ANALYSIS AND STRATEGIES FOR THE MINISTRY OF CONSUMER AFFAIRS

There are many other issues, not identified above, such as:   implications for tax collection generally;   the impact of GST on costs of domestic products against those purchased outside New Zealand and valued under the threshold for collecting GST;   the social impact of electronic shopping - if it develops significantly;   intellectual property issues;   and many more. They are beyond the scope of this paper and the work of the Ministry of Consumer Affairs. Clearly all New Zealand government agencies and interested parties should engage in dialogue and discussion about all of the issues in a co-ordinated way. The Ministry will encourage and participate in this where possible.   THE WAY FORWARD The Ministry's role is to promote a fair and informed marketplace, for the benefit of all New Zealanders. Where fair and informed markets do not exist, the Ministry is committed to examining all options from education, through self-regulation, to formal government regulation to find the most effective and efficient solutions to address consumer problems. Therefore the Ministry is focused on producing strategies to make markets work fairly and more efficiently. The Ministry's policy and operational activities address deficiencies in the operation of the market through:   developing formal government regulation to deal with serious, systemic, or chronic incidents of market failure;   encouraging market self-regulation to deal with problems within a specific market, or with particular business activities;   educating and informing to enhance consumer and trader understanding of acceptable trading standards. There are a number of issues that suggest that solutions to problems in the electronic marketplace will stop short of developing formal government regulation. The issues are:   The electronic marketplace is in its early stages. Any problems may be described as potential or emerging to a large degree;   The electronic marketplace is a global phenomenon. Any solutions to problems will need to be global;   The electronic marketplace is developing rapidly. Legislation, even if appropriate for other reasons, could probably not be developed, modified or removed quickly enough to meet the needs of the marketplace;   It is in the interests of participants to work out ways around most problems. Every day, news reports indicate a new development designed to increase security or confidence in the electronic marketplace. The Ministry will therefore focus on developing the strategies outlined, in four broad areas:   Consumer education/information activities   Educate and inform consumers on their rights and responsibilities in electronic commerce.   Inform consumers of the potential dangers in buying from traders who do not commit to accepted codes of practice.   Monitor traders operating at a standard lower than code / regulatory requirements, and seek appropriate compliance action.   Ensure consumer representation in the development of self-regulatory mechanisms. International networking activities   Participate in discussion and development of international codes, bi-lateral and multi-lateral mutual recognition, harmonisation of rules, and enforcement activities.   Participate in discussion and development of international agreements, guidelines and standards relating to electronic commerce. Business self-regulatory activities   Liaise with industry groups, business and government agencies to establish or improve industry codes of practice.   Assist industry in the promotion and awareness of codes to consumers.   Encourage the use of seal-of-approval schemes. Monitoring market developments, market solutions and international activities   Formalise our monitoring processes for gathering information about developments in the international marketplace.   Maintain an up to date understanding of developing issues so that they can be appropriately addressed.   Undertake market research on consumer responses to electronic commerce over a period of time.     ENDNOTES The European Consumer Forum; The Consumer and the Information Society; Dublin, 3 & 4 September 1996   Consumers International Regional Office for Asia and the Pacific and Consumer Unity and Trust Society; Consumers in the Global Age. International Conference on Consumer Protection; New Delhi, 22-24 January 1997   OECD Committee on Consumer Policy; Gateways to the Global Market: Consumers and Electronic Commerce; Paris, 3&4 March 1997   US Government Working Group; A Framework for Global Electronic Commerce; viewable on http://www.iitf.nist.gov/eleccomm/glo_comm.htm   Federal Bureau of Consumer Affairs; Untangling the Web, Electronic Commerce and the Consumer;Issues Paper, March 1997   OECD Papers DAFFE/CP (97) 1/REV1-DRAFT and DAFFE/CP (97)8-DRAFT   Federal Bureau of Consumer Affairs, as above.   US Fair Trading Commission; Anticipating the 21st Century; Spring 1997; viewable on http://www.ftc.gov/reports/21cent/antic21.htm   United Nations Commission on International trade law, UNCITRAL model law on electronic commerce; viewable on http://www.un.or.at/uncitral/texts/electcom/mtec.htm#Top

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