FORM 4:
NEW WORK ITEM PROPOSAL (NP)Circulation date2020-12-09

Reference number: Enter Number(to be given by ISO Central Secretariat)

Closing date for voting
2021-03-03

ISO/TC Enter Number /SC Enter Number

Proposer☐ ISO member body:
Click here to enter text.
☒ Committee, liaison or other¹:
ISO/COPOLCO☒

Proposal for a new PC

N Note: see page 7, "how the proposed work
may relate to or impact on existing work"

Secretariat
BSI
A proposal for a new work item within the scope of an existing committee shall be submitted tothe secretariat of that committee.
¹ The proposer of a new work item may be a member body of ISO, the secretariat itself, anothertechnical committee or subcommittee, an organization in liaison, the Technical Management Boardor one of the advisory groups, or the Secretary-General. See ISO/IEC Directives Part 1, Clause 2.3.2.
The proposer(s) of the new work item proposal shall:• make every effort to provide a first working draft for discussion, or at least an outline of aworking draft;• nominate a project leader;• discuss the proposal with the committee leadership prior to submitting the appropriate form,
to decide on an appropriate development track (based on market needs) and draft a projectplan including key milestones and the proposed date of the first meeting.
The proposal will be circulated to the P-members of the technical committee or subcommittee forvoting, and to the O-members for information.
IMPORTANT NOTE
Proposals without adequate justification risk rejection or referral to originator.
Guidelines for proposing and justifying a new work item are contained in Annex C of the ISO/IEC
Directives, Part 1.
☒

The proposer has considered the guidance given in the Annex C during the preparation of the NP.

Resource availability:☒ There are resources available to allow the development of the project to start immediately
after project approval* (i.e. project leader, related WG or committee work programme).
* if not, it is recommended that the project be first registered as a preliminary work item (a Form 4 is not required forthis) and, when the development can start, Form 4 should be completed to initiate the NP ballot.

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Form 4: New work item proposal (NP)Page 2

Proposal (to be completed by the proposer, following discussion with the committee leadership)
Title of the proposed deliverable
English title
Guidelines for organizations to increase consumer understanding of online terms andconditions
French title (if available)
Click here to enter text.
(In the case of an amendment, revision or a new part of an existing document, include thereference number and current title)
Scope of the proposed deliverable
Specification of guidance to the providers of goods, services and digital content on the clear
design and presentation of online terms and conditions to maximise consumer understanding
and reduce detriment.

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Form 4: New work item proposal (NP)Page 3

Purpose and justification of the proposal
Consumer Protection
To provide a standard which can be used by any organization, to help them create clear,accessible, fair and easy to understand terms and conditions (contractual terms and privacy
policies) , which will ensure that consumers can make fully informed decisions prior topurchase or use of goods, services and digital content, thus reducing the risk of detrimentarising from confusing, complicated and unfair contractual terms.
Incorporating the consumer perspective
It is vital that the consumer voice is heard in the development of a standard about online terms
and conditions (T&Cs) as there is currently an imbalance of power, with many T&Cs drafted byorganizations unduly biased towards their own interests and to the detriment of consumers.
Contracts are essentially driving B2C e-commerce. All online retailers apply a set of T&Cs togovern the sale. These contracts are known as ‘adhesion contracts’ because, unlike traditional
contracts, they are not negotiated between the two parties. As the business drafts the terms
and conditions, and can set their own terms, these contracts can exacerbate the weaker
position the consumer holds in the relationship, making it more likely that detriment will occur.
Justification
As described above, the clarity of T&Cs is a matter of increasing relevance and importance toconsumers as global markets and e-commerce flourish. The UN Guidelines for Consumer
Protection (revised 2015) state in Guideline 14d) that national policies should encourage: ‘clear
concise and easy to understand contract terms that are not unfair’. Some countries or regions
have laws that prohibit unfair contract terms, but legal requirements and tests for unfairness
vary globally. In many cases, especially cross-border, a consumer’s legal protection relies
solely on the T&Cs provided by the seller. An international standard to provide guidance could
help to improve positive outcomes for global consumers and increase confidence inbusinesses.
Online T&Cs can be onerously complicated and long, creating confusion and deterringconsumers from reading them. It would take a little over three hours to read, let alone
understand, the terms of service and privacy notices of the five most popular social media andmessaging apps.
The Swedish Consumers’ Organisation found that, when printed out, Airbnb’s T&Cs are 39
metres long. Consumers International estimates that it would take the average person 76
working days to read all the T&Cs that they encounter online in one year. It claims that: ‘it is
now well understood that hardly anyone reads the small print before they click agree’ 1
When consumers do try to engage with T&Cs, the documents often seem impenetrable. A
recent paper on online harm and manipulation highlighted that privacy policies frequently
require college-level reading ability, yet the average reading ability is much lower than this.
The result is that many consumers often absentmindedly tick a box to ‘agree’ and that lessthan 1% click to view the full text of contractual documents online.
A 2016 study by the European Commission showed similar findings 2 , saying that ‘T&Cs areoften long and written in complex legal jargon. In some cases, they are as long as
Shakespeare’s plays. Moreover, if they want to complete the purchase, consumers have noV01/2020

