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FEDERAL PUBLIC PROSECUTION OFFICE CONSUMER DIVISION (PROFECO) MEXICO

Public FTAA.ecom/inf/119 February 13, 2002 Original: Spanish Translation: FTAA Secretariat. FEDERAL PUBLIC PROSECUTION OFFICE CONSUMER DIVISION (PROFECO) MEXICO. PROFECO IN THE CONTEXT OF ELECTRONIC COMMERCE FTAA: XII Meeting of Experts in Electronic Commerce Panama, February 2002.

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FEDERAL PUBLIC PROSECUTION OFFICE CONSUMER DIVISION (PROFECO) MEXICO

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  1. Public FTAA.ecom/inf/119 February 13, 2002 Original: Spanish Translation: FTAA Secretariat FEDERAL PUBLIC PROSECUTION OFFICECONSUMER DIVISION (PROFECO) MEXICO PROFECO IN THE CONTEXT OF ELECTRONIC COMMERCE FTAA: XII Meeting of Experts in Electronic Commerce Panama, February 2002

  2. Background • Feb. 5, 1976 Federal Consumer Protection Law (LFPC) enters into force. • Consumers given rights + specialized agency set up to advocate justice for consumers. • PROFECO: agency entrusted with promoting and protecting consumer interests.

  3. PROFECO: over the years • Consumer protection, consumer advice and representation; conciliation and arbitration. • Original LFPC developed over time with amendments made in 1982, 1985, 1988, 1988 and 1991. • New LFPC published on Dec. 24, 1992.

  4. PROFECO: over the years New LFPC • Full service (advice and consultancy); • Receipt, processing and conciliation (complaints and claims); • Issuance of administrative rulings; • Registry of adhesion contracts; • Technical juridical consumer protection; • Verification and monitoring: Official Mexican Standards (NOMs in Spanish), weights and measures; manuals and guarantees).

  5. PROFECO: over the years • Powers to order corrective advertising; • consumer information and advice (media: print, radio and TV); • Contribute to raising consumer awareness and improving their buying habits.

  6. PROFECO: Mission • Consumption

  7. PROFECO: Mission • Promote/protect consumer rights through global quality services. • Consumer relations = fairness and legal protection • Give consumers the legal, technical tools and information to settle disputes with suppliers on an equal footing. • Conciliation – agreement/confrontation. • Advice, information, dissemination, research and education: foster consumer culture to prepare consumers for access, under improved conditions, to the goods and services market.

  8. PROFECO in the new global context

  9. PROFECO in the new global context • Globalization and technological innovations. • New (overall) economic environment and the environment for (individual) consumer transactions. • Ministry of the Economy and PROFECO: • Enhance protection and defense of consumer rights • Foster new consumer culture in pace with consumer market developments. • Ministry of Economy and PROFECO: e-commerce-related activities (national and international).

  10. National Action LEGAL REFORMS • Legal reforms (electronic commerce) in conformity with OECD Recommendations. • Reform published in the Official Gazette on May 29, 2000 • Entry into force June 8, 2000 • Amendments to 4 statutes:

  11. National Action

  12. National Action • Federal Code of Civil Procedure : validation of consent expressed by electronic, optical or any other technical means (Internet, Intranet, fax or future technological advances). Offer and acceptance made via these means do not require prior agreement or stipulation between contracting parties. The Law allows for contracts agreed to via these means.

  13. National Action • Federal Code of Civil Procedure : Evidence = information generated and transferred by optical and electronic media or any other technological means. Probative value: will be determined on the basis of the security or reliability of the method used to transfer such information.

  14. National Action • Commercial Code: contracts and agreements reached via this means: binding from the moment acceptance of the offer is received. Expressly stipulates that electronic means may be used for all commercial transactions. All information generated, sent, received, stored or transferred through these means is referred to generically as “data message.”

  15. National Action • LFPC: • All electronic transactions between suppliers and consumers must comply with the principles of the Law as amended in accordance with OECD Guidelines. • A special chapter was included on consumer rights in electronic commerce.

