Guidance for Businesses to Improve Consumer Understanding

By Nicola Lindop

Principal Associate

The Department for Business, Energy and Industrial Strategy (BEIS) has published new guidance for businesses on ways to increase customer understanding of contractual terms, conditions and online privacy policies.

The guidance offers techniques to businesses to increase customer understanding of, and engagement with, contractual terms and privacy policies. The emphasis is on methods which provide low-cost, practical and scalable solutions for businesses. Full results and methodology are available in the technical report, however some of the recommended practices include:

  • Displaying key terms as ‘frequently asked questions’
  • Using icons to illustrate key terms within a contract
  • Displaying contractual terms within a scrollable text box rather requiring consumers to click to view them
  • Providing information to consumers in digestible chunks at relevant times
  • Using illustrations and cartoons; and
  • Providing consumers with an estimate of how long it will take to read a privacy policy and when it is their last chance to read information before they make a decision to proceed.

The guidance acknowledges that each industry is different and will consequently have its own industry-specific requirements; however it aims to provide high-level advice and principles which will prove beneficial across most industries and sectors. The underlying message of the BEIS guidance is that consumers who understand the contract that they are entering into are more likely to be satisfied and are less likely to complain further down the line.