information to impart.

• A page that loads quickly is more useful than special effects that increase downloading time. Older operating systems may even crash.

The easier your website is to navigate, the more confident your clients will be. The function of good design is to welcome your visitors and make their stay on your website as enjoyable and productive as possible. Let the design lead to the discovery and retention of your content. The efforts made toward good website design play an important part in developing consumer trust:

• Ease-of-use factors greatly in consumer trust.

• If you have taken pains to make the online experience positive, it is more likely that consumers will believe the same of your products or services.

• Consistency will keep visitors from getting frustrated at having to learn new ways to get around your website. If a menu is on the left-hand side on one page, have it appear there on all pages. Being obvious does not mean your website is boring. If links, buttons and dropdown menus are immediately recognizable, your clients can act more quickly.

• Keep to a uniform language (use the same terminology to prevent confusion; avoid synonyms) and voice (don't jump from the informal second person to a more formal tone; choose one or the other) throughout the website.

Content considerations

The content that you present on your website will be a key factor in converting visitors into clients. For visitors to make informed decisions that will lead to sales, information should be:

• Clear
• Accurate
• Detailed

All your content should highlight the benefits of your goods or services and your expertise. Its job is to make visitors forget about your competitors in favour of your business. The content's role is to make visitors:

• Feel good about being on your website
• Complete their tasks
• Act on the experience

If you need images to illustrate your product or service, ensure that visitors are able to enlarge them for a more detailed view. The virtual shopping experience should be as close to a bricks and mortar transaction as it can be. The online experience has to be very attractive in order to compensate for the client's lack of ability to touch or try an item or be convinced by a salesperson.

Because your website is actively working for you, it will require regular maintenance:

• Keep your website up to date and free of errors. Frequent updates indicate that your content is fresh and relevant.

• Fix typos and broken links immediately. Your clients will equate your attention to remedying problems on the website to a readiness to solve or prevent any other issues that may arise during a transaction.

• Remove old content that is no longer relevant or valid, so as not to detract from the website's value.

• Invest in professional translation if you offer a bilingual website. A poorly translated website can damage your business' credibility.

Your content should include all costs related to your business' goods or services, including shipping and any applicable customs fees and taxes. Surprises related to hidden costs can alienate clients who might change their minds about using your services again. Likewise, all merchant policies should be written clearly and easy to find on your website. This includes:

• Methods of payment
• Return policy
• Warranty information

Protecting your clients

It is important to earn consumer trust online because consumers want to be protected against fraud. Make use of security certifications and encryption technologies and any accompanying logos that signify that yours is a safe website. Alert your clientele to any breaches in security at once.

Consumers also want to protect their privacy, so avoid asking for more information than you require. By the same token, unsolicited emails can damage the trust you have worked hard to develop. Make sure you conduct any follow-up in a way that cannot be construed as spam.

• Web Credibility Project
  
  http://credibility.stanford.edu/
  Learn about the Web Credibility Project and further captology research conducted at Stanford University's Persuasive Technology Lab.
• Credibility Campaign: Consumer Reports Webwatch Guidelines
  
  http://www.consumerwebwatch.org/consumer-reports-webwatch-guidelines.cfm
  This list of five policies could help you develop a credible website.
• Consumer Challenges & Solutions: Mail-order Transactions & Online Shopping
  
  http://www.consumerinformation.ca/app/oca/ccig/consumerChallenge.do?language=eng&consumerChallengeNo=762
  Perhaps a consumer perspective might help you determine the type of content you would like to offer on your website.

Security ↑ top of page

Just as a physical business takes security precautions, such as locking doors and using a safe for money and important documents, so too does an e-business need to take security measures.

• Get Cyber Safe
  
  http://www.getcybersafe.gc.ca/index-eng.aspx
  Learn how this online resource can help you protect your business and safeguard private information.
• Payment Card Industry Security Standards Council
  
  https://www.pcisecuritystandards.org/index.shtml
  The Payment Card Industry (PCI) Data Security Standard should be followed by anyone that handles credit card information. If you do not follow this Standard you could be fined and unable to accept credit cards as payment.

Privacy ↑ top of page

When you do business with a customer over the Internet, you will collect quite a bit of information which can be useful outside of the transaction. If you use any of that information, in a way which can be linked back to the customer and without the customer's knowledge or consent, you are violating their privacy rights. It is up to you to properly destroy that information or to keep it secure.

• Privacy and your business
  
  http://www.canadabusiness.ca/eng/guide/2338/
  If you collect, use or disclose personal information about individuals, you need to understand your privacy obligations and find out how to implement appropriate privacy policies and procedures.

Privacy policy ↑ top of page

In addition to the way privacy laws apply in the "real" world, there are some special things to think about when dealing with the Internet and e-business.

You should fully understand how your website fits into privacy law requirements.

• If your website collects personal information, you should develop a proper and legally compliant privacy policy and post it in a readily visible location on your website.
• If you use cookies or similar means to track visitors, depending on how you do that, you may still need to develop and post a policy.
• Online profiling may require the consent of the individual depending on the circumstances.

Keep in mind that people do look for privacy policies so, without a policy, you may lose prospective customers. A properly drafted privacy policy or statement will not only minimize your legal exposure, it can serve a marketing function as well, allowing you to attract and retain customers who otherwise might not be as inclined to deal with you.

Do not create a policy and then fail to follow it precisely. This is an invitation for disaster, including not only possible legal problems, but also injury to your reputation and goodwill.

It is important to not just let the policy sit once it has been posted. It should be revisited regularly to determine whether or not it is still accurate and to evaluate whether or not it should be revised to assist you in your business goals and objectives.

Credit and debit card handling ↑ top of page

Your e-commerce business depends on trust between you and your customers. Violating that trust can have disastrous effects, not only on you, but on your partners in e-commerce, such as your bank, payment gateway, or credit card companies.

• Payment Card Industry Security Standards Council
  
  https://www.pcisecuritystandards.org/index.shtml
  The Payment Card Industry (PCI) Data Security Standard should be followed by anyone that handles credit card information. If you do not follow this Standard you could be fined and unable to accept credit cards as payment.

Legal requirements for e-business ↑ top of page

In general, all existing laws that apply to traditional commerce, such as laws governing business incorporation, business name registration, taxation, consumer protection, deceptive advertising, importing/exporting, product safety, product standards, criminal code, inter-provincial trade treaties, intellectual property and liability, apply equally in an electronic environment. A business, regardless of size, must comply with the law of any jurisdiction, both in and outside of Canada, where it is deemed to be conducting business.

• Inter absentes contracts (only available in French)
  
  http://www.formulaire.gouv.qc.ca/cgi/affiche_doc.cgi?dossier=3403&table=0
  Find out about your business requirements and certain conditions related to contracts for sales made at a distance, via Internet, telephone or e-mail.
• E-business and selling to non-Ontario customers
  
  http://www.cbo-eco.ca/en/index.cfm/business-basics/e-business-and-selling-to-customers-outside-of-ontario/
  Get information about the requirements for selling products over the Internet to customers outside of Ontario.
• Bill C-28: Canada's Online Protection Legislation
  
  http://www.ic.gc.ca/eic/site/ecic-ceac.nsf/eng/gv00569.html
  Find out how this anti-spam legislation can help your business reduce the amount of spam you receive.