There has been an increase in the number of people in Wales buying goods online, a trend which looks likely to continue.

But the council's survey shows there remains a distrust of online security - and this is the main factor deterring people from shopping on the internet.

Of those questioned who said they did buy online, 66% said that they did not feel that they knew their consumer rights.

"Despite people's fears over the authenticity of shopping websites, online shoppers are covered by more consumer regulations than are people who shop on the high street," says report author Sarah Richards.

"Online purchases are also covered by a seven day 'cooling off' period which is set out under distance-selling regulations

"However, consumer confidence is closely linked with perceptions of internet security and online confidence. In reality it can be difficult to get redress if things go wrong because of the ethereal nature of the internet."

The report said information on consumer rights, particularly legal information, could often be lengthy and difficult to understand.

Shoppers' rights

It recommended that information on shopping security and consumer rights was kept to a minimum and presented clearly.

There should also be signposts to information on internet shoppers' rights, it said.

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"Trustmarks and simple advice, displayed prominently, can reassure consumers that the website they are using meets a benchmark for consumer rights," Ms Richards said.

Payment card fraud increased in the UK during 2004 because of an upsurge in organised crime. The so-called 'card-not-present' fraud was the most common type of fraud on the internet, worth £150.8m last year.

"An important point to remember while carrying out an online transaction is to use a secure browser," Ms Richards added.

"An unbroken key or padlock displayed on the transaction page indicates that the browser is secure. As long as a secure server is used all credit card transactions are protected by the Consumer Credit Act."

The Welsh Consumer Council called on the Welsh Assembly Government to ensure that information on consumer rights and internet security is incorporated into existing internet education programmes in schools and higher education.