The Public Voice in Electronic Commerce
La place du citoyen dans le commerce électronique

I would like to thank the organizers for inviting me to participate in this interesting panel and to take part in the discussion together with my distinguished fellow panelists.

As I am representing the Committee on Consumer Policy of the OECD I intend to present a brief resumé of how far this committee's present work has advanced - the work with the guidelines for protecting consumers when they buy via the internet.

It is this particular Committee which has undertaken the important task of working towards such guidelines. The Committee approaches the finalization of a long and complicated process of negotiating a draft which - once adopted by the Council as a Recommendation along with a set of guidelines - is intended to create a first step towards a valuable framework for consumer protection when consumers shop and buy - solely by electronic means.

It is my sincere hope that we have now reached a stage where it is realistic and possible to foresee that the Committee on Consumer Policy (CCP) will be able to send this draft - to the OECD Council within 1999 - as agreed by the Ministers at the Ottawa conference in October 1998.

Negotiations on this draft have been going on for about two years with sometimes difficult discussions of how to reach a compromise. Strong business representations have voiced precautions again limitations to the free use and development of electronic commerce. It is, however, exactly the intention of the guidelines to provide of flexible framework which gives plenty of room for development of the positive potential of electronic commerce.

But at the same time it is important to provide a minimum level of protection of the individual so they can be treated in a decent and trustworthy way when they purchase through electronic means.

This particular issue is not one of the easiest ones - partly because the problems linked to these items touch the diversified traditions and different legal systems and practices of the member countries.

During our latest meeting in the CCP in September this year we spent quite some time and strength in trying to reach a solid final agreement on the text.

As you may know both C.I. and BIAC have participated in the discussions and they can witness the difficulties of merging opposite positions into this good compromise which we have now reached.

I would like to highlight a few - but important principles from the draft to give an idea of what can be expected from such guidelines.

They do cover the main aspects of business-to-consumer relationships in electronic commerce, for example recommendations, such as:

1. transparency and information requirements, for instance terms and costs related to the transaction, which businesses should provide consumers with before they make their choice,

2. limit fraudulent and misleading or unfair conduct for example when businesses advertise, market or send other commercial communication to consumers

3. clear possibility to cancel the transaction before concluding the purchase

4. provide consumers with sufficient and effective cross-border redress systems

These and other aspects are spelled out in a set of principles contained in these draft guidelines.

The very important issue of applicable law and jurisdiction is broadly recognized as one especially difficult aspect as to harmonizing globally.

Yet the possibility for any consumer to be able to have his or her right tried in an easy accessible manner - preferably in his or her own jurisdiction - is imperative for the success and growth of electronic commerce. The same need for access and protection goes for any other form of commerce of course.

Businesses and governments are therefore encouraged to work together in developing alternative dispute resolution mechanisms to address consumer complaints specifically as to cross-border transactions.

Due to the complexity of this matter it is recognized that further study is necessary in order to achieve satisfactory results in this area. > In conclusion these guidelines contain a number of essential factors in providing reasonable protection for consumers and fair conditions for businesses.

Included is a revision clause whereby the Committee on Consumer Policy will have to follow the implementation and report back to the OECD Council about the progress made for the first time in 2002 or sooner.

Trust is obtained most efficiently by setting good examples. So one may ask - why industry has been so worried about finalizing these guidelines. A flexible framework which may provide a minimum of protection for consumers must be possible to agree on by all parties - and that is what this draft guidelines represent.

It is my sincere wish and hope that this draft will meet the acceptance from all parts - businesses, consumers, and governments. It is not perfect to any of these parts - but in a spirit of compromise and for the benefit of providing electronic commerce transactions with a minimum of guidance and protection both to consumers and businesses - this draft should be considered an important step in the right direction for all.

The actual procedure is that member countries will have 3 weeks to consider the draft - then it will be sent to the Council before the end of the year - as required by the Ministers at the Ottawa conference last year.

Thank you very much for your attention!