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Public

FTAA.ecom/inf/122February 13, 2002

Original: English

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Why Ask Consumers to Join Government Delegations?

• Contribute knowledge and ideas

• Bring balance of views on issues

• Help initiatives gain wide acceptance

• Promote mutual understanding and cooperation

For example: OECD Consumer Committee on Policy (www.oecd.org)

Consumer Efforts

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Public Education = Public Confidence

• Consumers and businesses feel more comfortable transacting online

• Understand rights and responsibilities

• Reduce potential for fraud and abuse

• Well-informed public more likely to report problems

Consumer Efforts

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Why Ask Consumer Organizations to Help Educate?

• Education must reach individual consumers

• Consumer groups have experience using many channels and media for public education

• Have credibility as objective and reliable sources of information

Consumer Efforts

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NCL Online Shopping Safety Campaigns(www.nclnet.org/shopping online)

• MasterCard and Orbiscom provided support

• Campaigns used all forms of media – offline and online

• “Be-eWise” brochure and Web-based information

Consumer Efforts

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NCL Online Privacy Education(www.nclnet.org/onlineessentials.htm)

• Partnership with Dell produced “Online E-ssentials” brochure, Web-based information

• Radio and television media tours reached millions

• Dell sends brochure with new computers

Consumer Efforts

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ConsumerPrivacyGuide.org

• Partnership of NCL, Center for Democracy in Technology, Common Cause, Consumer Action, Call for Acton and Privacy Rights Clearinghouse

• Provides central source of objective information for consumers about online privacy

Consumer Efforts

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Online Fraud and Abuse

• Damage consumer confidence

• Erode integrity of marketplace

• Fraudulent companies may appear and disappear quickly

• Action to stop them must also be quick

Consumer Efforts

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Why Ask Consumer Organizations to Help Combat Fraud?

• Consumers are confused about which agency to contact

• Multiple agencies may have jurisdiction

• Consumer organizations provide advice and assistance

• Can refer cases of fraud and abuse to appropriate law enforcement agencies

Consumer Efforts

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NCL’s Internet Fraud Watch

• Offers advice and takes fraud reports from consumers

• Toll-free number or www.fraud.org

• Transmits information to relevant law enforcement agencies within 24 hours

• Supplies information to FTC Consumer Sentinel database

Consumer Efforts

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Consumer Suggestions

• Work with business associations to educate online vendors

• Work with consumer organizations to educate consumers

• Name and “shame” repeat offenders

Consumer Efforts

Business Involvement in Consumer Protection and Education

Steve ColeSenior Vice President,

General Counsel & Corporate Secretary

Council of Better Business Bureaus, Inc.

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Four Business Goals for E-Commerce

• Consumer confidence

• Uniform and predictable standards

• Minimize regulation

• International cooperation

Business Involvement

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Four Techniques Used in Business – Often in Combination

• Education

• Best practices/standard-setting

• Complaint resolution

• Certification/trustmark schemes

Business Involvement

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Business Organizations Implementing these Techniques

• Industry coalitions and associations – PLI, OPA, GBDe, DMA & DSA

• Accounting/consulting firms – E&Y

• Portals – AOL & Yahoo

• Consumer help organizations – BBB, TRUSTe, Square Trade & Planet Feedback

Business Involvement

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The Better Business Bureau®: A Good Example

• Business Membership Self-Regulation Organization• 300,000 local members – 300 national members in

U.S., Canada and Northern Mexico• Online activities through BBBOnLine• www.bbb.org and www.bbbonline.org• We use all or most all of the “techniques”• Other organizations have programs that are similar to

one or more aspects – BBBOnLine used as an illustration

Business Involvement