Form 4: New work item proposal (NP)Page 4other choice than accepting T&Cs. However, blindly accepting T&Cs may be costly, because
consumers may end up with a contract they would not have signed if they had been aware of
the content.’
It is strongly suspected that obscure language and excessive length of T&Cs has been used
deliberately by some organizations to confuse or overwhelm consumers.
The 2017 revised UN Consumer Protection Manual states: “As the World Bank has suggested,
complexity may be a cover for unfairness and sometimes ‘even direct fraud’. Research by theEuropean Commission using expert advisers has shown that even people familiar with thefinancial products may not be able to fully understand the terms. The Manual goes on toconclude: ‘The problem goes beyond consumer comprehension; certain products may simply
be incomprehensible, even to regulators and sales staff… transparency and disclosure are notjust matters of consumer information, they are a vital part of the regulatory process”.
In summary, it is unrealistic to expect consumers to read the T&Cs of every online retailer they
do business with, let alone understand them. However, this means that they often enter
contracts without being fully aware of the conditions they have agreed to be legally bound by.
A lack of understanding of T&Cs leads to less informed consumer decisions and increases thelikelihood of consumers experiencing detriment. For example, being unaware of: additionalcharges; early termination fees; lack of cancellation rights; or how personal data will be shared.
Consumers in vulnerable situations may be at a greater risk of harm.
Consider the following:
Is there a verified market need for the proposal?
What problem does this document solve?
What value will the document bring to end-users?
See Annex C of the ISO/IEC Directives, Part 1 for more information.
See the following guidance on justification statements in the brochure ‘Guidance on New
work’: https://www.iso.org/publication/PUB100438.html

1 Consumers International, ‘Building a digital world consumers can trust’ March 2017
2 http://ec.europa.eu/consumers/consumer_evidence/behavioural_research/docs/termsconditions_factsheet_web_en.pdf

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Form 4: New work item proposal (NP)Page 5

Please select any UN Sustainable Development Goals (SDGs) that this document will
support. For more information on SDGs, please visit our website at www.iso.org/SDGs."☒ GOAL 1: No Poverty☐ GOAL 2: Zero Hunger☐ GOAL 3: Good Health and Well-being☐ GOAL 4: Quality Education☐ GOAL 5: Gender Equality☐ GOAL 6: Clean Water and Sanitation☐ GOAL 7: Affordable and Clean Energy☒ GOAL 8: Decent Work and Economic Growth☐ GOAL 9: Industry, Innovation and Infrastructure☒ GOAL 10: Reduced Inequality☐ GOAL 11: Sustainable Cities and Communities☒ GOAL 12: Responsible Consumption and Production☐ GOAL 13: Climate Action☐ GOAL 14: Life Below Water☐ GOAL 15: Life on Land
☐ GOAL 16: Peace and Justice Strong Institutions
N/A GOAL 17: Partnerships to achieve the Goal
Preparatory work
(An outline should be included with the proposal)☐☒☒

A draft is attachedAn outline is attachedAn existing document will serve as the initial basis

The proposer or the proposer's organization is prepared to undertake the preparatory
work required: ☒ Yes☐ No
If a draft is attached to this proposal
Please select from one of the following options (note that if no option is selected, the default
will be the first option):☒ Draft document can be registered at Working Draft stage (WD – stage 20.00)☐ Draft document can be registered at Committee Draft stage (CD – stage 30.00)☐ Draft document can be registered at Draft International Standard stage (DIS – stage 40.00)☐

If the attached document is copyrighted or includes copyrighted content, the proposer
confirms that copyright permission has been granted for ISO to use this content incompliance with clause 2.13 of the ISO/IEC Directives, Part 1 (see also the Declaration on
copyright).

Is this a Management Systems Standard (MSS)?
☐ Yes

☒ No

NOTE: if Yes, the NP along with the Justification study (see Annex SL of the Consolidated ISO
Supplement) must be sent to the MSS Task Force secretariat (tmb@iso.org) for approval
before the NP ballot can be launched.

