Coordinating Committee
of Business Interlocutors (CCBI)
Input
WSIS
PrepCom 1 (1-5 July 2002)
Coordinating Committee
of Business Interlocutors (CCBI)
Comments
Comments from the Coordinating Committee of Business
Interlocutors (CCBI) on themes and issues for the
World Summit on the Information Society
CCBI Members
International Chamber of Commerce-ICC (Chair)
Business Council for the United Nations-BCUN
Business and Industry Advisory Committee to the OECD-BIAC
Global Information Infrastructure Commission-GIIC
Global Business Dialogue on e-commerce-GBDe
Information Technology Association of America/ World Information and
Technology Services Alliance-ITAA/WITSA
United States Commission on International Business-USCIB
World Economic Forum-WEF
Money Matters Institute
CCBI larger group members:
ICC National Committees, Groups and Members in 130 Countries
Internet Law & Policy Forum-ILPF
International Organization of Employers-IOE
General
CCBI welcomes very much Document 4 prepared for PrepCom 1
“Proposed Themes For The Summit And Possible Outcomes”.
CCBI as a primary voice of business particularly welcomes the overall
focus as noted in points 7 and 12.
We have carefully looked at annex 1 “An illustration of the range of
issues that may be relevant to the Information Society”. We would like to
propose a business view of the “clustering” of issues.
· We feel that an understanding of the different roles of government,
business and civil society is such an overarching issue that it should
be addressed as a separate issue.
· There are some concrete issues that require leadership from
government, with the input of business and civil society. There are
also other issues that require primary leadership from the private
sector.
We have noted on the attached “clusters” sheet some of these issues
under ‘building an appropriate framework’. They are further
elaborated in section 2 of the attached Global Action Plan for
Electronic Business (current draft 4th edition).
I. Roles of stakeholders in shaping the information society
· Governments
· Business
· Civil Society
II. Building an appropriate policy framework
· Creating an environment that attracts investment in technology
and infrastructure, including telecommunications liberalization
· Intellectual property rights
· Taxation; Competition; Customs
· Jurisdiction and applicable law
· Freedom of communication over the internet
· Security
· Privacy
· Data protection
III. Services and applications/supportive frameworks
· Facilitating trade in ICT goods and services
· Facilitating the delivery of government services
· Facilitating institution building for ICT
IV. User issues
· Affordability
· Access to infrastructures, information and knowledge
· Local content and applications
· Confidence-building measures for online transactions
V. ICTs as a tool for development
· Identifying key components necessary to seize digital
opportunities, particularly in LDCs
· Investment in education to develop a skilled workforce
· Mobilizing ICT for education and training particularly for youth
· Mobilizing ICT for health
· Fostering entrepreneurship
A Global Action Plan
for Electronic Business
BUSINESS AND INDUSTRY
ADVISORY COMMITTEE
TO THE OECD
A Global Action Plan
for Electronic Business
Prepared by Business with
Recommendations for Governments
3rd edition
(For publication 30 July 2002)
Collectively, the Alliance for Global Business represents the following
organizations;
Arbeitsgemeinschaft für Datenverarbeitung (ADV), Austria ICC New Zealand
Asociación Española de Empresas de Tecnologías de la Información (SEDISI), Spain ICC Norway
Asociación Mexicana de la Industria de Tecnologías de Información (AMITI), Mexico ICC Peru
Associaçao Industrial Portuguesa (Portuguese Industrial Association) ICC Philippines
Associação Portugesa das Empresas de Tecnologias de Informação e Comunicações ICC Portugal
(APESI), Portugal ICC Saudi Arabia
Association for Consulting to Business (APP), Czech Republic ICC Singapore
Association Française des Utilisateurs du Téléphone et des Télécommunications, ICC South Africa
(AFUTT) ICC Spain
Association of Telecommunication Users (AUTEL), Spain ICC Sri Lanka
Association of the Computer Industry (PIKOM), Malaysia ICC Sweden
Association Suisse d'Usagers de Télécommunicatons, (ASUT) ICC Switzerland
Associazione Nazionale Aziende Servizi Informatica e Telematica Italy ICC Syria
Associazione Nazionale Utenti Italiani di Telecomunicazioni (ANUIT) ICC Thailand
Australian Chamber of Commerce and Industry ICC Togo
Australian Information Industry Association (AIIA) ICC Tunisia
Australian Telecommunications Users Group (ATUG) ICC Turkey
AUT, Czech Republic ICC Ukraine
Bangladesh Computer Samity (BCS) ICC United Kingdom
Belgian Telecommunications Users Group (BELTUG) ICC Uruguay
Bundesverband der Deutschen Industrie (Federation of German Industries) ICC Venezuela
Bundesverband Informationstechnologien (BVITeV), Germany ICC Yugoslavia
Bundesvereinigung der Deutschen Arbeitgeberverbände (Confederation of German ICC Caribbean
Employers' Associations) Chinese Taipei Business Council of ICC
Cámara de Empresas de Software y Servicios Informáticos (CESSI), Argentina Hong Kong, China Business Council of ICC
Canadian Council for International Business Information Service Industry Association of China, Taipei (CISA) China
CEHIC (Confederation of Hungarian Employers' Organisations for International Information Technology Association of America (ITAA)
Cooperation) Information Technology Association of Canada (ITAC)
Colombian Software Federation (FEDECOLSOFT) Information Technology Association of New Zealand (ITANZ)
Computer Suppliers' Association of Zimbabwe (COMSA) Information Technology Services Association (TIPAL), Finland
Computing Services & Software Association (CSSA), United Kingdom International Communication User Group (ICUG), Ireland
Confederacion de Camaras Industriales de los Estados Unidos Mexicanos (CONCAMIN) International Communications Association (ICA), USA
(Mexican Confederation of Chambers of Industry) International Press Telecommunications Council (IPTC)
Confederacion Espanola de Organizaciones Empresariales (Spanish Confederation of Irish Business and Employers Confederation
Employers' Organizations) Israeli Association of Software Houses (IASH)
Confederacion Patronal de la Républica Mexicana (COPARMEX) (Employers IT Association of South Africa (ITA)
Confederation of the Mexican Republic) IT&C Association of Romania (ATIC)
Confederation of British Industry United States Council for International Business Japan Information Service Industry Association (JISA)
Confederation of Industry of the Czech Republic Keidanren - BIAC Japan (Federation of Economic Organizations)
Confederazione Generale dell'Industria Italiana (General Confederation of Italian Industry) Konfederacja Pracodawcow Polskich (Confederation of Polish Employers)
Dansk Arbejdsgiverforening (Danish Employers' Confederation) L’Association des Professionnels de L’Informatique de la Bureautique et de la
Dansk Dataforening (DDF), Denmark Telematique (APEBI), Morocco
Dansk Industri (Confederation of Danish Industries) Mongolian National Information Technology Association
Fédération des Entreprises de Belgique (Federation of Belgian Industry - FEB-VBO) Mouvement des Entreprises de France (MEDEF) (French Enterprises Association)
Fédération des Industriels Luxembourgeois (Federation of Luxembourg Industrialists) Naeringslivets Hovedorganisasjon (Confederation of Norwegian Business and Industry)
Federation of Dutch Branch Associations in Information Technology (FENIT) Näringslivets Telekommitté (NTK), Sweden
Federation of Hellenic Information Technology Enterprises (SEPE) National Association of Software and Service Companies (NASSCOM), India
Federation of Korean Industries (FKI) National Telecommunications User Group (NTUG), South Africa
Federation of Korean Information Industries (FKII) Nederlandse vereniging van bedrijfs telecommunicatie grootgebruikers (BTG)
Hong Kong Information Technology Federation (HKITF) New Zealand Employers' Federation
Hong Kong Telecommunications Users Group (HKTUG) Norsk Tele- og Informasjonsbrukerforening (NORTIB)
ICC Argentina Polish Chamber of Information Technology and Telecommunications (Polska Izba
ICC Australia Informatyki i Telekomunikacji - PIIiT)
ICC Austria Singapore Information Technology Federation (SITF)
ICC Bahrain Sociedade de Usuários de Informática e Telecomunicações - Sao Paulo (Sucesu-SP),
ICC Bangladesh Brazil
ICC Belgium Software Industry Federation in Northern Ireland (SIF)
ICC Brazil Svenska Arbetsgivareföreningen (Swedish Employers' Confederation)
ICC Burkina Faso Sveriges Industriförbund (Federation of Swedish Industries)
ICC Canada Swedish IT-companies' Organisation AB, Sweden
ICC Chile Syndesmos Ellinikon Viomichanion (Federation of Greek Industries)
ICC China Syntec Informatique, France
ICC Colombia Telecom eV, Germany
ICC Cyprus Telecom Forum Africa Ltd
ICC Denmark Telecommunications Managers Association (TMA), UK
ICC Ecuador Telecommunications Users Association (TUA), UK
ICC Egypt Telecommunications Users Association of New Zealand (TUANZ)
ICC Finland Teollisuuden Ja Työnantajain Keskuslitto (Confederation of Finnish Industry and
ICC France Employers)
ICC Germany The Association of Lithuania's Information, technology, telecommunications and office
ICC Ghana equipment (INFOBALT)
ICC Greece The Association of Thai Computer Industry (ATCI)
ICC Hungary The Co-operative Society for Computers of Egypt (CSCE)
ICC Iceland Türk Sanayicileri ve Isadamlari Dernegi (TÜSIAD - Turkish Industrialists' and
ICC India Businessmen's Association)
ICC Indonesia Türkiye Isveren Sendikalari Konfederasyonu (TISK Turkish Confederation of Employer
ICC Iran (Islamic Republic of) Associations)
ICC Ireland Türkiye Ticaret - Sanayi - Deniz Ticaret Odalari ve Borsalari Birligi (TOBB -
ICC Israel Union of Chambers of Commerce, Industry, Maritime Commerce and Commodity
ICC Italy Exchanges of Turkey)
ICC Japan Union Patronale Suisse (Confederation of Swiss Employers)
ICC Jordan Union Suisse du Commerce et de l'Industrie – Vorort (Swiss Federation of Commerce and
ICC Korea Industry)
ICC Kuwait United States Council for International Business (USCIB)
ICC Lebanon Vereinigung Der Österreichischer Industrieller (Federation of Austrian Industry)
ICC Lithuania Vereinigung von TK-netzbetreibern des Finanzsektors (VTF), Austria
ICC Luxembourg Vereniging VNO-NCW (Confederation of Netherlands Industry and Employers VNO-
ICC Mexico NCW)
ICC Morocco Vinnuveitendasamband Islands (Confederation of Icelandic Employers)
ICC Netherlands
2
This Action Plan is supported by:
World Association of Newspapers (WAN)
World Economic Forum (WEF)
World Federation of Advertisers (WFA)
World Trade Centres Association (WTCA)
International Express Carriers Conference (IECC)
International Federation of Freight Forwarders' Associations (FIATA)
Eurobit
Eurocommerce
European Community Shipowners' Association (ECSA)
European Society for Opinion and Marketing Research (ESOMAR)
Federation of European Direct Marketing (FEDMA)
Japan-US Business Council
US-Japan Business Council
Advertising Agencies' Association of New Zealand
Advertising Standards Authority New Zealand
Canadian Chamber of Commerce
Canadian Council for International Business (CCIB)
Chamber of Commerce and Industry – Haifa and Northern Israel
Federation of German Industry (BDI)
German Association of Chambers of Commerce and Industry (DIHT)
Association of New Zealand Advertisers
German Electrical and Electronic Manufacturers' Association (ZVEI)
German Information Technology Manufacturers’ Association (FVIT)
Information Technology Association of Canada (ITAC)
Keidanren
New Zealand Chambers of Commerce
New Zealand Direct Marketing Association
Pacific Basin Economic Council (PBEC)
Pacific Economic Cooperation Council (PECC) TIIF
The British Phonographic Industry Ltd (BPI)
US Council for International Business (USCIB)
In cooperation with:
Association Européenne pour la Protection des Oeuvres et services
Cryptés (AEPOC)
Internet Law and Policy Forum (ILPF)
3
Table of contents
A Global Action Plan for Electronic Commerce Prepared by
Business with recommendations for Governments
I. Introduction to the third edition ........................................................................6
Background................................................................................................6
This document ...........................................................................................7
II. Fundamental principles .....................................................................................8
III. An Action Plan………………………………………………………………..…9
1. Maximizing the benefits – economic and social impacts ......................9
Economic and social impacts................................................................... 12
Small and medium-sized enterprises ....................................................... 12
Skills development ..................................................................................13
Ensuring global participation...................................................................13
Infrastructure deployment ........................................................................14
Government as model user ......................................................................14
2. Electronic business and the information infrastructure – trade aspects,
standards, and Internet names and numbers......................................15
Competition and trade-related aspects of electronic commerce ..............15
Telecommunications competition ...........................................................15
IT equipment............................................................................................16
Trade-related aspects of electronic commerce.........................................17
Trade-related aspects of intellectual property.......................................... 18
Convergence. ...........................................................................................18
Standards..................................................................................................19
Internet names and numbers ....................................................................20
Domain name system...............................................................................20
3. Building trust for users and consumers...............................................21
Protection of personal information .......................................................... 21
Privacy and transborder flows of data .....................................................21
Internet privacy ........................................................................................22
Consumer trust and content .....................................................................23
Consumer trust.........................................................................................24
Online Alternative Dispute Resolution (ADR)........................................25
Content.....................................................................................................26
Marketing and advertising ethics.............................................................27
Unsolicited commercial communications................................................ 28
Issues relating to cybersecurity................................................................29
Promotion of technology and services development to
ensure security .........................................................................................29
Cryptography for confidentiality ............................................................. 30
Information sharing..................................................................................30
4
Cybercrime...............................................................................................31
Business monitoring of its own communications and networks .............31
Data storage requirements .......................................................................32
Searches and subpoenas of computer records.......................................... 32
Access to public domain information ......................................................33
Legal government interception of telecommunications
and electronic communications ...............................................................33
Electronic authentication .........................................................................34
Legal validity of electronic signatures; interoperability of
certificates and electronic signatures ....................................................... 34
Accreditation............................................................................................36
Availability of certification practice statements ......................................36
4. Establishing ground rules for the digital marketplace....................... 37
Contractual and other legal issues ...........................................................37
Removing legal/regulatory obstacles .......................................................37
Create a new uniform legal framework ................................................... 38
Jurisdiction and applicable law................................................................38
Incorporation by reference .......................................................................39
Transparency and availability of proprietary and best practice
legal terms, model contracts etc...............................................................39
Dispute settlement ...................................................................................39
Fraud and other commercial crime ..........................................................39
Liability.................................................................................................... 40
Taxation and tariffs..................................................................................41
Customs duties......................................................................................... 42
Taxation ...................................................................................................43
Trade facilitation and customs modernization.........................................44
Private/public sector interface .................................................................44
Customs modernization ........................................................................... 44
Capacity building.....................................................................................45
Intellectual property.................................................................................46
Copyright and neighbouring rights .......................................................... 46
Trademarks ..............................................................................................47
Databases .................................................................................................47
IV. Annex - selected industry self-regulatory initiatives ......................................
5
I. Introduction to the third edition
Background
This third edition of the Global Action Plan for Electronic Business published by the Alliance
for Global Business (AGB) reflects a number of developments in the global discussions about
electronic business since the first Global Action Plan was submitted on behalf of business to
the OECD Ministerial in Ottawa, Canada, in October 1998. It also responds to a commitment
that the AGB made in Ottawa on behalf of business globally to submit evidence, after one
year, that the various business actions set forth in the Global Action Plan were being properly
implemented.
In its first edition, the Global Action Plan urged governments to rely on business self-
regulation and the voluntary use of empowering technologies as the main drivers behind the
creation of trust across the whole spectrum of users and providers of e-commerce goods and
services. It also stated that governments should focus on the provision of a stable and
predictable environment enabling the enforcement of electronic contracts, the protection of
intellectual property and safeguarding competition. Furthermore, the Action Plan provided a
detailed overview of which issues were the respective responsibilities of the private and the
public sectors, and included an exemplary selection of self-regulatory projects.
The organizations in the AGB and the many Action Plan supporters believe that
implementation of the business agenda expressed in the Action Plan is progressing
satisfactorily. As this update shows, in many areas there is strong evidence that business is
responding to the new environment by providing unprecedented transparency and safeguards
for consumers. Sometimes the results of such business action can be easily quantified, but
more often it is reflected in the figures showing a rapid expansion of e-business globally.
Self-regulation is not a new phenomenon. Throughout history, business has set its own
standard rules and practices through a variety of organizations to lower transaction costs, to
avoid and resolve conflicts, and to create consumer confidence.
The pace of change and nascent state of electronic business have heightened the risks
associated with premature or unnecessary government regulation. This has increased the
responsibility of business to promote a trustworthy environment through self-regulation and
technological innovation. Business has a strong market incentive to foster the empowerment
of users, but will only make the necessary investments if it can trust that governments will
recognize and reinforce the leadership of business in responding to the highly dynamic nature
of electronic business.
6
This document…
Part II of this document establishes a set of fundamental principles as the basis for the
framework in which policymaking for electronic commerce should take place.
Part III presents a proposed framework for action that has been agreed to by the world’s
leading international business organizations that are working together to provide business
leadership, in cooperation with governments and others. The plan describes business actions
and commitments in concrete terms and identifies business expectations of government
action. It is proposed as a reference point for all relevant business and government
organizations to contribute to the efficient and transparent development of the minimal rules
necessary for a stable and predictable electronic commerce environment.
The action plan calls for a “hands off” approach by government on certain issues, whilst
recognizing that electronic business raises many important public policy considerations that
may require governmental facilitation. Government intervention may be required in such
matters as intellectual property protection, taxation, and the removal of barriers to competition
in providing the underlying infrastructure. However, in other matters, business solutions such
as self-regulation and technology tools are the preferred and more effective means than
legislation to create trust in electronic business transactions.
The objective of the action plan is to provide an inventory of fundamental business views on
the issues that government must deal with and to give a clear overview of business action in
those areas where market-driven, industry-led solutions are most likely to be found. The
action plan also responds to various high-level statements made by governments in recent
years about the need for business to lead the development of electronic business. Business
accepts this task and proposes this revised action plan as a mechanism for providing such
leadership in a coordinated and transparent fashion.
Part IV of the document presents a sample compilation of successful self-regulatory solutions
currently in use or being developed, and indicates progress made in those projects that were
also featured in the first and second editions of the Global Action Plan.
Finally, Part V describes the Alliance for Global Business.
It is the intent of the authors for this document to be a “living document” that evolves as
electronic business implementation unfolds and provides experience and new evidence of
successful projects.
To this end, we renew our invitation to readers to submit comments for improvement and,
where appropriate, endorsements to:
Ayesha Hassan
Senior Policy Manager, Electronic Business, IT, and Telecoms, ICC
Tel: +33 1 49 53 30 13; Fax: +33 1 49 53 28 59; e-mail: ayesha.hassan@iccwbo.org
7
II. Fundamental principles
Business believes that a number of fundamental principles should shape the policies that
govern electronic business if the promises of electronic business are to be fulfilled. In this
context, we provide the following Policy Principles for Global Electronic Business. We
expect that these Principles may need to be extended as insights are gained from the
development of the marketplace.
1. The development of electronic business should be led primarily by the private sector in
response to market forces.
2. Participation in electronic business should be pursued through an open and fair competitive
market.
3. Government intervention, when required, should promote a stable, international legal
environment, allow a fair allocation of scarce resources and protect public interest. Such
intervention should be no more than is essential and should be clear, transparent, objective,
non-discriminatory, proportional, flexible, and technologically neutral.
4. Mechanisms for private sector input and involvement in policy making should be promoted
and widely used in all countries and international fora.
5. Electronic business is global by nature. Government policies that affect it should be
internationally co-ordinated and compatible, and should facilitate interoperability within an
international, voluntary and consensus-based environment for standards setting.
6. Transactions conducted using electronic business means should receive neutral tax treatment
in comparison to transactions using non-electronic means. Taxation of electronic business
should be consistent with established, internationally accepted practices, and administered in
the least burdensome manner.
7. Regulation of the underlying telecommunications infrastructure, when necessary, should
enable actors to compete, globally, in an open and fair market. As competition develops,
regulation should be phased out and there should be a greater reliance on competition law.
8. The protection of users, in particular with regard to privacy, confidentiality, anonymity and
content control should be pursued through policies driven by choice, individual empowerment,
industry-led solutions. It will be in accordance with applicable laws.
9. Business should make available to consumers and, where appropriate, business users the
means to exercise choice with respect to privacy, confidentiality, content control and, under
appropriate circumstances, anonymity.
10. A high level of trust in the global information infrastructure and services should be pursued by
mutual agreement, education, further technological innovations to enhance security and
reliability, adoption of adequate dispute resolution mechanisms, and private sector self-
regulation.
8
III. An action plan
This section aims to provide fundamental business views on:
(a) the main barriers to the development of electronic business
(b) solutions already developed by government and business
(c) the respective roles of governments and business, and, within that context –
· actions business is taking with respect to specific problems; and
· actions business considers governments should take.
1. Maximizing the benefits - economic and social impacts
Electronic business is an innovative approach to ensuring future sustainable economic growth.
