Business endorses the principles set out in the OECD 1980 Guidelines for the protection of Privacy and Transborder Flows of Personal Data, and is committed to implementing fair information practices and transparent procedures consistent with these Guidelines.

Business uses model contracts and internal control procedures to satisfy the requirements of legislation restricting export of data to third countries that do not provide "adequate protection". Several new model contracts will be published and presented for endorsement to relevant authorities before 1999.

Governments should adopt a flexible and responsive approach to the protection of personal information, including the acceptance of self-regulatory solutions and technological innovations that empower the user.

Mutual recognition of existing procedures, laws and directives should be accomplished as soon as possible through international cooperation.

Different approaches to the protection of personal information should not prevent transborder data flows. In assessing the level of protection provided to personal information in other jurisdictions, the criterion should be the objective level of protection.

Business is committed to work with governments to foster mutual recognition of culturally different but adequate regimes for protection of personal information in the digital environment

Business is developing, based on global marketplace experience, fair information practices that are consistent with the 1980 OECD Privacy Guidelines. It does so through self-regulation, voluntary codes and by making commercially available technologies, which enable a high level of privacy protection tailored to user needs and preferences.

In some countries, authentication of compliance to these industry policies for privacy protection is already provided by numerous consumer interest and security assurance institutions.

Business is reviewing existing self-regulation to ensure that they take into account new technologies and provide effective and credible privacy protection.

Governments should recognise that the Internet is a new medium providing new opportunities and challenges. Regulatory and self-regulatory systems must be flexible in order to provide consumers with useful protection of their personal data and guarantee business’s legitimate interests.

To that end, governments should:

• work with the private sector to adopt a flexible interpretation of existing regulatory solutions;
• recognise the validity and adequacy of effective self-regulation augmented by the use of privacy-enhancing technologies; and
• educate the public to use such privacy-enhancing technologies properly.

Increasingly sophisticated empowerment tools for consumers will be developed to protect and empower consumers in a truly global marketplace.

Consumer protection is an essential element of building trust in the online environment and is directly complementary to market principles of consumer service and satisfaction. Therefore, there is a business advantage to be gained by companies that safeguard consumer interests.

Consumer protection should develop from appropriate business/consumer platforms. Business, and interested parties, should be fully involved in international discussions to set policies for consumer protection.

Governments have a major role in educating and empowering the public to enhance awareness of their responsibilities and ability to exercise choice with respect to their protection as consumers.

The international legal community has only just started reviewing the many complex legal issues surrounding applicable law and jurisdiction in cyberspace. Any premature regulation mandating the law and forum of the country of destination for consumer transactions would seriously undermine the growth of electronic commerce, as compliance would be overly burdensome for all business and practically impossible for small and medium-sized enterprises.

Business in many countries has a mature system of self-regulatory complaint mechanisms and cooperative enforceable self-regulation for advertising practices, such as industry or trade associations, chambers of commerce, better business bureaux. The concept of business self-regulation on marketing ethics continues to evolve to adapt to the online environment through international cooperation and agreement.

In the borderless global environment of the Internet, internationally incompatible national laws on advertising and promotions seriously impede cross border sales.

Governments should support self-regulation for Internet advertising at the global level based on the existing good cooperation between government agencies and business self-regulatory bodies for traditional advertising at the national level.

Business continues to develop technology for ensuring security in order to build trust in electronic commerce.

It is crucial for electronic commerce that business and end-users are able to choose the cryptographic systems that best suit their needs, and that these systems can function internationally. The market for cryptographic products and systems should for that reason be without restrictions.

Business acknowledges the need for lawful access to information. Business is opposed to any mandatory system based on a specific technology.

The OECD cryptography policy guidelines were an important step in the direction of a uniform international approach. The urgent need for strong encryption in electronic commerce necessitates the next step in this co-operation between business and government. Governments must enhance electronic commerce on a free market by removing obstacles to the use of publicly offered standard encryption solutions.

Governments should commit to:

• remove all export controls on cryptographic technologies and applications; and
• cooperate in such a way that interoperability of solutions for internationally secure exchange of information is facilitated, independent of their choice of regulation.

Governments should work with business to define appropriate safeguards and to achieve the appropriate balance between privacy and lawful access to information.

To ensure that the information business holds is correct and to promote efficiency and consumer satisfaction, business needs access to public sector information to conduct its transactions. International principles, if appropriate, should be developed in order to guarantee fair use of personal information.

Governments should guarantee equal and transparent access to public sector information to ensure business’s legitimate interests, whilst recognising the need to achieve a balance with the protection of personal information.

