BBB finalizes code of online business practices providing crucial road map for e-commerce

[October 25th 2000]

The Better Business Bureau system and BBBOnLine have released the latest in its initiatives to promote consumer trust on the Internet: the BBB Code of Online Business Practices.

Encouraged by government officials and regulators, businesses of all sizes, and consumer organizations, in the U.S. and other countries, the business self-regulatory organization has developed a roadmap for businesses to foster safe, successful e-commerce.

"The BBB Code of Online Business Practices is designed to guide ethical 'business to customer' conduct in domestic, as well as cross-border e-commerce transactions. Already being used as a model in Europe and elsewhere, the Code provides desirable standards that, when adopted by online merchants and advertisers, are expected to make a significant contribution toward effective self-regulation in the public interest," said Calvin J. Collier, senior vice president and general counsel/corporate affairs, Kraft Foods, Inc., and chair of the Council of Better Business Bureaus (CBBB.

Collier noted that new and inexperienced online merchants and advertisers, as well as long-established, international corporations, like Kraft, will find the newest BBB Code to be a useful tool in boosting consumer trust and confidence in online commerce.

"Studies have shown that e-commerce shoppers have concerns regarding the security and safety of shopping online. The BBB Code addresses these concerns and more. By adopting the BBB Code of Online Business Practices as their own, online businesses will help ensure their customers have a positive shopping experience."

Five basic principles drive the BBB Code of Online Business Practices:

1. Truthful and Accurate Communications: Online advertisers should not engage in deceptive or misleading practices with regard to any aspect of electronic commerce, including advertising, marketing, or in their use of technology.

2. Disclosure: Online merchants should disclose to their customers and prospective customers information about the business, the goods or services available for purchase online, and the transaction itself.

3. Information Practices and Security: Online advertisers should adopt information practices that treat customers' personal information with care. They should post and adhere to a privacy policy based on fair information principles, take appropriate measures to provide adequate security, and respect consumers' preferences regarding unsolicited email.

4. Customer Satisfaction: Online merchants should seek to ensure their customers are satisfied by honouring their representations, answering questions, and resolving customer complaints and disputes in a timely and responsive manner.

5. Protecting Children: If online advertisers target children under the age of 13, they should take special care to protect them by recognizing children's developing cognitive abilities. Specifically, they should adhere to the CARU Self-Regulatory Guidelines for Children's Advertising.

The newest online code is the culmination of a yearlong, inclusive process by the BBB and its BBBOnLine subsidiary to solicit input from all segments of the e-marketplace through regional meetings, Web site postings, conferences and public outreach. More than 1,000 comments were received from business, consumer, BBB and government representatives, in the U.S. and abroad.

Mozelle W. Thompson, a commissioner of the U.S. Federal Trade Commission, has stated, "The Commission is active in providing baseline standards to protect consumers through law enforcement efforts and other activities. Accordingly, I welcome the BBB's initiative to give businesses the tools to provide confidence to consumers shopping online."

The European Community is expected to be equally supportive. "The BBB is on the front line, helping to provide the self-regulation, standards-setting, trustmark and dispute resolution programs that are proving to be valuable models for e-commerce. We encourage the BBB system to build partnerships that will serve all of our countries by encouraging businesses everywhere to adopt principles consistent with the BBB Code of Online Business Practices," said Gerard DeGraaf, Trade Counselor of the European Union's Delegation to the United States.

Links
BBBOnLine		http://www.bbbonline.org