Throughout the world, the profound impact of electronic commerce on the economies and
societies of the globe will undoubtedly improve economic efficiency, competitiveness and
profitability and the development of the information society. Within such an environment
countries in all stages of development will have the opportunity to benefit by:
· increasing internal organizational and management efficiency;
· increasing transaction efficiency and reducing transaction costs for both suppliers and
buyers;
· extending market reach of suppliers and increasing choice for both suppliers and
consumers;
· having access to accurate information to improve service delivery such as in health
provision or the provision of information to consumers.
Electronic business facilitates established business-to-business commercial relations, sales by
companies to consumers, and exchanges between consumers. It affects the business
environment at national, regional and global levels, and generates major opportunities, and
new challenges, for market growth and development of jobs, industries and services.
Consequently, internationally coordinated efforts are essential in order to secure the economic
benefits of electronic commerce for both the information “rich” and the information “poor”.
Electronic business creates a number of positive impacts, including:
· Shrinking the production and distribution chain by reducing intermediation and changing
its nature. In addition, using networks to integrate markets directly with suppliers and
inventory-tracking procedures can help reduce costs and allow more flexible production
methods.
· The ability to compare prices and other terms globally.
· Providing virtual shopping facilities that will change concepts of retailing for a number
of goods and services and enhancing the ability of customers to browse and choose new
products and services.
9
· Increasing market competition as costs for consumers are reduced and as market entry
barriers for suppliers are lowered, enabling suppliers to address directly market segments
that were previously uneconomical.
· Raising productivity growth and the development of new activities will lead to new job
creation, but will also result in the demand for new skills.
· Increased employment figures boost government revenues through more taxable income.
Measuring electronic business as accurately as conventional commerce is not easy given the
difficulty of defining it and adequately capturing the value associated with it. Nevertheless,
such data are needed to focus the policy debate so that action is directed towards activities that
accurately reflect electronic commerce and its contributions to economic growth and
development.
Small and Medium-Sized Enterprises (SMEs) represent an increasingly important dimension
of the global economy. Particular efforts should be made to promote SME involvement in
electronic commerce to ensure that they can take maximum advantage of the ability of
telecommunications and information technologies to deliver cost efficiencies, quality control
and competitiveness in manufacturing and service industries. As one of the most dynamic
sectors of a growing economy, SMEs play a critical role in creating employment and
enhancing Gross Domestic Product. Electronic commerce provides SMEs with lower market
entry costs and the ability to extend geographic reach to a much larger market.
Electronic commerce is changing the way we do business. We have moved from an industrial
economy where machines dominated productivity, to an information-based economy where
intellectual content is the dominant source of value added and which knows no geographic
boundaries. In this new environment, education and lifelong learning will be essential not only
for workers but for all in society. As industry, commerce, and services are transformed by
technology, many skills, not only of employees but also of managers and the self-employed,
need to be improved or acquired. Future education will include formal and informal learning
arrangements and require that it is made available to a much wider range of people, including
adults returning to learn. The new information technology, such as interactive media and
distance learning, will offer wider access and innovative approaches to education. As future
economic prosperity and social and political cohesion depend on a well-educated population,
lifelong learning will be essential for everyone as we progress in the 21st century.
It is important to recognize the need for global cooperation by both business and governments
to facilitate electronic business. Otherwise, there is a risk that much of the world’s population
may not be able to participate in the economic and social benefits that can arise from
electronic business and information technologies. According to the World Bank, half of the
investment needed to upgrade the telecommunications infrastructure in developing and
emerging economies will need to come from private capital. Therefore, these countries need
to take measures to ensure an appropriate investment climate.
10
Countries around the world should use electronic means of communications to deliver public
services and to make public procurement procedures more efficient. This area requires
increased attention to ensure that these processes and services keep pace with best practices.
The benefits include government efficiencies, equalization of service provision to all citizens,
and the demonstration of government leadership in the use of electronic commerce technology
and services.
As the world’s richest and most industrialized societies have steadily migrated towards
conducting commercial and other activities on the Internet, public policy dilemmas have
arisen. The ‘digital divide’ has become a widely debated policy issue. The term “digital
divide” refers to the growing gulf between those who are adequately connected to
communications networks and information resources, and possess the means to make best use
of these resources, and the two-thirds of the world’s population who are not.
So acute is concern, that the leaders of the industrialized world—the Group of Eight or G8—
made the digital divide the center piece of concern at their 2000 summit meeting in Okinawa.
The G8 Digital Opportunity Task Force [DOT Force] was established following that meeting,
and it produced a report with concrete recommendations for bridging the international digital
divide at the G8 meeting in Genoa, Italy, in July 2001. The DOT Force is marked by close co-
operation, on an equal footing, between representatives from G8 governments, developing
nations, international organizations, non-profit and private sectors. The DOT Force includes
almost 100 stakeholder organizations spanning more than 20 countries. It has generated more
than 20 major bilateral and multilateral initiatives. This successful model of co-operation is
now serving as the model for other ICT and development initiatives by international
organizations and the private sector.
In addition, the United Nations has established the U.N. Information & Communication
Technologies Task Force [UN ICT Task Force] which will provide an umbrella for some of
the work started by the Dot Force and other international initiatives to build bridges in the
digital economy and create the necessary foundations for digital opportunities. The UN and
the International Telecommunications Union, in collaboration with other international
initiatives, and organizations will host the World Summit on the Information Society in
Geneva in 2003 and in Tunis in 2005 and plan to push these initiatives forward and encourage
international governmental, private sector and non-profit organizations’ cooperation to
develop the necessary international environment to overcome the information gap.
Foremost among the findings of the DOT Force and others concerned with the digital divide is
a recognition that public communications infrastructure is essential for bridging the
unconnected of the world to a rapidly integrating global and largely digital economy. Private
sector investment continues to be critical for the construction of needed infrastructure.
Governments, international aid agencies, and philanthropic organizations do not have the
financial, human, and technical means to construct needed infrastructure. History
demonstrates that market-oriented incentives involving the private sector stand the best
chance of producing new and sustainable forms of economic activity.
Public policy makers throughout the world increasingly view electronic commerce as more
than an otherwise desirable end in itself. It as a powerful economic dynamic which, if
allowed to flourish and evolve as quickly and effectively as possible, will foster and speed the
deployment of public communications infrastructure, and begin to close the gap between the
world's information “have’s” and “have-nots”.
11
Business action / Government action required
observations
1. Economic and Business organizations will Governments are encouraged to
social impacts continue to support studies and inform both individual consumers and
analyses of the impact of businesses, about the potentials of
electronic commerce and share electronic business and its impact on
these finding with governments social and economic structures.
and international organizations.
Governments and international
organizations, notably the OECD,
should be encouraged to continue to
collect and analyze data relevant to
the study of electronic commerce in
order to effectively measure its
economic and social impact.
International development
organizations such as the World Bank
should continue to study the potential
impact of electronic commerce on
emerging economies in an effort to
assist in the economic development
process in those nations.
Business action / Government action required
observations
2. Small and Business organizations and Government should provide SMEs
medium sized chambers of commerce will with information and education
enterprises promote marketing and technology relevant to market entry opportunities
support for SMEs through provided by global electronic
information brochures, collection commerce.
and communication of sector-
specific best practices and Governments should create an
workshops. Business will environment that is conducive to
encourage greater interaction private sector investment in
between large corporations and information technologies and
SMEs to provide access to encourage capital access for SMEs.
electronic business networks for
supplier and contracting
opportunities.
12
Business action / Government action required
observations
3. Skills Business is committed to continue Governments should review existing
development to work with government to labour laws to remove existing barriers
promote technical training and life- for workers to be able to share in the
long learning for all in society. new and different employment
generated by electronic business.
Governments should continue to
promote both formal and non-formal
skills-development programs.
4. Ensuring global Existing business organizations Existing international organizations
participation / will work to expand the should increase cooperation, as well as
Seizing Digital participation from business in coordination and transparency of their
Opportunities developing countries in promoting respective work programmes.
the uses and benefits of electronic
business. All governments should use a policy
framework that ensures open and
Business will expand its advisory competitive markets for electronic
role with international business as a means of maximizing
organizations dealing with access to digital information and
electronic business issues. communication networks for all. A
liberalized trade regime for services,
IT goods and timely and effective
implementation of TRIPS (Trade
Related Intellectual Property Issues) is
an essential element to such a
framework, providing opportunities for
developing countries to leapfrog
technologies and services that have
required enormous research and
development.
13
Business action / Government action required
observations
5. Infrastructure Business will remain an important As telecommunications continues to
deployment driver in the development of the transition from a monopoly to
information infrastructure because competitive environment, a crucial role
it mobilizes the private capital for the government is that of being a
needed to build the global neutral force in the economy that
information infrastructure and to ensures pro-competitive behaviour,
develop the technological transparent rules, and value to the
innovations that enhance customer.
communications.
International organizations should
provide a forum for coordinated
government action and international
cooperation on matters relating to
global development. Agreements
drawn up by multilateral organizations
offer the private sector and
governments the necessary legal and
regulatory certainty for investment.
6. Government as Business will work with Governments are encouraged to use
model user governments to offer cost-effective new electronic delivery systems to
electronic delivery systems for the provide the means to significantly
public sector. enhance the internal efficiency and
productivity of public administrations.
Governments should be pioneers in
using new technologies for making
electronic forms available for
collecting taxes and other functions.
Governments should promote
electronic business through its public
procurement system, done in a fully
open and competitive environment,
based on cost-efficient, commercial
solutions that are technology neutral.
Governments are also encouraged to
use new electronic means to deliver
core public services. In particular this
would concern public information and
cultural resources, databases for health
services, web sites at local, regional
and national levels and public libraries
and databases, where appropriate.
14
2. Electronic business and the information infrastructure –
trade aspects, standards, and Internet names and numbers
Competition and trade-related aspects of electronic business
On September 25 1998, the WTO Declaration on Global Electronic Commerce began "a
comprehensive work program to examine all trade-related issues relating to global electronic
commerce, taking into account the economic, financial, and development needs of developing
countries...". Four WTO bodies -- The Committee on Trade and Development, The Council
on Trade-Related Intellectual Property, the Council on Goods, and the Council on Services --
reviewed how existing multilateral trade agreements apply to global electronic commerce.
The 2001 WTO Doha Ministerial Declaration’s section on electronic commerce said “ We
take note of the work which has been done in the General Council and other relevant bodies
since the Ministerial Declaration of 20 May 1998 and agree to continue the Work Programme
on Electronic Commerce. The work to date demonstrates that electronic commerce creates
new challenges and opportunities for trade for countries at all stages of development, and we
recognize the importance of creating and maintaining an environment which is favourable to
the future development of electronic commerce. We instruct the General Council to consider
the most appropriate institutional arrangements for handling the Work Programme, and to
report on further progress to the Fifth Session of the Ministerial Conference...”
Open competition in the provision of products and services at all levels of the information
society is a prerequisite for the development of electronic business. Regulation of the
underlying telecommunications infrastructure, when necessary, should enable actors to
compete globally in an open and fair market. As competition develops and is relied upon
more, regulation should be phased out. The convergence of telecommunications, IT and
multimedia raises important questions that require international attention for liberalization
efforts to produce optimum results.
Business action / Government action required
observations
1. Telecommunications Business remains committed to Effective implementation of the
competition providing practical information WTO agreement on basic
about appropriate competitive telecommunications is of critical
safeguards. Business will continue importance. In consultation with
to call on governments to set and business, governments with
implement conditions for open and experience in telecommunications
fair competition. liberalization should actively assist
signatory countries that still have to
Business is studying means of start this process. Countries that
avoiding and settling commercial have scheduled commitments under
disputes between competitors to the WTO agreement on basic
provide an alternative to resolution telecommunications should review
by regulatory agencies. the extent to which their markets are
fulfilling the agreement, publish
their findings on a regular basis and
work towards the elimination of
MFN exemptions.
15
Telecommunications The OECD, ITU and WTO – within
competition (continued) their respective domains - have a
role to play in facilitating such
assistance.
Efforts to promote full
implementation of existing
commitments and seek increased
liberalization for all basic
telecommunications, value-added
and computer and related services
need to continue following the new
round of negotiations launched in
Doha in November 2001.
Business urges WTO members to
include as one of the highest WTO
negotiating priorities in any
accession protocol market opening
commitments in basic telecom
services that at a minimum include:
(1) specifying a date certain for full
liberalization, (2) progressively
removing foreign ownership
restrictions and (3) adopting the
reference paper in its entirety.
Business action / Government action required
observations
2. IT equipment Business has been a staunch Governments should ensure that all
supporter of the ITA and its countries have the hardware and
extension to more participants and software necessary to deploy and
products. It is desirable that IT access the e-business infrastructure
products are integrated into by eliminating duties on all IT
mainstream WTO market access products to fully realize the
negotiations in the context of the objectives of the Information
Doha negotiating mandate. Technology Agreement, including
commitments at the broadest level
for categories 84, 85, and 90.
To that end, governments should
commit to including these products
in the upcoming market access
negotiation on non-agricultural
products in the course of the new
round of negotiations launched at
Doha.
16
Business action / Government action required
observations
3. Trade-related In response to the WTO's work WTO members should recognize
aspects of electronic programme to examine all trade- that specific WTO agreements
commerce related issues relating to global governing trade in goods, trade in
electronic commerce, business has services, or trade-related intellectual
responded in a constructive way by property apply to electronic
issuing papers on the trade-related transmissions. WTO members
aspects of electronic commerce. should continue to address the issue
of classification of electronic
transmissions as either goods or
services in their ongoing work
programme ensuring trade treatment
and classification of electronic
transmissions that is as similar as
possible to and no less favorable
than the historical treatment applied
to the underlying good, service or
intellectual property.
Electronic transmissions are blind
with regards to national borders.
Thus, WTO members should agree
to make permanent duty free
treatment of electronic
transmissions.
Continued development of
electronic business requires the
ability to conduct cross-border
transactions. Negotiations
following the WTO Doha
Ministerial Conference negotiations
should promote the adoption of
meaningful market opening
commitments in all service sectors,
especially for all services that can be
delivered via e-commerce.
With the rapid development of
digital technologies and electronic
services, the need for strong
protection and enforcement of
intellectual property is imperative.
The TRIPS Agreement plays a very
important role insofar as it provides
minimum standards for such
protection and enforcement.
17
Business action / Government action required
observations
4. Trade-related Business will work to encourage
aspects of intellectual all countries to implement
property effectively the TRIPS agreement.
Business will also continue to
develop and deploy technologies
that prevent IP infringements in
the online environment.
5. Convergence Businesses are already developing, Convergence of technologies is
providing and using products and leading to the need for concomitant
services taking full advantage of convergence in regulation of
the convergence phenomenon. broadcasting, IT and telecoms.
These developments are likely to Convergence is crucial to electronic
accelerate. business and must be supported by
appropriate government policies.
Governments should work closely
with business in preparing for and
reacting to changes caused by
convergence by applying the
following principles:
· competition policy should be
used as much as possible as the
predominant means of
preventing abuses of market
power in the
telecommunications and media
sectors
· Government regulation should
be limited to promoting fair
competition, allocating scarce
resources and protect the public
interest.
· Governments should recognize
that technological neutrality is a
concept to promote competition,
not to extend existing regulation
to new activities.
18
Standards
Electronic business offers great economic efficiencies, linking all parts of a transaction into
one integrated end-to-end chain. Government policies should facilitate interoperability within
an international, voluntary and consensus-based environment for standards setting. The
market needs a fully interoperable architecture, which is being developed within existing
standards-setting institutions or by market forces. In addition to enforcing appropriate
competition laws, governments should ensure that standards are accepted by customs, taxation
and other relevant governmental agencies. Government should refrain from developing
competing standards through procurement mechanisms. Where market mechanisms do not
respond to government procurement needs, the private sector and government should work
together to develop a responsive, inter-operative interface.
Business action / Government action required
observations
Standards There are numerous efforts to Governments should avoid
develop standards relating to mandating unnecessary technical
electronic commerce, including standards that could be or are being
privacy, electronic signatures, etc. led by business.
Standards for electronic business
should continue to be market
driven and industry-led.
Business will continue to work
with all relevant international
standards-making bodies to
develop international standards
that provide added value and are
necessary for the development of
electronic business.
19
Internet names and numbers
Because the Internet is rapidly becoming the vehicle for global electronic commerce, the
management of the domain names system is of great importance.
Business action / Government action required
observations
1. Domain name Business should have a Governments should
system significant role in the formation · continue to support ICANN
of policy for technical and its private sector
management of the domain name leadership;
system and the development of · support initiatives to ensure
policy. Through the various that the business community
Supporting Organizations of the will have a sufficient voice in
Internet Corporation for Assigned the technical management of
Names and Numbers (ICANN), the domain name system.
and in particular the Business
Constituency of the Domain
Name Supporting Organization
(DNSO), business will continue
to work to ensure continued
stability and security of the
Internet, as well as appropriate
protection of intellectual property.
The protection of intellectual
property (especially famous
names) and efficient ways of
dealing with cybersquatting
remain priority issues for
business.
20
3. Building trust for users and consumers
The protection of users, in particular with regard to privacy, confidentiality, anonymity and
content control should be pursued through policies driven by choice, individual
empowerment, industry-led solutions, and will be in accordance with applicable laws.
Business will make available to users the means to exercise choice with respect to privacy,
confidentiality and content control.
Protection of Personal Information
Business action / Government action required
observations
1. Privacy and Business endorses the OECD Governments should adopt a
transborder flows of 1980 Guidelines for the flexible and responsive approach to
data protection of Privacy and the protection of personal
Transborder Flows of Personal information, including the
Data, and is committed to acceptance of self-regulatory
implementing fair information solutions and technological
practices and transparent innovations that empower the user.
procedures consistent with these
Guidelines. Provided the principles in the
OECD Guidelines are met,
Business uses model contracts different approaches to the
and internal control procedures to protection of personal information
satisfy requirements of legislation should not prevent transborder data
restricting export of data to third flows, and governments should
countries that do not provide a cooperate internationally to ensure
level of protection considered to a seamless environment. In
be adequate or sufficient by the assessing the level of protection
source country. The use of model provided to personal information in
contracts provides a flexible, other jurisdictions, the criterion
market-based solution for meeting should be the objective level of
differing data protection protection afforded by the system
standards in the conduct of global honoured within that jurisdiction.
business.
Model contracts and codes of
conduct prepared by the private
sector should be endorsed by
relevant governments at the earliest
possible time to promote the free
and secure flow of information.
21
Business action / Government action required
observations
2. Internet privacy Business is committed to work Governments should recognize that
with governments to ensure non- the Internet is a new medium
discrimination among culturally providing new opportunities and
different but adequate regimes for challenges. Existing regulatory
protection of personal systems must provide consumers
information in the digital with useful protection of their
environment personal data and at the same time
guarantee the free flow of
Business is developing, based on information needed for the
global marketplace experience, information society to produce the
fair information practices that are anticipated benefits. Governments
consistent with the OECD 1980 should also recognize that self-
Guidelines for the Protection of regulation may be a more flexible
Privacy and Transborder Flows of method of achieving data
Personal Data. It does so through protection than government
self-regulation, voluntary codes regulation.
and by making commercially
available technologies enabling a To that end, governments should:
high level of privacy protection · work with the private sector to
tailored to user needs and adopt interpretation of existing
preferences. regulatory solutions based on
the criteria in the paragraph
The use of third-party compliance above;
schemes is growing rapidly in · recognize the validity and
response to market forces. The adequacy of effective self-
rate with which such schemes are regulation augmented by the
being adopted in some use of privacy-enhancing
jurisdictions demonstrates a technologies; and
strong commitment by the private · educate the public to use such
sector to embrace consumer privacy-enhancing technologies
satisfaction as a competitive properly.
issue. Effective self-assessment
programs have been and continue Any privacy measures taken by
to be implemented by the private governments should not be more
sector. restrictive than necessary or be
applied in a manner which is a
Business is continually reviewing disguised restriction on trade in
existing self-regulation to ensure services as set forth in Article XIV
that it takes into account new of the GATS. Current international
technologies and provide initiatives to enhance privacy
effective and credible privacy protection on a global basis should
protection. be taken into consideration when
assessing the need for such
measures. They also must not
constitute a means of arbitrary or
unjustifiable discrimination, or a
disguised restriction on trade in
services.
22
Consumer trust and content
Within a freely functioning global electronic marketplace, increasingly sophisticated user-
friendly tools and business practices for empowerment of consumers have been and continue
to be developed and implemented. Retail websites offering wide ranges of consumer choice
and providing individualization of the consumer experience are succeeding in gaining
customer support.
By its very nature, online business-to-consumer (B2C) commerce is exponentially more cross-
border in nature, thus potentially subjecting merchant and consumer to problems of
jurisdiction and applicable law whenever a dispute arises. Effective dispute resolution is an
essential element of consumer trust. The private sector is developing and implementing
effective self-regulatory mechanisms and governments are contemplating legislative steps to
reduce the risk of conflict. Governments, business and consumers alike agree that effective
alternative dispute resolution is an efficient and cost-effective means of resolving consumer
disputes.
23
Business action / Government action required
observations
1. Consumer trust Increasingly sophisticated Consumer protection should
empowerment tools for develop from appropriate
consumers continue to be business/consumer platforms.
developed and implemented to Business, and interested parties,
protect and empower consumers should be fully involved in
in a truly global marketplace. international discussions to set
policies for consumer protection.
