Regulatory Framework for E- Commerce: International Best Practices & Models ROBERT HORVITZ Manager, Central/Eastern Europe GLOBAL INTERNET POLICY INITIATIVE (GIPI) The State and Development Prospects of ICT in Uzbekistan Uzbek Agency of Communication & Informatization (UzACI) Tashkent, November 2002

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

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

1. Telecom Reform WTO Annex on Telecommunications: -tel_e.htmhttp:// -tel_e.htm (1997) WTO Principles on the Regulatory Frame- work for Basic Telecommunications Regulation efpap-e.htmhttp:// efpap-e.htm (1996)

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.

2. Recognition of electronic documents United Nations Commission on International Trade Law: Model Law on Electronic Commerce (UNCITRAL, 1996): rceindex.htm European Directive on a Community framework for electronic signatures (1999) gn/Dir99-93-ecEN.pdf

3. Consumer Protection E-commerces 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

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.

3. Consumer Protection European Parliament & Council Directive 97/7/EC (17 February 1997) on the protection of consumers in respect of distance contracts - ss/ecommerce/3information/law&ecommerce/legal/do cuments/31997L0007/31997L0007_en.html European Parliament & Council Directive 2000/31/EC (8 June 2000) on electronic commerce _31ec/2000_31ec_en.pdf

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.

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.

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).

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.

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 ICANNs best practices in ccTLD management: 20may01.htm

For another time... Privacy Electronic notaries Copyrights & trademarks Cybercrime ROBERT HORVITZ