The development of acceptable international standards is important. Business is concerned about the wide range of government organisations devising standards which may lead to inconsistencies.

Discussions that may affect existing wiretapping safeguards should include business participation as a matter of principle.

Business needs to monitor communications to prove business transactions and for quality control or training purposes for the benefit of the customer. Some regulatory initiatives restrict these legitimate practices.

Governments should guarantee that business can continue to monitor communications for legitimate purposes (such as the proof of a business transaction, quality control and training) with the consent of only one party to the communication.

Business looks forward to working with governments within UNCITRAL and other relevant bodies in this field.

Technical interoperability should be ensured by the private sector. The legal acceptability of certificates and digital signatures, both within a nation and internationally, should be promoted by the private sector with the support of appropriate government policies.

Governments should encourage and support the UNCITRAL activity on electronic commerce, including its current work on electronic signatures, certification authorities and related legal issues.

Digital signature laws and any regulatory procedures for recognition should not be written to require localisation or otherwise act as trade barriers. Neutral criteria relating to adequacy should be used to determine recognition.

Standards for electronic signatures that are used or recognised by governments should be technology neutral, not endorse or favour any particular solution and should allow for technological innovation.

Government efforts in this field should be limited to providing basic rules on which commercial certification practice can freely develop according to market needs. Such efforts should be coordinated internationally and should take account of the existence of self-regulatory solutions.

Business will develop best practice rules for certification practice statements (CPSs) allowing for varying levels of liability. Central repositories providing easy access to CPSs will be developed by business.

Traditional self-regulatory solutions for international trade are continually being adapted to new business practice.

Countries should implement the UNCITRAL Model Law on Electronic Commerce as soon as possible. There have been calls to elevate portions of the UNCITRAL Model Law to a Convention.

Governments should continue to work through relevant international organisations to provide basic uniform legal rules, on a subsidiarity basis (i.e. only where self-regulation cannot suffice), to enable electronic commerce.

In electronic commerce, terms of legal significance will increasingly be incorporated into contracts by reference. Business will continue to develop more effective, transparent and user-friendly delivery mechanisms for the full definitions of such terms.

Governments should continue work on basic international principles for legal validity of incorporation by reference for all kinds of transactions. These rules should aim to provide certainty for all parties to electronic commerce transactions.

Speed and expertise in settling electronic commerce disputes are important. Providers of alternate dispute settlement systems are creating tailor-made systems.

Governments should encourage the use of self-regulatory dispute settlement mechanisms as an effective way of resolving electronic commerce disputes. Courts should develop electronic commerce expertise as well.

Business will continue to advise governments on appropriate action to combat electronic commerce fraud. Specialised business organisations will continue to provide information on fraud and fraudsters to the business community.

Criminal laws, courts and enforcement agencies should develop more expertise to deal with electronic commerce fraud and computer crime. Close cooperation with business is vital in this process.

Business applauds the decision by WTO member states to continue their current practice of not imposing customs duties on electronic transactions.

Tax neutrality should be the guiding principle. No new taxes or tax regimes should be imposed to target electronic commerce. Governments have made much progress discussing taxation issues in the OECD with input from business. Governments should continue to work closely with business to keep track of developments in electronic commerce and to ensure that practical business considerations are taken into account in formulating taxation policy for this fast-developing field.

Work on customs data requirements is under way in the WCO and the G7. In other fields, there does not seem to be an organised effort to harmonise requirements. OECD would be an appropriate forum to address interface issues relating to taxation.

Further to the April 1998 Symposium on Trade Facilitation, business is keen to cooperate with governments within the WCO and WTO on issues relating to customs modernisation. Business will continue to work with and advice customs authorities on issues relating to electronic commerce.

To enable businesses and consumers to reap the benefits of electronic commerce, governments should work through the WCO and WTO to enhance the efficiency and transparency of customs procedures through the use of information technologies.

Governments have an important role to play in addressing questions of trade policy and assuring the legal validity of documents in digital form.

Technology is being developed to better track and protect copyrighted materials, and manage rights. Business is in dialogue with governments to ensure that copyright (including neighbouring rights) regimes are applied to the digital environment in a manner that promotes electronic commerce while protecting intellectual property rights.

Business sectors are committed to cooperating to prevent, deter and respond to infringements that take place over digital networks, including the implementation of technical protection measures; the development of marketplace solutions such as licensing; cooperation with law enforcement; and refining procedures for promptly responding to clear evidence of infringements, including notification.

Business will continue to provide information on the intellectual property implications of new technology.

