The OFT wants to find out whether online traders are following good practices and obeying the law

The Office of Fair Trading (OFT) is to carry out a study of online shopping, in response to the increasing popularity of e-commerce.

According to the OFT, about 130,000 UK firms are currently selling products via the web, a market representing about three percent of all household spending. Web sales have risen by more than 350 percent over the last five years, compared with a 20 percent increase in retail sales overall.

The study will investigate consumer confidence in online shopping, and will check that consumers receive adequate regulatory protection and are aware of their rights. The OFT will also examine whether traders understand and comply with online shopping rules.

Domestic electrical goods, music sales, airline ticket sales and online auctions will be the main focus of the study. After consulting with businesses, trade bodies, consumer groups and public sector organisations, the OFT expects to publish its findings in spring 2007.