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Europe Insight Legal & Compliance Strategy and Management UK

The next generation of brand protection: robust online age checks

Alastair Graham discusses the growing importance for brand protection of online age-verification technology for businesses.

The internet has brought us many great things. It is now easier than ever to stay connected, access information and buy goods and services from across the world. However, the rise of the internet has also brought with it new challenges.

As online shopping continues to transform the retail sector as we know it, merchants are faced with problems arising from the absence of face-to-face interactions. This is especially true for merchants who supply age-restricted goods, services and content. How can they check the age of their customers?

While asking for proof of ID is a sure-fire way to prevent under-18s from purchasing alcohol and cigarettes in-store, it isn’t as straightforward on the internet.

This was a lesson Amazon recently learned following the trial of the 16-year-old convicted of murdering Bailey Gwynne. The Aberdeen schoolboy was fatally stabbed by a classmate who had purchased the blade on Amazon, without having faced any age checks. Following this, the company faced heavy criticism and, with it, a degree of reputational damage.

And Amazon isn’t alone in lacking adequate age checks. The global phenomenon dating app, Tinder, also came under fire earlier this year for a similar reason. In the face of mounting public pressure, it announced in June that it was increasing its minimum user age.

Age-checking is an issue being explored by the UK government too, with the Queen using her spring-time speech at the opening of Parliament to announce the proposed introduction of more stringent age checks for sites hosting age-restricted content.

But with businesses like Amazon having come under fire for not doing enough, just how easy is it at the moment for under-18s to access age-restricted goods?

Some online businesses just aren’t doing enough about brand protection

Businesses need to move with the times and devise new and innovative ways to check the age of customers if they are to sell age-restricted goods.

As we seen with the Amazon incident, the delivery of items can become a minefield for online businesses. But that isn’t an excuse – the onus is on the company to ensure that age-restricted items do not fall into the wrong hands. At present, there are many online retailers that rely on third party couriers to deliver items. These companies may not have the processes in place in order to check age or, as a third party, may not feel obliged. This is no better demonstrated than by a study from auditor Serve Legal which found that of the 1,000+ online retailers they tested that home deliver alcohol, over half (56%) were not checking ID at the point of delivery.

Many will argue that it should not allow a customer to get as far as having an item delivered before having their age checked. And yet, there are many websites wholly at the behest of the user and their decision as to whether to be truthful or not. So, for example, certain sites will not conduct any further checks beyond asking a user for a date of birth – which easily can be falsified with no repercussions. Other sites will simply ask a user to click a box to confirm that they’re 18 and have read a non-legally binding disclaimer before entering a site. Neither of these options are robust enough to deter or prevent under-18s from entering a website or ordering age-restricted goods.

Businesses need to take more proactive approaches to ensuring those falling below the minimum required age do not gain access to age-restricted goods, services or content. It’s fully on these companies to play their part, otherwise it could have serious consequences for the reputation and business itself.

What sort of consequences may a business face for failing to verify a customer’s age?

As the public becomes more familiar with the idea of online age checks and the government begins to crack down on businesses failing to properly carry out such checks, pressure will continue to grow.

Businesses can no longer shift the blame onto parents for not properly supervising their children online – it is the business’ responsibility to ensure that no one can access things before they are of age.

Reputational damage is just one fall-out of failing to verify the age of customers but there are also legal implications to consider. The individuals deemed responsible within a business which allows a youngster access to age-restricted goods, services or content could face up to two years’ in prison or be on the receiving end of an unlimited fine.

So how can businesses protect themselves and avoid breaking the law?

An obvious starting point for online businesses is ensuring there are age checks in place that can deter under-18s right from the outset. Making it a requirement for potential customers to register their details with the website can act as a deterrent to youngsters.

Learning from the mistakes of Amazon, it may also be worthwhile for a business to consider introducing an ‘ID upon delivery’ policy. This will ensure age-restricted goods don’t fall into the wrong hands. It’s up to the business to ensure third party couriers as well as staff adhere to the policy and are checking ID at the front door, where appropriate.

But as technology advances, we’re starting to see the emergence of new innovative measures that are changing the game for businesses in allowing for more stringent age checks. AgeChecked, for example, is a new software offering that works to verify the age of a customer by pulling information from a range of sources so that those who are under-18 are prevented from being able to view content, or purchase goods and services that are age-restricted.

It’s becoming inexcusable for online businesses to fail to check the age of their customers. And businesses failing to verify customer ages risk damaging themselves. The repercussions, reputational, legal and financial, mean it makes little business sense not to invest properly in age-checking measures.

Sally Hooton

By Sally Hooton

Trained as a journalist from the age of 18 and enjoying a long career in regional newspaper reporting and editing, Sally Hooton joined DMI (Direct Marketing International) magazine as editor in 2001. DMI then morphed into The GMA, taking her with it!