Discussion Paper

Appendix B: International Enforcement and Cooperation

ICPEN

The International Consumer Protection and Enforcement Network (ICPEN) is made up of the consumer protection law enforcement authorities of 31 countries, most of which are members of the OECD. The ACCC is a member of ICPEN. Its mandate is to generate and share information and intelligence on cross-border commercial activities that affect consumer interests, and to take cooperative action to combat cross-border breaches of consumer protection laws. The main objective of ICPEN is to facilitate practical action to prevent and provide redress for deceptive cross border marketing practices.

ICPEN conducts annual Internet surveys or ‘sweeps’ to target fraudulent and deceptive conduct emerging on the Internet. Sweeps enable law enforcement agencies to use the Internet to help ensure that unscrupulous marketers do not destroy the credibility and viability of this medium for commerce.

Past sweeps have involved wide participation by member organisations. Participants ‘surf’ the Internet to identify sites that exhibit potentially deceptive or fraudulent practices. The first few sweeps focused on sending a clear message that online activities were being monitored, and resulted in about 25 per cent of suspicious websites being shut down. More recent sweeps have resulted in a range of activities by network members, such as litigation, the obtaining of consent orders and enforceable undertakings, out-of-court settlements, the issuing of warnings and education initiatives.

Econsumer.gov

In April 2001, ICPEN unveiled econsumer.gov, an initiative designed to gather and share information on cross-border e-commerce complaints. It is a response to the challenges posed by multinational Internet consumer fraud.

Econsumer.gov has two components: a multilingual public website, and a government, password-protected website. The public website (www.econsumer.gov) provides general information about consumer protection in participating ICPEN countries, contact information for consumer protection authorities in those countries, tips for safe online shopping and an online complaint form. All information is available in English, French, German, Korean and Spanish.

Using the existing Consumer Sentinel network (a database of consumer complaint data and other investigative information operated by the US FTC), incoming complaints are shared through the government website with participating consumer protection law enforcement agencies.

OECD Cross-Border Fraud Guidelines

In June 2003, OECD members agreed to a framework for co-operation in protecting consumers against cross-border fraud and deceptive practices, particularly on the Internet. The new OECD Guidelines for Protecting Consumers from Fraudulent and Deceptive Commercial Practices Across Borders⁵⁴ build on the OECD Guidelines for Consumer Protection in the Context of Electronic Commerce and on a number of bilateral arrangements already in place between OECD member countries.

The cross-border fraud guidelines are designed to assist governments to work together more effectively in preventing and combating cross-border consumer problems. They set out broad principles for international co-operation and specific provisions covering notification, information sharing, and assistance with investigations. The guidelines also cover issues concerning the authority of consumer protection enforcement agencies, invite private-sector co-operation, and set the stage for future work on the issue of consumer redress.

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⁵⁴ The guidelines are available on the OECD’s website at www.oecd.org/sti/crossborderfraud.

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