Regulatory Framework for E-Commerce: International “Best Practices” & Models: Regulatory Framework for E-Commerce: International “Best Practices” & Models ROBERT HORVITZ
Manager, Central/Eastern Europe
GLOBAL INTERNET POLICY INITIATIVE (GIPI)
BOB@INTERNEWS.ORG “The State and Development Prospects of ICT in Uzbekistan”
Uzbek Agency of Communication & Informatization (UzACI) Tashkent, 26-27 November 2002 Key Issues in Creating a Framework for E-Commerce: Key Issues in Creating a Framework for E-Commerce Telecom reform
Recognition of electronic documents
Electronic Funds Transfer (EFT)
Domain names 1. Telecom Reform: 1. Telecom Reform Probably the most important way to boost development of e-commerce
Reduces costs so more people go online
Improves quality of service
Attracts foreign investment for network expansion 1. Telecom Reform: 1. Telecom Reform WTO Annex on Telecommunications:
WTO Principles on the Regulatory Frame-work for Basic Telecommunications Regulation
2. Recognition of electronic documents: 2. Recognition of electronic documents To enable...
legal recognition of electronic contracts
use of electronic documents as evidence in courts
electronic filing of government forms
...By agreeing on principles for recognizing e-signatures and other electronic validation technologies.
and exceptions where they are not recognized. 2. Recognition of electronic documents: 2. Recognition of electronic documents United Nations Commission on International Trade Law: “Model Law on Electronic Commerce” (UNCITRAL, 1996):
European Directive on a Community framework for electronic signatures (1999)
http://europa.eu.int/comm/internal_market/en/media/sign/Dir99-93-ecEN.pdf 3. Consumer Protection: 3. Consumer Protection E-commerce’s success depends on the legal system recognizing & promptly enforcing electronic contracts (business-to-business and business-to-consumer).
Consumer protection includes...
Prohibiting misleading advertising
Regulating consumer financial services & credit
Rules against fraudulent & unauthorized billing
Rules for resolving complaints about defective products
Including right to a refund if goods not delivered 3. Consumer Protection: 3. Consumer Protection Before closing contract, consumer should be given...
Identity & address of supplier.
Description of goods & their price.
Procedure for payment, delivery & performance (if buying a service).
Notice of “right of withdrawal.” 3. Consumer Protection: 3. Consumer Protection European Parliament & Council Directive 97/7/EC (17 February 1997) on the protection of consumers in respect of distance contracts -
European Parliament & Council Directive 2000/31/EC (8 June 2000) on electronic commerce
http://europa.eu.int/ISPO/ecommerce/legal/documents/2000_31ec/2000_31ec_en.pdf 4. Electronic Funds Transfer: 4. Electronic Funds Transfer Developing an online payment system involves complex issues of security, liability & taxation.
At a minimum, banking laws must enable payment via credit/debit-card.
Many EU directives deal with this
They are good models for legislators. 5. Dispute Resolution: 5. Dispute Resolution Disagreements between buyers & sellers are inevitable.
Where small amounts of money are involved, going to court is not practical.
To build consumer confidence, encourage cheap & fast “alternative dispute resolution” processes – in addition to the courts.
ADR processes need not be government-managed
NGOs & businesses can set them up & run them. 5. Dispute Resolution: 5. Dispute Resolution “Report of the Conference on Building Trust in the Online Environment: Business to Consumer Dispute Resolution,” Joint Conference of the OECD, HCOPIL & ICC (11-12 December 2000), Document # DSTI/ICCP/REG/CP (2001). 6. ISP Liability: 6. ISP Liability ISPs should not be held liable if it is only a “transparent relay” for improper commercial information created by others.
Also not liable under US or EU law for information that is automatically & temporarily “cached” to speed up local access.
ISP has no general duty to monitor or investigate the legality of material which he only transmits for others.
7. Domain names: 7. Domain names Not essential that e-commerce law deal with domain name registration.
But it can become an e-commerce issue...
If cost of company name registration is too high, or rules limiting how many names can be registered is too restrictive.
See ICANN’s best practices in ccTLD management:
http://www.icann.org/cctlds/centr-2nd-best-practices-20may01.htm For another time...: For another time... Privacy
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