FEDERAL%20PUBLIC%20PROSECUTION%20OFFICE%20CONSUMER%20DIVISION%20(PROFECO)%20MEXICO

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FEDERAL PUBLIC PROSECUTION OFFICECONSUMER
DIVISION (PROFECO) MEXICO
Public FTAA.ecom/inf/119 February 13,
2002 Original Spanish Translation FTAA
Secretariat

• PROFECO IN THE CONTEXT OF ELECTRONIC COMMERCE
• FTAA XII Meeting of Experts in Electronic
  Commerce
• Panama,
  February 2002

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Background

• Feb. 5, 1976 Federal Consumer Protection Law
  (LFPC) enters into force.
• Consumers given rights specialized agency set
  up to advocate justice for consumers.
• PROFECO agency entrusted with promoting and
  protecting consumer interests.

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PROFECO over the years

• Consumer protection, consumer advice and
  representation conciliation and arbitration.
• Original LFPC developed over time with amendments
  made in 1982, 1985, 1988, 1988 and 1991.
• New LFPC published on Dec. 24, 1992.

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PROFECO over the years

• New LFPC

• Full service (advice and consultancy)
• Receipt, processing and conciliation (complaints
  and claims)
• Issuance of administrative rulings
• Registry of adhesion contracts
• Technical juridical consumer protection
• Verification and monitoring Official Mexican
  Standards (NOMs in Spanish), weights and
  measures manuals and guarantees).

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PROFECO over the years

• Powers to order corrective advertising
• consumer information and advice (media print,
  radio and TV)
• Contribute to raising consumer awareness and
  improving their buying habits.

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PROFECO Mission

• Consumption

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PROFECO Mission

• Promote/protect consumer rights through global
  quality services.
• Consumer relations fairness and legal
  protection
• Give consumers the legal, technical tools and
  information to settle disputes with suppliers on
  an equal footing.
• Conciliation agreement/confrontation.
• Advice, information, dissemination, research and
  education foster consumer culture to prepare
  consumers for access, under improved conditions,
  to the goods and services market.

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PROFECO in the new global context
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PROFECO in the new global context

• Globalization and technological innovations.
• New (overall) economic environment and the
  environment for (individual) consumer
  transactions.
• Ministry of the Economy and PROFECO
• Enhance protection and defense of consumer rights
  
• Foster new consumer culture in pace with consumer
  market developments.
• Ministry of Economy and PROFECO
  e-commerce-related activities (national and
  international).

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National Action

• LEGAL REFORMS
•  
•  

• Legal reforms (electronic commerce) in
• conformity with OECD Recommendations.
• Reform published in the Official
• Gazette on May 29, 2000
• Entry into force June 8, 2000
• Amendments to 4 statutes

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National Action
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National Action

• Federal Code of Civil Procedure validation of
  consent expressed by electronic, optical or any
  other technical means (Internet, Intranet, fax or
  future technological advances). Offer and
  acceptance made via these means do not require
  prior agreement or stipulation between
  contracting parties. The Law allows for contracts
  agreed to via these means.

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National Action

• Federal Code of Civil Procedure Evidence
  information generated and transferred by optical
  and electronic media or any other technological
  means. Probative value will be determined on
  the basis of the security or reliability of the
  method used to transfer such information.

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National Action

• Commercial Code contracts and agreements reached
  via this means binding from the moment
  acceptance of the offer is received. Expressly
  stipulates that electronic means may be used for
  all commercial transactions. All information
  generated, sent, received, stored or transferred
  through these means is referred to generically as
  data message.

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National Action

• LFPC
• All electronic transactions between suppliers and
  consumers must comply with the principles of the
  Law as amended in accordance with OECD
  Guidelines.
• A special chapter was included on consumer rights
  in electronic commerce.