Consumer protection is an Governments have a major role in
essential element of building trust educating and empowering the
in the online environment and is public to enhance awareness of
directly complementary to market their responsibilities and ability to
principles of consumer service exercise choice with respect to their
and satisfaction. Companies that protection as consumers.
safeguard consumer interests
stand to gain a business
advantage.
Business is developing and Governments should adopt "opt-
deploying policies and out" procedures as the most
mechanisms that provide appropriate balance between
informed consumer choice. consumer trust and choice with
regard to unsolicited commercial
communications, cookies,
directories, etc. Any other
approach would discriminate
against electronic business vis-à-vis
other communications mechanisms.
Business is taking the lead in Governments should promote a
developing user friendly dispute systematic approach to the
resolution mechanisms as a means resolution of consumer disputes,
of resolving consumer disputes in encouraging consumers to;
a rapid, efficient and cost- · make reasonable attempts to
effective way. utilize a company's internal
customer satisfaction
mechanisms;
· utilize online alternative
dispute resolution (ADR); and
· if the dispute persists, resort to
legal action.
24
Business action / Government action required
observations
2. Online Alternative Business and other organizations Governments should refrain from
Dispute Resolution should continue to develop and imposing mandatory national or
(ADR) implement effective B2C ADR regional accreditation systems.
systems which meet certain Rather, they should promote the
minimum standards concerning, development of international self-
for example, accessibility, regulatory principles, guidelines
attentiveness, global flexibility, and rules that could be the basis for
compliance, and the nature of merchants' and B2C ADR
decision. Moreover, they should providers' declarations of
have in place workable internal compliance.
complaint systems which also
meet certain minimum standards, Governments should promote the
in order to reduce the chance of development of globally applicable
disputes requiring B2C ADR. B2C ADR systems.
Internal complaint-handling
systems should be timely and Governments should refrain from
transparent to ease any eventual creating obstacles in national
outsourcing of a dispute to B2C legislation and international
ADR should the complaint not be conventions for the innovative use
resolved internally. of technology, including electronic
contracts, to settle business-to-
consumer disputes and eliminate
legal obstacles to allow an
appropriate level of confidentiality
and security in online B2C ADR.
Such legal obstacles include
unnecessary legal form
requirements that hinder the use of
online B2C ADR, and the
requirement for B2C ADR to meet
all the same procedural
requirements as litigation in court.
ICC in cooperation with the Governments should provide a
OECD has completed a legislative framework for
comprehensive inventory of jurisdiction and applicable law in e-
online and offline dispute commerce which recognizes the
resolution service providers that importance of B2C ADR systems
handle B2C and C2C disputes for business-to-consumer
arising out of online transactions. transactions.
25
Business action / Government action required
observations
3. Content Technological developments have Content regulations are based on
had and will continue to have a different legal and cultural
profound impact on culture. traditions. Nevertheless, content
However, the emerging digital regulations should be kept to a
environment can provide ample minimum as they restrict the free
distribution capacity for all flow of information into the
content, alleviating "competition" marketplace of ideas. Where
among different types of content. content regulations exist, it is the
In addition, the interactivity of the role of the appropriate law
new technologies enables users to enforcement authority to enforce
choose among different types of the law. In the context of
content and governments should potentially inappropriate, but
not interfere in this personal otherwise legal content, business
decision-making process. encourages the use of market-
driven solutions, including the
Business continues to develop numerous filtering and blocking
and implement voluntary content technologies rather than restricting
rating and filtering technologies access to such content through
to empower consumers. regulation. Such technologies
empower the consumer to make
informed decisions about the type
of content he/she wants and does
not want to access.
Governments should enforce
existing laws relating to illegal
content.
Any legislation that deals with the
issue of liability should carefully
consider the effect such laws have
on the interests of all stakeholders
in the electronic environment, and,
where clarifying liability rules for
intermediaries, needs to strike a
careful balance between the
legitimate business interests of the
different stakeholders involved,
including content providers, service
providers and end-users.
26
Business action / Government action required
observations
4. Marketing and Business in many countries has a In the borderless global
advertising ethics mature system of self-regulatory environment of the Internet,
complaint mechanisms and internationally incompatible
cooperative enforceable self- national laws on advertising and
regulation for advertising promotions seriously impede cross
practices, such as industry or border sales.
trade associations, chambers of
commerce, and better business Governments should support self-
bureaus. regulation for Internet advertising
at the global level based on the
The concept of business self- existing good cooperation between
regulation of marketing ethics government agencies and business
continues to evolve to adapt to the self-regulatory bodies for
online environment through traditional advertising at the
international cooperation and national level.
agreement.
As a complement to existing legal
instruments, self-regulatory
guidelines and voluntary industry
norms, such as those developed
by the International Chamber of
Commerce, also play an important
role in promoting high standards
of consumer protection.
Business will continue to improve
upon self-regulatory solutions for
Internet advertising and market
research. Business is establishing
appropriate international self-
regulatory enforcement
mechanisms for violations of such
best practice rules.
27
Business action / Government action required
observations
5. Unsolicited Business is attempting to Governments should distinguish
Commercial eliminate fraudulent and un- between fraudulent and untargeted
Communications targeted commercial commercial communications
communications (spam) and is (spam) and commercial email,
working to provide choice prohibiting spam while recognizing
relating to legitimate commercial that commercial email can play a
email. legitimate and significant role in
the emergence and growth of
electronic commerce. To that end,
an "opt-out" approach should be
adopted as the most effective
means of balancing consumer trust
and choice for legitimate
commercial email.
28
Issues relating to cyber security
Cyber security is essential in promoting trust for both business and consumers. Three general
activities relating to cyber security are currently part of the public policy debate:
1. Protecting critical information infrastructures to ensure national security and the security
of society at large;
2. Ensuring public safety through law enforcement and fighting cybercrime; and
3. Promoting economic security.
Governments directly, and through regional bodies such as the EU, NAFTA, FTAA and
APEC, have roles to play in the two first areas by securing their own national and regional
networks as part of their critical infrastructure responsibilities, and agreeing on a
comprehensive international law enforcement platform with the private sector and other
stakeholders. Economic security is largely the domain of the private sector, though a dialogue
with government is essential to build consistency with the first two activities.
The steps that need to be taken to address these three activities include:
· ensuring the confidentiality of personal and business information;
· establishing mechanisms and procedures to prevent security breaches and sufficient
disaster control plans;
· adopting laws necessary to establish malicious acts as criminal; and
· developing appropriate mechanisms for co-operation between business and law
enforcement.
The business community recognizes the efforts made by governments on issues relating to
cyber-security. The Wassenaar Arrangement has liberalized its export restrictions on mass
market encryption products and other states have liberalized their cryptography policies. The
OECD is undertaking a review of its Information Security Guidelines. The Council of Europe
has ratified a convention on cybercrime which signatory states are beginning to implement,
and the G8 has been working on cybercrime and national security issues. Business looks
forward to continuing to working with governments on these initiatives.
Business action / Government action required
observations
1. Promotion of Business continues to develop Governments should support
technology and and deploy technology and private sector leadership in the
services services for ensuring security in development and deployment of
development to order to build trust in electronic technology solutions and services
ensure security commerce. and fundamental private sector
research and development relating
to security technology.
29
Business action / Government action required
observations
2. Cryptography for It is crucial for electronic The OECD cryptography policy
confidentiality commerce that business and end- guidelines were an important step
users are able to choose the in the direction of a uniform
cryptographic systems that best international approach. The urgent
suit their needs, and that these need for strong encryption in
systems can function electronic commerce necessitates
internationally. To that end, the next step in this co-operation
business applauds the efforts of between business and government.
numerous governments to Governments must allow electronic
liberalize their cryptography commerce to thrive in a free market
policy. by continuing to remove obstacles
to the use of publicly offered
Business is opposed to any encryption solutions.
mandatory system based on a
specific technology. Business will Governments should commit to:
continue to develop and · remove all controls on
implement cryptographic products cryptographic technologies and
allowing a high level of applications; and
confidentiality. Business is · cooperate in such a way that
prepared to continue to discuss interoperability of solutions for
possibilities to protect law internationally secure exchange
enforcement and national of information is facilitated,
security. independent of their choice of
regulation.
3. Information Sharing Information sharing is an Governments should support the
essential element in enhancing development of ISACs and should
security, including prevention of recognize private sector leadership
security breaches. In that regard, in protecting the information
business is working with infrastructure.
governments through Information
Sharing and Analysis Centers
(ISACs) which have been created
in the U.S. and are being
established in other countries.
Moreover, business has created
information sharing and analysis
websites, listserves, email alerts
and other services to promote
information sharing.
30
Business action / Government action required
observations
4. Cybercrime Business is committed to Business recognizes the
cooperating with law enforcement improvements in the Council of
in a manner consistent with Europe Convention on Cybercrime.
business realities and therefore As signatories begin to implement
welcomes the current discussions the Convention they should
between governments and contemplate:
industry regarding cybercrime · preventing conflicting privacy
and security. Businesses and security obligations;
constantly develop and deploy · limiting service provider
measures designed to ensure the liability in a manner that
security of networks and the balances the interest of all
content residing on these interested parties including
networks to protect them from copyright owners, service
attack. However, government providers and users
action may also be needed to · adopting clear procedural
ensure that the necessary laws are safeguards;
in place to make such attacks · providing for reimbursement
illegal. for costs of compliance;
· identifying the appropriate
circumstances for corporate
liability;
· maintaining criminalization of
copyright infringements;
· ensuring consistency between
the “misuse of devices
provisions of the Convention
and existing law concerning
“anti-circumvention”.
5. Business monitoring Businesses needs to monitor their Government should ensure that the
of its own communications to verify and/or appropriate legislation and
communications and prove business transactions and resources are in place to investigate
networks for quality control or training and prosecute cyber attacks.
purposes for the benefit of the
customer. Some regulatory Governments should guarantee that
initiatives restrict these legitimate business can monitor
practices. communications for legitimate
purposes (such as the improvement
Business also needs to monitor of customer service, the
the traffic flows over its networks verification or proof of a business
to ensure that it conforms to transaction, quality control and
expectations thereby identifying training) with the consent of only
potential security attacks. one party to the communication.
Governments should guarantee that
business can monitor network
traffic flows as a means of
enhancing network security.
31
Business action / Government action required
observations
6. Data Storage Business fully supports Governments require data for law
Requirements appropriate cooperation with law enforcement purposes. Businesses
enforcement to enhance security, should be required to preserve data
being mindful of business in their possession only upon
realities. receipt of a subpoena (or written
functional equivalent thereof)
issued by a competent judicial or
administrative authority that
follows appropriate due process, is
narrowly tailored to meet the needs
of a specific investigation or
prosecution, is limited in duration,
and is conducted in an expedited
way.
7. Searches and Business recognizes the need for When requesting, issuing or
subpoenas of lawful access to computer records executing a search warrant or a
computer records and co-operates with law subpoena, government law
enforcement as appropriate. enforcement agencies should take
However, there is an urgent need due care to cause the least burden
to ensure that law enforcement to the operations of the subject
practices and policies reflect a firm, to respect privacy and
clear understanding of how confidentiality requirements, and
computers work, how businesses not to overstep the territorial scope
use them, and the extent to which of the subpoena or search warrant
traditional approaches to the by exploiting computer linkages
collection of computer records with sources in other locations.
may unnecessarily impose Law enforcement agencies should
significant costs on business. not use the firm's computers to
access or seize information stored
on computers outside their
jurisdiction but rather rely on
existing procedures such as mutual
legal assistance treaties and
legislation.
32
Business action / Government action required
observations
8. Access to public To ensure that the information Governments should guarantee
domain information business holds is correct and to equal and transparent access to
promote efficiency and consumer public domain information to
satisfaction, business needs ensure business’ legitimate
access to public domain interests, whilst recognizing the
information to conduct its need to achieve a balance with the
transactions. International protection of personal information.
principles, if appropriate, should
be developed in order to
guarantee fair use of personal
information, prevent liability for
the use of public data, and
promote the availability of such
data for legitimate commercial
purposes.
9. Legal government The development of acceptable Discussions that may affect existing
interception of international standards is wiretapping safeguards should
telecommunications important. Business is concerned include business participation as a
and electronic that the wide range of government matter of principle.
communications organizations devising standards
may lead to inconsistencies.
33
Electronic authentication
Electronic signatures*, are important to ensure proper identification of communicating
partners, and authenticity and non-repudiation of messages that they exchange. For this to be
realized, a number of international actions need to be taken. Electronic authentication is an
embryonic sector that requires a flexible framework of rules to evolve. Self-regulation should
be given preference to avoid the lock-in effect of inflexible and potentially incompatible
government regulation. Many countries are developing, or have already implemented,
electronic signature laws that include rules pertaining to certification services. Governments
have an important role to play in assuring the legal validity of electronic signatures.
Business action / Government action required
observations
1. Legal validity of Common definitions and best Governments should implement the
electronic practice guidelines for principles on authentication in the
signatures; authentication, and in particular OECD Ottawa Ministerial
interoperability of certification practice have been Declaration.
certificates and published by several business
electronic signatures organizations and will be
continually revised to reflect
business practice.
*
The terms “digital signature” and “electronic signature” are often used interchangeably. This has led
to significant international confusion as to the use of the term. This topic is not appropriate for an in-
depth discussion in this paper. We refer interested parties to
http://www.iccwbo.org/home/guidec/guidec.asp or www.ilpf.org/work/ca/draft.htm and related
information sources for further information and definitions. For the purpose of clarity, the term
“digital signature” as used in this document refers to “a transformation of a message using an
asymmetric cryptosystem such that a person having the ensured message and the ensurer’s public key
can accurately determine: (a) whether the transformation was created using the private key that
corresponds to the signer's public key, and (b) whether the signed message has been altered since the
transformation was made.” The term “electronic signature” as used in this document refers to “a
signature in electronic form in, or attached to, or logically associated with, a data message, and used
by or on behalf of a person with the intent to identify that person and to indicate that person’s
approval of the contents of the data message.”
34
Business action / Government action required
observations
Legal validity of Business supports freedom of Government policies should aim to
electronic signatures; contract to establish parties' rights provide a predictable legal
interoperability of and responsibilities when using framework based on the
certificates and electronic electronic signatures. Contracts fundamental concept of freedom of
signatures (continued) enable parties to agree on the contract. They should be non-
acceptance of electronically discriminatory; technologically and
signed data and on the terms and architecturally neutral; promote
conditions of transactions flexibility as to the content, form
(including limitations on and function of certificates and
liability). Contracts can also similar authenticating devices; and
include the following: promote competition among
methodologies for enforcing providers of authentication
online contracts and resolving services.
disputes; compelling public
policy considerations such as Rules for evaluating the legal
public safety and prevention of validity of electronic signatures
fraud issues; and use of should not be written to require
appropriate terms and conditions. localization, local partners, local
insurance or guarantee schemes,
Business looks forward to mutual recognition, or otherwise
working with governments within act as trade barriers. Neutral
relevant bodies in this field. criteria relating to adequacy should
be used to determine recognition.
The private sector should ensure
technical interoperability. The Standards for electronic signatures
legal acceptability of certificates that are used or recognized by
and electronic signatures, both governments should be technology
within a nation and neutral, commercially available, not
internationally, should be endorse or favour any particular
supported by appropriate solution and should allow for
government policies. technological innovation.
35
Business action / Government action required
observations
2. Accreditation The marketplace should rely on In order to facilitate electronic
existing trust infrastructures to transactions across borders,
provide the equivalence of governments should enable the
accreditation where appropriate. emergence of borderless networks
If and when the accreditation is of certification authorities by
considered, the marketplace supporting voluntary non-
should determine whether an discrimination agreements.
accreditation or certification of Governments should not impose
certificate authorities is required. any licensing or other schemes that
As electronic business is an could disrupt such non-
emerging market, the marketplace discrimination.
may require different kinds or
levels of accreditation or
certification. Accreditation or
certification may not be required
in every instance. Those that
undertake the accreditation or
certification of certificate
authorities should be held liable
for their certification actions.
Therefore any accreditation
solution should be developed in
response to a specific market need
and tailored to address a well-
defined requirement.
3. Availability of Business is developing best Governments should facilitate the
certification practice practices for providing adequate emergence of borderless networks
statements notice to consumers of the of certification authorities by
responsibilities of Certification supporting mutual recognition
Authorities. Business is agreements. Governments should
developing innovative services not impose any licensing schemes
and technologies to provide easy that could disrupt such mutual
access to notices of these recognition. If required,
responsibilities. accreditation should be voluntary,
based on internationally recognized
best practices.
36
4. Establishing ground rules for the digital marketplace
Contractual and other legal issues
Freedom of contract must prevail as the underlying principle of all efforts to create an
appropriate legal environment for business-to-business transactions. Governments can
support electronic commerce by enabling electronic contracting and by facilitating the legal
recognition of digitally authenticated documents and contracts. Governments should avoid
prescriptive and detailed legislation in these areas and ensure the development of facilitating
legislation, which may assist the private sector in developing self-regulatory solutions.
Business action / Government action required
observations
1. Removing Traditional self-regulatory Countries should implement the
legal/regulatory solutions for international trade UNCITRAL Model Law on Electronic
obstacles are continually being adapted to Commerce, which provides for a
new business practice. particular country to address issues
specific to its jurisdiction, as soon as
The global business community is possible.
analyzing existing legal and
policy barriers to the digital UNCITRAL is currently considering
marketplace, and will make work on removing barriers to
recommendations where electronic contracting. Some
appropriate. international conventions need to be
adapted (UN-ECE has published an
Business is developing analysis of international work to be
technologies and procedures that done). The good cooperation that
enable the creation and exists among private and public sector
determination of electronic international legal expert bodies
"originals". should be a model for future
cooperation between business and
governments with respect to electronic
business.
37
Business action / Government action required
observations
2. Create a new Through various private-sector Governments should continue to work
uniform legal trade promotion and facilitation at the international level to create a
framework organizations, a framework of coherent legal framework to enable
self-regulatory rules for electronic electronic business.
business is evolving. In general,
market forces should lead but
business acknowledges that for
some key issues there is no self-
regulatory substitute for a reliable
legal framework to provide
certainty and confidence in
electronic business.
3. Jurisdiction and Business will work with Freedom of contract should be the
applicable law governments to find solutions to guiding principle for business-to-
the problems associated with business (B2B) and business-to-
determining jurisdiction and consumer (B2C) relationships.
applicable law in cyberspace.
Alternative dispute resolution Governments should avoid expansive
mechanisms and third-party claims of jurisdiction in the B2B
schemes for compliance with self- context by applying principles of
regulation are being developed by country of origin and party autonomy
existing and new types of and allowing self-regulation to
providers of dispute avoidance demonstrate its efficacy.
and resolution.
The Hague Conference is currently
negotiating a Convention on
Jurisdiction and the Enforcement of
Foreign Judgements in Civil and
Commercial Matters. Given the
jurisdictional complexities raised by
electronic commerce and the lack of
consensus among stakeholders on
many jurisdictional issues,
governments should limit the scope of
the convention to business-to-business
contractual activities with strong party
autonomy.
Governments should rely on voluntary
business self-regulatory practices and
market pressures to develop more
flexible and balanced solutions.
The use of alternative dispute
resolution for consumers should be
encouraged while maintaining court
proceedings as the ultimate solution in
case of unresolvable conflicts.
38
Business action / Government action required
observations
4. Incorporation by In electronic business, terms of Governments should continue work on
reference legal significance will basic international principles for legal
increasingly be incorporated into validity of incorporation by reference
contracts by reference. Business for all kinds of transactions. These
will continue to develop more rules should aim to provide certainty
effective, transparent and user- for all parties to electronic business
friendly delivery mechanisms for transactions.
the full definitions of such terms.
5. Transparency & Online legal databases with user- Governments are encouraged to
availability of friendly reference systems are promote such business-driven
proprietary & being made available for use by repositories and to contribute public
best practice parties conducting online legal terms and instruments to them.
legal terms, transactions.
model contracts,
etc.
6. Dispute Speed and expertise in settling Governments should encourage the use
settlement electronic business disputes are of self-regulatory dispute settlement
important. Providers of alternate mechanisms as an effective way of
dispute settlement systems are resolving electronic business disputes.
implementing and continue to test Courts should urgently develop
tailor-made voluntary systems electronic business expertise.
appropriate for the settlement of
online disputes.
7. Fraud and other Business will continue to advise Criminal laws, courts and enforcement
commercial governments on appropriate agencies should develop more
crime action to combat electronic expertise to deal with electronic
business fraud. Specialized business fraud and computer crime.
business organizations will When applying national criminal laws,
continue to provide information government should take into
on fraud and fraudsters to the consideration the global nature of
business community and, where electronic business. Close cooperation
appropriate and under adequate among governments and between
confidentiality arrangements, to governments and business is vital in
law enforcement. this process.
Special business organizations are Electronic authentication techniques
already investigating and will are important for users to protect
continue to investigate themselves against fraud. Their legal
cybercrime cases. validity should be addressed as soon as
possible.
39
Business action / Government action required
observations
8. Liability Business will review general Freedom of contract should be the
questions of liability in electronic guiding principle. Governments
business and submit its findings should avoid creating liability rules
to relevant governmental that can impede the advancement of
organizations. electronic business and should work
with business to identify areas where
liability rules are required.
