1. New hybrid regulatory frameworks for the Internet
Henry H. Perritt, Jr.
Dean
Chicago-Kent College of Law
Illinois Institute of Technology

2. Why does the Internet present new challenges?
Low economic barriers to entry  proportionally more small enterprises
Lower transaction costs  more small-value transactions
Inherently global exposure  stress on traditional geographic jurisdictional criteria

3. What’s wrong with traditional public law regulation?
High transaction costs (uncertainty, remote legal systems) threaten to swamp value of transactions
Remote actors undermine enforcement ability
Diversity of requirements difficult to satisfy

4. What’s wrong with pure private self-regulation?
Disparate economic power threatens consumer rights
Race to the bottom undermines mandatory rules
Private governments not accountable

5. What are the alternatives?
Tolerate diverse legal requirements
Comprehensive treaties
Tolerate “lawlessness”
Develop new hybrid public/private regimes

6. Hybrid frameworks Public law Private law
Minimum substantive requirements
Backup compliance policing
Private law
Prescribe detailed rules
Provide first-level enforcement and dispute resolution

7. Examples EC/USG data privacy “safe harbor” negotiations ICANN
Credit card chargebacks

8. Prospects for the future
Harmonization reduces jurisdictional pressure
OECD privacy guidelines
OECD consumer protection guidelines
Consumer protection the next big opportunity
Dispute resolution approaches
Credit card chargebacks – OECD paper
Ebay escrow, insurance possibilities