[Washington, DC, and London, United Kingdom, April 19, 2005] - The Council of Better Business Bureaus, TrustUK and WebTraderUK today announced a joint dispute resolution agreement that is expected to increase the safety of cross-border online consumer commerce between the United States, Canada and the United Kingdom.
The three organizations have launched a cooperative complaint-handling project that provides an easy-to-use online method for resolving disputes between merchants and consumers in any of the three countries.
"Should a problem arise in a particular transaction, consumers will be assured that there is a swift, simple, no-cost, effective dispute resolution system to assist them and the merchant in resolving the dispute," said Ken Hunter, president and CEO of the Council of Better Business Bureaus (CBBB).
This is the first transatlantic agreement to provide such a benefit for consumers and businesses engaging in cross border commerce between the three countries. The BBB system has a similar dispute resolution agreement in place with the Next Generation Electronic Commerce Promotion Council of Japan (ECOM) which handles e-commerce disputes involving United States and Japanese consumers and businesses.
These cross border dispute resolution arrangements are part of a larger effort to promote global cooperation among online trustmark programs, known as the Global Trustmark Alliance, which has received financial support from the US Department of Commerce's (DOC) Market Development Cooperator Program. The DOC award to BBBOnLine is intended to promote the growth of e-exports by providing consumers enhanced trust and confidence in the electronic marketplace.
Under the agreement announced today, Better Business Bureaus (BBBs) will handle any complaints regarding marketplace transactions or advertising that may arise, either online or offline, between a consumer in the United Kingdom and a merchant, located in the United States or Canada. WebTraderUK will handle complaints from U.S. or Canadian shoppers who report problems regarding commercial transactions with merchants based in the U.K.
"Our organizations have agreed to use the same complaint eligibility requirements, procedures and rules for attempting the resolution of the referred complaints which would have been used had the consumer resided in the trustmark issuing organization's country , and will utilize a common complaint format for referring complaints to the merchants. Our goal is to make the process as simple and effective as possible, for both the consumer and the merchant," said Robert Dirskovski, Board Secretary of TrustUK.
The dispute resolution process will be voluntary and non-binding for consumers who choose to submit their complaint. Retailers that are members of the BBBOnLine program and merchants that belong to a TrustUK member organization have committed to participate in a dispute resolution process as a condition of their continued display of the online "trustmark." Complaints against merchants that are not affiliated with either organization will also be accepted and the respective organization will encourage the voluntary cooperation and compliance of the business in addressing the complaint.
BBBs have offered dispute resolution services for decades and currently process more than 985,000 complaints each year; approximately 62 percent are filed online. If a business fails to respond to a customer complaint filed with the BBB, that fact is noted in the BBB's report on that company to advise other consumers who are thinking of doing business with that merchant.
The organizations have created a special, co-branded Web site at www.crossborderadr.org to assist consumers filing an online complaint and to also help them identify merchants in the U.S., Canada and the U.K. that adhere to specific business practices overseen through BBBOnLine or TrustUK.
"One of the best ways for shoppers to avoid problem transactions is to purchase from reputable merchants. That's easier said than done when engaging in cross-border electronic commerce. The Better Business Bureau, TrustUK and WebTraderUK are providing a means for consumers to identify merchants in other countries that have committed to a meaningful code of business practices, including dispute resolution procedures," said Doug Simpson, president of the Canadian Council of Better Business Bureaus.
Merchants that have committed to a Code and dispute resolution procedures supported by either BBBOnLine or a TrustUK certified member can display the organization's trustmark or "label" on their Web site. Currently, more than 20,000 merchant Web sites in the U.S. and Canada have qualified to display the BBBOnLine Reliability seal; another 4,500 merchants are certified to display a label issued by one of TrustUK's members.
"We hope that other qualified merchants in our three countries will strongly consider subscribing to one of the appropriate Codes. Displaying such a trustmark on your Web site can heighten consumer trust and confidence, particularly for shoppers who are eager to engage in transatlantic e-commerce," Hunter said.
