Smart Consumers: What empowerment from Digital Tools? - ROUNDTABLE Brussels, Tuesday 10th July
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ROUNDTABLE
Smart Consumers:
What empowerment from Digital Tools?
Brussels, Tuesday 10th July
Internet use in Europe
10
20
30
40
50
60
70
80
90
0
100
Denmark
Luxembourg
Source: Eurostat
Sweden
Netherlands
United Kingdom
connected.
Finland
Germany
Belgium
Internet use
Estonia
France
Austria
Czech Republic
Spain
EU-28
quarters (72%) of individuals
✓ In 2017, close to three
internet on a daily basis to
in the EU-28 accessed the
work, study, shop or stay
Slovakia
Ireland
10
20
30
40
50
60
70
80
90
0
100
Latvia
Denmark Cyprus
Luxembourg Malta
Netherlands Slovenia
Sweden Lithuania
Finland Hungary
United Kingdom Poland
Germany Portugal
Estonia Italy
% of individuals who used the Internet in the last 12 months (2017)
Belgium Greece
Malta Romania
Cyprus Croatia
Austria Bulgaria
EU-28
Ireland
France
Latvia
Spain
Hungary
Slovakia
Czech Republic
Italy
Daily Internet usage, 2017 (% of individuals)
Slovenia
Lithuania
the last 12 months.
Portugal
Poland
Greece
Croatia
3
Bulgaria
✓ As of the beginning of 2017,
EU-28 used the Internet in
85% of all individuals in the
Romania
0
10
20
30
40
50
60
70
80
90
100
0
10
20
30
40
50
60
70
90
80
100
Denmark Denmark
Belgium Netherlands
Sweden Luxembourg
United…
Source: Eurostat
Sweden
(54%).
Malta Finland
Luxembourg United Kingdom
Netherlands Germany
Finland Belgium
Hungary Czech Republic
Cyprus Estonia
Estonia Austria
Latvia France
Slovakia EU-28
Ireland Slovakia
Spain Latvia
Portugal Hungary
EU-28 Ireland
individuals, 2017)
Lithuania Slovenia
Romania Spain
Germany Malta
Austria Lithuania
Greece Poland
Portugal
Sending/receiving e-mails (% of individuals, 2017)
Bulgaria
Czech… Italy
Participating in social networks - Facebook or Twitter (% of
Poland Greece
Croatia Cyprus
Croatia
The main Internet activities
Slovenia
France Bulgaria
Italy Romania
0
10
20
30
40
50
60
70
90
80
100
0
10
20
30
40
50
60
80
90
70
100
Denmark Netherlands
Cyprus Finland
Sweden Sweden
Luxembourg Germany
Lithuania Luxembourg
Bulgaria Denmark
United Kingdom United Kingdom
Germany Estonia
Slovakia Belgium
Hungary Czech Republic
Malta Ireland
Netherlands Malta
Estonia Slovenia
Latvia France
Croatia EU-28
Belgium Hungary
EU-28 Austria
Ireland Spain
Austria Lithuania
Slovenia Cyprus
Czech Republic Portugal
Finland Croatia
Slovakia
Telephoning or video calls (% of individuals, 2017)
Romania
Greece Poland
Poland Latvia
Greece
Finding information about goods and services (% of individuals, 2017)
Portugal
4
Bulgaria
✓ One of the most common online activities in the EU-28 in 2017 was the use of e-mails (72%) followed
by search of information about goods and services (65%) and participation in social networking
Spain
Italy
France
Romania
ItalyE-commerce
✓ Millions of European consumers use online platforms (e.g. search engines, social media, e-commerce
platforms, app stores, price comparison websites) to access goods and services and these platforms
enable consumers to find online information and businesses to exploit the advantages of e-commerce.
✓ In 2017, the share of individuals in the EU-28 who used any website or app to buy online during
the preceding 12 months stood at 57%. This proportion ranged from 82% in the United Kingdom to
16% in Romania
% of individuals purchasing online in the last 12 months (2017)
100
90
80
70
60
50
40
30
20
10
0
5
Source: EurostatBeing digital in Europe in 2018
Million Growth (right axis)
1200 15%
1000
800 10%
600
400 5%
200
0 0%
Mobile connection Internet users Social media users Mobile social users
✓ Internet and digital technologies have been influencing the habits and daily life of Europeans. The
impact of these technologies cannot be understated, and reach almost all aspects of society: access to
information, communication, work, trade, and the interaction of Europeans with each other, with
businesses and with public institutions. Because of the changes wrought by the Internet and digital
technologies, European institutions now need to address new issues, including data protection, better
access to digital goods and services for all Europeans, and respect for consumer’s rights on the
Internet. (EU Commission, “Online platforms” Report, 2016)
6The Omni-channel approach
➢ The digital revolution has changed the habits and needs of consumers that want to interact
with companies through tools such as instant messaging and chatbots. Therefore,
companies that wish to survive in this environment must necessarily change their business
model to meet the new demands. Big data, artificial intelligence and machine learning are
improving the service experience and helping companies to become the perfect partner.
