A Further Boost to E-Commerce in France

A new proposal governing distance selling (including online retail) will be debated by the French National Assembly on January 19 and 20, 2010. Its main aim is to ensure that merchants dealing with non-local buyers follow clear standards of business practice. Online stores would not be entitled to accept orders and payment when they are in danger of bankruptcy or anticipate being unable to meet their obligations as suppliers. Sellers that break the law would be fined €30,000 ($42,000 at average 2009 exchange rates).

In some notorious cases (link is in French), online buyers in France have been left without refunds or immediate legal recourse when an e-tailer has ceased to trade.

In addition, the new law would prevent transport firms claiming costs from the customers they deliver to, when a merchant is unable or unwilling to pay for delivery as promised. At the moment, Internet shoppers may pay delivery charges online in the course of a purchase, and still be asked for more money when the goods arrive.

Internet retailers would also be required to make their terms and conditions available via a link from their home pages (many firms have allowed customers to see the small print only after an online transaction).

The proposed law—expected to pass without major opposition—should encourage more French Internet users to buy online. But e-commerce has caught on in a big way even without these safeguards, and now plays a key part in consumer purchase patterns.

For example, 72% of online buyers in France polled at the end of 2009 said they would be buying on the Web during the post-holiday sales period, according to a survey by DirectPanel for the Fédération du e-commerce et de la vente à distance (Fevad). The intention to purchase online was higher among women than men. It was also relatively high in households of three or more people (55%) and respondents younger than age 35 (about half of these said they hoped to take advantage of sales online). The average budget for those planning Web buys was €168 ($235).

Fevad has also said it expects online sales in the 2009 holiday shopping season to top €5 billion ($7 billion), 25% more than for the equivalent period in 2008.