40
Taxation and tariffs
Tax and tariff policy will be instrumental in determining whether the vast potential of global
electronic business can be realized. The development of electronic business is a change in the
way in which international business is conducted and requires a fundamental review of tax
policies and laws, which have their origins in traditional, off-line commerce. Fundamentally,
however, electronic business should compete with traditional commerce on a level playing
field. Tax systems should not interfere with the operation of a market economy. A global
perspective is required when addressing this subject, as electronic commerce cuts across
national boundaries to a greater degree than traditional forms of business. Therefore,
consistent taxation approaches at the international level are absolutely critical to ensure the
effectiveness of tax treatment in the digital economy and the avoidance of double taxation.
Similar income should be treated equally in terms of direct and indirect tax requirements,
regardless of whether it is earned through electronic means or through traditional channels of
commerce. Electronic business however should not be the target of new and discriminatory
taxes. The application of existing taxation on electronic commerce should be governed by the
principles of tax neutrality and fairness.
Many taxation issues are not new or unique to electronic commerce but have already
developed in conventional business transactions, which increasingly relies on new modes of
communications and increasingly crosses national borders. The mode of doing business
through electronic means may add new layers of difficulty but does not create a new problem.
Any legal obligations should not be restricted to electronic business but should apply equally
to conventional business as well.
The request for a tariff-free zone for electronic transmissions is based on a long tradition of
reducing or eliminating barriers (such as customs duties) to international trade. Lowering
trade barriers, including tariffs, is one of the most obvious means of encouraging international
trade as well as global electronic business.
41
Business action / Government action required
observations
1. Customs duties Business is working with The WTO May 1998 Moratorium on
governments to ensure that the Customs Duties on Electronic
international trading system is as Transmissions recognizes that cross-
free as possible from barriers to border electronic transmissions are not
trade, including custom duties. now considered imports subject to
customs duties or border controls.
Commitments in this area make There are no customs duties or border
the business environment stable controls on telephone calls across
and predictable and give business borders; there are no customs duties or
a clearer view of their future trade border controls on fax messages; and,
opportunities. With stability and there are no customs duties or border
predictability as part of the controls on email or computer links.
multilateral trading system, trade
increases, investment is At the 2001 WTO Doha Ministerial
encouraged, jobs are created, and Conference, members agreed to
consumers can enjoy the benefits maintain their current practice of not
of competition -- choice and imposing customs duties on electronic
lower prices. transmissions until the next Fifth
WTO Session. For stability and
predictability in international trade in
the 21st Century, WTO members
should make permanent the duty-free
treatment of electronic transmissions
and should consider in their ongoing
work programme on electronic
commerce to move beyond a
temporary commitment to a permanent
one.
42
Business action / Government action required
observations
2. Taxation Business strongly supports the Governments should work with
use of partnership working groups industry in international fora such as
between business and government the OECD Technical Advisory
– such as the OECD Technical Groups. There should be no new or
Advisory Groups - to address the additional taxes, such as usage or bit
numerous taxation issues relating taxes. Future taxation policy on
to electronic business. electronic business should:
Business is working with tax · be consistent with the principles of
authorities to open this process international taxation;
broadly to interested business · be neutral with regard to other
participants. We believe that to forms of commerce;
ensure the widespread support of · be consistent across tax
the business community, even jurisdictions;
greater openness is called for to · avoid double taxation;
ensure timely and valuable input · minimize compliance costs; and
by those in the business · be transparent, predictable and
community who have much to with simple rules to follow.
offer this process.
Applying existing taxation principles
We also heartily endorse efforts in the electronic medium must also be
to seek a truly international built upon tools that businesses
consensus on these taxation issues already use or are required to develop
to meet their market needs - it is only
in this way that high tax compliance
can be sustained with the least burden,
and the fewest economic distortions.
43
Trade facilitation and customs modernization
For business to use fully the benefits of electronic commerce, documentation in electronic
form should not be denied legal acceptability solely on the grounds that it in digital form. The
handling of customs documentation, for example, will be both faster and more cost effective if
it can be made in electronic form. The legal acceptability of auditing records and receipts in
electronic form from electronic business transactions are other examples of modernization
that can substantially reduce costs and facilitate and promote electronic trade.
Business action / Government action required
observations
1. Private/public Business and governments should Work on customs data requirements is
sector interface work together to ensure under way in the WCO and the G7. In
compatibility between standards other fields, there does not seem to be
at appropriate interfaces. an organized effort to harmonize
requirements. OECD would be an
appropriate forum to address interface
issues relating to taxation.
2. Customs Business is keen to continue to To enable businesses and consumers to
modernization cooperate with governments within reap the benefits of electronic
the World Customs Organization commerce, governments should work
(WCO) and WTO on issues through the WCO and WTO to
relating to customs modernization. enhance the efficiency and
Business will also continue to work transparency of customs procedures
with and advise customs authorities through the use of information
on issues relating to electronic technologies.
business.
Governments have an important role to
play in addressing questions of trade
policy and assuring the legal validity
of documents in digital form.
44
Business action / Government action required
observations
3. Capacity Business is looking forward to Strengthening and streamlining the
building working with governments to trade facilitation environment in all
offer advice on how to coordinate countries will require capacity
capacity building efforts in building in a number of developing
developing countries' customs countries; governments should
administrations. Business can do examine existing programs of
this by sitting on advisory assistance and conduct a needs
committees created to formulate assessment to develop an assistance
capacity building strategies. plan to improve the basic facilitation
environment of all countries.
This can be a collaborative effort with
such organizations as the World Bank,
the IMF, the WCO and the United
Nations Conference on Trade and
Development (UNCTAD).
45
Intellectual property
Adequate protection of intellectual property rights in intangible assets in cyberspace is a top
priority. This should be achieved through a balanced approach that protects both the rights of
content providers and the interest of various other stakeholders in the digital networked
environment.
Business action / Government action required
observations
1. Copyright and Technology is being developed to WIPO adopted the Copyright and the
neighbouring better track and protect Performances and Phonograms
rights copyrighted materials, and Treaties in December 1996.
manage rights. Business is in Governments should now move
dialogue with governments to promptly to ratify and implement these
ensure that copyright (including treaties, taking into account the
neighbouring rights) regimes are challenges and opportunities of the
applied to the digital environment digital environment. The goal must be
in a manner that promotes the establishment of a balanced and
electronic commerce while realistic framework of accountability
protecting intellectual property that respects international norms;
rights. provides incentives for increased inter-
industry cooperation to deter and
Business sectors are committed to respond to infringements; promotes
cooperating to prevent, deter and responsible business practices; does
respond to infringements that take not impose unreasonable burdens on
place over digital networks, intermediaries; and preserves an
including the implementation of appropriate role for courts. Any
technical protection measures; the legislation that deals with the
development of marketplace applicability of copyright infringement
solutions such as licensing; liability rules should carefully examine
cooperation with law how these rules apply to all
enforcement; and refining stakeholders in the digital networked
procedures for promptly environment. Any framework that
responding to notification or facts provides for limitations on liability for
and circumstances from which service providers should be restricted
infringing activity is apparent. to damages and other monetary relief.
Business will continue to provide Governments should consider further
information on the intellectual measures to secure property rights in
property implications of new the digital networked environment,
technology. including filling the gaps in protection
for producers and performers of sound
recordings left by the Performances
and Phonograms Treaty.
46
Business action / Government action required
observations
2. Trademarks Business has highlighted the Governments should work together at
problems raised by the the international level in WIPO to
discrepancy between the national ensure that national differences in
scope of trademark laws and the trademark law and policy do not
international nature of electronic impede the trademark owner’s ability
commerce and will work with to exploit and protect their trademarks
WIPO to examine possible in cyberspace.
solutions. (See also Domain
name system under Internet
governance above).
3. Databases Business is contributing to Governments should ensure that any
WIPO’s work on this issue. rights over databases should balance
the interests of the creators of
databases and the need to ensure the
flow of and access to information.
Governments should continue to work
through WIPO towards adequate
protection of intellectual property in
databases.
47
IV Annex - Selected industry self-regulatory initiatives
This annex provides examples of cross-company and joint business/government initiatives aiming to
enhance trust in electronic commerce. Innovative schemes operated by individual companies are not
included – although very often such proprietary efforts play a crucial role in heightening, through
competition, standards of good business practice, this action plan is not the appropriate place to provide
information on private initiatives. Finally, the annex is not meant to be an exhaustive list of initiatives but
rather an attempt to demonstrate the rich variety of projects that the private sector is initiating to remove
barriers to electronic commerce.
Index
BBBOnLine Reliability and Privacy Seal Program, Self-regulation for e-commerce marketing
Code of Online Business Practices "The FEDMA's Ring of Confidence initiative"
Bolero System General Usage for International Digitally Ensured
Commerce (GUIDEC)
Business code of conduct from the Association of
the Swedish IT and Telecom Industry Guidelines for codes of practice for Internet
Service Providers
The Canadian Association of Internet Providers
(CAIP) Code Of Conduct Guidelines for transactions between virtual
merchants and consumers
The Canadian Association of Internet Providers
(CAIP) Privacy Code Guidelines for Electronic Direct Marketing
The Canadian Association of Internet Providers High assurance general ID-certificate with private
CAIP ISP Fair Practices key protected in an electronic ID-card
The Canadian Association of Internet Providers Hotlines Against Illegal Content
CAIP Protection Portal
ICC Guidelines on advertising and marketing on
CAP admark Scheme for UK Internet Advertising the internet
CaseTrust Accreditation Scheme International Content Rating Association (ICRA)
Canadian Standards Association Model Code for International DOI Foundation
the Protection of Personal Information
International Online ADR
CBI Contractual Clauses and Group Policies
International Standardization of Online Trust
Code of Conduct for Electronic Commerce Mark Programs
Cybercrime Unit of ICC Commercial Crime Internet One directory
Services
New Zealand electronic Marketing Standards
Dispute resolution for electronic commerce Authority (eMSA)
ESOMAR Guideline on Conducting Marketing Online Ombuds Office
and Opinion Research Using the Internet and
ESOMAR Guideline on Internet Privacy Policies P3P
and Privacy Statements
Paction – the model international sale contract
European Advertising Standards Alliance (EASA): application
Cross-Border Complaints System
PKI Assessment Guidelines
European Electronic Signature Standardisation
Initiative (EESSI) Standard Contractual Clauses for Transborder
Dataflows
48
TradeCard
TRUSTe
TTP.NL
WebTrust
World Chambers Network (WCN)
49
Name of Initiative BBBOnLine Reliability and Privacy Seal Program, Code of Online
Business Practices
Objective BBBOnLine was established to help build consumer trust and confidence
in online commerce. The Reliability program seal assures that a company
belongs to its local BBB; that it is an established business; has agreed to
adhere to BBB standards of truthful advertising; and, has agreed to work
with the BBB to resolve any disputes that may arise over its products or
services. BBBOnLine Privacy offers a comprehensive assessment process
to measure a company’s ability to stand behind the promises made in its
online privacy policy and offers a dispute resolution process for consumer
privacy concerns. The Code of Online Business Practices is a guideline
covering customer service and consumer protection issues for any online
business.
Enforcement mechanism(s) In both the Reliability and Privacy programs a company signs a license
agreement committing to the principles of the program and the particular
resolution process applicable to the program.
Issuing/ BBBOnLine is part of the Council of Better Business Bureaus
implementing representing close to 400 major corporations and approximately 140 local
Leader(s) initiative organisation(s) Better Business Bureaus. The local bureaus have over 270, 000 business
as part of their membership base.
Supporting
organisation(s)
[expected] Date of issuance / implementation BBBOnLine Reliability was launched on 30 April 1997.
BBBOnLine Privacy was launched on 17 March 1999.
General Both programs are applicable to all businesses that are able to meet the
Scope standards and other criteria of the program.
Sector BBBOnLine Reliability is applicable to companies located in the United
States and Canada. BBBOnLine Privacy is applicable to a company
located anywhere in the world and has a reciprocal Japanese Privacy Seal
in co-ordination with JIPDEC (the MITI sponsored Japanese Privacy Seal
Authority.) BBBOnLine is working with organizations in different
countries to build additional co-operative partnerships to address privacy
and consumer protection issues.
Geographic
Examples of application The BBBOnLine Reliability Program currently has over 10,000
participating websites. The BBBOnLine Privacy Program has over 800
approved websites with many more in the process.
Participation public sector BBBOnLine works closely with the US Federal Trade Commission, State
Attorney Generals and local law enforcement organisations if a
fraudulent or scam type web site is identified. In developing the Privacy
Program BBBOnLine worked closely with the Department of Commerce
and Federal Trade Commission. The Council of Better Business Bureaus
has a long successful history working closely with appropriate
government organisations.
For full text/further information Ms. Mercedes Lemp
consult/contact Marketing Director
BBBOnLine Inc.
4200 Wilson Boulevard
Arlington, VA 22202
Tel 703 247 3661
Fax 703-276-8112
e-mail: mlemp@cbbb.bbb.org
URL: www.bbbonline.org
Possible/expected evolution of the initiative Goal is to partner with other organizations to develop a global approach
to building consumer trust and confidence in online commerce.
50
Name of initiative Bolero System
Objective Facilitating international trade through a technical and legal
infrastructure for electronic commerce
Enforcement mechanism(s) Contract-based interfacing with domestic laws
Issuing/ Bolero International Limited
implementing Bolero Association Limited
Leader(s) initiative organisation(s)
Supporting Bolero-enabled partners listed at www.bolero.net
organisation(s)
[expected] Date of issuance / implementation September 1999
General International trade
Scope Sector Initial focus on shipping
Geographic Worldwide
Examples of application Case studies appear at www.bolero.net. Users have realised substantial
cost savings.
Participation public sector Customs and other regulatory offices participate actively.
For full text/further information www.bolero.net
consult/contact
Possible/expected evolution of the initiative Broadening focus to include an increasing number of trade transactions
and instruments with both technical and legal support.
Name of initiative Business code of conduct from the Association of the Swedish IT and
Telecom Industry
Objective The Association of the Swedish IT and Telecom Industry has issued
seven business rules for their members. One of the rules regulates the
following aspects of electronic information:
· Distribution of inappropriate or abusive information
· Respect of privacy and integrity
· Electronic marketing and spamming
· Transparency in pricing and other conditions
Enforcement mechanism(s) Binding on members
Issuing/ Association of the Swedish IT and Telecom Industry
Leader(s) initiative implementing
organisation(s)
Supporting Confederation of Swedish Enterprise
organisation(s)
Date of issuance / implementation 1997
General Business-to-business and business-to-consumer
Scope Sector --
Geographic --
Examples of application 650 member companies
Participation public sector --
For full text/further information www.itforetagen.se
consult/contact
Possible/expected evolution of the initiative --
51
Name of Initiative The Canadian Association of Internet Providers (CAIP) Code Of
Conduct
Objective To govern the business conduct of ISPs as it relates to the public, public
bodies and law enforcement officials.
Enforcement mechanism(s) Voluntary adherence.
Issuing/ The Canadian Association of Internet Providers (CAIP)
implementing
Leader(s) initiative organisation(s)
Supporting Industry Canada
organisation(s)
[expected] Date of issuance / implementation October 1996
General To assist ISPs with the development and implementation of internal
Scope policies and practices to comply with existing legal standards.
Sector Internet Service Providers
Geographic Canada
Examples of application The Code will guide ISPs when the receive complaints about illegal
content on web sites or network abuse.
Participation public sector Industry Canada
For full text/further information www.caip.ca/caipcode.html
consult/contact
Possible/expected evolution of the initiative CAIP is currently developing a “Fair Practices” guide for its ISP
members that will, among other things, provide them with further
direction regarding practical means and tools to comply with the Code of
Conduct.
Name of Initiative The Canadian Association of Internet Providers (CAIP) Privacy
Code
Objective To apply the principles of the Canadian Standards Association Model
Code for the Protection of Personal Information to the online
environment.
Enforcement mechanism(s) Voluntary.
Issuing/ The Canadian Association of Internet Providers
implementing
Leader(s) initiative organisation(s)
Supporting Industry Canada
organisation(s)
[expected] Date of issuance / implementation September 1998
General The CAIP Privacy Code is a voluntary code that represents a formal
Scope statement of principles and guidelines concerning the minimum
protection that CAIP members will provide to their users regarding the
protection of personal information. The Code applies to the management
of personal information about a CAIP member’s users in any form
whether oral, electronic or written that is collected, used or disclosed by a
member.
Sector Internet Service Providers
Geographic Canada
Examples of application
Participation public sector Ministry of Consumer and Commercial Relations (ON)
For full text/further information www.caip.ca/privacy.html
consult/contact
Possible/expected evolution of the initiative CAIP is currently developing a “Fair Practices” guide for its ISP
members that will, among other things, provide them with further
direction regarding practical means and tools to comply with the CAIP
Privacy Code.
52
Name of Initiative The Canadian Association of Internet Providers CAIP ISP Fair
Practices
Objective To provide CAIP members with practical means to comply with CAIP’s
Code of Conduct and Privacy Code, and thereby promote consumer
confidence in the use of the Internet.
Enforcement mechanism(s) Voluntary.
Issuing/ The Canadian Association of Internet Providers (CAIP).
implementing
Leader(s) initiative organisation(s)
Supporting Industry Canada
organisation(s)
[expected] Date of issuance / implementation Launched 15 February 2001
General To create modular action plans to help ISPs address issues relating to
Scope reputable delivery of service, content, privacy, security and unsolicited
commercial email (spam).
Sector Internet Service Providers (ISPs)
Geographic Canada
Examples of application The document will provide guidance to ISPs respecting procedures to
follow when they receive complaints about illegal or objectionable
content and the formation of contracts to be used with subscribers and
web site owners.
Participation public sector Industry Canada
For full text/further information www.caip.ca
consult/contact
Possible/expected evolution of the initiative
Name of Initiative The Canadian Association of Internet Providers CAIP Protection
Portal
Objective To provide a bilingual (English/French) public awareness web about
Internet content issues for parents and consumers.
Enforcement mechanism(s) N/A
Issuing/ The Canadian Association of Internet Providers (CAIP).
implementing
Leader(s) initiative organisation(s)
Supporting Industry Canada; Department of Justice
organisation(s)
[expected] Date of issuance / implementation 25 February 2001
General To contribute to the education of Internet users regarding illegal and
Scope offensive content on the Internet.
Sector General Public
Geographic Canada
Examples of application The Portal profiles and provides links to Canadian organizations that have
launched special initiatives to address Internet content issues.
Participation public sector Industry Canada; Department of Justice
For full text/further information www.caip.ca/portal
consult/contact
Possible/expected evolution of the initiative Additional profiles and links to be added as resources permit.
53
Name of Initiative CAP admark Scheme for UK Internet Advertising
(www.admark.org.uk)
Objective A self-regulatory scheme for UK Internet advertising so that advertisers
can declare to consumers their intention to advertise in a legal, decent,
honest and truthful way. Those joining the scheme agree to comply with
the British Codes of Advertising and Sales Promotion and the rulings of
the Advertising Standards Authority. Main aims are to:
- give consumers trust and confidence in Internet advertising,
especially advertising in the admark scheme, and
- inspire the confidence of governments, opinion formers and
consumers in self-regulation for Internet advertising to ensure that
new legislation on advertising is kept to a minimum.
Enforcement mechanism(s) advertisers, agencies and the media comply with the British Codes of
Advertising and Sales Promotion and rulings of the Advertising
Standards Authority, backed up by legislation applied by the Office of
Fair Trading (a government department) through the Control of
Misleading Advertisements Regulations 2000 as amended to incorporate
comparative advertising. Adjudications on complaints under the Codes
are published weekly on the ASA website (www.asa.org.uk). The use of
the CAP admark scheme does not indicate “approval” by either the ASA
or CAP of the advertising material on the Internet. ASA will consider
complaints against UK advertisers who are not in the scheme as well as
against those who are in the scheme.
Issuing/ The Committee of Advertising Practice
implementing
Leader(s) initiative organisation(s)
Supporting The Advertising Standards Authority
organisation(s)
Date of issuance / implementation May 2001
General The British Codes of Advertising and Sales Promotion cover consumer-
to-business and business-to-business non-broadcast advertising. The
admark scheme is principally aimed at giving consumers confidence in
business-to-consumer advertising.
Sector The admark scheme and the Codes apply to UK Internet advertising and
Scope the use of the scheme will enable companies to declare to consumers that
the UK is their county of origin and that they will cooperate with the
ASA and CAP in resolving complaints.
Geographic The UK Codes also cover the Isle of Man and the Channel Islands.
Examples of application In 1998, ASA resolved 34 complaints about on-line ads, 6 required
formal investigation and all of them were found to break the Codes, a
further 8 presented smaller or clear-cut problems and were informally
resolved.
For full text/further information Allan Chant, ASA/CAP
consult/contact 2 Torrington Place, London WC1E 7HW
tel: 44-(0)20 7580 5555
Fax: 44-(0)20 7631 3051
Possible/expected evolution of the initiative ASA is one of the 22 countries in the European Advertising Standards
Alliance (see further in this annex). The scheme will also be
recommended to the ICC for consideration in their discussion on the
arbitration of complaints under its Internet Advertising Guidelines. The
scheme has 18 founder members: MSN, Unilever, IBM,
GlaxoSmithkline, Engage, 24/7, Egg, Nat West, Guardian Unlimited,
Royal Mail, Yell, Nestle, Inspired Leaders, Nickelodeon, Hollinger
Telegraph, Sainsbury, ANM and BT.
