PRINCIPLES OF CONDUCT IN ELECTRONIC COMMERCE Introduction This initiative has been presented in the framework of a number of relevant international initiatives of organisations, such as the OECD, the United Nations and the European Commission. Moreover, European Directive 2000/31/EC of 8 June 2000 (OJEC L 178 of 17 July 2000) encourages professional bodies and associations to establish codes of conduct at Community level. As a supplement to legislation, the Orgalime Principles of Conduct in electronic commerce contain provisions concerning the key items designed to increase trust in Electronic Commerce. The generic nature of these Principles makes them suitable for use by a wide range of branches and sectors of Orgalime member Federations. These Principles may be regarded as a kind of checklist for prudent electronic commerce in business to businesses or in business to consumers, and it can also be used by public bodies (in the field of e-procurement for instance). As indicated above, the objective of these Principles is to develop trust, based on the concept that whatever applies off-line must also apply on-line. These Principles are therefore based on practice and are intended to be used by a wide range of sectors and branches of Orgalime. In the formulation of provisions, the following principles are applicable : - Reliability : can the partners rely on the correctness and completeness of the information supplied ? Are the communication and transaction systems reliable ? Can one be sure that electronically contracted obligations will indeed be appropriately honoured ? Reliability of electronic commerce is conditional on participants themselves being responsible for reliable information and communication systems. This principle is further supported by a reliable organisation and protection of any information exchanged. - Transparency :"what we say is what we do". To all participants it must be clear, understandable, logical and, if possible, verifiable with whom they are dealing and about what, subject to what conditions, and what information is relevant or being used for that purpose. Transparency forms the basis of trust. - Confidentiality and privacy : the parties should have a defined degree of certainty that confidential information is indeed treated as such. The right to privacy must be assured. The Principles are conceived as a statement of policy by the companies subscribing to these Principles. No specific means of control of the respect of the Principles is organised and only the legal principles of fair business and commerce and fair competition will be applicable in order to enforce respect of the Principles by the companies that have subscribed to them. However, the attention of the users of these Principles is drawn to the fact that some principles even if they are in the form of unilateral declarations could be legally enforced. These Principles are conceived as being voluntarily subscribed to by each company individually and they cannot be considered as common business practices of a certain branch or sector of activities. January 2001 2 PRINCIPLES OF CONDUCT IN ELECTRONIC COMMERCE 1. Definitions Electronic Commerce: All activities, communications and transactions performed electronically that have a commercial purpose. Customer: Any person or organisation or other addressee with whom or with which Electronic Commerce is conducted. 2. Purpose In our electronic commerce activities, we shall be guided by the following principles. 3. Scope of the Electronic Commerce Principles These Principles apply to all our Electronic Commerce. These Principles apply in their entirety. 4. General principles of Electronic Commerce The aim of these Principles is to promote trust in Electronic Commerce and therefore, we subscribe to the following: - Transparency: it must be clear to the Customer about what, and subject to which conditions, he is dealing. He must have reasonable possibilities of verifying the information. - Reliability: the Customer can rely on the correctness and completeness of the information supplied. The electronically contracted obligations will be honoured. - Confidentiality and privacy: confidential information will be treated as such. The Customer's right to privacy shall be respected. - Respect of the intellectual property rights: intellectual property rights shall be respected. 5. Transparency 5.1. Accurate information We shall do our utmost to ensure that the Customer can have access in good time to all relevant information relating to the content and terms of a given (intended) electronic transaction, having due regard for the method of electronic commerce. 3 In particular, having due regard for the method of electronic commerce and before an agreement has been concluded, we shall at any rate: - make available to the Customer any general terms of business by electronic means unless this cannot reasonably be done, in which case they will be notified to the Customer by other means, - and furthermore, in so far as it is not included in our general terms of business, provide the following information: * Information concerning our company § identity and full address; registration number in the Trade Register and VAT number, if any; § electronic communication address; § any relevant information regarding certification and/or authorisation of services/products; and information regarding the agency from which such qualification has been obtained; § the principal features of the services and/or products offered; * We shall provide pre-contractual information such as § description of the product; § what is included in the price and what is excluded; § sales conditions § the normal period of time by which confirmation or other declaration will be sent to the Customer; § the way in which the Customer can record transaction data. 5.2. Identifiable commercial advertisements Our commercial advertisements made available and/or disseminated by electronic means shall at all times be identifiable as such and as originating from ourselves. If commercial communications originating from third parties should be made available and/or disseminated by electronic means, we shall ensure that such material is identifiable as such, and as originating from a third party. Should recipients of commercial advertisements that we transmit by electronic mail explicitly notify to us or to a third party designated by us that they do not wish, or no longer wish, to receive that material, then we shall respect that wish. In our commercial advertisements we shall indicate the way in which this can be simply and rapidly done. 6. Reliability 6.1. Reliability of information We shall do our utmost to ensure that all substantive information originating from ourselves, including information on our own organisation, joint partnerships, products and services, supplied by means of our electronic commerce activities is correct. 6.2. Recognition of electronic communication When exchanging information electronically, we shall not dismiss the validity, legal effects and enforceability of such communication on account of the mere fact that the information is in electronic form. 4 6.3. Reliability of systems and organisation We shall do our utmost to ensure that our systems of Electronic Commerce are reliable. With regard to transactions entered into with a Customer, we shall indicate whether, and if so which, transaction data will be retained by us for a given period, in order to enable the Customer to request receipt (by electronic means) of such data from us. We shall also indicate whether the Customer will incur costs for the issue of such information. 6.4. Reliability of types of electronic signatures We shall clearly indicate the forms and technologies for electronic signatures that we accept and/or use for handling transactions. 7. Privacy We consider protection of privacy as an essential part of the management of our business. We therefore regard personal data to be confidential information, which shall be used only if: a) it is justified in the context of normal business operation; b) it is known to the Customer concerned; c) the data are relevant for Electronic Commerce; d) they are used in a fair and lawful way; e) the Customer has the right to check and request corrections. 8. Confidentiality Should we receive information from a Customer or a third party of a confidential nature, we shall ensure that adequate and effective measures are taken in order to safeguard that confidentiality. 9. Intellectual property rights We shall respect intellectual property rights and honour our obligations arising therefrom. Orgalime groups the central trade federations of the mechanical, electrical, electronic and metalworking industries in 20 European countries and provides liaison between these organisations in the legal, technical and economic fields. All rights reserved © Editeur responsable : Adrian Harris, Secretary General ORGALIME (Liaison group of the European mechanical, electrical, electronic and metalworking industries) "Diamant Building", 80 Bvd. Reyers, 5th floor, B - 1030 Bruxelles Tel: +32-2-706.82.35 – Fax: +32-2-706.82.50 – e-mail : secretariat@orgalime.org . following principles. 3. Scope of the Electronic Commerce Principles These Principles apply to all our Electronic Commerce. These Principles apply in their entirety. 4. General principles of Electronic. considered as common business practices of a certain branch or sector of activities. January 2001 2 PRINCIPLES OF CONDUCT IN ELECTRONIC COMMERCE 1. Definitions Electronic Commerce: All activities,. PRINCIPLES OF CONDUCT IN ELECTRONIC COMMERCE Introduction This initiative has been presented in the framework of a number of relevant international initiatives of organisations,