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Public FTAA.ecom/inf/122 February 13, 2002 Original: English. Click to Check. Business Involvement. Participation Requirements. BBB membership In business for at least 1 year Satisfactory complaint handling record No serious government law enforcement action

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  1. Public FTAA.ecom/inf/122 February 13, 2002 Original: English Click to Check

  2. Business Involvement Participation Requirements • BBB membership • In business for at least 1 year • Satisfactory complaint handling record • No serious government law enforcement action • Agree to dispute resolution procedures • Abide by the BBBOnLine Code of Online Business Practice

  3. Business Involvement BBB and BBBOnLine Code of Online Business Practices • High but achievable voluntary standard • Especially useful for cross-border transactions • Developed after wide public input • Modeled on OECD principles, used as model for others (e.g., GBDe) • Published in several languages, including Spanish • Built around 5 core “principles”

  4. Business Involvement BBB and BBBOnLine Code of Online Business Practices • Truthful and accurate communications • Disclosure • Information practices and security • Customer satisfaction • Protecting children • Internal company complaint handling procedure • Third party dispute resolution or money back guarantee

  5. Business Involvement How Do I Resolve My Complaint?

  6. Business Involvement Global Online Trust Alliance™ • Internet requires global solutions • Minimize consumer confusion and conflicting standards – without burdensome regulation • Alliance members: nonprofit trustmark organizations • Online code of business conduct – a floor • Cooperate with partners in cross border dispute resolution • International seal – “co-branded” with local seal • Potential to deliver uniformity, high and flexible standards, effective remedies, “value” to small business and minimum regulation

  7. Business Involvement Example of Co-Branded Trustmarks on Web Sites North America Santiago, Chile China

  8. Business Involvement Status of the Global Online Trust Alliance™ • Agreements in place with • Eurochambres and FEDMA in Europe • ECOM, JCCI and JADMA in Japan • KIEC in Korea • Guangdong Consumer Council in China • Active discussions in Chile, Argentina, Singapore and Taiwan

  9. International Cooperation in Building Consumer Confidence Michelle O’NeillDeputy Assistant Secretary for Information Technology IndustriesU.S. Department of Commerce

  10. International Cooperation Global Approach to Consumer Protection is Necessary • Global approach to consumer protection is necessary • Lack of comparable safeguards among countries inhibits B2C e-commerce • International consumer protection initiatives require cooperation of governments, industry and consumers

  11. International Cooperation Goals of Participation in International Fora • To create a secure and predictable global online environment governments, industry & consumers are working to: • Identify commonality in international codes of conduct & ADR mechanisms • Foster understanding of different national approaches and find ways to achieve common goals

  12. International Cooperation International Business & Consumer Fora:GBDe (www.gbde.org) • Trustmarks – Important way for consumers to verify that they are patronizing businesses committed to good business practices • ADR – Practical method of addressing cross-border problems • Privacy – Guidelines for both business and consumers in development

  13. International Cooperation International Business & Consumer Fora: TACD (www.tacd.org) • Establish minimum international standards to promote online trust • Ensure fair and effective methods of dispute resolution • Create easy-to-use and low-cost ADR systems

  14. International Cooperation Multilateral Fora: APEC (www.ecommerce.gov/APEC) • Workshop (July 2000) • Survey (2001) • Draft Consumer Protection Guidelines (2002)

  15. International Cooperation Multilateral Fora: OECD (www.oecd.org) • OECD Guidelines for Consumer Protection in Electronic Commerce (1999) • Codes of Conduct: Inventory of compliance mechanisms and study on international applications of codes • ADR • Inventory of approaches • Educational tools for parties to dispute resolutions • Results of questionnaire

  16. Final Points

  17. Points to Take Away • Cooperation between U.S. Government, business and consumers has had positive results in the United States • Strong consumer protection laws and regulations, in combination with consumer and business education, help consumers avoid problems and businesses comply

  18. Points to Take Away Cont’d • Self-regulation is an effective way to promote consumer confidence • Cross-border nature of e-commerce means that we must work on a global level to build consumer confidence in online transactions

  19. Need More Information? Michelle O’NeillU.S. Department of Commercemichelle_oneill@ita.doc.gov Pablo ZylberglaitU.S. Federal Trade Commission pzylberglait@ftc.gov Susan GrantNational Consumers League susang@nclnet.org Steve ColeThe Better Business Bureau scole@cbbb.bbb.org

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