54
Name of Initiative CaseTrust Accreditation Scheme
Objective 1. To drive businesses to excellence through consumers through
the declaration of good businesses practices and Fair Trading
elements in-built in the criteria.
2. To profile businesses who are industry leaders who Go for
CaseTrust Gold, a higher tier in the CaseTrust Accreditation
Scheme overseas with our supporting organisations.
Enforcement mechanism(s) - CaseTrust aims to address the assurance issue in e-commerce by
making it compulsory for all e-commerce websites to have in place
proper security and privacy systems in order to join the scheme.
- Participating online businesses are also required to adopt a set of
business practices such as respecting the privacy of customers’
personal information.
- Consumers can verify that the business is a genuine CaseTrust
accredited business by referring to the online directory on the CASE
website.
- The CaseTrust qualifying criteria set out the minimum standards that
retailers must comply with. Businesses who qualify for the scheme
will be awarded the CaseTrust logo, which may then be displayed
prominently on their websites or storefronts.
- Checks will be conducted at random to ensure that the businesses
practice what they preach.
- In addition, all retailers will be subjected to periodic assessment to
ensure that standards are maintained. CaseTrust offers redress to
consumers who may be dissatisfied with their purchases.
- If the matter is not resolved amicably within a reasonable period of
time, it will then be brought up to the CASE mediation panel for
resolution. The emphasis on dispute resolution and avoidance, also
lays the ground for Fair Trading legislation.
Issuing/ Consumers Association of Singapore (CASE)
Implementing
Leader(s) organisation(s)
initiative Supporting Infocomm Development Authority of Singapore
organisation(s) Productivity and Standards Board
Singapore Tourism Board
Date of issuance / implementation End 1999, Re-launched in April 2001
General
Scope Sector On-line & physical storefronts
Geographic Singapore
Examples of application
Participation public sector NIL
For full text/further information CASE, CaseTrust Management Committee
consult/contact Ulu Pandan Community Building #05-01
170 Ghim Moh Road S297621
Tel: (65) 8751311 Fax: (65) 4637048
Email: casetrust@case.org.sg
Possible/expected evolution of the initiative Internationalisation of the scheme
55
Name of Initiative Canadian Standards Association Model Code for the Protection of
Personal Information
Objective Addresses two broad concerns: the way in which organisations collect,
use and disclose personal information; and the right of individuals to have
access to personal information about themselves and to have the
information corrected if necessary.
Enforcement mechanism(s) Voluntary, but referenced by law or regulatory bodies in a variety of
situations in Canada.
Issuing/ Canadian Standards Association (CSA)
implementing
Leader(s) initiative organisation(s)
Supporting Price Waterhouse - chair
organisation(s) ITAC
CBA
Stentor
American Express
Public Interest Advocacy Centre
Digital
[expected] Date of issuance / implementation March 1996
General Consumer -to-Business
Scope Sector Transportation, Telecommunications, IT, Insurance, Health and Banking
Geographic Canada
Examples of application Industry Canada - Jan 1998 - The Protection of Personal Information
suggests using the CSA Model as a framework for Canadian legislation
on privacy.
Participation public sector Ministry of Consumer and Commercial Relations (ON)
Industry Canada
Office of Privacy Commissioner
Department of Justice
Heritage Canada
For full text/further information CSA
consult/contact 178 Rexdale Blvd.
Toronto, Ontario M9W 1R3
Tel: (416) 747-2272
Fax: (416) 474 2473
Grant Gillis, Project Manager, Quality Program
grant.gillis@csa.ca
www.csa.ca
Possible/expected evolution of the initiative
56
Name of initiative CBI Contractual Clauses and Group Policies
Objective To enable transfers of personal data to countries outside the EEA
Enforcement mechanism(s) Via obligations and warranties
Issuing/ CBI
implementing
Leader(s) initiative organisation(s)
Supporting
organisation(s)
[expected] Date of issuance / implementation Shared with but not approved by UK Information Commissioner and
European Commission.
General
Scope Sector All sectors
Geographic All countries
Examples of application To ensure adequate protection for personal data being transferred from a
subsidiary company in the EEA to a parent company outside the EEA.
Participation public sector
For full text/further information Copies available to CBI members from CBI Information Centre
consult/contact +44 207 395 8247
Possible/expected evolution of the initiative
Name of initiative Cybercrime Unit of ICC Commercial Crime Services
Objective To investigate, collate & disseminate information to the industry on all
matters relating to commercial cybercrime
Enforcement mechanism(s) None
Leader(s) initiative Implementing ICC Commercial Crime Services
organization(s)
Supporting
organization(s)
(Expected) Date of issuance/implementation 01/01/2000
General Commercial Crime & Malpractice
Scope Internet & Corporate Networks
Sector Non-sector specific
Geographic Worldwide
Examples of application Closed down sites offering fraudulent financial proposals, providing a
monthly bulletin on cyber crime, advising clients on wireless network
vulnerabilities
Participation public sector Yes, works closely with Government Agencies and Law Enforcement.
For full text/further information P Mukundan, Director, ICC-Commercial Crime Services
Consult/contact p.mukundan@icc-ccs.org.uk
Possible/expected evolution of the To become a focal point for business in respect of information regarding
Initiative Commercial cybercrime.
57
Name of initiative Code of Conduct for Electronic Commerce
Objective To draft a framework with a minimum set of rules for model behaviour,
which might gain commitment of all parties involved in electronic
commerce and thus attribute to the process of building trust and
confidence. The general principles Transparency, Reliability and
Confidentiality and privacy have been taken as a starting point.
Enforcement mechanism(s) Contractually binding for subscribers, possibly agreements on private-law
settlement of disputes. Certification will possibly be another way of
enforcement.
Issuing/ The Dutch Electronic Commerce Platform (ECP.NL).
implementing
Leader(s) initiative organisation(s)
Supporting the Confederation of Netherlands Industry and Employers (VNO-NCW),
organisation(s) individual companies, the Dutch consumer organisation
Consumentenbond, as well as the Economic Affairs Department and the
Justice Department.
[expected] Date of issuance / implementation The current version (4.0) of the Model Code of Conduct for Electronic
Business was launched late October 2001
General Business-to-business; Business-to-consumer, Business-to-administration
Scope
Sector All sectors
Geographic No limits
Examples of application The Model Code of Conduct for Electronic Business is explicitly
mentioned as an example in the Centre for Trade Facilitation and
Electronic Business of the United Nations (UN/CEFACT)
recommendation regarding E-commerce self-regulatory instruments.
The leading Dutch trustmark 'Webtrader', which ceased to exist at the
beginning of 2002, was based on the the Model Code of Conduct. It's
successor 'Thuiswinkel Waarborg' is also based on the Model Code of
Conduct.
Numerous organisations have adopted Codes of Conduct for their e-
business activities, which have been inspired by the Model Code of
Conduct.
Participation public sector See "Supporting organisations"
For full text/further information Ton Wagemans (ton.wagemans@ecp.nl)
consult/contact Bart Schermer (bart.schermer@ecp.nl
Possible/expected evolution of the initiative By the end of february an initiative will be launched to help branches of
trade implement the provisions of the Model Code of Conduct within
their branche. This initiative is a joint effort of ECP.NL and Syntens, an
innovation network for employers.
58
Name of initiative Dispute resolution for electronic commerce
Objective ICC offers a variety of high-speed, low-cost methods for resolving
electronic commerce disputes through arbitration under the 1998 ICC
Rules of Arbitration; Fast-track arbitration under the 1998 rules; ICC
ADR Rules and ICC Rules for Expertise
Enforcement mechanism(s) After voluntary incorporation into a contract an arbitration clause
becomes binding upon the parties. Pursuant to various treaties (i.e. the
New York Convention), arbitral awards are enforceable in signatory
states. Amicable dispute resolution mechanisms may be appropriate
vehicles for the enforcement of self-regulatory guidelines, codes and
practices.
Issuing/ ICC (International Chamber of Commerce) through its ICC Dispute
implementing Resolution Services
Leader(s) initiative organisation(s)
Supporting
organisation(s)
[expected] Date of issuance / implementation ICC arbitration rules in effect since 1 January 1998. New ICC ADR rules
in effect since 1 July 2001. ICC Rules for Expertise under revision but
current version in force since 1 January 1993.
General Mostly business-to-business, but consumer-to-business disputes are not
Scope excluded.
Sector Non sector-specific.
Geographic International
Examples of application
Participation public sector None
For full text/further information www.iccarbitration.org
consult/contact Emmanuel Jolivet, +33-1-49532943
Possible/expected evolution of the initiative ICC dispute resolution mechanisms will continue to evolve to meet
business needs in electronic commerce and generally.
Name of initiative ESOMAR Guideline on Conducting Marketing and Opinion
Research Using the Internet and ESOMAR Guideline on Internet
Privacy Policies and Privacy Statements
Objective To outline the main principles which must be followed in carrying out
research on (or about) the Internet and in reporting the findings of such
research with the objective to protect the interests both of Internet
respondents and of the users of Internet research findings.
Enforcement mechanism(s) Complaints procedures through ESOMAR. This guideline is based on the
principles of the ICC/ESOMAR International Code of Social and
Marketing Research which has been undersigned by all ESOMAR
members, the management of more than 1000 research institutes with
ESOMAR members and by 102 associations in 51 countries worldwide.
Issuing/ ESOMAR
implementing
Leader(s) initiative organisation(s)
Supporting World Federation of Advertisers (WFA), Advertising Research
organisation(s) Foundation (ARF)
Date of issuance / implementation ESOMAR 2000: ESOMAR Guideline on Conducting Marketing and
Opinion Research Using the Internet
ESOMAR 2001: ESOMAR Guideline on Internet Privacy Policies and
Privacy Statements
General Business-to-consumer and business-to-business
Scope Sector Market, opinion and social research
59
Geographic Worldwide
Examples of application
Participation public sector
For full text/further information Www.esomar.nl or i.vandermeersch@esomar.nl
consult/contact
Possible/expected evolution of the initiative Will be updated regularly as needed. Next up-date to be available in 2002
(ESOMAR Guideline on Conducting Marketing and Opinion Research
Using the Internet)
Name of Initiative European Advertising Standards Alliance (EASA): Cross-Border
Complaints System
Objective The key objectives of the EASA’s development of self-regulation for the
Internet are:
a) To provide effective channels for the resolution of cross border
complaints about advertisements;
b) To develop high Internet standards through best advertising practice
to give consumers confidence and trust in the advertisements they
access;
c) To give national, European and International Governments,
consumer bodies and opinion formers confidence in the advertising
industry’s self-regulatory systems to keep the need for legislation to
a minimum.
Enforcement mechanism(s) National self-regulatory systems for advertising
Issuing/ EASA Internet Working Group/ National Self-regulatory Organisations
implementing
Leader(s) initiative organisation(s)
Supporting EASA Members – Self-regulatory Organisations
organisation(s) - European Industry Associations
[expected] Date of issuance / implementation (July 1999 – issued to advertising industry bodies for
consultation/feedback) Issuance expected in 2000
General National self-regulatory codes/principles. The existing national self-
Scope regulatory systems for advertising in the EASA member countries
Sector Advertising/Commercial Communications
Geographic The EASA has 38 members.
28 of these are self-regulatory bodies (SROs), and comprises of 22
European countries, including all European Union (EU) Member States,
as well as four corresponding members in Canada, South Africa, New
Zealand and the US. These members apply codes/principles of
advertising practice which are based on those drawn up by ICC.
EASA has since November 2001 accepted industry associations
supporting self-regulation into membership. Currently there are 10
organisations in membership representing advertisers, agencies, and the
media.
EASA is now the single authorative voice for the European advertising
industry on self-regulation.
Examples of application The EASA established a cross border complaint procedure in 1992, and
this has now been extended to co-ordinate consumer complaints about the
content of electronic advertisements. The procedure is based on the
country of origin principle, as prescribed in the EU Television Without
Frontiers (Broadcasting) Directive (97/36/EC) and applies to complaints
from one member country about advertisements that originate in another.
These procedures are applicable for Internet advertising as self-
regulation, backed up where appropriate by nationally based legislation,
is seen to be the most appropriate and effective measure to provide
60
protection for consumers while enabling commerce to flourish. To date
the cross-border complaints system has closed a number of Internet
complaints.
The EASA has encouraged self-regulatory bodies (SROs) in membership
to receive complaints online and provides a means via the EASA website
for consumers to make online complaints which will be forwarded to the
SRO in the country of origin.
Participation public sector National organisations and EU
For full text/further information Dr Oliver Gray
consult/contact Director-General
European Advertising Standards Alliance
10A Rue de la Pépinière
B - 1000 Brussels Belgium
Tel.: (+32 2) 513 78 06
Fax: (+32 2) 513 28 61
E-mail: library@easa-alliance.org
Possible/expected evolution of the initiative This will contribute to a wider evaluation of internet advertising and
cross-border complaints handling with the advertising industry, and to the
stimulation of discussions that will aid our understanding and further
develop the practice and application of advertising self-regulation on a
global level within the context of interactive new media.
Name of initiative European Electronic Signature Standardisation Initiative (EESSI)
Objective Industry initiative under the ICT Standards Board with the support of the
two European standardisation bodies, CEN and ETSI, to provide
implementation frameworks in support of the European Directive on
Electronic Signature.
Such frameworks should be built upon international standards and other
form of voluntary agreements which can be used to provide legally
recognised signatures not only across Europe, but at global level through
international cooperation.
The ultimate objective is the publication by CEN and ETSI and
recognition by the European Commission of industry agreed documents,
relating to the technical infrastructure and self-regulatory guidelines for
certification authorities and the like. Some documents could ultimately
become European standards.
Enforcement mechanism(s) Compliance with the minimal legal framework stated by the European
Directive
Issuing/ EESSI Steering Group, CEN; ETSI
implementing
Leader(s) initiative organisation(s)
Supporting ICT Standards Board ,CEN, ETSI
organisation(s)
[expected] Date of issuance / implementation 1st step (assessment of existing standards, standardisation needs in light
of market requirements, proposals for action) achieved (July 99).
2nd step (work programme) first set of standards focusing on the use of
PKI technologies for electronic signature in support of the
implementation of the European Directive (April 01) .
3rd step (work programme) standards for the specifications for other
classes of electronic signature (in progress)
General Legal recognition of electronic signature in the open electronic
Scope commerce environment
Sector Non sector specific
61
Geographic 1st priority European Union (domain of application of the European
Directive), overall objective: international.
Examples of application e-Commerce
Participation public sector European Commission, EU Member States
For full text/further information 1st step Final Report available on http://www.ict.etsi.org/eessi/EESSI-
consult/contact homepage.htm/
Possible/expected evolution of the initiative Consult http://www.ict.etsi.org/eessi/EESSI-homepage.htm
62
Name of initiative Self-regulation for e-commerce marketing
"The FEDMA's Ring of Confidence initiative"
Objective · To enhance consumer trust and confidence on electronic commerce;
· To promote best business practices for electronic commerce &
therefore promote the growth of e-commerce in Europe.
These objectives would be achieved through the implementation of
several key elements which take into full consideration present consumer
concerns: European Code of Conduct, European Guarantee Seal,
Enforcement Mechanisms, Monitoring and Surveillance, Specific
Software tools, specific services and awareness campaign.
Enforcement mechanism(s) The review of the FEDMA Code started in July 2001. One of the
objectives of the review Task Force will be to set up enforcement
Committee.
Issuing/ Federation of European Direct Marketing, FEDMA
implementing
Leader(s) initiative organisation(s)
Supporting National Direct Marketing Associations in Europe
organisation(s)
[expected] Date of issuance / implementation Mid 2003
General Business-to-consumer
Scope Sector Any company having a web site
Geographic No geographic boundaries: the Internet
Examples of application Ø The FEDMA Code of conduct for Electronic Commerce and
Interactive Marketing was unanimously adopted by the members of
the FEDMA board on 5 September 2000.
Ø FEDMA is currently working on a Data Protection Code, which
should be completed by March 2002
Ø FEDMA is working on the concept of a common set of standards
and a seal to arrive at a common and compatible infrastructure for
handling cross-border consumer disputes in the EU and North
America. FEDMA will advance this concept in alliance with
BBBOnline, and Eurochambres
Ø The Consumer Complaints Resolution Mechanism project (CCRM)
aims to encourage trust and confidence in e-commerce with the
creation and the development of a multilingual and interactive
complaint form. This project will develop specified software tool
for business to Consumer issues and will focus on a large awareness
campaign
For more information, please follow this link:
http://www.fedma.org/code/page.cfm?id_page=74#liens05
Participation public sector Only in funding
For full text/further information Alastair Tempest: atempest@fedma.org
consult/contact
Possible/expected evolution of the initiative The whole project could be developed internationally through the
International Federation of Direct Marketing Associations (IFDMA).
63
Name of initiative General Usage for International Digitally Ensured Commerce
(GUIDEC)
Objective A set of common definitions and business-generated best practices for
certifying and "ensuring" electronic commerce to:
· facilitate further development of solutions to security
· identify problems in electronic commerce over the Internet
· Act as a unifying or starting point for some of the diverging policy
approaches.
Enforcement mechanism(s) Voluntary.
Issuing/ ICC (International Chamber of Commerce)
implementing
Leader(s) initiative organisation(s)
Supporting
organisation(s)
Date of issuance / implementation November 1997, revised in 2001
General Business-to-business
Scope Sector Non sector-specific.
Geographic International
Examples of application GUIDEC has been widely referred to in the press and by industry as a
unique reference for industry best practices and harmonised definitions.
It has also been used by UNCITRAL as reference material for its work on
electronic signatures.
Participation public sector None
For full text/further information http://www.iccwbo.org
consult/contact Ayesha Hassan, +33-1-49533013
Possible/expected evolution of the initiative Will be updated in 2003
Name of initiative Guidelines for codes of practice for Internet Service Providers
Objective This guideline consists of 7 Chapters, 20 articles and 2 additional rules.
The objective of this guideline is to protect users (including minors) and
to realise the sound development of Internet Connection Services by the
members of Telecom Services Association of Japan by responding
appropriately to various problems (illegal or harmful content etc.) arising
from providing Internet Connection Services.
Enforcement mechanism(s) Voluntary
Issuing/ Telecom Services Association of Japan (TELESA)
implementing
Leader(s) initiative organisation(s)
Supporting
organisation(s)
[expected] Date of issuance / implementation 16 February 1998
General Business-to-business; Business-to-consumer; Generic
Scope
Sector Internet Service Providers, Telecommunications Carriers
Geographic Japan
Examples of application The association consists of 388 enterprises.
Participation public sector
For full text/further information http://www.telesa.or.jp/e_guide/e_guid01.html
consult/contact
Possible/expected evolution of the initiative The Guidelines will be reviewed continuously to ensure its efficacy as a
guiding principle for members of the Association.
64
Name of initiative Guidelines for Electronic Direct Marketing
Objective Electronic commerce targeting consumers in Japan
Enforcement mechanism(s) Compulsory to the JADMA members
Issuing/ Japan Direct Marketing Association(JADMA)
implementing
Leader(s) initiative organisation(s)
Supporting Ministry of Economy, Trade and Industry
organisation(s)
[expected] Date of issuance / implementation 19th January, 1999
General Business-to-consumer
Scope
Sector Non sector-specific
Geographic Japan
Examples of application The examples as yet
Participation public sector
For full text/further information http://www.JADMA.org
consult/contact jadma@JADMA.org
Possible/expected evolution of the initiative will be amended as needed
Name of initiative Guidelines for transactions between virtual merchants and
consumers
Objective To promote the sound and healthy development of EC, these guidelines
have been adopted as policies aimed at companies and designed to make
transactions fair and protect the consumer, with the emphasis on
preventing trouble before it occurs.
Enforcement mechanism(s) Voluntary
Issuing/ Electronic Commerce Promotion Council of Japan (ECOM)
implementing
Leader(s) initiative organisation(s)
Supporting
organisation(s)
[expected] Date of issuance / implementation March 1999
Scope General Business-to-consumer
Sector Internet shopping
Geographic International
Examples of application
Participation public sector
For full text/further information http://www.ecom.jp/ecom_e
consult/contact info@ecom.jp
Possible/expected evolution of the initiative Will be updated regularly as needed
Name of initiative Guidelines for Use of Smart Cards (contact/contactless)
Objective Targeting shops, businesses, and operation companies expected introduce
smart cards and systems, these guidelines address a cross section of items
to be examined and information required in the course of introducing
such systems. They address the conceivable fields or situations of
application and provide specific content related to those fields and
situations. Overall, this report amounts to an effort to promote and
facilitate the use of smart cards.
65
Enforcement mechanism(s) Voluntary
Issuing/ Electronic Commerce Promotion Council of Japan (ECOM)
implementing
Leader(s) initiative organisation(s)
Supporting
organisation(s)
[expected] Date of issuance / implementation March, 1998
General Business-to-consumer
Scope
Sector Non sector-specific
Geographic International
Examples of application
Participation public sector
For full text/further information http://www.ecom.jp/ecom_e
consult/contact info@ecom.jp
Possible/expected evolution of the initiative Developed to the Guidelines for Building IC Card Terminal
Infrastructures, released in March 2000.