➢ An important role in this context is played by:
• the social network
• self-caring tools ( App or web self-service portals)
• Chatbots Active users of key social platforms
Communication channel used by consumers FACEBOOK
YOUTUBE
70%
FB MESSENGER
WHATSAPP
60% WECHAT
QQ
INSTAGRAM
50% TUMBLR
QZONE
SINA WEIBO
40%
TWITTER
SKYPE
30% BAIDU TIEBA
VIBER
LINKEDIN
20% SNAPCHAT
REDDIT
10% LINE
PINTEREST
YY
0% TELEGRAM
VKONTAKTE
BBM
KAKAOTALK
0 500 1000 1500 2000 2500
7
Source: State of chatbots 2018; Digital in 2018EU plans to regulate online platforms and
search enginesEuropean Commission's initiatives
Online platforms (e.g. search engines, social media, e-commerce platforms, app stores, price
comparison websites) provide opportunities for innovation and growth in the Digital Single
Market but, at the same time, they could pose significant challenges to consumer protection and
market competition. Today, 1 million EU businesses are already selling goods and services via
online platforms, and more than 50% of small and medium enterprises selling through online
marketplaces sell cross-border. For 2017, the European Business-to-Consumer (B2C) e-commerce
turnover was forecasted to reach around €602 billion, at a growth rate of nearly 14% (Source: EU
Commission).
The European Commission drafted various proposals to foster an environment in which online
platforms thrive, where consumers are protected whilst competition is enhanced.
➢ Communication “Online Platforms and the Digital
Single Market - Opportunities and Challenges for
Europe” (2016)
➢ Mid-term review of the Digital Single Market strategy
➢ Recommendation on measures to effectively tackle illegal content online
(2018)
➢ New Deal for Consumers (2018)
➢ Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on
promoting fairness and transparency for business users of online intermediation services (2018)
9Communication “Online Platforms and the Digital Single
Market - Opportunities and Challenges for Europe”
In the 2016 Communication “Online Platforms and the
Digital Single Market - Opportunities and Challenges
for Europe” , it is stated that the “future internet cannot
succeed without the trust of users in online platforms,
and without online platforms respecting all applicable
legislation and the legitimate interests of consumers
and other users”. This Communication identifies the
following guiding policy principles:
A level playing field for comparable digital
services
Ensuring that online platforms behave
responsibly to protect core values
Fostering trust, transparency and ensuring
fairness
Keeping markets open and non-discriminatory,
to foster a data-driven economy
10Measures to tackle illegal content online
In the mid-term review of the Digital Single
Market strategy, two principal follow-up actions
specifically concerned online platforms:
1. to ensure better platform dialogue coordination
within the Digital Single Market focusing on the
mechanisms and technical solutions for the
removal of illegal content, in order to enhance
their effectiveness in fully respecting
fundamental rights;
2. to prepare actions to address the issues of
unfair contractual clauses and trading practices
identified in platform-to-business relationships,
including exploring dispute resolution, fair
practice criteria and transparency.
To ensure transparency and consumer protection in
online platforms on 1 March 2018, the Commission
issued a Recommendation on measures to
effectively tackle illegal content online. This
Recommendation builds on an earlier
Communication on "tackling illegal content
online, towards enhanced responsibility of
online platforms", adopted on 28 September
11
2017.New Deal for Consumers
New Deal for Consumers aims at
strengthening consumer rights online
• More transparency in online market places. Consumers will have to be clearly informed if
they are buying products or services from a trader or from a private person, in order to know if
they have rights that protect them if something goes wrong. The Commission also proposes
to clarify that all online platforms must clearly distinguish search results based on payments
received from other traders from 'natural' search results, and online marketplaces should
provide the main parameters determining offer ranking.
• More transparency on search results on online platforms. When searching online,
consumers will be clearly informed when a search result is being paid for by a trader. As well,
online marketplaces will have to inform consumers about the main parameters determining
the ranking of the results.
The New Deal for Consumers also seeks to modify consumer protection in free digital services
(cloud storage, social media and email accounts), as consumers provide their personal data,
instead of money, for these free services. Parallel to the GDPR, consumers will also benefit from
certain information rights and will have the right to “terminate the contract for digital services
within the 14-day right-of-withdrawal period”. This will “remove the contractual basis for the
processing of personal data…” and “…trigger the application of the rights provided by the GDPR,
e.g. the right to be forgotten and the right to data portability.”