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International Action

• Lines of action

OECD Guidelines
IMSN Econsumer
OECD Workshop
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International Action

• OECD December 9, 1999
• Guidelines for Consumer Protection in the Context
  of Electronic Commerce
• Protection for online purchases on par with
  protection offered for purchases made in stores
  or through catalogues.
• Determine basic features of online consumer
  protection.
• Eliminate uncertainties (for consumers and
  companies) when making online purchases/sales and
  develop protection mechanisms, without raising
  barriers to trade.
•  

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PROFECO OECD

• Guidelines reflect already existing legal
  protection measures for consumers in traditional
  commerce.
• Enhance fair business, advertising and marketing
  practices
• Promote clear information on the identity of
  online businesses, goods and services offered and
  the terms and conditions of transactions
• Transparent procedures to confirm transactions

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PROFECO OECD

• Establish safe payment mechanisms
• Promote fair, timely and affordable dispute
  resolution and redress or compensation
• Confidence building
• Promote consumer and business education.

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PROFECO OCDE

• Mexico is a a full member of the OECD.
• Mexico must observe the recommendations set forth
  in the Guidelines.
• PROFECO translated the Guidelines into Spanish
  and assisted in disseminating this information
  throughout Latin America.

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PROFECO IMSN

• IMSN (International Marketing Supervision
  Network) system of organizations, includes
  consumer protection authorities from 29 countries
  EU and OECD representatives.
• 1994 Mexico became a member.
• IMSN linked to OECD. Mexico only official
  Latin American member and one of two
  Spanish-speaking countries.
• Establishment of the eConsumer.gov project

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eConsumer.gov

• April 24, 2001
• Challenges posed by international fraud on the
  Internet.
• Enhance consumer protection and confidence in
  electronic commerce.
• 13 countries.
• econsumer.gov

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eConsumer.gov

• Complaints concerning cross-border electronic
  commerce.
• Public website in several languages.
• Government website restricted access and
  password protected.

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eConsumer.gov

• Characteristics of the public website
  information, contacts with authorities,
  electronic complaint form, privacy policies.
• Sentinel Consumer Network database with
  complaints and information on investigations.
• FTC
• Complaints shared on the government website with
  participating authorities.

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eConsumer.gov

• PROFECO is participating in the project as a full
  member
• Contributing tips for secure purchasing
• Translating the project into Spanish
• Consumer magazine
• PROFECO Internet page

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OECD Workshop

• March, 2001 Berlin, Germany.
• Objective assess progress in the implementation
  of the Guidelines.
• From translation to codes of conduct, educational
  material, modifications to the legal frameworks.
• Information policies, privacy, safety,
  compensation, transparency.
• Protection in OECD and beyond.

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OECD Guidelines

• Guidelines positive impact on national policies.

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Some facts

• Digital Divide (DD) there is a lack of balanced
  access to new technologies for countries, regions
  and individuals.
• DD within Mexico and between Mexico and the
  world
• Limited access 10 of homes w/ computers
• Social strata schooling, income
• Mexico of Internet users explosive growth
  number of installed PCs shows constant increase .

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Some facts

• 1995 26/1000 persons
• 2001 65/1000 persons
• USA 500/1000 persons
• Canada 260/1000 persons
• Boom in electronic commerce (B2C and B2B) over
  100 increase.

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Challenges

• Digital networks and information technologies
  require consensus on consumer protection.
• Achieve international consensus on public
  policies so as not to jeopardize growth of
  electronic commerce.

Guidelines
General Principles
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. Challenges

• Innovative measures education for consumers, the
  business community and governments on protection
  for e-commerce.

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Challenges

• National mechanisms for handling complaints
  effectiveness good practices and ADR.
• Sweep days monitoring.
• Public-policy makers models that build
  confidence and lower access costs.

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Challenges

• Speed up penetration, telecommunications and
  computer coverage, and reduce inequalities in
  geographic and social distribution
• Facilitate market access

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Challenges

• E-Mexico Project
• Information revolution
• National
• Close the gap
• Multi-sectoral project
• Mission facilitate access to basic social
  services (commercial transactions) via electronic
  media.

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Challenges

• E-economy program Development and
  competitiveness of productive and commercial
  activities
• Develop the digital economy and promote digital
  literacy of consumers.

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Challenges

• Electronic commerce is complex

Chain of Process
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