Guidelines for Online Commerce

Consumer enforcement agencies have grappled with the unique challenges posed by electronic commerce virtually from the first online purchase.

Whose laws apply on products sold across state and national borders? How can authorities hold businesses to real-world standards if they can’t find them? What assurances do consumers have that financial information given online will remain private?

New nonbinding guidelines issued last week by the Organization for Economic Cooperation and Development, an international council made of up 29 member nations including the U.S., may help.

Beyond affirming that e-commerce is subject to each country’s existing consumer-protection laws, the guidelines suggest:

* Sellers should identify themselves and give their principal geographic addresses.

* All terms and costs of online purchases should be fully disclosed.

* Consumers should always have an opportunity to cancel transactions before completing them.

* Businesses should give consumers an easy-to-use way not to receive unsolicited e-mail.

* Cross-border electronic transactions should be subject to the same jurisdictional rules as real-world international transactions.

Though nonbinding, consumer groups called the council’s recommendations a useful blueprint and the first step toward internationally consistent standards.

“They provide a road map for governments, businesses and consumers for how online commerce should be conducted,” said Susan Grant, vice president for public policy at the National Consumers League.