The Trust Seal in Electronic Commerce

Author: ADEM AKKIR

The Electronic Commerce Trust Seal is intended to benefit both consumers and sellers. It supports a secure shopping experience by promoting the protection of personal information and online payment security. This can increase customer satisfaction and encourage more consumers to use e-commerce platforms. Sellers may reach a broader customer base and increase sales by holding a Trust Seal. The framework is therefore intended to contribute to sustainable growth and development in the e-commerce sector.

Companies began using electronic commerce in 1996. Work on e-commerce in Türkiye began in 1997 with the creation of a working group involving the Undersecretariat of Foreign Trade and TÜBİTAK. In later years, higher mobile internet speeds and more advanced mobile devices drove investment in e-commerce and increased competition, with positive effects for consumers and businesses.

Secure e-commerce remained the subject of substantial debate in 2017. Following further investment and regulation, global companies began operating through their own e-commerce networks in Türkiye and managing local operations from the country.

The Electronic Commerce Trust Seal

By 2016, electronic commerce in Türkiye had reached a volume of TRY 17.5 billion, representing 34 per cent growth over the previous year. Despite this momentum, e-commerce accounted for 3.5 per cent of total retail sales in Türkiye, compared with a global average of 8.5 per cent.

In addition to using email and social media, searching for products online is among the most common activities of newer generations of internet users. NPD Group Checkout data published in Inveon's November 2017 newsletter indicated that books and electronics were the most frequently searched product categories online.

One of the main reasons for e-commerce's relatively low retail share and weak demand for some online product categories was consumers' perception of trust. Reports of people being defrauded after purchasing products online showed that these concerns were not entirely unfounded.

Consumers continued to prefer traditional methods because of that perception. Modern commerce, however, seeks to provide an omni-channel structure. Creating that structure and strengthening the brand requires a secure e-commerce environment and a stronger sense of trust among consumers. Trust can also distinguish a business from its competitors.

People considering a purchase from an e-commerce website often use several methods to assess its reliability. They search for the brand on forums or social media and review customer satisfaction on platforms such as www.sikayetvar.com to understand perceptions of customer and product service.

Users with some knowledge of e-commerce and information technology may check whether a website uses SSL or SET security protocols and click the lock icon in the address bar to inspect the connection. They may also prefer cash on delivery, bank transfer, EFT or a virtual credit card as the payment method.

Responding to these concerns, the Ministry of Customs and Trade took steps to establish a Trust Seal system. Its aims were to address security, privacy and service-quality concerns that discouraged online shopping, raise security and service standards, and develop e-commerce. On 22 September 2016, the Ministry published a Draft Communiqué on the Trust Seal in Electronic Commerce for consultation.

The Communiqué aimed to create e-commerce websites that met defined security and service standards and were audited by a trusted authority, enabling consumers to feel secure when shopping. Because consumers would be expected to favour websites holding a Trust Seal, those businesses could gain an advantage and reduce dissatisfaction arising from security concerns. The Communiqué was published in the Official Gazette on 6 June 2017. The Union of Chambers and Commodity Exchanges of Türkiye became the first authorised Trust Seal Provider (GDS), and implementation became available from 1 February 2018.

A Trust Seal issued by a GDS may be displayed on the pages of an e-commerce website. Each seal links to the GDS website for verification, allowing users to access information about the website to which the seal was issued.

Except for a seal issued abroad by a foreign natural or legal person providing such services from outside Türkiye, no one may provide a Trust Seal service without Ministry authorisation. Nor may any mark that creates the impression of a Trust Seal be issued or used without authorisation.

The Communiqué sets the security and service-quality standards applicable to e-commerce operators. Upon application, a GDS may issue an electronic Trust Seal certificate to service providers and intermediary service providers meeting those standards. The principal conditions are set out below.

Conditions Applicable to Service Providers and Intermediary Service Providers

• The applicant must not have been sentenced to imprisonment for one year or more for an intentional offence, or convicted, even if later pardoned, of offences against state security, the constitutional order and its operation, embezzlement, extortion, bribery, theft, fraud, forgery, breach of trust, fraudulent bankruptcy, bid rigging, interference with performance of an obligation, laundering proceeds of crime, smuggling or information-systems offences.
• If the applicant has been declared bankrupt, its reputation must have been restored.

Service-Related Conditions for Providers and Intermediaries

• All transactions containing personal data or payment information must use EV SSL on websites and mobile websites and SSL within applications.
• No more than three months before applying for a Trust Seal, and at least once in each calendar year, the applicant must commission a penetration test from a Class A or B testing company approved by the Turkish Standards Institution, take the necessary measures and obtain a verification test confirming those measures.
• Processes must comply with the principal legislation governing electronic commerce, secondary regulations and administrative decisions concerning products whose online sale is prohibited or subject to conditions.
• Measures must be taken regarding content that could adversely affect children's physical, mental, moral, psychological or social development.
• The operator must provide, or enable the provision of, information on goods offered online, including stock status, content, materials, dimensions, use, warranty and technical support and who provides them; images that allow consumers to understand actual dimensions; supply, shipping and delivery periods; order status until delivery; and shipment tracking.
• The operator must provide, or enable the provision of, information about services offered online, including the identity of the provider, scope and duration.
• Buyers must be able to contact customer services by telephone and at least one internet-based method to obtain information about orders and submit requests and complaints. Requests and complaints must be managed and concluded effectively, and the buyer must be informed of the outcome.

Application, Issuance, Suspension and Cancellation

Applicants meeting the conditions apply to a GDS. The GDS reviews the application and prepares a report within 30 days. A Trust Seal is issued to applicants meeting the conditions, while applicants with deficiencies are given additional time to remedy them. If the deficiencies are not remedied within that period, the application is rejected.

A GDS regularly monitors service providers and intermediary service providers that hold a Trust Seal. Where security conditions are no longer met, the operator is warned, the seal is suspended and a period is provided to remedy the deficiencies. The displayed seal must visibly state that it has been suspended. If the breach is not remedied in time, or if a similar breach recurs within one year after being remedied, the seal is cancelled. The GDS publishes the cancelled operator on its website for one year.

Conclusion

Electronic commerce expanded as internet use became widespread, but concerns about trust prevented it from achieving its full momentum in Türkiye for a period. The Ministry of Customs and Trade responded to sector needs with a framework intended to improve confidence, appointed an authorised GDS and introduced the Trust Seal system. From a competition perspective, the system was expected to favour businesses holding a seal. The Trust Seal consequently became an important consideration for e-commerce companies.