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ecommerce-framework206.pptx
1. 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
2. Key Issues in Creating a
Framework for E-Commerce
1. Telecom reform
2. Recognition of electronic documents
3. Consumer protection
4. Electronic Funds Transfer (EFT)
5. Dispute resolution
6. ISP liability
7. Domain names
3. 1. Telecom Reform
Probably the most important way to boost
development of e-commerce
Introducing competition...
– Reduces costs so more people go online
– Promotes innovation
– Improves quality of service
– Attracts foreign investment for network
expansion
4. 1. Telecom Reform
WTO Annex on Telecommunications:
http://www.wto.org/english/tratop_e/serv_e/12-
(1997)
WTO Principles on the Regulatory Frame-
work for Basic Telecommunications
Regulation
http://www.wto.org/english/news_e/pres97_e/r
(1996)
5. 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.
6. 2. Recognition of electronic
documents
United Nations Commission on International Trade
Law: “Model Law on Electronic Commerce”
(UNCITRAL, 1996):
http://www.uncitral.org/english/texts/electcom/ecomme
European Directive on a Community framework for
electronic signatures (1999)
http://europa.eu.int/comm/internal_market/en/media/si
7. 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
8. 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.”
9. 3. Consumer Protection
European Parliament & Council Directive 97/7/EC
(17 February 1997) on the protection of
consumers in respect of distance contracts -
http://europa.eu.int/information_society/topics/ebusines
European Parliament & Council Directive 2000/31/
EC (8 June 2000) on electronic commerce
http://europa.eu.int/ISPO/ecommerce/legal/documents/
10. 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.
11. 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.
12. 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).
13. 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.
14. 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-20