WIPO adopted the Copyright and the Performances and Phonograms Treaty in December 1996. Governments should now move promptly to ratify and implement these treaties, taking into account the challenges and opportunities of the digital environment. Governments reviewing the applicability of copyright infringement liability rules should carefully examine how these rules apply to all stakeholders in the digital networked environment. The goal must be the establishment of a balanced and realistic framework of accountability that respects international norms; provides incentives for increased inter-industry cooperation to deter and respond to infringements; promotes responsible business practices; does not impose economically unreasonable or technically infeasible/unpracticable burdens on intermediaries that neither generate, select nor control content; and preserves an appropriate role for courts.

Governments should consider further measures to secure property rights in the digital networked environment, including filling the gaps in protection for producers and performers of sound recordings left by the Performances and Phonograms Treaty.

Business has highlighted the problems raised by the discrepancy between the national scope of trademark laws and the international nature of electronic commerce and will work with WIPO to examine possible solutions. (See also Domain name system under Internet governance below).

Governments should continue to work, through WIPO, towards adequate protection of intellectual property in databases.

Business remains committed to providing practical information about appropriate competitive safeguards. Business will continue to call on regulatory authorities to set and implement conditions for open and fair competition aimed at lowering the cost of and diversifying telecommunication service.

Effective implementation of the WTO agreement on basic telecommunications is of critical importance. In consultation with business, governments with experience in telecommunications liberalisation should actively assist signatory countries that still have to start this process. Countries that have scheduled commitments under the WTO agreement on basic telecommunications should review the extent to which their markets are fulfilling the agreement, publish their findings on a regular basis, and, where appropriate, remove MFN exemptions.

The OECD, ITU and WTO - within their respective domains - have a role to play in facilitating such assistance.

Efforts should be made to increase the number of signatories and ratifications of the WTO agreement on basic telecommunications. The scheduling of market opening commitments in basic telecom services should include: (1) specifying a date certain for full liberalisation, (2) progressively removing foreign ownership restrictions and (3) adopting the reference paper in its entirety. Such commitments should be a priority consideration in negotiations for accession to the WTO by new member countries.

Business applauds the WTO Information Technology Agreement (ITA) and urges expansion of its coverage during the ITA II negotiations. Business urges non-signatories of ITA to join in confirming their tariff practices to the ITA.

Business encourages the WTO to take a leadership role on trade-related issues in electronic commerce, and offers its support in identifying priorities to remove barriers.

WTO Ministers have mandated the General Council to establish a comprehensive work programme to examine all trade-related issues relating to electronic commerce. Governments should immediately begin preparations to develop an agenda with business to support this process.

The OECD and ITU have addressed this issue. Governments should work closely with business in preparing for and reacting to changes caused by convergence by applying the following principles:

• competition policy should be used as much as possible as the predominant means of preventing abuses of market power in the telecommunications and media sectors.

• government regulation should be limited to promoting competition, allocating scarce resources and, where legitimate, defining public interest objectives.

Standards for electronic commerce should continue to be market driven.

Business will continue to work with all relevant international standards-making bodies to develop international standards.

Governments should avoid mandating unnecessary standards that could be led by business.

Business will work with governments to find solutions to the problems associated with determining jurisdiction in cyberspace. Alternative dispute resolution mechanisms, which may provide a partial solution to these problems, are being developed by existing dispute settlement institutions and cooperative efforts by the legal profession internationally.

Appropriately, jurisdiction is one of the issues that the UNCITRAL Working Group on Electronic Commerce plans to work on in the future.

Governments should encourage the use of alternative dispute resolution mechanisms.

Business should have a significant role in the formation of policy for governance of the domain name system and the development of policy.

Governments should

• continue to support the proposed transfer of administration of the Internet name and address system to the private sector
• ensure that the transfer process does not prejudice the system's stability and continuity and that existing trademarks are protected.
• support initiatives to ensure that the business community will have a sufficient voice in the governance of the domain name system.

Business organisations will continue to support studies and analyses of the impact of electronic commerce and share these finding with governments and international organisations.

Governments are encouraged to inform society, both individual consumers and businesses, about the potentials of electronic commerce and its impact on social and economic structures.

Governments and international organisations, notably the OECD, should be encouraged to collect and analyse data relevant to the study of electronic commerce in order to effectively measure its economic and social impact.

International development organisations such as the World Bank should study the potential impact of electronic commerce on emerging economies in an effort to assist in the economic development process in those nations.

Government should provide SMEs with information and education relevant to market entry opportunities provided by global electronic commerce.

