FEDERAL PUBLIC PROSECUTION OFFICECONSUMER DIVISION (PROFECO) MEXICO

PROFECO IN THE CONTEXT OF ELECTRONIC COMMERCE

FTAA: XII Meeting of Experts in Electronic Commerce

Panama, February 2002

PublicFTAA.ecom/inf/119

February 13, 2002

Original: SpanishTranslation: FTAA Secretariat

Background

Feb. 5, 1976 Federal Consumer Protection Law (LFPC) enters into force.

Consumers given rights + specialized agency set up to advocate justice for consumers.

PROFECO: agency entrusted with promoting and protecting consumer interests.

PROFECO: over the years

Consumer protection, consumer advice and representation; conciliation and arbitration.

Original LFPC developed over time with amendments made in 1982, 1985, 1988, 1988 and 1991.

New LFPC published on Dec. 24, 1992.

PROFECO: over the years

New LFPC-Full service (advice and consultancy);-Receipt, processing and conciliation (complaints and claims);-Issuance of administrative rulings;-Registry of adhesion contracts;-Technical juridical consumer protection;-Verification and monitoring: Official Mexican Standards (NOMs in Spanish), weights and measures; manuals and guarantees).

PROFECO: over the years

Powers to order corrective advertising; consumer information and advice

(media: print, radio and TV); Contribute to raising consumer

awareness and improving their buying habits.

PROFECO: Mission Consumption

PROFECO: Mission

Promote/protect consumer rights through global quality services.

Consumer relations = fairness and legal protection Give consumers the legal, technical tools and

information to settle disputes with suppliers on an equal footing.

Conciliation – agreement/confrontation. Advice, information, dissemination, research and

education: foster consumer culture to prepare consumers for access, under improved conditions, to the goods and services market.

PROFECO in the new global context

PROFECO in the new global context

Globalization and technological innovations. New (overall) economic environment and the

environment for (individual) consumer transactions. Ministry of the Economy and PROFECO:

Enhance protection and defense of consumer rights

Foster new consumer culture in pace with consumer market developments.

Ministry of Economy and PROFECO: e-commerce-related activities (national and international).

National Action

LEGAL REFORMS 

 

Legal reforms (electronic commerce) inconformity with OECD Recommendations.Reform published in the Official Gazette on May 29, 2000Entry into force June 8, 2000Amendments to 4 statutes:

National Action

National Action

Federal Code of Civil Procedure : validation of consent expressed by electronic, optical or any other technical means (Internet, Intranet, fax or future technological advances). Offer and acceptance made via these means do not require prior agreement or stipulation between contracting parties. The Law allows for contracts agreed to via these means.

National Action

Federal Code of Civil Procedure : Evidence = information generated and transferred by optical and electronic media or any other technological means. Probative value: will be determined on the basis of the security or reliability of the method used to transfer such information.

National Action

Commercial Code: contracts and agreements reached via this means: binding from the moment acceptance of the offer is received. Expressly stipulates that electronic means may be used for all commercial transactions. All information generated, sent, received, stored or transferred through these means is referred to generically as “data message.”

National Action

LFPC: All electronic transactions between suppliers

and consumers must comply with the principles of the Law as amended in accordance with OECD Guidelines.

A special chapter was included on consumer rights in electronic commerce.

International Action

Lines of action

OECD Guidelines

IMSNEconsumer

OECDWorkshop

International Action

OECD: December 9, 1999 Guidelines for Consumer Protection in the Context of

Electronic Commerce Protection for online purchases on par with protection

offered for purchases made in stores or through catalogues. Determine basic features of online consumer protection. Eliminate uncertainties (for consumers and companies)

when making online purchases/sales and develop protection mechanisms, without raising barriers to trade.

 

PROFECO & OECD

Guidelines: reflect already existing legal protection measures for consumers in traditional commerce.

Enhance fair business, advertising and marketing practices;

Promote clear information on the identity of online businesses, goods and services offered and the terms and conditions of transactions;

Transparent procedures to confirm transactions;

PROFECO & OECD

Establish safe payment mechanisms; Promote fair, timely and affordable

dispute resolution and redress or compensation;

Confidence building; Promote consumer and business education.

PROFECO & OCDE

Mexico is a a full member of the OECD. Mexico must observe the recommendations

set forth in the Guidelines. PROFECO translated the Guidelines into

Spanish and assisted in disseminating this information throughout Latin America.

PROFECO & IMSN

IMSN (International Marketing Supervision Network): system of organizations, includes consumer protection authorities from 29 countries + EU and OECD representatives.

1994: Mexico became a member. IMSN linked to OECD. Mexico = only official Latin

American member and one of two Spanish-speaking countries.

Establishment of the eConsumer.gov project

eConsumer.gov

April 24, 2001 Challenges posed by international fraud on

the Internet. Enhance consumer protection and confidence

in electronic commerce. 13 countries. econsumer.gov

eConsumer.gov

Complaints concerning cross-border electronic commerce.

Public website in several languages.Government website: restricted access

and password protected.

eConsumer.gov

Characteristics of the public website: information, contacts with authorities, electronic complaint form, privacy policies.

Sentinel Consumer Network : database with complaints and information on investigations.

FTC Complaints shared on the government website with

participating authorities.

eConsumer.gov

PROFECO is participating in the project as a full member: Contributing tips for secure purchasing Translating the project into Spanish

Consumer magazine PROFECO Internet page

OECD Workshop

March, 2001 Berlin, Germany. Objective: assess progress in the implementation of

the Guidelines. From translation to codes of conduct, educational

material, modifications to the legal frameworks. Information: policies, privacy, safety,

compensation, transparency. Protection in OECD and beyond.

OECD Guidelines

Guidelines: positive impact on national policies.

Some facts

Digital Divide (DD): there is a lack of balanced access to new technologies for countries, regions and individuals.

DD within Mexico and between Mexico and the world: Limited access: 10% of homes w/ computers Social strata: schooling, income

Mexico: # of Internet users = explosive growth; number of installed PCs shows constant increase .

Some facts

1995: 26/1000 persons 2001: 65/1000 persons USA: 500/1000 persons Canada: 260/1000 persons Boom in electronic commerce (B2C and

B2B): over 100% increase.

ChallengesDigital networks and information

technologies require consensus on consumer protection.

Achieve international consensus on public policies so as not to jeopardize growth of electronic commerce.

Guidelines General Principles

. Challenges

Innovative measures: education for consumers, the business community and governments on protection for e-commerce.

National mechanisms for handling complaints: effectiveness; good practices and ADR.

Sweep days = monitoring.Public-policy makers: models that build

confidence and lower access costs.

Challenges

Challenges

Speed up penetration, telecommunications and computer coverage, and reduce inequalities in geographic and social distribution;

Facilitate market access;

Challenges

E-Mexico Project Information revolution; National ; Close the gap; Multi-sectoral project; Mission: facilitate access to basic social services

(commercial transactions) via electronic media.

Challenges

E-economy program: Development and competitiveness of productive and commercial activities;

Develop the digital economy and promote digital literacy of consumers.

ChallengesElectronic commerce is complex:

Chain of Process

End