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Form 4: New work item proposal (NP)Page 6

Indication of the preferred type to be developed☒☐☐

International Standard
Technical Specification
Publicly Available Specification

Proposed Standard Development Track (SDT)
To be discussed between proposer and committee manager considering, for example, whenthe market (the users) needs the document to be available, the maturity of the subject etc.
☐ 18 months*☐ 24 months☒ 36 months☐ 48 months*** Projects using SDT 18 are eligible for the ‘Direct publication process’ offered by ISO /CS which reduces
publication processing time by approximately 1 month.
** Only for JTC 1

Draft project plan (as discussed with committee leadership)
Proposed date for first meeting: 2021-07-01
Proposed dates for key milestones:
Circulation of 1st Working Draft (if any) to experts: 2021-10-01
Committee Draft ballot (if any): 2022-03-01
DIS submission*: 2023-04-01
Publication*: 2024-04-01* Target Dates for DIS submission and Publication should preferably be set a few weeks ahead of the limit dates(automatically given by the selected SDT).

For guidance and support on project management, descriptions of the key milestones and tohelp you define your project plan and select the appropriate development track, see:go.iso.org/projectmanagement
NOTE: The draft project plan is later used to create a detailed project plan, when the project isapproved.
Known patented items (see ISO/IEC Directives, Part 1, clause 2.14 for important
guidance)
☐ Yes

☒ No

If "Yes", provide full information as annex
Co-ordination of work
To the best of your knowledge, has this or a similar proposal been submitted to anotherstandards development organization?
☐ Yes

☒ No

If “Yes”, please specify which one(s):Click here to enter text.

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Form 4: New work item proposal (NP)Page 7

A statement from the proposer as to how the proposed work may relate to or impact on
existing work, especially existing ISO and IEC deliverables. The proposer should
explain how the work differs from apparently similar work, or explain how duplicationand conflict will be minimized
The proposer believes that there is no other proposed or existing work involving ISO or IEC.
NOTE: Given the growing number of online transactions and issues with consumer harms
occurring with online trade, especially cross-border, there is scope for placing this item in thework programme of ISO/TC 321.
A listing of relevant existing documents at the international, regional and national levels
See list in Annex A
Please fill out the relevant parts of the table below to identify relevant affectedstakeholder categories and how they will each benefit from or be impacted by the
proposed deliverable
Benefits/impacts
Industry and commerce –large industry

A clear set of requirements toassess the quality of theirterms and conditions, andenable comparison withcompetitors, presenting theopportunity to promote a
positive image of their brand.
A clear understanding of thecontractual relationshipbetween the business and its
customers can improvecustomer satisfaction andavoid costly complaints.
Complaints can lead to
reputational damage,
particularly as moreconsumers resort to social
media to air their grievances

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Examples oforganizations/companies
to be contacted
All retailers with a retailecommerce interface
Law firms specializing indrafting e-commerce terms
and conditions

Form 4: New work item proposal (NP)Page 8Industry and commerce –SMEs

Access to guidance that will
As above.
enable SME’s to make theirterms and conditions
SME’s. in their role asaccessible and clear, for the
consumers dealing with larger
benefit of their customers,commercial organizations
without the need for expensive
legal advice
Clear terms and conditions willbuild trust and enableconsumers to identify them as
the better businessA clear understanding of thecontractual relationshipbetween the business and its
customers can improvecustomer satisfaction andavoid costly complaints

Government

Avoids the cost of legislation,whilst giving confidence that
consumers are being
adequately protected.

Sectoral regulators, plus
generic consumer protection
agencies

Supports good businesses
and, as an international
standard, improves access to
global e-commerce markets
Sectoral regulators, plus
generic consumer protection
agencies.
Demonstrates to regulators
the key elements of T&Cs andassists monitoring of
regulatory compliance.
Provides a market sensitiveand market-based solution toa current consumer issue
Consumers

Improves consumers’
understanding of theircontractual rights andresponsibilities.
Empowers consumers to
identify the right business todeal with

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Consumer representative
organisations

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LabourResponse to concerns
Unions in the relevant sectors
expressed by unions about theUnions acting as brokers
ethical dilemmas posed forstaff by unfair or unclear
contract terms. Many unions
also act as brokers of services
for their members

Academic and researchbodiesExamples of considered
attempts at design of goodpractice.

Mainly consumer law
departments

Examples of practices to be
avoidedStandards application
businesses

Provides requirements of good Relevant standards
practice for assessing contract application businesses
terms

Non-governmentalorganizations

Access to standards toimprove consumers’
understanding of theircontractual rights andresponsibilities

Consumer representative
organizations

Click here to enter text.