Business is committed to continue working with government to promote technical training and life-long learning for all in society.

Governments should review existing labour laws to remove existing barriers for workers to be able to share in the new and different employment generated by electronic commerce.

Governments should continue to promote both formal and non-formal skills-development programs.

Existing business organisations will work to expand the participation from business in developing countries in promoting the uses and benefits of electronic commerce.

Business will expand its advisory role with international organisations dealing with electronic commerce issues.

Existing international organisations should increase cooperation, as well as coordination and transparency of their respective work programmes.

All governments should ensure open and competitive electronic commerce markets to secure their participation in the benefits of the information society. Governments should expand opportunities for active business participation.

Business will remain an important driver in the development of the information infrastructure because it mobilises the private capital needed to build the global information infrastructure and to develop the technological innovations that enhance communications.

As telecommunications transitions from a monopoly to competitive environment, a crucial role for the government is that of being a neutral force in the economy that ensures pro-competitive behaviour, transparent rules, and value to the user.

International organisations should provide a forum for coordinated government action and international cooperation on matters relating to global development. Agreements drawn up by multilateral organisations offer the private sector and governments the necessary legal and regulatory certainty for investment.

Business will work with governments to offer cost-effective electronic delivery systems for the public sector.

Governments are encouraged to use new electronic delivery systems to provide the means to significantly enhance the internal efficiency and productivity of public administrations.

Governments should promote electronic commerce through its public procurement system, done in a fully open and competitive environment, based on cost-efficient, commercial solutions that are technology neutral.

Governments are also encouraged to use new electronic means to deliver core public services. In particular this would concern public information and cultural resources, databases for health services, web sites at local, regional and national levels and public libraries and databases, where appropriate.

Enforcement mechanism(s)

Leader(s) initiative

Issuing/

Scope

The purpose of these guidelines is to provide suitable protection for personal information by stipulating basic matters concerning the handling of personal information in cyber business. We hope that all business entities engaged in cyber business will review these guidelines, and then create voluntary rules with regards to their own business in order to promote the solid growth of cyber business in the future.

Enforcement mechanism(s)

Leader(s) initiative

Issuing/

Cyber Business Association

17 December 1997

Scope

http://www.fmmc.or.jp/associations/cba/index_english.html

c/o: Foundation for Multimedia Communications (FMMC)

Nisso 22 Bldg. 5F, 1-11-10 Azabudai,

Minato-ku, Tokyo 106-0041 Japan

Tel: +81 3 3583 5811 Fax: +81 3 3583 5813

Enforcement mechanism(s)

Voluntary by members of the non profit organisation

Leader(s) initiative

Issuing/

Scope

Enforcement mechanism(s)

Leader(s) initiative

Issuing/

Scope

Leader(s) initiative

Issuing/

IBCC (International Bureau of Chambers of Commerce)

Paris Chamber of Commerce and Industry

G77 Chambers Trade Network

Scope

Enforcement mechanism(s)

Leader(s) initiative

Issuing/

Scope

Enforcement mechanism(s)

Leader(s) initiative

Issuing/

Scope

Enforcement mechanism(s)

Leader(s) initiative

Issuing/

Scope

Enforcement mechanism(s)

Leader(s) initiative

Issuing/

Scope

A set of common definitions and business-generated best practices for certifying and "ensuring" electronic commerce to:

• facilitate further development of solutions to security
• identify problems in electronic commerce over the Internet
• Act as a unifying or starting point for some of the diverging policy approaches.

Enforcement mechanism(s)

Leader(s) initiative

Issuing/

Scope

Enforcement mechanism(s)

Leader(s) initiative

Issuing/

Scope

Enforcement mechanism(s)

Leader(s) initiative

Issuing/

Scope

Addresses two broad concerns: the way in which organisations collect, use and disclose personal information; and the right of individuals to have access to personal information about themselves and to have the information corrected if necessary.

Voluntary, but referenced by law or regulatory bodies in a variety of situations in Canada.

Leader(s) initiative

Issuing/

Canadian Standards Association (CSA)

Price Waterhouse - chair

ITAC

CBA

Stentor

American Express

Public Interest Advocacy Centre

Scope

Ministry of Consumer and Commercial Relations (ON)

Industry Canada

Office of Privacy Commissioner

Department of Justice

CSA

178 Rexdale Blvd.

Etobicoke, Ontario M9W 1R3

Tel: (416) 747-4044

Ellen Pekiles

BBBOnLine was established to help build consumer trust and confidence in online commerce. The Reliability programs helps assure that a company’s advertising is truthful & accurate, the company comm