Consumers Call for Improved Transparency in Online Purchases
Experts are urging for increased visual accessibility to terms and conditions when making online purchases, a move that could revolutionize consumer understanding and memory, according to a recent study published in the Journal of Consumer Policy. The research highlights the potential of providing clearer information post-purchase, leading to a deeper engagement with legalities and improving overall comprehension.
Post-Purchase Information Boosts Engagement
The study reveals a significant disparity in the attention and interest shown towards pre-purchase and post-purchase disclosures. Pre-purchase reading times were found to be only half as long as post-purchase reading times, indicating a lack of focus on disclosures before making a purchase. Researchers suggest that shifting the responsibility for providing detailed information to companies after a purchase could be a game-changer, with attention levels increasing by as much as 162% and understanding improving by 14 to 21%.
Empowering Consumers with Options
To address this information gap, experts advocate for granting consumers the choice to either access full terms immediately or save them for future reference when questions or concerns arise. The study’s behavioral experiment involved 835 participants in the UK and demonstrated that visual cues, such as thematic icons or concise one-pagers, significantly enhanced reading time and comprehension of disclosures. This suggests that policymakers should consider recommending the use of visual aids to improve transparency.
Visual Information Revolutionizes Disclosure Understanding
The study, led by researchers Joasia Luzak, Alexander J. Wulf, Ognyan Seizov, Marco B.M. Loos, and Mia Junuzović, drew insights from interviews with legal professionals, consumer protection authorities, and traders across Croatia, Germany, Poland, the Netherlands, and the United Kingdom. Divergent interpretations of transparency requirements were noted, indicating a need for consistent guidance across borders.
Visual enhancements proved to be a game-changer in conveying contractual stipulations. Text-only disclosures were found to be the least effective communication medium, while visually formatted one-pagers significantly improved both reading time and understanding. Combining textual and visual cues further heightened comprehension, making it an optimal choice for complex consumer transactions, such as those involving consumer credit.
Professor Luzak emphasized the importance of online transparency, stating, “Visual cues improve the reading time and understanding of disclosures; thus, policymakers should further consider improving the transparency framework by prescribing their use. This step not only saves consumers’ valuable time but also empowers them to better comprehend and remember contract terms.”
As the online shopping landscape continues to evolve, prioritizing transparency and accessible information may pave the way for more informed and confident consumer decisions.
By Impact Lab