FTC Released a Guide Electronic Commerce: Selling Internationally A Guide for Businesses (March 2000)

FTC Guidance: Electronic Commerce – Selling Internationally

March 2000

The Federal Trade Commission (“FTC”) released a guide Electronic Commerce: Selling Internationally A Guide for Businesses.  The FTC said that as consumers increasingly turn to the Internet for purchases, businesses have the opportunity to reach a global audience. However, selling internationally brings challenges, including navigating customs laws, taxes, and ensuring consumer protection.

The U.S. and 28 other countries have established guidelines to enhance consumer confidence in the global electronic marketplace. These guidelines focus on:

• Principles for Codes of Conduct: Encouraging businesses to adopt fair marketing practices.

• Government Guidance: Helping governments evaluate their consumer protection laws concerning online commerce.

• Consumer Advice: Educating consumers on what to expect when shopping online.

Key Business Practices for E-Commerce. E-businesses that adhere to these guidelines should:

1. Fair Business Practices. Provide truthful and accurate information, avoid misleading claims, and ensure marketing materials are clearly identifiable.

2. Clear Company Information. Disclose the company’s name, physical address, and contact information, along with a complete description of products or services offered.

3. Full Transaction Information. Offer itemized costs, terms of delivery, payment methods, and any restrictions or warranty details. Information should be available in multiple languages if applicable.

4. Commitment Awareness. Ensure consumers are aware they are making a purchase before finalizing the transaction, allowing them to modify or cancel their orders.

5. Secure Payment Methods. Implement appropriate security measures to protect personal information during transactions.

6. Consumer Privacy Protection. Clearly display privacy policies and provide consumers with choices regarding their personal information.

7. Complaint Resolution. Establish procedures for addressing consumer issues efficiently and affordably, utilizing alternative dispute resolution methods when possible.

8. Self-Regulatory Policies. Create clear, effective policies that mirror protections found in traditional commerce, involving consumer representatives in their development.

9. Consumer Education. Work with governments and consumer advocates to enhance understanding of rights and responsibilities in online shopping.

Overall, the guidelines aim to foster a secure and transparent electronic marketplace where consumers can shop with confidence.

 

For more information, see here:  https://www.ftc.gov/tips-advice/business-center/guidance/electronic-commerce-selling-internationally-guide-businesses

 

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