The State and Development

Prospects of ICT in Uzbekistan

Uzbek Agency of Communication & Informatization
(UzACI) Tashkent, 26-27 November 2002

Regulatory Framework for

E-Commerce:
International Best
Practices & Models
ROBERT HORVITZ
Manager, Central/Eastern Europe
GLOBAL INTERNET POLICY INITIATIVE (GIPI)
BOB@INTERNEWS.ORG

Key Issues in Creating a

Framework for ECommerce
1.
2.
3.
4.
5.
6.
7.

Telecom reform
Recognition of electronic documents
Consumer protection
Electronic Funds Transfer (EFT)
Dispute resolution
ISP liability
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:
http://www.wto.org/english/tratop_e/serv_
e/12-tel_e.htm
(1997)

WTO Principles on the Regulatory

Frame-work for Basic
Telecommunications Regulation
http://www.wto.org/english/news_e/pres97
_e/refpap-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):
http://www.uncitral.org/english/texts/electcom/
ecommerceindex.htm

European Directive on a Community

framework for electronic signatures (1999)
http://europa.eu.int/comm/internal_market/en/me
dia/sign/Dir99-93-ecEN.pdf

3. Consumer Protection
E-commerces success depends on the
legal system recognizing & promptly
enforcing electronic contracts (businessto-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
http://europa.eu.int/information_society/topics/ebusi
ness/ecommerce/3information/law&ecommerce/le
gal/documents/31997L0007/31997L0007_en.html

European Parliament & Council Directive

2000/31/EC (8 June 2000) on electronic
commerce
http://europa.eu.int/ISPO/ecommerce/legal/documen
ts/2000_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:
http://www.icann.org/cctlds/centr-2nd-bestpractices-20may01.htm

For another time...

Privacy
Electronic notaries
Copyrights & trademarks
Cybercrime

ROBERT HORVITZ
bob@internews.org