Click here to enter text.

Other (please specify)

Other NGOs advisingconsumers

Liaisons

Joint/parallel work

A listing of relevant external internationalorganizations or internal parties (other ISO
and/or IEC committees) to be engaged as
liaisons in the development of the deliverable.

Possible joint/parallel work with
☐ IEC (please specify committee ID)
Click here to enter text.

ISO TC 324, Sharing economy
ISO TC 176/SC3, Quality management andquality assurance, supporting technologies
ISO PC 311, Vulnerable consumers
ISO TC 37/WG 11, Language andterminology, Plain language☐ CEN (please specify committee ID)
Click here to enter text.
☐ Other (please specify)
Click here to enter text.

A listing of relevant countries which are not already P-members of the committee
Click here to enter text.
NOTE: The committee manager shall distribute this NP to the ISO members of the countries
listed above to ask if they wish to participate in this work
Proposed Project Leader(name and e-mail address)

Name of the Proposer(include contact information)

Sadie Dainton
Sadie.dainton@bsigroup.com, BSI

COPOLCO

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Form 4: New work item proposal (NP)Page 10

This proposal will be developed by☐☒☐☐

An existing Working Group (please specify which one: Click here to enter text.)
A new Working Group (title: Designing better understanding of Terms and Conditions)(Note: establishment of a new WG must be approved by committee resolution)
The TC/SC directly
To be determined

Supplementary information relating to the proposal☒☐☐☐

This proposal relates to a new ISO document;This proposal relates to the adoption as an active project of an item currently registered asa Preliminary Work Item;
This proposal relates to the re-establishment of a cancelled project as an active project.
Other:
Click here to enter text.

Maintenance agencies (MA) and registration authorities (RA)☐This proposal requires the service of a maintenance agency.
If yes, please identify the potential candidate:
Click here to enter text.

☐

This proposal requires the service of a registration authority.
If yes, please identify the potential candidate:
Click here to enter text.

NOTE: Selection and appointment of the MA or RA is subject to the procedure outlined in the
ISO/IEC Directives, Annex G and Annex H, and the RA policy in the ISO Supplement,
Annex SN.

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Form 4: New work item proposal (NP)Page 11☐Annex(es) are included with this proposal (provide details)
Annex A
ISO/TC 324, Sharing economy
ISO/CD 10008, Quality management - Customer satisfaction – Guidelines for business-toconsumer electronic commerce transactions (under revision)
ISO/WD 24495-1, Plain language – Part 1: Governing principles and guidelines
ISO 26000, Guidance on social responsibility
ISO/CD 22548, Inclusive service – Identifying and responding to consumers in vulnerable
situations (under development)
Department for Industry, Energy & Industry Strategy- Best practice guide Improving consumer
understanding of contractual terms and privacy policies: evidence-based actions forbusinesses
https://www.gov.uk/government/publications/contractual-terms-and-privacypolicies-how-toimprove-consumer-understanding
Effective Techniques
Understanding• Display key terms as frequently asked questions• Use icons to illustrate key terms• Use icons to illustrate key terms• Show customers terms within a scrollable text box instead of requiring a click to view them
• Provide information in short chunks at the right time
• Use illustrations and comics
Opening• Tell customers how long it will take to read your policy• Tell customers when it is their last chance to read information before they make a decision
Techniques to improve customer understanding of terms and conditions and/or privacy
policies• Display key terms as frequently asked questions• Use icons to illustrate key terms• Showing the terms as a scrollable block of text in the customer’s journey on your website orapp means they can easily read the terms and conditions (if they want to)• Give people information about terms and conditions when it is most relevant. For example,
provide information about terms and conditions as customers fill in their personal details• Use comics and illustrations to explain step-by-step actions and processes. Comics’ speech
bubbles give customers information about facts, dates, and figures, and their illustrations give
context and emotional cues.
Techniques to encourage more customers to open terms and conditions and/ or privacy
policies• Tell customers how long it will take to read the policy• Tell customers when it is their last chance to read information before they make a decision

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Techniques with mixed evidence• Present key points in a summary table• Add examples and icons to full terms• Shorten full terms• Use simpler language• Use a visual slider to explain fees

Additional information/questions
This specification of guidance to the providers of goods and services on the clear design andpresentation of online terms and conditions to maximise consumer understanding and reduce
detriment is proposed as a contribution to protecting consumers. The clear intent of the content
of Terms and Conditions is assumed not to deliberately put consumers at risk of harm andshould be intended to be understood by all consumers to whom they are presented.

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