Name of initiative Guidelines on Personal Information Protection in Electronic
Commerce in the Private Sector
Objective To ensure the sound development of electronic commerce, all enterprises
or individual businessmen that handle personal data of consumers in
electronic commerce must take measures to protect these data. These
guidelines have been prepared for the purpose of protecting personal data
handled in electronic commerce.
Enforcement mechanism(s) Voluntary
Issuing/ Electronic Commerce Promotion Council of Japan (ECOM)
implementing
Leader(s) initiative organisation(s)
Supporting
organisation(s)
[expected] Date of issuance / implementation March 1998
General Business-to-consumer
Scope
Sector Non sector-specific
Geographic Japan/International
Examples of application
Participation public sector
For full text/further information http://www.ecom.jp/ecom_e
consult/contact info@ecom.jp
Possible/expected evolution of the initiative Will be updated regularly as needed
66
Name of initiative High assurance general ID-certificate with private key protected in
an electronic ID-card
Objective Co-operation between public and private sector in order to facilitate
common rules for strong authentication, use of digital signatures and
strong encryption during transport of data. These three basic security
services can be used for electronic commerce as well for governments’
need for a ”single face to citizen”
Enforcement mechanism(s) Voluntary by members of the non profit organisation
Need for interoperability Certifications by the organisation until national standardisation decisions
are made.
Issuing/ SEIS – Secured Electronic Information in Society (A non-profit
implementing organisation with c 60 organisations from both private and public
Leader(s) initiative organisation(s) sectors).
Supporting GEA – Swedish Alliance for electronic business
organisation(s)
[expected] Date of issuance / implementation Technical specifications and a Certification Policy (16/06/98). Partly
implemented by banks and the Swedish Post
General Generic. All specification published via the net. Free to be used.
Scope Sector
Geographic Sweden
Examples of application First used in the finance sector for Internet Banking and other payment
instructions. Public catalogue services not yet available. > 50 000 users.
Participation public sector Members of SEIS
For full text/further information gea@gea.ihb.se www.gea.nu
consult/contact
Possible/expected evolution of the initiative The general ID-certificate can be used for applications of any other
certificate belonging to other PKI-schemes (e.g. SET Certificates, email
certificates etc)
Name of initiative Hotlines against illegal content, child pornography, and
racism/discrimination on the Internet
Objective Reports to these hotlines result in swift action against the reported illegal
content, where necessary in cooperation with public official an/or police.
In addition to being illegal, illegal content has a strong negative impact
on Internet in general and specifically on the trustworthiness of the
medium.
Enforcement mechanism(s) Voluntary. Working on formal public-private partnership.
Issuing/ NLIP is the Dutch ISPA (ISPA-Nl): Internet Service Providers
Leader(s) initiative implementing Association Netherlands
organisation(s)
Supporting Government, police
organisation(s)
[expected] Date of issuance / implementation Operational for 3 years now
Scope General All citizens and companies can report
Sector Internet
Geographic Netherlands
Examples of application Many reports made to each hotline. See for instance yearly report (in
English) at http://www.meldpunt.org/
Participation public sector Law department, department of the interior, police
For full text/further information http://www.nlip.nl/ http://www.meldpunt.org/
consult/contact mailto:hans.leemans@nlip.nl (president/CEO NILP)
Possible/expected evolution of the initiative Organisational links being made to other European and global initiatives,
cooperation with public authorities developing. Illegal content hotline
will be developed
67
Name of initiative ICC Guidelines on advertising and marketing on the internet
Objective Guidelines proposing standards for ethical conduct of advertisers and
marketers offering goods and services over Interactive Media to increase
the public's confidence in marketing in the interactive media, to safeguard
advertisers' freedom of expression, to minimise the incentive for
governmental regulation, and to meet reasonable consumer privacy
expectations.
Enforcement mechanism(s) Like ICC's other marketing codes, the Internet guidelines are voluntary
but serve as a global reference point for principles of ethical behaviour by
companies world-wide. They are of a general nature so that national and
sector-specific rules can build on them.
Issuing/ ICC (International Chamber of Commerce)
implementing
Leader(s) initiative organisation(s)
Supporting
organisation(s)
[expected] Date of issuance / implementation 2 April 1998
General The Guidelines set standards of ethical conduct to be observed by all
Scope involved with advertising and marketing activities on the Internet.
Sector Non sector-specific
Geographic International
Examples of application The Guidelines serve as a basis for many self-regulatory e-advertising
schemes currently being set up (some examples can be found in this
Annex). They have been endorsed by over 100 companies and
associations, and supported by the Global Business Dialogue for
Electronic Commerce.
Participation public sector None
For full text/further information http://www.iccwbo.org
consult/contact ICC, +33-1-49532827
Possible/expected evolution of the initiative Will be updated regularly as needed
Name of initiative International Content Rating Association (ICRA)
Objective Our mission is to develop, implement and manage an internationally
acceptable voluntary self-rating system which provides Internet users
world wide with the choice to limit access to content they consider
harmful, especially to children.
Enforcement mechanism(s) Every content provider must agree to terms and conditions stating that
they have not wilfully misrepresented themselves. In addition, every site
is visited, spot checks undertaken and full audit of sites conducted. An
automated web crawler visits every site to check for label integrity. We
also respond to comments, complaints and suggestions from the general
public.
Issuing/ Internet Content Rating Association.
implementing
Leader(s) initiative organisation(s)
Supporting ICRA members include:
organisation(s) Bell Canada, Internet Watch Foundation, T-Online International AG,
Microsoft Corporation, Bertelsmann Foundation, IBM, NetMom, Cable
& Wireless, Thus PLC, AOL Europe, Internet Association Japan, BT
Openworld, AOL Inc, Childnet International, VeriSign, Digimarc
Corporation, PAGi, .Kids Domains, Inc, Verizon, Yahoo! Inc
Date of issuance / implementation December 2000 onwards
General The rating system is used by both content providers to self-rate their sites
Scope and by parents and other users to block potentially harmful material
within their browsers.
68
Sector The system is applicable to all sectors in all parts of the world.
Commercial, educational, government, military and personal sites have
all rated with ICRA.
Geographic Global
Examples of application Over 50,000 sites world-wide have rated with ICRA. ICRA will launch
ICRAfilter in Q1 2002.
Participation public sector ICRA has worked closely with government departments and agencies all
over the world. Meetings have been held with the US Dept of
Commerce, OECD, the Australian Broadcasting Authority and the
European Commission amongst others.
For full text/further information Stephen Balkam; CEO, Internet Content Rating Association, 22 Old
consult/contact Steine, Brighton, East Sussex, BN1 1EL, United Kingdom. Telephone:
+44 (0) 1273 648 332, admin@icra.org
and
David Kerr; Secretary General; Internet Content Rating Association; 5
Coles Lane; Oakington, Cambridge CB4 5BA; UK; +44 (1223) 23 7700;
chief@iwf.org.uk
Possible/expected evolution of the initiative ICRAfilter to be launched in March 2002
Name of initiative International DOI Foundation
Objective To support the needs of the intellectual property community in the digital
environment, and specifically to promote and develop the use of the
Digital Object Identifier.
The Digital Object Identifier (DOI®) is a system for interoperably
identifying and exchanging intellectual property in the digital
environment. It provides an extensible framework for managing
intellectual content in any form at any level of granularity. The
International DOI Foundation (IDF), a non-profit organization, manages
development, policy, and licensing of the DOI to registration agencies
and technology providers and advises on usage and development of
related services and technologies.
The IDF utilises CNRI’s Handle technology (www.handle.net) and a
structured metadata component based on the EC-supported indecs project
(www.indecs.org; IDF is one of the two bodies managing the indecs
intellectual property rights). The DOI “application profile” integrates
CNRI’s digital object architecture and technology with well-structured
metadata in order to provide a coherent and consistent means of
expressing interoperable metadata and resolvable identifiers in a digital
environment.
The IDF are supporting further developments such as the extension of the
successful indecs project further into rights management.
Enforcement mechanism(s) Policies and procedures defined in the DOI handbook. Issuance of a
DOI requires conformance with the Foundation’s rules. An
implementation of the Uniform Resource Name/ Uniform Resource
Identifier specification as defined by the IETF and W3C. Conformance
to standard syntax and other rules laid down by the Foundation and
where appropriate formalised as international standards.
Issuing/ The International DOI Foundation (www.doi.org)
implementing
Leader(s) initiative organisation(s)
69
Supporting The Foundation is an open consortium that any organisation may join.
organisation(s) Financial support for the DOI system is provided by members until such
time as the network of DOI Registration Agencies can be self-funding.
Current members: see http://www.doi.org/idf-member-list.html
Prefix holders (organisations able to assign DOIs): see
http://www.doi.org/prefix_holders.html
Registration Agencies (organisations able to empower others to assign
DOIs); see http://www.doi.org/registration_agencies.html
Underlying technologies: indecs (www.indecs.org); handle
(www.handle.net); CNRI (www.cnri.reston.va.us)
[expected] Date of issuance / implementation DOIs have been issued since October 1998. The DOI system is currently
actively implemented by many publishers including over 70 through the
CrossRef consortium (www.crossref.org)
General Intellectual property rights owners and users
Scope Sector Non sector-specific
Geographic World
Examples of application Persistent identification of entities in the intellectual property system,
e.g. textual abstractions (works), tradeable items (digital and physical
files); licenseable items (e.g. performances), etc.
Participation public sector Open
For full text/further information Web site: www.doi.org
consult/contact Contact person: Norman Paskin, Director, International DOI Foundation
PO Box 233; Kidlington, Oxford; OX5 1XU; U.K.; Tel: (+44) 1865
843798; Fax: (+44) 1865 843446; E mail: n.paskin@doi.org
Possible/expected evolution of the initiative Application of DOIs in other sectors beyond initial text implementations.
Further development of the DOI system in collaboration with existing
standard mechanisms for identification and metadata.
IDF is currently supporting work to extend the indecs analysis into both
the rights transaction and identity management (party identifiers) areas.
Appointment of multiple registration agencies and further application
development. Development of standard tools for multiple resolution of
identifiers.
Name of initiative International Online ADR
Objective To propose making dispute resolution procedures that suit to the
international market and necessary conditions of dispute resolution
organizations in order to maintain online trust mark authority and secure
mark’s effectiveness. (For an accomplishment of this objective, to get
market needs and verify effectiveness of dispute resolution mechanism)
Enforcement mechanism(s) Voluntary
Issuing/ Electronic Commerce Promotion Council of Japan (ECOM)
implementing Korea Institute for Electronic Commerce (KIEC)
Leader(s) initiative organisation(s) BBBOnline
Supporting Electronic Commerce Promotion Council of Japan(ECOM)
organisation(s)
[expected] Date of issuance / implementation January 2002
Scope General Business-to-consumer
Sector Internet shopping
Geographic Japan, Korea, USA, Canada
Examples of application Net shopping dispute resolution service
Participation public sector
For full text/further information consult/contact http://www.ecom.jp/adr/
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Possible/expected evolution of the initiative Will be updated as needed
Name of initiative International Standardization of Online Trust Mark Programs
Objective Global promotion of the mark program and creating awareness,
promotion of international trade, standardization of online business
criteria and enhancing the added values for mark granted businesses,
setting of the international common logo mark, development of
interoperable dispute resolution procedures and technology that supports
them, and building a cooperative system among dispute resolution
organizations.
Enforcement mechanism(s) Voluntary
Issuing/ Global Trust Mark Alliance
implementing
Leader(s) initiative organisation(s)
Supporting Electronic Commerce Promotion Council of Japan(ECOM)
organisation(s)
[expected] Date of issuance / implementation March, 2003
Scope General Business-to-consumer
Sector Internet shopping
Geographic Member countries of the Alliance
Examples of application Online shopping mark
Participation public sector
For full text/further information consult/contact http://www.ecom.jp/ecom_e
http://mark.cin.or.jp/
http://www.jadma.org/ost/index.html
Possible/expected evolution of the initiative Will be updated as needed
Name of initiative Internet One
Objective Provide identification of legitimate Internet trading companies through
an authoritative listing facilitaty associating trademarks; brand names,
company names, telephone numbers, directly with internet addresses,
URLs, IP addresses and domain names, irrespective of the country code
top level domains or generic top level domains in which registration has
been effected. Correlating "real world" identifiers with those of the
"virtual world" gives consumers greater certainty that the entity known to
them in the real world is indeed that visible to them in the virtual world.
Legitimate Internet traders register their details against a nominal charge
through a recognized domain name registrar, Internet service web
hosting company, certification authority, PTT operator or with IN ONE
directly. Users may retrieve registered information, free of charge, using
any standard Internet browser, entering in the address line of the browser
the requisite trademark/company name/telephone nr, followed by ".io" to
be referred directly to the registered Internet site. Where multiple
identical trademarks/brandnames/company names are entered, the IN
ONE system automatically generates a directory style listing from which
the user may distinguish and select their desired company/destination. IN
ONE will warn consumers within about 4 seconds of being notified of
the potential infringement that the goods or services may be imitations of
their reputable namesakes. IN ONE leaves the determination of who is a
legitimate trader up to specialized agencies.
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Enforcement mechanisms On-line dispute resolution/arbitration facilities
(http://internetONE.wipo.int
National courts
Issuing/ Internet ONE
implementing Research Institute for Computer Science
Leader(s) initiative organisation(s) World Intellectual Property Organization
Supporting Council of Internet Domain Name Registrars
organisation(s) World Chambers of Commerce Network
Electronic Commerce Associations
[expected] Date of issuance / implementation Current
General Business-to-business and business-to-consumer
Scope Sector Non sector-specific
Geographic Global
Examples of application IN ONE is the only authoritative directory on the Intenet today using
pioneering technology to a non-propietary platform.
Participation public sector Group of Eight Industrialized Nations, Government of Australia, France,
Germany, Korea, Soviet Union, UK, USA and European Commission.
For full text/further information http:/www.io.io
consult/contact Internet ONE
P.O. Box 4040
Christchurch
Dorset
BH23 1XW
Fax 44 1202 430 580
Possible/expected evolution of the initiative IN ONE is seeking additional strategic partners from all nations and field
of e-commerce. Designed in the UK, IN ONE and its partners have
servers and infrastructure in New York, London, Amsterdam, Tokyo and
Melbourne and already just under 100 partners from 23 countries.
Readers of various Internet magazines voted IN ONE "best consumer
customer service" at the recent European Internet Industry Awards 1999.
Name of initiative The Online Trust Mark System for Winning Trust for Electronic
Commerce
Objective To help consumers avoid trouble with false or deceptive EC merchants.
The seal of approval are displayed on the homepages of EC merchants
known to be engaged in legitimate business .
Enforcement mechanism(s) Voluntary
Issuing/ Japan Chamber of Commerce and Industry
implementing Japan Direct Marketing Association
Leader(s) initiative organisation(s)
Supporting Electronic Commerce Promotion Council of Japan(ECOM)
organisation(s)
[expected] Date of issuance / implementation September 1999
Scope General Business-to-consumer
Sector Internet shopping
Geographic Japan(For the shops whose headquarters are in Japan)
Examples of application Online shopping mark
Participation public sector
For full text/further information consult/contact http://www.ecom.jp/ecom_e
http://mark.cin.or.jp/
http://www.jadma.org/ost/index.html
Possible/expected evolution of the initiative Will be updated as needed
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Initiative New Zealand electronic Marketing Standards Authority (eMSA)
Objective Maintains a self-regulatory certification and adjudication scheme for
internet advertising and consumer complaint resolution in New Zealand.
Advertising Codes of Practice administered by the New Zealand
Advertising Standards Authority and the Code of Ethics of the New
Zealand Direct Marketing Association will be applied to ensure
consumer and governmental confidence in a self regulatory system to
maintain standards in Advertising on the Internet. The certification
process will include requirements of the advertiser seeking certification
as to the delivery of products and services offered and the availability of
dispute resolution mechanisms for the benefit of the consumer.
Voluntary agreements between advertisers, agencies, print and electronic
media and New Zealand based internet service providers to observe
Enforcement Mechanism(s) standards required by the Fair Trading Act and related consumer
protection legislation together with the Advertising Standards Authority
Voluntary Codes of Advertising Practice the Code of Ethics of the New
Zealand Direct Marketing Association. The agreement will require the
advertiser to accept the jurisdiction of eMSA in determining consumer
complaints arising from products and services purchased from the
internet once the advertisers’ internal dispute resolution procedures have
been exhausted. The implementation of a verification programme
modelled in the UK ‘Trustmark’ scheme. The scheme will be
promulgated by eMSA. ASA and eMSA decisions will be published on
the eMSA website, supplemented by the dissemination (free of charge)
of written decisions to the media, government bodies, advertisers and
advertising agencies. Certification will not extend to the content of any
advertisement or the conduct of the advertiser. This is the rationale for
the separation of the certification body and the adjudication body. New
Zealand experience indicates that publicity provides the most effective
method of enforcement of standards but it is also intended to seek
agreement of internet service providers to remove sites containing
offending material and to develop cross-border alliances to achieve
effective enforcement.
Leader(s) Issuing Implementing New Zealand electronic Marketing Standards Authority
Initiative Organisation
Supporting The New Zealand Advertising Standards Authority; New Zealand Direct
Organisation(s) Marketing Association; The New Zealand Chambers of Commerce; The
Ministry of Consumer Affairs; ICC New Zealand National Committee of
Advertising, Marketing & Distribution;
Association of New Zealand Advertisers; Communication Agencies
Association of New Zealand
Date of Issuance May 2001
Scope General Business to consumer primarily, business to business secondary
Sector All
Geographic New Zealand with cross-border alliances
The New Zealand Advertising Standards Authority has processed and
adjudicated on complaints arising from advertising on the internet. To
enable implementation of a certification process separation from the
Advertising Standards Authority is deemed preferable. The Ministry of
Examples of Application Consumer Affairs is seeking effective mechanisms for consumer
complaint resolution arising from internet purchases. It supports the
establishment of eMSA as the mechanism for achieving this end.
eMSA consulted with Government Agencies with the intent of obtaining
governmental recognition and endorsement of a self regulatory regime
Participation Public Sector for maintenance of standards for advertising on the internet.
73
Name of initiative Online Ombuds Office
Objective Online mediation and arbitration services
Enforcement mechanism(s)
Issuing/ Center for Information Technology and Dispute Resolution
implementing
Leader(s) initiative organisation(s)
Supporting University of Massachusetts
organisation(s)
[expected] Date of issuance / implementation Established in 1996
General Internet related disputes
Scope Sector Commercial and Non-commercial
Geographic International and Domestic
Examples of application Domain name disputes, consumer, intellectual property
Participation public sector
For full text/further information www.ombuds.org, www.umass/dispute
consult/contact
Possible/expected evolution of the initiative
Name of Initiative Platform for Privacy Preferences (P3P)
Objective Build privacy protection and personal information management tools into
the infrastructure of the World Wide Web
Enforcement mechanism(s) P3P is a voluntary technical specification
Issuing/ World Wide Web Consortium
implementing
Leader(s) initiative organisation(s)
Supporting 330+ W3C member organizations around the world
organisation(s)
[expected] Date of issuance / implementation Fall 1999
General Privacy protection
Scope Sector
Geographic Global
Examples of application Ecommerce services on the Web provide users information about site’s
privacy practices and give users control over handling of personal
information according to the users individual preferences
Participation public sector Active consultation with US Government, European Commission, and
other national governments
For full text/further information Daniel J. Weitzner, Technology and Society Domain Leader,
consult/contact
http://www.w3.org/p3p
Possible/expected evolution of the initiative P3P may be the platform for empowering consumers to address onsumer
protection and choice of law issues in a global environment
Name of initiative Paction – the model international sale contract application
Objective Based on ICC's model contract for the international sale of goods, this
new online service allows the parties to prepare, negotiate and complete
contracts online.
Enforcement mechanism(s) Once entered into, the contract is enforceable per usual means and the
online application allows the parties to customize the contract to meet
their specific needs.
Issuing/ ICC (International Chamber of Commerce)
implementing
Leader(s) initiative organisation(s)
74
Supporting
organisation(s)
[expected] Date of issuance / implementation Available now.
General B2B
Scope Sector Non sector-specific.
Geographic International
Examples of application ---
Participation public sector None
For full text/further information http://www.modelcontracts.com
consult/contact Jonas ASTRUP +33-1-49532826
Possible/expected evolution of the initiative ---
Name of initiative PKI Assessment Guidelines
Objective Describe the relevant components of a Public Key Infrastructure (PKI)
and provide guidelines to assist certification authorities, relying parties,
and other communities of interest, licensing or regulatory (including
consumer protection) bodies, communities of interest, and others in
making independent assessments of PKI trustworthiness. In particular,
the PAG:
· provides a framework and guidelines for assessment of a PKI and
PKI components, but does not mandate any particular criteria or
conclusions;
· explains the basics of PKI assessment covering such topics as
relevant terminology, and a tutorial;
· provides assistance in the drafting and analysis of certificate
policies, certification practice statements; relying party agreements,
and subscriber agreements, and
· includes various useful annexes, including sample scenarios and
corresponding considerations for "typical" trustworthy transactions
that are intended to enhance interoperability and certainty.
