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PublicFTAA.ecom/inf/122

February 13, 2002

Original: English

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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

Business Involvement

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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”

Business Involvement

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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

Business Involvement

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How Do I Resolve My Complaint?

Business Involvement

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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

Business Involvement

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Example of Co-Branded Trustmarks on Web Sites

North America

China

Santiago, Chile

Business Involvement

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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

Business Involvement

International Cooperation in Building Consumer Confidence

Michelle O’NeillDeputy Assistant Secretary for Information Technology

IndustriesU.S. Department of

Commerce

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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

International Cooperation

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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

International Cooperation

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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

International Cooperation

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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

International Cooperation

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Multilateral Fora: APEC (www.ecommerce.gov/APEC)

• Workshop (July 2000)

• Survey (2001)

• Draft Consumer Protection Guidelines (2002)

International Cooperation

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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

International Cooperation

Final Points

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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

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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

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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