12EU survey on online platforms
According to a survey1 published by the EU Commission in the study “European Commission,
BEHAVIOURAL STUDY ON THE TRANSPARENCY OF ONLINE PLATFORMS” (2018), about
82% of respondents said that knowing how results were ranked made them more
confident and trusting in the platform. Moreover, 83% of respondents think that all
platforms should include information on the way they order the results of a search as this
would make users more confident and trusting in platforms and, in general, would lead to a better
service for users. Related to contractual party identification, 84% of those interviewed declared
that all platforms should include information about who is actually selling the goods or
services presented in the platform.
Knowing how the platform ordered the results of the
search made me more confident and trusting in the 44% 38%
platform
All platforms should include information on the way
43% 40%
they order the results of a search
All platforms should include information about who is
actually selling the goods or services presented in the 47% 37%
platform
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Strongly agree Agree Indifferent Disagree Strongly disagree
1
13
Survey involved 4802 respondents in the four European countries (Germany, Poland, Spain and UK)EU Regulation on promoting fairness and transparency
for business users of online intermediation services
On 26 April 2018, the Commission proposed an EU Regulation on
promoting fairness and transparency for business users of online
intermediation services trading together with the creation of an
Observatory on the online platform economy.
The Regulation aims to create a fair and predictable online environment
for businesses by setting obligations for online platforms and search engines
to provide business users with appropriate transparency and to offer
effective redress possibilities.
The proposed Regulation covers the following areas:
• Terms and conditions;
• Ranking methodologies;
• Grounds for suspension or termination of services;
• Access to data;
• Differentiated treatment — vertically integrated
online platforms;
• Redress procedures
14The use of comparison tools
Digital comparison tools
➢ Faced with increasingly complex information and choices online, consumers are
increasingly using digital comparison tools that guide them in making a
decision.
➢ According to the report, “Digital Comparison Tools Market Study” (2017) of the
Competition and Markets Authority in the United Kingdom, these tools offer two
types of benefits:
1. They save time and effort in searches and make comparing easier and
more appealing, above all for household services that are often
complicated and not of immediate interest.
2. They make suppliers compete more to provide lower prices and better
consumer choices.
➢ In general, four types of comparison tool models can be found in Europe:
1) commercial websites run by the private sector;
2) commercial websites run by the private sector but certified by a public
authority;
3) non-commercial websites run by consumer and/or industry
associations;
4) non-commercial websites run by public authorities.
16Digital comparison tools in the insurance
sector
➢ The comparative sites also represent a new frontier for distribution in the insurance sector,
able to stimulating consumers to find the best prices and products, thus encouraging
market competition dynamics. Insurance comparison websites especially play an important
role in the French, UK and Italy insurance market
Compare The Market Limited is an insurance
intermediary, which is authorized and regulated by
the Financial Conduct Authority
The Single Estimator for motor liability insurance
(“Tuo Preventivatore”) is an information service
set up IVASS on behalf of the Ministry of Economic
Development.
17Key questions
Key questions (1/3)
1. What strategies could encourage the use of online platforms in Europe?
2. How can greater consumer and business awareness be achieved regarding
their rights and obligations relative to online platforms? How can business
and consumer interests be balanced so that no one is a “weak contractor”?
3. Consumers must be the first to defend their rights, but most consumers are
misinformed in this regard. How can consumers be educated about the
importance of knowing their rights and acting consciously when they
disclose their personal information online? How can companies be held
responsible regarding the use of consumer data?
4. The European Commission has drafted a regulatory framework to
strengthen the trust of consumers and to improve online platform
transparency. How can the European Commission actions be evaluated? Do
you think other actions could be taken?
19Key questions (2/3)
1. Online comparison tools are being increasingly used. What is your opinion
about them? What future do they have? What is the advantage for
consumers? What are the highest risks?
2. What regulations could guarantee the use of comparison tools in Europe?
How can European Commission actions on comparison tools be evaluated?
3. Several models of online comparison tools can be found in Europe -
commercial websites run by the private sector; commercial websites run by
the private sector but certified by the National Authority; non-commercial
websites run by consumer and/or industry associations; and non-commercial
websites run by public authorities. In your opinion, what is the best model?
Why?
20Key questions (3/3)
1. What are the benefits of “online” customer care? What are the technological
and regulatory barriers to be removed for the development of these new
forms of customer care?
2. How is the business organization changing according to the online migration
of customer care?
3. How can artificial intelligence and machine learning systems be used in
customer care? To what extent can chatbots substitute human interaction?
4. The Online Dispute Resolution (ODR) Platform is provided by the European
Commission to help resolve disputes with online customers without going to
court. It can be used for any contractual dispute arising from online
purchases of goods or services where the trader and consumer are both
based in the EU or Norway, Iceland, and Liechtenstein. How do you evaluate
this means to resolve online consumer problems?
21Piazza dei Santi Apostoli 66
00187 Roma
ph. +39 06 4740746
fax +39 06 40402523
Rond Point Schuman, 6
1040 Brussels
Ph. + 32 (0) 22347882
info@i-com.it
www.i-com.it
www.i-comEU.eu
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