introduction
law
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law
This part of the Consumers guide deals
with legislation and codes of practice.
seals and selfregulation
In discussing our services we referred
to the New Yorker's claim that "on the Web, no one knows
whether you're a dog". In practice, consumers actively seek
signs to help them decide whether a site is a hot dog or a dead
dog.
One way that retailers and service providers have sought to
encourage confidence is by the inclusion of website 'seals', indicating that
the site owner complies
with voluntary codes of practice.
The nature of those codes varies considerably - most cover matters
such as privacy and the handling of online financial transactions. Their enforcement is uncertain, with TRUSTe
for example recently facing criticism over its response to privacy
breaches by the RealNetworks online music company and the CDT's
July 1999 report
Behind
the Numbers: Privacy Practices on the Web highlighting problems
with self-regulation. Comet Systems, with 60,000 clients, earlier this
year faced class-action litigation after alleged undisclosed tracking of millions
of consumers.
However, if you're buying online from a vendor that you
don't know, the seal gives you some indication of reliability and some
scope for redress if things go wrong.
Better Business Bureau Online (BBBO),
the website of the US Better Business Bureau (a commercial body),
provides information about the BBB's 'Reliability' and 'Privacy' seals.
we've identified major rivals - such as TRUSTe
(supported by IBM, Microsoft and the Electronic Frontier Foundation
(EFF)) and VeriSign
- in the next part of this guide.
Some argue that TRUSTe's credibility is questionable.
While its motto is "Building
A Web You Can Believe In", consumer trust wasn't encouraged when it
savaged Microsoft with a wet lettuce after privacy breaches earlier this
year and its failure to do much when Disney-backed etailer Toysmart
crashed back to earth and began trying to market its clickstream
database.
self regulation
The recently established US Electronic
Commerce & Consumer Protection Group (E-Commerce
Group) includes America Online, AT&T, Dell, IBM, Microsoft,
Network Solutions, and AOL Time Warner.
In launching the group a
spokesman indicated that "we are proposing a model that can now be
evaluated by all companies doing business online, consumers, and
governments around the world," going on to describe its new guidelines
as a contribution to "an important global dialogue on how to
construct a set of global rules for a global medium."
The
guidelines cover marketing practices and information about goods and
services, transactions, cancellation, security, privacy, and customer
support. Merchants are encouraged to participate in third-party dispute
resolution mechanisms.
All very well, say consumer advocates, but the code of
practice doesn't go far enough.
Locally the Australian Direct Marketing
Association (ADMA) has placed its direct marketing
Merchant Code of Conduct online and the Institute of Chartered
Accountants licenses members under the global WebTrust
program.
ISPs
Australia's Internet Industry
Association (IIA) last year released its industry code
of conduct.
The code complements the regulatory powers of the
Australian Broadcasting Authority (ABA)
under the Broadcasting Services Amendment
(Online Services) Act 1999, discussed in our Censorship
guide.
international consumer protection guidelines
Earlier this year the international Organisation for Economic Co-Operation
& Development (OECD) adopted Guidelines
for consumer protection in online commerce.
An overview
of international initiatives for consumer protection in the electronic
marketplace is provided by the
August 1999 report for the Global Information Infrastructure Commission
(GIIC).
US perspectives on Consumer
Protection in the Global Electronic Marketplace were provided
mid-year by a major conference under the auspices of the Federal Trade
Commission. The Advisory Committee on Online Access & Security (ACOAS)
of the Federal Trade Commission (FTC)
recently reported
on consumer access to information collected by commercial websites and
the security of that information.
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