Online businesses asked to self-regulate

e businessSelf-regulate and act promptly on complaints of customers.

This is the Department Trade and Industry’s advice to Internet-based entrepreneurs so that government need not step in to impose restrictions that might curtail the growth of the e-commerce sector.

At the Digital Commerce (DCOM) Summit held recently, Trade and Industry Secretary Gregory Domingo told participants that the government encourages online entrepreneurs to police their own ranks.  “We urge you to be proactive in resolving consumer complaints, ideally within 48 hours upon receiving them and screen complaints that should go to government.”

The government is for implementing rules that are not restrictive in order to promote and develop online entrepreneurs, Secretary Domingo explained, while at the same time conscious of its role as protector of the welfare of consumers.

“We must implement rules that reduce or eliminate illegal or fraudulent activities in order to protect consumers. We must balance both and try to create a vibrant but trusted e-commerce industry,” Domingo said.

The secretary cited the government’s partnership with the private sector in pushing the development of four pillars that support e-commerce, namely, information security, data privacy, reliable online payments and consumer complaints handling.

On information security, the DTI is promoting the use of digital signatures to address concerns over the authenticity, privacy, authority, integrity and non-repudiation of electronic transactions.

It issued administrative orders that have since served as implementing rules and guidelines for Executive Order 810, which institutionalizes use of digital signatures in the government offices.

Domingo noted the DTI’s effort to popularize various forms of electronic payment for government services. Meanwhile, it has issued Administrative Order 8 or the Data Protection Guidelines for the Private Sector in 2006 or prior to the passage of the Data aPrivacy Act last year.

Aside from those initiatives, the DTI is promoting the use of trust marks for online businesses. Trust marks are similar to the seal of good housekeeping, which aims to increase the level of confidence of consumers when doing business with e-commerce sites.

Jack Madrid, president of DCOM and country manager of Multiply Phils., one of the country’s leading online shopping sites, said his group is collaborating with the DTI in self-regulating the industry by establishing a seal, which will signify compliance of its members with the code of ethics and regulations that will be approved by DCOM and the DTI.
 Adapted from “Self-regulate, act on customer plaints” by Jennifer Ng, Business Mirror, March 13, 2012.