ICA-Net : Safe and Secured E-Commerce Infrastructure Takashi Enomoto GBDe Overall Chair 2010

1. ICA-Net : Safe and Secured E-Commerce Infrastructure Takashi Enomoto GBDe Overall Chair 2010 29th March, 2010

2. About GBDe- Global Business Dialogue on e-Society - • A worldwide, CEO-led, business initiative • established in January 1999 • to assist the development of a global policy framework for the emerging online economy • Actively promoting a private sector/Government dialogue on convergence-related issues • Renamed in 2010 • 1999 - 2009: Global Business Dialogue on E-Commerce • 2010 - : Global Business Dialogue on e-Society

3. GBDe members and activities Members Projects/Issues • Consumer Confidence • International NFC payment • Digital Opportunity • Digital Home • Ubiquitous Network Society as of December 2009

4. Consumer Confidence Issue Group Objectives Building trust between consumers and merchants is the key for sound growth of cross-border on-line shopping. CCIG focuses on the elements for producing confidence among consumers: Cross-border Trustmark Cross-border ADR Consumer Confidence Cross-border Data Privacy Protection

5. Outline of Consumer Complaintscomplaints from Japanese consumers source: EC Network

6. Outline of Consumer Complaintsbreakdown by state of trading partners FY2008 source: EC Network

7. Trustmark (Singapore) (Mexico) (USA) (Vietnam) (Chinese Taipei) (USA) (Singapore) (Japan) (Korea) (Japan) (Europe)

8. ASIA-PACIFIC TRUSTMARK ALLIANCE Austria Germany France Europe Poland Spain Malta Italy ATA and Euro-Label Japan Korea Singapore Chinese Taipei Vietnam USA Mexico Philippines Euro-Label to join ATA for global trustmark alliance

9. ADR:Promotion of ICA-NetICA-Net: International Consumers Advisory Network • An international complaint-handling network for cross-border online shopping. • The concept scheme proposed at 2007 GBDe Summit in Tokyo. • Meetings with various stakeholders in 2008 • Governments (USA, Japan, Chinese Taipei, Malaysia, Vietnam, Singapore, Thailand) • International Organizations (APEC, OECD, CI) • Consumers organizations (CI, NCCC) • ADR providers (USA, Japan, Chinese Taipei, Singapore, Korea)

10. ICA-Net Government B 5 Request for Response/ information econsumer.gov Law Enforcement Entities （Consumer protection authority, Police) assign State B Consumer Advisory Liaison Office (CALO) ６ report report ３ Support Filing complaints law enforcement/ Administrative directive ２　 Request for response State B Business consult/ file a complaint State A CALO ４ Request for response ７ Register the progress report Transmit the claim/ ADR Register the case １　 Provide information State B ADR provider Business association Consumer group Trustmark provider Platform only for Case management state A Consumer State C CALO Loose Network

11. ICA-Net ICA-Net in 2009 • Kick-off Meeting • Dec. 19th, 2008 in Tokyo • USA, Japan, Singapore, Malaysia, • Chinese Taipei, Vietnam, Thailand • Trial start in January 2009 • USA, Japan, Singapore, Malaysia, Chinese Taipei • Follow-up Meeting • Feb. 27, 2009 in Singapore • Singapore, Malaysia, Chinese Taipei, Vietnam, Thailand, • Japan, China • Participants increase (Philippines, Vietnam, Thailand, China) • Contribution to cross-border disputes • Talks with ECC-Net in Europe (Oct, Nov, 2009)

12. Cases Cross-border complaints handled by ICA-Net • Case 1: Misuse of BBB Trustmark • ・A Japanese consumer received fake Australian boots. The site displayed Trustmarks of BBB and TRUSTe without permission. • Case 2: Domain Registration • ・Thai consumer filed this complaint over Australian domain name registrar to CI in Kuala Lumpur (KL). • Case 3: Negative Option Marketing • ・ A Japanese consumer had trouble with a Japanese subsidiary of BBB member company in US. EC Network bridged this complaint to HQ, and received their response. • Case 4: Fake Escrow Company • ・A Japanese seller on eBay fell victim of a fraud. • ・EC Network requested for eBay an investigation, the disputed site was shut down after eBay alerted the Registrar/ISP • Case 5: Not delivered after payment • ・CI in KL received a complaint from a consumer in Chinese Taipeiwho • purchased goods from a motorcycle dealer in the UK. The consumer lost • contact with the business. SOSA (Chinese Taipei) will support the • consumer and contact the UK ECC.

13. ICA-Net and ECC-Net ICA-Net & ECC-Net Talks for future collaboration • ECC-Net • (European Consumers Center Network) • 29 member states • 62,000 cases (2008)

14. Challenge and future direction • Expansion of network • From trial phase to implementation • Cooperation among member states • More public recognition • Governmental support required • Model case: ECC-Net in Europe • Discussion with government (ERIA)

15. Appendix (for Q&A)

16. Case:Misuse of BBB Trustmark Residence of consumer: Japan Business location: China CALO involved: EC Network (Japan) • A Japanese consumer ordered boots, paid through Paypal but received counterfeits from China. So he filed a complaint to EC Network. • EC Network found the business was displaying BBB and TRUSTe marks and informed BBB of this matter. Since the use of the BBB trustmark was unauthorized, BBB’s legal department sent this business an alert mail demanding that it remove the BBB mark immediately. All Trustmarks including BBB and Truste were removed from the site the next day.

17. Transition from Real to Virtual Sales(US$ million) * Amazon’s sales at Media division in North America