Memorandum by the Chartered Institute
of Purchasing Supply (CIPS)
1. What needs to be done to create confidence
and to stimulate e-commerce?
Comments received include:
Certainty is required. Business needs to be
certain of the legal position when procuring goods and services.
For effective business and for the success of Internet business,
clarity and certainty are essential. Clarifying issues such as
jurisdiction (Rome Convention) and VAT treatment are therefore
urgent.
Security is required. Business needs the best
available means of keeping transactions secure and confidential
and being able to rely on other party's identities (ie electronic
signature). Conversely business must not be at risk of any but
the most limited and controlled eavesdropping by, or forced disclosure
to, Government agencies. There is no good reason why those agencies'
rights in this connection should be any wider than for other communication
media.
Flexibility is required. Business-to-business
Internet commerce is developing far faster than any regulator
could possibly keep up with. It is a fundamental tenet of good
government and always has been, that regulation should be kept
to the minimum necessary. That is absolutely paramount in present
circumstances with e-commerce. This is particularly the case since,
although there are some horrendous abuses of the Internet going
on, there is little reason to suppose that any legal regulation
currently on offer is going to stop it. Eventually fraud, hacking
and eavesdropping will be prevented (if at all) by sophisticated
user software. Pornography and e crime will be prevented (if at
all) by sophisticated detection software. None of these abuses
will in practice be prevented by law.
An adequate level of encryption needs to be
in place to ensure full transaction security. There is concern
within the market place by both buyers and sellers that networks
are not secure.
From purchasing/user perspective a lack of standards
from suppliers deploying e procurement systems could hamper e-commerce
developments.
The main thing that will drive confidence for
industry to take up e-commerce is successful real implementations
with proven deliverables. At present very few, if any, companies
are operating comprehensive business applications for e-commerce
in the UK. Also it is suggested that there is still much development
required from some service providers' e-commerce offerings.
One of the key areas that needs addressing is
the payment side—to what extent and when are Customs and
Excise going to approve invoicing/payment over the Internet. This
would deliver huge benefits. Current approval is for Procurement
Cards and EDI only although some companies seem to be approaching
Customs and Excise to approve payment systems and processes.
Another main factor is awareness and understanding
of what e-commerce is and the real practical applications which
it offers.
The EU's legislative timetable is too ambitious.
The format of general info/advice on EU websites
is poor, ie there is usually just a heading and a couple of lines
and then a hypertext link to a draft directive or report which
is difficult to understand for most lay readers.
The EU should publish more user friendly booklets,
videos eg What EU businesses have to comply with in EU E Commerce
Laws—A Practical Guide.
The EU should provide videos, TV programmes
on what the EU is doing for businesses and citizens. Press releases
in the FT and keynote speeches are not sufficient particularly
when a commissioner says "this will happen by the end of
the year" as this alarms businesses.
Education
Fact, removal of hype
Trusted lead bodies taking initiative for new
developments
Proof of security
Line access charges
2. Does the European Commission's draft Action
Plan "eEurope: An Information Society for All" offer
a realistic means of promoting e-commerce in the EU?
Comments received include:
It would if the message was reaching businesses
and citizens but there is doubt that it is or that it will.
It is suggested that the EU organises and funds
seminars/workshops in every major EU City. Government and private
sector gurus should run these. They should be filmed and the videos
available free or for a low charge to all with notes on CD ROM.
Any such initiative/forum would be good news.
However, it needs to offer real benefits to countries/industry
as opposed to being merely a talking debating shop.
3. Will codes of conduct and co-regulation
provide sufficient protection? Is there a case for intervention
by national governments and the EU?
Comments received include:
Each EU State seems to be writing its own e-commerce
law to suit their environment. Most are based on the UN Law: Uncitral.
The EU laws should be based on Uncitral too so that the EU does
not lag behind or lack protection.
There is certainly a need for codes of conduct.
If governments regulate they might constrain the flexibility and
potential offered by e-commerce.
There is probably a need for legislation around
the areas of fraud and an effective mechanism for maintaining
security.
There must be a positive message by governments
that those who abuse the Internet for fraudulent purposes will
be prosecuted. There must also be commitments by governments to
police the network.
Codes of conduct unlikely—Internet providers
should provide regulatory framework.
4. Do the institutions of national governments,
on the one hand, and the European Commission, the Council of Ministers
and the European Parliament, on the other, function with sufficient
flexibility and coherence to promote the EU's objectives in the
field of e-commerce?
Comments received include:
They should let the Information DG work alone
with a check by Council to meet deadlines.
The slow speed of bureaucracies is not adequate
to keep pace with changes in technologies. There must be much
more pragmatic commercial approach to the implementation of changing
network systems.
It will be difficult for a slow, bureaucratic
and inflexible system to keep up with the rate of change and advances
in e-commerce.
No—this should grow organically.
5. Should existing EU institutional structures
be changed, or new ones created, to improve policy development
and co-ordination?
Comments received include:
There should be a special allowance for urgency,
change ie a speed up procedure.
6. How can structural change be bought about
fast enough to accommodate to the growth of e-commerce?
Comments received include:
A mandatory standard for the whole EU on telecomms
eg ISDN lines bandwith.
An effective way that changes can be brought
about quickly is to have small groups with accountability/responsibility
for setting policy with simple hierarchies and structures.
Allow professional bodies and practitioners
to work it out.
29 February 2000
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