ACCC sweeps internet to protect consumers

On-line consumers in Australia and abroad can more confidently buy goods and services over the Internet due to an Australian Competition and Consumer Commission initiative.

In conjunction with members of the International Marketing Supervisory Network the ACCC has been 'sweeping' Internet sites in a 48 hour campaign.

Up to 70 agencies from 29 countries have been sweeping sites based in their own jurisdictions, in a demonstration of international cooperative efforts to educate businesses and protect consumers.

"Agencies need to remain vigilant to ensure that both consumers and businesses can engage in e-commerce with confidence", Acting ACCC Chairman, Mr Rod Shogren, said today.

"Most on-line businesses play by the rules, but initiatives like the sweep give notice to the few who do not that they are being watched. The international scope of this action captures sites based in many jurisdictions, and the ACCC is pleased to be the lead agency."

The sweep's focus is compliance with consumer protection principles that have gained international acceptance in the Organisation for Economic Co-operation and Development, and in Australia through the issuing of "Building Consumer Sovereignty in Electronic Commerce: A Best Practice Model for Business". This model includes requirements such as:

• easy contact with the business via a telephone number or e-mail address
• full disclosure of costs for goods and services, including freight and local taxes
• statement of applicable currency for the purchase
• statement of policy on returns, refunds and exchange
• disclosure of privacy policy, stating what will happen to consumers' personal information.

The sweep results will be collated and used to educate businesses about best practice in the on-line environment, and to educate consumers about how to evaluate a site before doing business on-line.

Sweep days are a regular activity of the IMSN, and have enjoyed an increasing level of success since the first in 1997. The statistics on compliance assist agencies in targeting their efforts in their local jurisdictions, and a strong compliance message is sent on a global level to consumers and businesses alike.

Background

An International Internet Sweep Day is a joint exercise conducted by agencies that are members of the International Marketing Supervision Network. The event identifies web-sites that are targeted by those agencies for reasons of breaches of local consumer protection or fair trading laws, or lack of adherence to 'best practice'. Identified sites are sent e-mail messages outlining the global scale of the Sweep Day, and the local laws and best practices, and directing them to their local fair trading or consumer protection body.

Sweeps have an enormous impact on global trade, by:

• assisting implementation of the OECD Guidelines by educating businesses which are sent an e-mail message
• broadening consumer awareness by releasing information through the media
• improving market conduct by demonstrating a presence of authorities in the Internet space, and dispelling the myth of on-line anonymity
• raising the profile of each participating agency by promoting their involvement in a significant event with up to 70 agencies from 29 countries
• facilitating further action by each agency in light of the valuable information revealed by the Sweep in regard to trends and compliance problem areas.

Details of Sweeps to date:

1997 Sweep targeted 'get rich quick' schemes, identified over 1100 suspicious sites, 25 per cent of which had been modified or removed two weeks later.

1998 Sweep targeted miracle cures and other misleading health claims, identified over 1400 sites, 25 per cent of which had been modified or removed two weeks later.

1999 Sweep targeted the OECD Guidelines and assessed over 700 sites.

Discussions at the IMSN meeting in Washington USA in October 2000 revealed strong support for another sweep day in 2001, to be coordinated by the ACCC. Accordingly, the ACCC in conjunction with the IMSN is has held the fourth Internet Sweep Day on 14-15 February 2001.