Michael Jones is a member of the CBBB Board's BBBOnLine Advisory Committee and Chief Executive Officer of Just Strings.Com, a New England-based company. "There is nothing like a trusted third-party when it comes to providing a safety net for online shoppers and businesses involved in electronic commerce," said Mr. Jones. "Since 1998, the BBBOnLine Reliability program has been an essential element of JustStrings.com's commitment to customer service. We regularly receive many positive, unsolicited comments from first-time customers about our participation in the program. Having significant markets in the United Kingdom and Canada, we're very excited about the joint dispute resolution agreements with TrustUK and WebTraderUK. The value of the BBBOnLine Reliability Seal on our Web site grows with each cross-border agreement."
Various government entities have expressed their support for providing businesses and consumers with tools to boost the safety of cross-border e-commerce.
"The U.S. Federal Trade Commission commends these important steps to help consumers resolve cross-border complaints successfully," said Lydia B. Parnes, Director of the FTC's Bureau of Consumer Protection. "This and other efforts, like econsumer.gov's new International Alternative Dispute Resolution Directory, are sure to play an important role in increasing consumer confidence and stimulating commerce in the global marketplace."
"It is encouraging to see business organizations such as the Better Business Bureau and Trust UK taking the initiative to address cross-border consumer problems involving Canadian, U.S. and U.K. businesses and consumers," said Michael Jenkin, Director General, Office of Consumer Affairs, Industry Canada. "This type of initiative is a helpful supplement to the protections offered by the Canadian, U.S. and U.K. governments."
The U.S. Department of Commerce's Assistant Secretary for Manufacturing and Services, Al Frink, praised the work BBB has done raising consumer confidence in e-commerce. "A lack of trust in commercial Web sites is a major impediment to the growth of e-commerce, especially for small and medium-sized companies that may not have a recognizable brand beyond their home regions. Promoting alternative dispute resolution practices should improve consumer confidence and increase e-commerce."
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About the Better Business Bureau:
The Better Business Bureau (BBB) system (www.bbb.org) is dedicated to fostering fair and honest relationships between businesses and consumers, instilling consumer confidence and contributing to an ethical business environment, in both the traditional and online marketplaces. The first BBB was founded in 1912, and the network of BBBs and the Council of Better Business Bureaus have grown to become the most recognized advocate for promoting ethical business and advertising practices in North America, providing more than 59 million instances of service to consumers and businesses in 2004. The BBB's Internet self-regulation program, BBBOnLine (www.bbbonline.org), helps consumers identify online merchants that meet BBB standards through its Reliability and Privacy "trustmark" programs and the BBB Code of Online Business Practices. BBBs are supported by 375,000 business members throughout North America.
In Canada, the first BBB was founded in 1935, and the Canadian Council of Better Business Bureaus was established in 1966 as the coordinating body for the network of 14 Better Business Bureaus.
About TrustUK and WebtraderUK:
TrustUK (www.trustuk.org.uk) is a non-profit organization run by industry and designed to enable consumers to buy online with confidence. The Board of Directors is made up of consumer representatives and the heads of some of industry's largest trade associations and organizations committed to ensuring the UK delivers the highest commercial standards of e-commerce. A separate, independent Approvals Committee decides whether a code of practice meets the minimum standards set in TrustUK's Accreditation Criteria. The Approvals Committee also considers any appeals from consumers who feel a code owner has not handled their complaint in the proper, approved procedure.
WebTraderUK (www.webtraderuk.org.uk), which has agreed to provide dispute resolution services under the cross-border agreement, was established by the Direct Marketing Association as an accreditation program, and it is endorsed by TrustUK . The Direct Marketing Association (www.dma.org.uk) is the leading voice for the direct marketing industry in the United Kingdom. The DMA is dedicated to the protection and development of the UK direct marketing industry. The DMA has called upon the secretariat of the National Newspapers' Mail Order Protection Scheme (MOPS) (www.mops.org.uk) to assist in the administration of WebTraderUK. MOPS is the organization which accredits advertisers who place direct payment advertisements in national newspapers, so WebTraderUK benefits from the unique experience that staff has gained in over 25 years of protecting newspaper readers. Both the DMA and MOPS are non-profit organizations established to develop consumer confidence in distance selling. Compliance with the WebTraderUK code is monitored by the Direct Marketing Authority. In addition, the Chartered Institute of Arbitrators (www.arbitrators.org) provides the service for WebTraderUK.