The PAG is a logical extension of the Digital Signature Guidelines, (the
"DSG"), a four and 1/2-year project of the American Bar Association's
Information Security Committee published in August 1996. Although
the focus and scope of the DSG and PAG differ, both are the product of
intensive collaboration among technical, legal, business, and auditing
professionals from around the world. Both are intended to facilitate
secure electronic commerce.
Enforcement mechanism(s) Voluntary adoption
Issuing/ Information Security Committee of the American Bar Association’s
implementing Section of Science and Technology Law.
Leader(s) initiative organisation(s)
Supporting Informal cooperation with diverse private and public entities.
organisation(s)
Date of issuance / implementation Public Draft for Comment published June 18, 2001
General Business-to-business as well as consumer-to-business also addresses
Scope government-to-citizen
Sector Non-sector specific
Geographic Global in scope
Examples of application Quality assessment, evaluation for interoperability, underpinnings of seal
programs, and basis for licensure.
Participation public sector Considerable – informal and incremental participation in the ISC’s
drafting of the PAG
75
For full text/further information www.abanet.org/scitech/ec/isc or contact Steve Wu and Kimberly Kiefer,
consult/contact Co-Chairs, Information Security Committee: swu@verisign.com and
KKiefer@brobeck.com; Ben Wilson and Randy Sabett, Co-Vice Chairs,
Information Security Committee, ben.wilson@trustdst.com and
rsabett@cooley.com.
Possible/expected evolution of the initiative Updated occasionally.
Name of initiative Standard Contractual Clauses for Transborder Dataflows
Objective Building on the widely supported 1992 ICC/EC/Council of Europe
model clauses, as well as a Recommendation by the Council of the
OECD, these model clauses are intended to bridge the gap that has
widened between some jurisdictions as a result of different approaches to
privacy protection and offer more flexible mechanism (compared to
governmental contractual clauses) in transferring data across borders.
Once approved by Data Protection Agencies (DPAs), they can be used as
an alternative to the DPAs own standard contractual clauses in
transferring personal data from the area under jurisdiction of the
approving DPA.
Enforcement mechanism(s) Once voluntarily incorporated into a contract, the clauses become fully
enforceable on both of the contracting parties.
Issuing/ International Chamber of Commerce (ICC), the Federation of European
implementing Direct Marketing (FEDMA), the EU Committee of the American
Leader(s) initiative organisation(s) Chamber of Commerce in Belgium (Amcham), the Japan Business
Council in Europe (JBCE), the Confederation of British Industry (CBI),
International Communications Round Table (ICRT), and the European
Information and Communications Technology Industry Association
(EICTA).
Supporting
organisation(s)
[expected] Date of issuance / implementation Currently seeking approval from the European Commission
General
Scope Sector All sectors
Geographic All countries
Examples of application Once approved by the European Commission, it can be used to ensure
adequate protection for employee data being transferred from a
subsidiary company in the EEA to a parent company outside the EEA.
Participation public sector
For full text/further information http://www.iccwbo.org/home/statements_rules/statements/2
consult/contact 001/itu.asp
Ayesha Hassan, +33-1-4953013
Possible/expected evolution of the initiative Will be updated as necessary
76
Name of initiative TradeCard
Objective To provide online transaction management and financial settlement for
domestic and cross-border transactions that reduces the inefficiencies and
uncertainties found in traditional domestic and cross-border trade
transaction processes. To streamline and enhance the steps necessary for
purchase order approvals, payment decisions and settlement, while
providing a cost-effective, practical and patented service for financial
supply chain management.
Enforcement mechanism(s) Membership Contract
ICC guidelines
Issuing/ TradeCard Inc.
implementing
Leader(s) initiative organisation(s)
Supporting
organisation(s)
[expected] Date of issuance / implementation First Quarter 2000
General Business to business
Scope Sector Import/Export Community
Geographic Global
Examples of application Over 400 members conducting and settling transaction since November
1999. Members include some of the top U.S. retailers, electronics
companies and apparel and footwear manufacturers. Also providing a
white-labelled solution to banking institutions, i.e. JPMorgan Chase.
Participation public sector
For full text/further information Michael Klausner, VP, Marketing
consult/contact mklausner@tradecard.com
Possible/expected evolution of the initiative To reduce the barriers to trade
To simplify and innovate the current trade finance process
To increase the volume of world trade
To reduce the cost of trade transactions
Name of Initiative TRUSTe
Objective Dedicated to enabling individuals and organizations to establish trusting
relationships based on respect for personal identity and information in the
evolving networked world”
Enforcement mechanism(s) Sites that choose to become licensees of the TRUSTe program must sign
a one-year contractually binding licensing agreement. The agreement
must be renewed each year. The agreement stipulates conditions by
which the licensee must adhere, including privacy principles and
escalation procedures. The site must demonstrate, to TRUSTe’s
satisfaction, compliance with the TRUSTe privacy principles prior to
obtaining the TRUSTe seal or trustmark. Over the course of the contract,
subsequent reviews are conducted by TRUSTe to ensure the site is in
compliance with TRUSTe’s privacy principles and their own stated
privacy practices. A variety of mechanisms including offsite surfing of
the site and “seeding” technologies are also used.
The TRUSTe program also includes a consumer dispute resolution where
consumers can voice concerns about TRUSTe licensees should their
interactions with the licensee prove unsatisfactory. Complaints generated
by either a consumer or TRUSTe follow a progressive escalation process
that is dictated by the licensing agreement. Sites have agreed, by signing
the contract, to cooperate with TRUSTe’s review and appeals process.
TRUSTe was approved by the U.S. Federal Trade Commission as a Safe
Harbor for the Children’s Online Privacy Protection Act in May 2001. It
77
also offers a seal for Japanese Language Web sites, eHealth, EU safe
harbor, and Email Seal.
Issuing/ TRUSTe—the digital industry’s only non-profit, self-regulatory effort
implementing focusing exclusively on individual privacy rights online.
Leader(s) initiative organisation(s)
Supporting Founding Organisations: Electronic Frontier Foundation, CommerceNet
organisation(s) Consortium
[expected] Date of issuance / implementation Commercial launch of the program: June 1997
General Business-to-consumer primarily, business-to-business secondarily
Sector All
Scope Geographic US, with presence established in Europe and Asia
Examples of application # of licensees: about 2000 sites as of January 2002
Influence of licensees: 15 of top 20 most visited sites, including all major
Internet portals are TRUSTe licensees.
Participation public sector TRUSTe has participated at a number of US government-sponsored
forums including the FTC Privacy Workshops, the Department of
Commerce Privacy Forum and privacy workshops. In addition, TRUSTe
has testified at congressional hearings and has presented its program
internationally to OECD-led privacy workshops.
For full text/further information www.truste.org
consult/contact Rebecca J. Richards
rrichards@truste.org
1776 K St NW #360
Washington, DC 20006
1-202-483-1900
F: 1-202-719-7277
Possible/expected evolution of the initiative The TRUSTe program has evolved in the 5 years since its commercial
launch. It is anticipated that further developments and changes will occur
as market and government forces dictate.
Name of initiative TTP.NL
Objective To stimulate the development of secure and trusted communication and
storage of electronic information by developing a national, interoperable
TTP-infrastructure which is in harmony with current market
developments and needs. In the project TTP.NL working groups develop
criteria that TTPs should comply with, an accreditation- and certification
scheme and a supervising body that TTPs can join voluntarily.
Enforcement mechanism(s) Accreditation- and certification scheme ( to which TTP's can voluntarily
adhere). Possibly a quality-mark for TTP's that participate.
Issuing/ The Confederation of Netherlands Industry and Employers(VNO-NCW);
implementing the Dutch Ministries of Economic Affairs; Transport, Public Works &
Leader(s) initiative organisation(s) Water Management; the Dutch Electronic Commerce Platform (ECP.NL)
Supporting Representatives of providers and users of TTP-services (a.o. notaries,
organisation(s) post and banks), the Dutch private sector (a.o. consumer organisations,
universities & large businesses).
[expected] Date of issuance / implementation Summer 2002
General Business-to-business; Business-to-consumer
Scope
Sector All sectors
Geographic
Examples of application
78
Participation public sector See "leaders initiative"
For full text/further information Marjolijn Bonthuis (marjolijn.bonthuis@ecp.nl)
consult/contact Marjolijn Durinck (marjolijn.durinck@ecp.nl)
Possible/expected evolution of the initiative In the timeframe of the project, it is expected that the necessary
infrastructure and "tools" for the development of TTP-services in the
Netherlands should be completed. During the project all relevant market
parties will be consulted and informed.
Name of Initiative WebTrust
Objective 1) To build trust and confidence in eCommerce by increasing consumer
confidence in using the Internet
2) Helping businesses deliver on their sales promises
Enforcement mechanism(s) WebTrust involves a full-scope audit of a website by an independent,
specially trained CPA, or their equivalents around the world, using the
WebTrust Principles and Criteria as a benchmark to determine the
soundness of on-line businesses’ activities. Due to the nature of an audit,
WebTrust is an effective eCommerce fraud deterrent and a
comprehensive eCommerce seal of assurance. All WebTrust audits are
performed on site and involve a critical review of online businesses
internal control policies and procedures related to eCommerce.
Issuing/ American Institute of Certified Public Accountants, Canadian Institute of
implementing Chartered Accountants
Leader(s) initiative organisation(s)
Supporting
organisation(s)
[expected] Date of issuance / implementation Version 1.0 issued September 1997; Version 1.1 issued April 1999;
Version 2.0 issued August 1999; Version 3.0 to be issued Summer 2002
under the umbrella concept of Information System Trust Services.
General WebTrust entails an independent CPA performing an audit of a website’s
Scope (1) business practices and privacy (tests to perform that an online
business properly discloses business and privacy disclosures and can
demonstrate compliance with those policies over a given time period); (2)
transaction integrity (tests to determine that an on-line business can
demonstrate a proven history of delivery goods and services at prices it
agreed to with online consumers) (3) information security (tests to
determine that appropriate security measures are in place (such as
firewalls, SSL technology) both during transmission of data online and
also once information reaches an on-line business and (4) confidentiality
(tests focusing on confidential information obtained as a result of e-
commerce from existing or potential business partners with an overall
objective for the confidentiality of data exchanged over electronic
networks such as the Internet or a Virtual Private Network..
Sector WebTrust is available to all sectors (public and private)
Geographic WebTrust is currently offered in the United States, Canada, the United
Kingdom and Ireland, France, Australia, Argentina, Austria, Germany,
Hong Kong, Italy, Netherlands, Scotland, Spain, and New Zealand. Plans
are underway for future expansion into other European countries and
Asia. Certain accounting firms have been granted world-wide licenses to
offer WebTrust in any country where they have offices. WebTrust is
scalable upwards to meet more rigorous laws or regulations in certain
countries.
Examples of application WebTrust is currently designed for use in business to consumer as well as
a business to business applications. The AICPA has recently added
WebTrust Confidentiality and WebTrust for Certificate Authorities
applications.
Participation public sector None
For full text/further information consult/contact Anthony Pugliese, Director of Assurance Services (212) 596-6083,
79
apugliese@aicpa.org
Louis Matherne, Director and Assurance and Advisory Services, 212-
596-6027
Karyn Waller, Senior Technical Manager, Trust Services, (212) 596-
6054, kwaller@aicpa.org
Possible/expected evolution of the initiative The AICPA anticipates WebTrust will evolve into the recognized seal of
choice by consumers and businesses alike due to the fundamental nature
of the program itself. It represents an independent examination by a
qualified CPA or their equivalents around the world. WebTrust is an
effective self- regulatory model for government due to its inherent fraud
detection capabilities and its comprehensive nature.
Name of initiative World Chambers Network (WCN)
Objective WCN allows chambers of commerce to promote their companies to the
world and to network with other chambers of commerce around the
world. Through their local chamber’s participation, SME’s have access
to a global electronic network on the Internet for the exchange of business
information and opportunities.
Enforcement mechanism(s) Voluntary
Issuing/ ICC (International Chamber of Commerce)
implementing
Leader(s) initiative organisation(s)
Supporting ICC World Chambers Federation (WCF)
organisation(s) Paris Chamber of Commerce and Industry
G77 Chambers Trade Network
[expected] Date of issuance / implementation 1994
General Chamber-to-chamber. Business-to-business.
Scope Sector Non sector-specific.
Geographic International
Examples of application A manufacturer of personal conference phone found distributors in
Mexico and Italy, and gained new US market information; Czech
manufacturer of air fresheners found a buyer in Australia; joint venture in
the production of bicycles was formed between a Czech bicycle company
and a Macedonian firm. A company that sells ergonomic pens opened
business contacts with one of the largest office supply chains in the
United States. .
Participation public sector None
For full text/further information http://www.worldchambers.com
consult/contact Anthony Parkes, +33-1-49532967
Possible/expected evolution of the initiative WCN will link into its system, the products and services of the chambers
of commerce around the world. The network will expand its qualified,
validated business opportunity service, providing a higher level of trust
through the intervention of trusted third parties - chambers of commerce.
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Individual Submissions
International Chamber of Commerce
The world business organization
Policy statement
Trade-related aspects of electronic
commerce and telecommunications
ICC shares a common interest in working with the World Trade Organization (WTO) and its
members to determine how the WTO can support the development of e-commerce in a
manner that ensures participation by all countries in the online global economy. To begin this
work, ICC would like to set forth the following negotiating objectives:
1. to promote the development of the infrastructure that is necessary to conduct e-
commerce;
2. to promote the development of trade in goods and services via e-commerce; and
3. to prevent the establishment of new barriers to e-commerce during and after the GATS1
2000 negotiations.
Given that e-commerce is a new and dynamic medium to deliver goods and services, it needs
comprehensive consideration to ensure its true potential. In that regard, ICC members view
the following comments and negotiating objectives as part of an ongoing dialogue among
business, governments, and other stakeholders that will take place formally and informally
during the GATS 2000 negotiations and any potential new round. Interim progress on the
objectives set forth would be most welcome.
While important progress has been achieved, a significant number of barriers remain, barriers
which could and should be reduced in WTO GATS 2000 negotiations. Liberalization,
complemented by transparency, competition, and regulatory reform are critical to economic
growth and stability. Moreover, providers, users, and consumers stand to benefit from greater
competition, choice, and convenience.
1
General Agreement on Trade in Services (GATS)
International Chamber of Commerce
38, Cours Albert 1er, 75008 – Paris, France
Telephone +33 1 49 53 28 28 Fax +33 1 49 53 28 59
Web site www.iccwbo.org E-mail icc@iccwbo.org
The success of WTO negotiations will depend on the active participation of developing
countries. The elimination of obstacles to trade in goods and services and the effective and
timely implementation of the Trade Related Aspects of Intellectual Property (TRIPS)
agreements will play a critical role in the economic development of developing countries and
in the seizing of digital opportunities through improved infrastructure, greater choice at lower
costs, and improved efficiency. Therefore, ICC strongly believes that liberalization should
occur at the earliest opportunity and underlines the need for the GATS 2000 negotiations to
extend effective market access on a mutually-beneficial reciprocal basis, while recognizing
the particular circumstances of developing countries.
1. To promote the development of e-commerce infrastructure, ICC urges WTO
members to:
· work to increase membership in the Information Technology Agreement (ITA) and
redouble their efforts to conclude the ITA II agreement. These agreements are
important to ensure that all countries have access to the hardware and software
necessary to deploy and access the e-commerce infrastructure;
· ensure that there are the necessary market access and national treatment
commitments across sectors that are associated with the infrastructure needed for
business-to-business and business-to-consumer e-commerce; and
· refrain from imposing new barriers to the development of the e-commerce
infrastructure
Basic telecommunications and value-added services and certain financial services (i.e.
payment systems) particularly are critical components of an e-commerce infrastructure. In
both sectors, WTO members have made significant sector-specific commitments, which serve
as a basic and necessary foundation for all e-commerce activity around the world. In the
current GATS 2000 negotiations, all WTO members should strive for broader and deeper
commitments in all subsectors of telecommunications and financial services in order to
promote the development of the infrastructure needed for e-commerce specifically and global
trade generally.
2. To promote the development of trade via e-commerce, ICC urges WTO
members to:
· continue to pursue formal recognition in the WTO that current commitments under
WTO Agreements including the General Agreement on Tariffs and Trade (GATT),
the General Agreement on Trade in Services (GATS) and the WTO Agreement on
Trade-Related Aspects of Intellectual Property Rights (TRIPS), apply to electronic
commerce;
-2-
· agree that the existing GATS classifications should be flexible enough to
accommodate technological progress in the delivery of services. As technology
evolves, the interpretation of existing classification of services based on this
technology should also evolve to capture these advances. Through classification
flexibility, WTO member countries can ensure that they benefit from the tremendous
productivity increases and cost savings associated with the information technology
revolutions;2
· ensure that electronically delivered products (i.e. good or service) receive market
access and national treatment benefits that are no less favorable than those currently
available for such products delivered physically;
· make meaningful market opening commitments in all service sectors, especially
those services that can be delivered via e-commerce whether on a cross-border or
consumption abroad basis; and
· ensure the effective and timely implementation of TRIPS by all existing and
acceding WTO member states. With the rapid development of digital technologies
and electronic services, the need for strong protection and enforcement of
intellectual property rights is imperative. The TRIPS Agreement plays a very
important role insofar as it provides minimum standards for such protection and
enforcement.
3. To prevent the development of new barriers to e-commerce pending the
completion of negotiations and beyond, ICC urges WTO members to:
· pursue a standstill commitment not to impose new restrictions that could adversely
affect e-commerce during the course of the negotiations;
· pursue adoption of the recommendations made in the WTO 1998-99 work
programme on e-commerce which include the need to avoid unnecessary barriers to
e-commerce;
· agree that when legitimate policy objectives require domestic regulations, that those
regulations will be, to the greatest extent possible, least trade restrictive, transparent
and promote an open market environment;
· make permanent the practice of not imposing customs duties on electronic transmissions;
and
· pursue the continuation of the work programme on electronic commerce within the
WTO.
2
Classification flexibility is limited to existing GATS classification schemes and does not refer to the classification
of a product delivered electronically as either a good or a service.
-3-
The traditional role of the WTO – and its predecessor, the GATT – has been to reduce and
eliminate barriers to trade. This is a role that the WTO can play for e-commerce by providing
a forum in which WTO members can negotiate new commitments to reduce existing barriers
to e-commerce and enforce existing commitments that protect e-commerce through the WTO
Dispute Settlement Mechanism.
It is equally important that the WTO play a role in preventing the development of barriers to
e-commerce. It is important that this approach underpin the GATS 2000 negotiations and the
launch of a new round of negotiations.
Basic telecommunications, value-added services and computer and related services provide
the infrastructure for electronic commerce. If countries have not already done so, they should
fully liberalize these sectors during the GATS 2000 negotiations. Given ICC's deep
involvement in representing business during the development of the “GATS
Telecommunications Annex” and the “Basic Telecoms Agreement”, specific suggestions
relating to these sectors are set forth below.
ICC believes that existing telecommunications regulatory frameworks are ill suited for the
Internet. Since, historically, telecommunication services have been provided by government-
owned or government-sanctioned monopolies, encouraging the movement to competitive
telecommunications markets has required the development of a pro-competitive regulatory
framework that relies, to some extent, on sector-specific, ex-ante rules. In contrast, electronic
commerce has been markedly different. Since its inception, electronic commerce has been
driven by highly competitive firms operating in an open and dynamic market. Therefore, ICC
members agree that the “Reference Paper” on basic telecommunications services does not
apply and should not be applied to value added services, including Internet services.
However, a fundamental aspect of a competitive Internet market, is the ability of value-added
service providers, including Internet Service Providers, to have access to and use of the
underlying public telecommunications networks as provided for in the GATS
Telecommunications Annex. As the existing basic telecommunications regulatory framework
is designed for a specific purpose addressing a special situation (traditionally regulated
monopoly telecommunications services), ICC does not support extending the provisions in the
GATS “Reference Paper” on basic telecommunications services on interconnection to the
Internet, but trusts in the appropriate application of competition law when needed.
-4-
Telecommunications
ICC members believe that liberalization of telecommunications services and facilities must
continue to be a top priority of governments for the services negotiating objectives because of
the dual role that telecommunications plays as a distinct sector and as the necessary
infrastructure for the delivery or transport of other goods and services, including via the
Internet and e-commerce. Opening markets for telecommunications also benefits consumers
worldwide by bringing increased choices and lower prices.
Basic telecommunications
ICC continues to be concerned that several countries are not implementing their existing
commitments and that some countries have not yet accepted the Fourth Protocol. During the
WTO GATS 2000 negotiations, consideration should be given to the extent to which countries
have met their current obligations with respect to their market access and national treatment
commitments and implementation of the “Reference Paper” on basic telecommunications
services.
For the GATS 2000 negotiations, ICC would like to see improvements in existing basic
telecoms commitments as well as first-time commitments from WTO members that have not
made basic telecoms commitments in the past.
ICC proposes the following general negotiating objectives:
Broader market access commitments
Several countries have committed to a narrow opening of their markets. Countries must
commit to full-service market access. This is particularly important in light of the
convergence of services made possible by advanced digital technology.
