Review of ICA-Net and Case report November 2, 2010 Vancouver Canada Eiichiro Mandai (ODR Room Network) Modified based on A report at January 21, 2010 Jakarta, Indonesia By uko Tonomura of EC Network (Japan)

Although the number of cases is small, these cases offered many valuable insights for the paradigm of effective complaint handling of cross-border e-commerce. (ERIA report 2009)

Who involved? ConsumerBusinessCALORelate org.Result 1JapanChinaEC NetworkBBB,TRUST e,eBay Partially solved 2ThailandAustraliaECN, CIProvide Info 3JapanJapan,USECN,BBBSolved 4JapanSpainECNeBayPartially Solved 5TaiwanUKCI,SOSA, ECNCI londonpending 6FranceJapanECN, Forum des droit sur l Internet Cabinet office(JP) Unsolved 7KenyaJapanECNMETI,JUMV EA,JAAI Provide alert 8USChina, US, Japan, Sweden, Germany, Australia ECN, BBBProvide alert Under investigation 2

3 Handled Eight of Cross-border Cases Case 1: Misuse of BBB Trustmark A Japanese consumer received fake UGG Australia boots. The site displayed Trustmarks of BBB and TRUSTe without permission. Case 2: Domain Registration Thai consumer filed this complaint over Australian domain name registrar to CI in Kuala Lumpur (KL). Case 3: Negative Option A Japanese consumer had trouble with a Japanese subsidiary of BBB member company in US. EC Network bridged this complaint to HQ and received their response. Case 4: Fake Escrow Company A Japanese seller on eBay fell victim of a fraud. EC Network requested for eBay an investigation, the disputed site was shut down after eBay alerted the Registrar/ISP Case 5: Not delivered after payment CI in KL received a complaint from a Taiwanese consumer who purchased goods from a motorcycle dealer in the UK. The consumer lost contact with the business. SOSA (Taiwan) will support the consumer and is looking for a contact in UK.

4 Handled Eight Cross-border Cases Case 6: Not delivered goods from Japan Forum des droits sur l‘internet, a complaint handling organization regarding IT and e-commerce in France, sent a complaint from a French consumer who has not received goods from an auction agent in Japan to EC Network. After EC Network’s investigation, it was discovered the agent had already run away. Case 7: Unable to import a car from Japan EC Network receive complaints from consumers outside of Japan. Most of them paid in advance and lost contact with Japanese businesses and could not receive cars. We consulted with METI on this matter. Case 8: The shop closed in China The headquarters of overseas study program broker in Seattle has closed up shop unexpectedly, stopped paying bills for students on site for studies in China, and closed their school in China. BBB visited the Seattle office, and found out that mail was piling up inside the front door. Their website is still up and running. BBB contacted EC Network whether the company’s office in Japan was doing business. EC Network contacted them by and phone, but received no reply.

5 Ordered UGG boots, paid through Paypal / received counterfeits Complaint to Paypal singapore, the case was unaddressed. The business display unauthorized BBB and TRUSTe marks. BBB’s legal demanding remove the mark, All Trustmarks (BBB and Truste) were removed The case didn’t reach a settlement. The action by BBB led to a near shut down of this business’ website. Case 1: Misuse of BBB Trustmark Consumer: JapanBusiness location: China CALO involved:EC Network (Japan) Related organization:Paypal, BBB, TRUSTe Contributed to : Help prevent others from becoming the victim of the fraudulent business.

6 A Thai consumer filed to CI against an Australian domain name registration company charges and the transfer of his domain name. The company suggests to consult a credit card company. He lost his domain name. EC Network consulted with the National Internet Registry in Japan and found (TDRP) by ICANN. EC Network informed CI about TDRP. Case 2: Domain Registration Consumer: ThailandBusiness location: Australia CALO involved:EC Network (Japan), CI (KLO) Related organization: Contributed to : provide the most effective means for solving disputes to consumers.

7 A consumer purchased computer software from a Japanese subsidiary of a BBB Accredited Business. An option pre-checked to purchase online game written in small print notice. Pre-checked “acceptance box” was misleading. Later He canceled the game service. He was denied a full refund. The complainant filed, sent the complaint to U.S. HQ through BBB. The HQ issued him a refund. The Japanese subsidiary modified and improved the web. (font size to larger.) In the end, the company followed the EC Network’s advice. Case 3: Negative Option(1) Consumer: JapanBusiness location: Japan, US CALO involved:EC Network (Japan), BBB(US) Related organization:

8 Case 3: Negative Option(2) Consumer: JapanBusiness location: Japan, US CALO involved:EC Network (Japan), BBB(US) Related organization: Contributed to : Solve with full refund. Share business practice. Importance of taking account of other country’s business practice in cross-border e- commerce. Prevent future dispute. Well-known regulation or self-regulatory (by such as BBB) is important.

9 A Japanese seller on eBay fell victim of a fraud. He was recommended fraud escrow. EC Network requested for eBay an investigation, the disputed site was shut down after eBay alerted the Registrar/ISP those malicious sites often close their websites, disappear, only to launch new websites under different names, simply continuing the fraud. Case 4: Fake Escrow Company Consumer: (seller) JapanBusiness location: Spain? CALO involved:EC Network (Japan), CI (KLO) Related organization:eBay Contributed to : Cooperation with law enforcement entities at the earliest stages to minimize the extent of damage for fraudulent

10 A Taiwanese consumer purchased from a motorcycle shop in the UK, but the shop did not ship any items. Called and ed, there was no response The consumer consulted CI London, contacted CI’s Kuala Lumpur office about this complaint. Obtaining consent handling personal information among the above-mentioned CALOs, CI’s Kuala Lumpur office and SOSA of Taiwan proceeded to handle this case. Case 5: Not delivered after payment Consumer: TaiwanBusiness location: UK CALO involved:SOSA, CI (KLO), EC Network Related organization:CI london Contributed to : Consumer association play a bridging role for international e-commerce

11 French consumer bid and won in auction via auction agent. Paid but not received, lost contact. Whether Auction agent is illegal? In Japan, it’s legal. The web site exists, but the business already disappeared. Case 6: Not delivered goods from Japan Consumer: FranceBusiness location: Japan CALO involved:EC Network, Forum des droit sure internet Related organization:Cabinet Office (JP) Contributed to : Find an operational status the business in other region, exchange law information.

12 EC Network receive complaints from consumers outside of Japan. Most of them paid in advance and lost contact with Japanese businesses and could not receive cars. Consulted with METI METI consult with embassy, JUMVEA and JAAI JAAI advertize to alert in Keyna Case 7: Unable to import a car from Japan Consumer: kenyaBusiness location: Japan CALO involved:EC Network Related organization:METI, Embassy, JUMVEA, JAAI Contributed to : Effort by CALO encouraged Governments, Industry groups to understand

13 The HQ of overseas study program broker in Seattle has closed up shop, stopped paying bills for students on site for studies in China, and closed their school in China. BBB visited the Seattle office, and found out that mail was piling up. Their website is still up and running. BBB contacted EC Network. EC Network found school exists under different name in the place. Case 8: The shop closed in China Consumer: USBusiness : China, US, Japan, Sweden, Germany, Australia CALO involved:BBB, EC Network Contributed to : Learn an operation status in other region to inform consumer.

14 Thank you! ODR Room Network -room.com/