Attachment B Major Principles in OECD Guidelines for Consumer Protection in the Context of Electronic Commerce FullText AttachmentA - Intenation Marketing Supervision Network Internet Sweep Day Check List Issue Benefits to achieve Principles to implement Good Practices Protection To foster public confidence in the electronic marketplace. Governments, businesses and consumer representatives should work together to afford a level of consumer protection that is no less transparent and effective in the cyberspace than in the real space. Observe the existing consumer protection laws in Hong Kong. Reference: http://www.consumer.org.hk/legal/legal_e.htm Marketing Practices To ensure due regard being paid to the interests of consumers in the conduct of electronic commerce. Businesses must act in accordance with fair business, advertising and marketing practices. Regulatory framework against spamming to unsolicited parties and marketing to children must be observed. Adopt the good advertising practices in Hong Kong. Reference: Advertising code of practice issued by OFTA http://www.ofta.gov.hk or The Association of Accredited Advertising Agents of Hong Kong Online Disclosures ?Identification To enhance identification of the business and the jurisdictions within which it operates. Sufficient online disclosures must be given to enable consumers to establish the business identity and contact details, and to verify its membership in certification bodies. Consumer must be provided with details of the retailer's identity, like business registration number, certification number, registered physical address, a phone number and an e-mail address. Online Disclosures - Transparency To ensure transparency of information for decision-making. Businesses should provide clear, unambiguous and easily accessible information on the goods and services so that consumers can make an informed choice before effecting a transaction. Sites should display one overall total price to the consumer before the order is completed, which include any applicable local taxes and any delivery charges, if any. Retailers supplying to other countries can also do a lot more to assist consumers in converting prices into their own currencies. Retailers should provide information on whether an item is in stock before the order is placed. Online Disclosures ?Clarity and Comprehensiveness To avoid unconscionable contract being entered into. Terms, conditions and costs associated with a transaction must be clear, accurate, easily accessible, and provided in a manner that gives consumers adequate opportunity for review before entering into a transaction. Retailers should design sites to ensure that purchasers are shown the terms and conditions (including payment terms, delivery terms, guarantees and warranties, cooling-off periods, conditions relating to returns or exchange of goods, cancellations and refunds) before confirming their orders. Terms and conditions should be provided in a manner that can be easily printed off and kept by the consumer for future reference. Confirmation Process To avoid ambiguity in a potential transaction. Businesses should enable consumers to identify precisely the goods and services on offer, to correct any errors before concluding the purchase online, and to retain an accurate record of the transaction. Site designer should use the three stage model (expression of interest stage, stage of reviewing all the details of the order and final stage for confirmation of the order) and allow the consumer to have the opportunity to cancel the order. Payment To minimize unauthorized transactions. Consumers should be provided with easy-to-use, secure payment and chargeback mechanisms, and information on the level of security afforded. Sites should have easy to understand statement about their security system and the level of protection. Dispute Resolution To provide access to fair and timely dispute resolution mechanisms without undue cost or burden. Inform consumers of where to lodge complaints Businesses, consumer representatives and governments should jointly develop fair, effective and transparent dispute resolution mechanisms to resolve complaints and disputes in the context of cross-border transactions. Sites should (1) provide a policy on returns which makes the process as simple as possible; (2) clarify within the policy what costs (if any) the consumer will incur; (3) make the policy available at the place where the purchase is made and (4) process requests for refund quickly and give targets for when consumers will receive the money. Information should be provided on where to lodge a comlaint Privacy To advance full privacy protection. Business-to-consumer electronic commerce should be conducted in accordance with internationally recognized privacy principles. All sites should have a privacy policy which is easy to understand and clearly signposted. Observe the code of practices for privacy protection in Hong Kong. Reference site: http://www.pco.org.hk/ Education To foster informed decision-making by consumers in the cyberspace. Governments, businesses and consumer representatives should jointly promote public awareness of consumer protection framework applicable to online activities.