Timelier implementation dates
Countries with commitments for market access that are not effective until post-2001 should
advance their implementation dates. While some countries have opened their markets prior to
the dates in their schedules, a number of key markets have not scheduled commitments until
after 2002.
Commitments to the “Reference Paper” on basic telecommunications services
For companies to compete effectively, countries should commit to the “Reference Paper” on
regulatory principles for basic telecommunications services in its entirety.
-5-
Reduction or elimination of restrictions on foreign ownership
Significant progress in reducing foreign ownership restrictions was obtained during the basic
telecommunications negotiations, but in many countries foreign ownership restrictions
continue to apply.
Commitments from additional countries
Of the 140 WTO members, 80 governments have made some telecommunications market
access commitments covering either basic or value-added services. ICC encourages all
governments to make meaningful market-opening commitments, which at a minimum
include:
· full liberalization by a date certain;
· progressive removal of foreign ownership restrictions; and
· adoption of the “Reference Paper” in its entirety.
Value-added services
A number of countries made commitments as part of the Uruguay Round to open their
markets for the provision of value-added telecommunications. These commitments facilitate
on-line information and data-processing services, as well as electronic mail and voice mail.
ICC seeks and advocates further liberalization in the provision of value-added services in the
GATS 2000 negotiations, namely.
· broader market-access commitments that cover the full range of value-added services;
· timelier implementation dates;
· reduction or elimination of foreign ownership restrictions; and
· commitments from additional countries.
Moreover, as stated above, ICC members agree that the “Reference Paper” on basic
telecommunications services does not apply and should not be applied to value-added
services, including Internet services. However, WTO members should take the necessary
steps to prevent anti-competitive practices by public telecommunications network operators
and service providers that discriminate against unaffiliated value-added service providers and
Internet Service Providers in contravention of the “GATS Telecommunications Annex”.
Adherence to the Annex will ensure that all value-added service suppliers, including Internet
Service Providers, have non-discriminatory access to and use of the traditional underlying
public telecommunications infrastructure necessary for the provision of these services.
Document n° 373/400 Final
6 June 2001
-6-
International Chamber of Commerce
The world business organization
Department of Policy and Business Practices
Commission on E-Business, IT and Telecoms
ICC list of actions for governments to undertake to attract private
sector investment in electronic business, information technology and
telecoms
Introduction
The International Chamber of Commerce (ICC) is actively engaged in numerous initiatives
focused on information society possibilities and opportunities, and is committed to
promoting the use of information technology as a tool for development. Ensuring positive
development of the necessary infrastructures, and regulatory frameworks to be part of the
digital economy, and global information exchange is an essential goal for both business and
government. To that end, business has been working hard through independent projects
to provide assistance to disadvantaged economic groups, localities, regions or countries,
aimed at transforming the ‘digital divide’ into ‘digital opportunities and possibilities’.
Almost any sizeable company today has embraced local or regional responsibility to address
issues that affect the development of information technology, and/or electronic commerce.
However, these assistance programs will become a digital opportunity only if governments
adopt a policy framework that ensures that access to digital information and
communication networks is a viable option for the citizenry at large.
ICC believes that if governments take the actions set forth below they will create a policy
framework that is more conducive to private sector investment, which is one of the greatest
engines for economic growth. These concrete steps are consistent with the numerous E-
Readiness tests that have been prepared by different bodies, with the goal of working to
bring the results identified in E-Readiness tests to fruition.
International Chamber of Commerce
38, Cours Albert 1er, 75008 – Paris, France 06 June 2002 AH/dhh
Telephone +33 1 49 53 28 28 Fax +33 1 49 53 28 59 Doc. 373/433 rev
Web site www.iccwbo.org E-mail icc@iccwbo.org
Actions for governments to take
Infrastructure:
· Governments should make meaningful market-opening commitments in basic
telecommunications, value-added services and computer and related services.
Meaningful market-opening commitments include at a minimum:
- full liberalization by a date certain;
- progressive removal of foreign ownership restrictions;
- adoption of the pro-competitive regulatory principles in the WTO Reference
Paper for basic telecommunications only.
· Governments should adhere to the GATS Annex on Telecommunications for access to
and use of public telecommunications networks for the provision of value-added
services, including Internet services, and other sectors for which countries have made
commitments
· Governments that are members of the WTO should adopt the Information Technology
Agreement (ITA) and non-WTO members should eliminate customs duties on
information technology products consistent with the ITA. This agreement is important
to ensure that all countries have access to the hardware and software necessary to
deploy and access the e-commerce infrastructure.
Trade promotion:
Services:
· Governments should liberalize those services that can be delivered electronically so
that they can reap fully the benefits of technological advances and electronic
commerce. For example, greater access to education, health care, etc. through
liberalization can assist countries in obtaining the best information and services at
lower cost through Internet.
Intellectual Property:
· Effective and timely implementation and enforcement of the WTO Agreement on
Trade Related Aspects of Intellectual Property Rights (TRIPs). With the rapid
development of digital technologies and electronic services, the need for clear
protection and enforcement of intellectual property rights is imperative. The TRIPs
Agreement plays a very important role insofar as it provides minimum standards for
such protection and enforcement.
2
· Timely ratification of the World Intellectual Property Organization (WIPO) Copyright
Treaty and the WIPO Performances and Phonograms Treaty, balancing the rights and
obligations of network operators, service providers, content providers and users.
Information Flows:
· Governments should commit to maintaining the free flow of information. Given that
information is the engine of the online marketplace, unnecessary restrictions on
information flows within and among countries raise the costs for businesses which are
ultimately passed on to consumers.
Institutional requirements:
Institution Building:
· Governments should ensure that they have effective institutions to uphold the law and
to ensure effective competition within the marketplace. This includes an effective and
efficient judiciary and competition authority, and attention to the need to facilitate
global, technical interoperability and avoiding a patchwork of conflicting legal
frameworks. This includes discussions with relevant stakeholders in critical
infrastructures.
Transparency:
· Governments should ensure that their decision-making processes are transparent.
Such transparency includes a standardized process by which the public is notified of
pending policy development or changes with sufficient opportunity for public
consultation. The lack of transparency will make informed investment decisions
impossible, thereby limiting such investment.
Education:
· Governments must ensure a minimum level of education to ensure that populations
can effectively utilize information technology and the information that flows through it.
Moreover, governments must ensure that their educational system has the capacity
and curriculum to train IT professionals to develop, deploy and maintain information
systems.
Conclusions:
ICC has limited this list of actions to those key issues that are essential elements to a policy
framework that will promote private sector investment in the electronic commerce and
information technology infrastructures, and products and services that can be delivered via
electronic commerce. For additional information please consult the ICC website at
www.iccwbo.org
*****
3
Digital Divide Survey
Global Information Infrastructure Commission
April 4, 2001
Dublin, Ireland
Regional Responses
N. America
Asia-Pacific 20%
25%
Africa Europe
18% 26%
S. America
11%
GIIC Digital Divide Survey April 4, 2001
Awareness of Digital Divide
Asia-Pacific 4.56
Average Ranking by Region
Africa 4.88
S. America 5.00
Europe 4.81
N. America 4.90
4.30 4.40 4.50 4.60 4.70 4.80 4.90 5.00 5.10
(1 = Low 5 = High)
GIIC Digital Divide Survey April 4, 2001
How Important is the
Digital Divide?
Asia-Pacific 3.91
Average Ranking by Region
Africa 4.50
S. America 3.89
Europe 3.52
N. America 3.45
0.00 1.00 2.00 3.00 4.00 5.00
Low High
GIIC Digital Divide Survey April 4, 2001
How Important is the
Digital Divide?
80%
70%
60%
50% 1 (Low)
2
40% 3
4
30% 5 (High)
20%
10%
0%
N. America Europe S. America Africa Asia-
Pacific
GIIC Digital Divide Survey April 4, 2001
What does Digital Divide Mean?
35%
30%
Percentage of Total Responses
25%
20%
15%
10%
5%
0%
Urban-Rural Developed- ICT Access Business
Developing Opportunity
GIIC Digital Divide Survey April 4, 2001
What does Digital Divide Mean?
Asia-Pacific
Africa
Business Opportunity
ICT Access
S. America
Developed-Developing
Urban-Rural
Europe
N. America
0% 10% 20% 30% 40%
Percentage of Responses by Region
GIIC Digital Divide Survey April 4, 2001
Opinion of Electronic
Information
5 (Very Positive) 38%
4 27%
3 27%
2 7%
1 (Very Negative) 1%
0% 10% 20% 30% 40% 50%
Percentage of Total Responses
GIIC Digital Divide Survey April 4, 2001
Opinion of Electronic
Information
60%
50%
Percentage of Responses by Region
40% 1 (Very Negative)
2
3
30% 4
5 (Very Positive)
20%
10%
0%
N. Europe S. Africa Asia-
America America Pacific
GIIC Digital Divide Survey April 4, 2001
Is the Digital Divide
Narrowing?
Asia-Pacific 3.19
Average Rankings by Region
Africa 2.53
S. America 2.20
Europe 3.76
N. America 3.25
0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00
1 = Widening 5 = Narrowing
GIIC Digital Divide Survey April 4, 2001
Is the Digital Divide
Narrowing?
60%
Percentage of Responses by Region
50%
40%
30%
20%
10%
0%
N. America Europe S. America Africa Asia-Pacific
1 (Widening) 2 3 4 5 (Narrowing)
GIIC Digital Divide Survey April 4, 2001
Disadvantages of
Electronic Information
35%
30%
30%
Percentage of Total Responses
25%
25% 24%
22%
20%
15%
10%
5%
0%
Culture Language Market Security
Disruption
GIIC Digital Divide Survey April 4, 2001
Disadvantages of
Electronic Information
35%
Percentage of Responses by Region
30%
25%
20%
15%
10%
5%
0%
N. America Europe S. America Africa Asia-Pacific
Culture Language Market Disruption Security
GIIC Digital Divide Survey April 4, 2001
Why does Private Sector Care?
Competitive
20%
Threats
New Labor
23%
Sources
Market
33%
Opportunities
Social Obligations 21%
0% 5% 10% 15% 20% 25% 30% 35%
Percentage of Total Responses
GIIC Digital Divide Survey April 4, 2001
Why does Private Sector Care?
Asia-Pacific
Africa
Competitive Threats
New Labor Sources
S. America
Market Opportunities
Social Obligations
Europe
N. America
0% 5% 10% 15% 20% 25% 30% 35% 40%
Percentage of Responses by Region
GIIC Digital Divide Survey April 4, 2001
Obstacles to Bridging the
Digital Divide
Culture 11%
Poverty 17%
Bureaucracy 14%
Language 12%
Infrastructure 19%
Corruption 11%
Protectionism 13%
0% 5% 10% 15% 20%
Percentage of Total Responses
GIIC Digital Divide Survey April 4, 2001
Obstacles to Bridging the
Digital Divide
25%
20%
N. America
15%
Europe
S. America
Africa
10% Asia-Pacific
5%
0%
n
e
re
ge
sm
cy
y
ur
io
rt
tu
ra
ua
ve
ni
pt
ct
ul
uc
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ng
ru
ru
Po
C
ea
st
or
ec
La
a
ur
C
ot
fr
B
In
Pr
GIIC Digital Divide Survey April 4, 2001
In
Percentage of Total Responses
GIIC Digital Divide Survey
de
pe
nd
en
tR
0%
2%
4%
6%
8%
10%
12%
14%
16%
eg
ul
at
Pr or
iv
at
iz
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pe D n
n er
In e
gu
ve
st la
m tio
en n
tP
B ol
ic
as ie
ic s
Ed
C IT uc
on Sk at
su io
m ill
s- n
er Bu
Pr ild
O ot
ec in
g
pe
n tio
Ac n
ce R
ul
ss es
M
an
da
te
s
Needed Public Policy
April 4, 2001
GIIC Digital Divide Survey
In
de
pe
nd Percentage of Responses by Region
en
tR
eg
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
ul
Pr at
iv or
at
O iz
at
pe D io
n er n
In eg
ve ul
st at
m io
en n
tP
Ba ol
si ic
c ie
Ed s
C IT uc
on
su Sk at
m io
er
ill
s- n
Pr Bu
O ot ild
in
pe ec
n tio g
Ac n
ce R
ss ul
es
M
an
da
te
s
Africa
Europe
S. America
N. America
Asia-Pacific
Needed Public Policy
April 4, 2001
Digital Bridge Applications
30% 29%
25%
25%
Percentage of Total Responses
23%
20% 19%
15%
10%
5%
0%
Electronic Distance Telemedicine E-Government
Commerce Education
GIIC Digital Divide Survey April 4, 2001
Digital Bridge Applications
35%
30%
Percentage of Responses by Region
25%
20% Electronic Commerce
Distance Education
Telemedicine
15% E-Government
10%
5%
0%
pe
a
a
fic
a
ic
ric
ic
ci
ro
er
er
Af
a
Eu
m
Am
-P
.A
ia
S.
As
N
GIIC Digital Divide Survey April 4, 2001
Who Should Bridge the
Digital Divide?
Philanthropy
Civil Society
NGOs
Development
Organizations
Foreign Aid
Government
Private Sector
0% 5% 10% 15% 20% 25%
Percentage of Total Responses
GIIC Digital Divide Survey April 4, 2001
Who Should Bridge the
Digital Divide?
Percentage of Responses by Region 25%
20%
15%
10%
5%
0%
t
d
ns
s
py
ty
or
en
O
Ai
ie
ct
tio
o
G
nm
oc
n
hr
Se
N
a
ig
nt
S
iz
er
re
te
an
ila
il
ov
Fo
a
iv
Ph
rg
iv
G
C
Pr
tO
en
m
op
el
ev
D
N. America Europe S. America Africa Asia-Pacific
GIIC Digital Divide Survey April 4, 2001
Conclusions
l Geographies have different understandings,
priorities, solutions
l Lack of access to infrastructure is major cause of
digital divide
l Education and training need to be addressed in
developing economies
l Market opportunities motivate solutions to digital
divide
l Security is top concern with e-information
l Public-private partnerships are primarily
responsible for closing digital divide
GIIC Digital Divide Survey April 4, 2001
GLOBAL DIGITAL DIVIDE INITIATIVE
SHARED POINTS OF CONCERN FOR THE GLOBAL DIGITAL
DIVIDE TASK FORCE OF THE WORLD ECONOMIC FORUM
Speaking to the Issue: Task Force Talking Points
The World Economic Forum’s Governors of Information Technology and Media, Communication
and Entertainment established the Global Digital Divide Task Force to develop and propagate
creative public and private sector initiatives to transform the digital divide into an opportunity for
growth. Since January 2000, the Task Force has gathered around the world to develop a
framework for action on this important global issue. Based on discussions from these global
gatherings and resulting actions, the Task Force directorate has summarized the key issues and
shared points of common concern that may, we hope, provide a basis for your discussions with
business leaders, policy-makers and civil society leaders globally.
The Task Force has identified “awareness” as a central objective for addressing the challenge of
bridging the divide. Efforts towards realizing this development opportunity will be fortified when the
private and public sectors and civil society develop, evolve and articulate a message together. We
welcome you to share your experiences and your input as the points enumerated below continue
to evolve in content and grow in number.
The “Why’s”
1. Bridging the digital divide is a shared objective with shared benefits
2. Information and communication technologies (ICT), if developed and used appropriately, will
enable an environment that promotes growth and will be self-sustaining
3. The digital divide will become the digital opportunity when business leaders, policy-makers and
members of civil society are committed to pursuing initiatives together and in partnership with
each other
The “How’s”
4. Implement comprehensive and culturally relevant training so as to establish a sustainable
digital infrastructure
5. Increase access to locally relevant and community-oriented content so as to invigorate broad-
based social and economic development
6. Streamline the regulatory and licensing environment so as to promote competition, facilitate
transparency and broad-based access to ICT
1. Bridging the digital divide is a shared objective with shared benefits
The discussion surrounding the divide emerges from the disparities between use of and access to
information and ICT tools (e.g., in rural areas’ access to telecentres). It is widely held that ICTs are
tools that can enable a better quality of life. The mere presence of ICT will not guarantee economic
and social development. However, the ways in which it is developed, structured and used will
determine how countries can reach their national capabilities.
For example, through the development of ICT, policy-makers, educators, students, entrepreneurs,
business leaders and the regular citizens will have tools that:
· facilitate more effective delivery of government services, such as healthcare and education,
through, for example, linking hospitals, schools and libraries to the Internet to engage in
information exchanges
· encourage the development, training and retention of a skilled local workforce through, for
example, developing training programmes at telecentres or developing training materials
focused on technical skill development
· enable greater participation in civil society through, for example, online “town squares” where
the community can exchange relevant information
· help develop and grow the local economy and encourage local competitiveness through, for
example, providing an electronic link between local businesses or consumers to exchange
information and conduct business
· integrate the local community and economy into the global community and economy through,
for example, providing an electronic link between the local consumer and producers with global
consumers and producers to exchange information and conduct business.
2. Information and communication technologies (ICT), if developed and used appropriately,
will enable an environment that promotes growth and will be self-sustaining
A nation’s competitiveness is tied to its capacity for ICT creation and application. Information and
communication technologies represent two key factors: 1) it is the infrastructure that enables the
development and growth of market sectors, and 2) it is a market sector and service in its own right.
ICT development is about developing the communications infrastructure and about creating the
right political, economic and social environment to promote social and economic growth that is
sustainable. Development targeted at building infrastructure is critical. So too is developing and
nurturing the spirit and culture of entrepreneurship. It is important to take a fresh look at national
priorities and strategies that may encourage public-private partnerships in the development or
formulation of:
· local and educational content
· government ICT application (e.g., delivery healthcare services)
· ICT infrastructure that provides access to all schools, libraries, and rural and community
access centres
· pro-competitive regulatory market access strategies
· creative facilities to provide seed monies (including micro-lending) for innovative ICT projects
· tariff policies on the importation of ICT that are consistent with the WTO agreements
· financial sector reform to increase local availability of capital and consumer credit.
2
3. The digital divide will become the digital opportunity when business leaders, policy-
makers and members of civil society are committed to pursuing initiatives together and
in partnership with each other
Separately, business leaders, policy-makers and members of civil society have undertaken
creative initiatives to bridge the divide. Whether in the form of policy reform or pilot projects, these
distinct but complementary initiatives should be pursued in consultation and coordination with each
other. Each stakeholder group brings complementary expertise, interest, resources and processes
to progress this issue domestically and globally.
· For example, projects to develop and build community centers in rural and hard-to-reach areas
would benefit from an environment that is politically and economically enabling so as to ensure
the sustainability of its objectives. Therefore, policy-makers and social entrepreneurs should
work together to ensure that the right projects are deployed and that governing institutions
provide an enabling environment.
4. Implement comprehensive and culturally relevant training so as to establish a
sustainable digital infrastructure
Human resources are critical to a nation’s competitiveness. To take full advantage of the benefits
of the ICT revolution, a skilled and technically trained workforce is essential. An educated
workforce is related positively to innovation and economic growth. Access to information and to
training are critical elements for education in the Digital Age. As a first step, governments and the
private sector together can ensure that:
· quality education is a top national priority
· classrooms and libraries have access to ICT
· teachers and librarians are trained and technologically literate so that technology is integrated
into the curriculum.
5. Increase access to locally relevant and community-oriented content so as to invigorate
broad-based social and economic development
Online content should be developed to address the interests and concerns of the local community.
Digital empowerment means that the community will have access to information that is locally
relevant. Access to relevant content will enhance an individual’s ability for full participation in the
local and global communities. Policy-makers and business leaders should ensure that:
· content development is locally relevant and community-oriented
· content should be developed in its local language and the use of icons should be considered
as an alternative.
6. Streamline the regulatory and licensing environment so as to promote competition,
facilitate transparency and broad-based access to ICT
Regulatory barriers to entry in the form of foreign ownership, taxation, access costs, access to
spectrum resources, for example, will affect the development of ICT, and therefore, broad access
to ICT. Access to ICT is determined by the economics of access. A pro-competitive framework for
regulatory market access will encourage affordability and low-cost access to ICT.
3
The World Economic Forum (www.weforum.org), based in Geneva, Switzerland, is an
independent organization committed to improving the state of the world. Funded by the
contributions of 1,000 of the world's foremost corporations, the Forum acts in the spirit of
entrepreneurship in the global public interest to further economic growth and social progress. The
Forum serves its members and society by creating partnerships between and among business,
political, intellectual and other leaders of society to define, discuss and advance key issues on the
global agenda.
Incorporated in 1971 as a foundation, the World Economic Forum is impartial and not-for-profit,
and is tied to no political, partisan or national interests. In 1995 the Forum was awarded NGO
consultative status with the Economic and Social Council of the United Nations.
The Global Digital Divide Initiative was launched at the Annual Meeting 2000 by top executives
in the IT, telecoms, media and entertainment sectors to develop creative public private sector
initiatives to transform the global digital divide into an opportunity for growth. The Task Force
pursues this through three workstreams focusing on strategies, education and entrepreneurship.
The Steering Committees for each workstream reflect the Task Force strategy for advancing this
issue through public policy as well as the build-out of local projects. The Task Force is co-chaired
by Jean Marie Messier, Chairman and Chief Executive Officer, Vivendi Universal, France; Jean
Philippe Courtois, President, Microsoft EMEA, France; and Maureen O'Neil, President,
International Research and Development Centre, Canada.
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