  16. International Action Lines of action OECD Guidelines IMSN Econsumer OECD Workshop

  17. International Action • OECD: December 9, 1999 • Guidelines for Consumer Protection in the Context of Electronic Commerce • Protection for online purchases on par with protection offered for purchases made in stores or through catalogues. • Determine basic features of online consumer protection. • Eliminate uncertainties (for consumers and companies) when making online purchases/sales and develop protection mechanisms, without raising barriers to trade.

  18. PROFECO & OECD • Guidelines: reflect already existing legal protection measures for consumers in traditional commerce. • Enhance fair business, advertising and marketing practices; • Promote clear information on the identity of online businesses, goods and services offered and the terms and conditions of transactions; • Transparent procedures to confirm transactions;

  19. PROFECO & OECD • Establish safe payment mechanisms; • Promote fair, timely and affordable dispute resolution and redress or compensation; • Confidence building; • Promote consumer and business education.

  20. PROFECO & OCDE • Mexico is a a full member of the OECD. • Mexico must observe the recommendations set forth in the Guidelines. • PROFECO translated the Guidelines into Spanish and assisted in disseminating this information throughout Latin America.

  21. PROFECO & IMSN • IMSN (International Marketing Supervision Network): system of organizations, includes consumer protection authorities from 29 countries + EU and OECD representatives. • 1994: Mexico became a member. • IMSN linked to OECD. Mexico = only official Latin American member and one of two Spanish-speaking countries. • Establishment of the eConsumer.gov project

  22. eConsumer.gov • April 24, 2001 • Challenges posed by international fraud on the Internet. • Enhance consumer protection and confidence in electronic commerce. • 13 countries. • econsumer.gov

  23. eConsumer.gov • Complaints concerning cross-border electronic commerce. • Public website in several languages. • Government website: restricted access and password protected.

  24. eConsumer.gov • Characteristics of the public website: information, contacts with authorities, electronic complaint form, privacy policies. • SentinelConsumer Network : database with complaints and information on investigations. • FTC • Complaints shared on the government website with participating authorities.

  25. eConsumer.gov • PROFECO is participating in the project as a full member: • Contributing tips for secure purchasing • Translating the project into Spanish • Consumer magazine • PROFECO Internet page

  26. OECD Workshop • March, 2001 Berlin, Germany. • Objective: assess progress in the implementation of the Guidelines. • From translation to codes of conduct, educational material, modifications to the legal frameworks. • Information: policies, privacy, safety, compensation, transparency. • Protection in OECD and beyond.

  27. OECD Guidelines • Guidelines: positive impact on national policies.

  28. Some facts • Digital Divide (DD): there is a lack of balanced access to new technologies for countries, regions and individuals. • DD within Mexico and between Mexico and the world: • Limited access: 10% of homes w/ computers • Social strata: schooling, income • Mexico: # of Internet users = explosive growth; number of installed PCs shows constant increase .

  29. Some facts • 1995: 26/1000 persons • 2001: 65/1000 persons • USA: 500/1000 persons • Canada: 260/1000 persons • Boom in electronic commerce (B2C and B2B): over 100% increase.

  30. Challenges • Digital networks and information technologies require consensus on consumer protection. • Achieve international consensus on public policies so as not to jeopardize growth of electronic commerce. Guidelines General Principles

  31. . Challenges • Innovative measures: education for consumers, the business community and governments on protection for e-commerce.

  32. Challenges • National mechanisms for handling complaints: effectiveness; good practices and ADR. • Sweep days = monitoring. • Public-policy makers: models that build confidence and lower access costs.

  33. Challenges • Speed up penetration, telecommunications and computer coverage, and reduce inequalities in geographic and social distribution; • Facilitate market access;

  34. Challenges E-Mexico Project • Information revolution; • National ; • Close the gap; • Multi-sectoral project; • Mission: facilitate access to basic social services (commercial transactions) via electronic media.

  35. Challenges • E-economy program: Development and competitiveness of productive and commercial activities; • Develop the digital economy and promote digital literacy of consumers.

  36. Challenges Chain of Process • Electronic commerce is complex:

  37. End

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