Introduction

The Internet Business Standards Association’s Code of Conduct is both the ideal set of practices we believe every online business should practice and the standard by which we hold GOLDEN SEAL bearers accountable.

1) These codes are voluntary in as much as the Internet Business Standards Association is a non-governmental organization in which membership is voluntary; it is recognized that this code does not have the power of law.

2) However, adherence to this code is required of all members of the Internet Business Standards Associations GOLDEN SEAL program.

3) Members of the GOLDEN SEAL program must act in accordance with the entire code of conduct regardless of how many business activities that the company engages in online. This is responsibility of membership.

4) Only participants in good standing in the IBSA GOLDEN SEAL program may display the GOLDEN SEAL on the websites.

5) A “member in good standing” is deemed to be a member that has passes all site inspections and has no outstanding issues over relevant business practices, for example, arbitration results it will not honor. The decision to revoke a member’s good standing is made by the ISDA executive committee.

6) In addition to the Code of Conduct, the IBSA insists that GOLDEN SEAL bearers be in accord with all relevant laws of the jurisdiction in which they are based or registered.

7) Due to the rapid changes to both e-commerce practices and regulations, this Code will be periodically updated.

All specific IBSA Code of Conduct regulations have been derived from these central tenets.

On occasion, elements of different Tenets will overlap. This was done in interests of clarity. If the same guideline appears twice, consider them equally valid in both contexts.

1) GOLDEN SEAL bearers must never knowingly communicate dishonest and inaccurate information.

2) GOLDEN SEAL bearers are responsible for the results of dishonest and inaccurate communications.

3) GOLDEN SEAL bearers are entirely responsible for ensuring the integrity of information about their own companies, making certain that it is up to date and as accurate as possible at all times. Willful ignorance is not a legitimate excuse.

4) GOLDEN SEAL bearers are also responsible for checking the accuracy of information they pass on that is not about the businesses but may affect a customer’s actions nonetheless.

The IBSA recognizes that online businesses are marketing products and services amongst thousands of specific target markets around the world. However, the IBSA also recognizes that some businesses have employed deliberately confusing or misleading web pages that while, technical accurate, confuse or obscure important information for customers, potential customers, or others.

1) Information must be communicated or displayed in an a manner easy to understand and which will not be confused by the design of the presentation or communication.

2) Information cannot be displayed in a manner that, while technically accurate, is likely to confuse or mislead a customer.

3) Presentation and communication may reflect communication and presentation norms of an intended target audience even if that is simultaneously confusing to others. However, this must be appropriate for the product or service advertised.

4) The rules for clarity include all aspects of information communication, not simply website design. E-mail advertisements, banner ads, order form layout, and all other relevant pieces of communication must meet the standard for clarity.

1) GOLDEN SEAL bearers are obligated to disclose to any interested parties all relevant information about the company itself, its products or services advertised or available for purchase online, and the transaction itself.

2) The tenet of Disclosure applies equally to information that the GOLDEN SEAL bearer states publicly, such on a website or in an advertisement, as to information requests by any interested party.

3) If a GOLDEN SEAL bearer is unable to disclose any relevant information for whatever reason, it must inform customers, potential customers, and other interested parties that this is case and why.

4) A GOLDEN SEAL bearer is not allowed to deceive anyone as whether information can or cannot be disclosed, and if it cannot be disclosed, the reason it cannot be disclosed.

5) IT IS THE CUSTOMER’S RIGHT AND THE BUSINNES’S RESPONSIBILITY to inform the customer IN A CLEAR AND APPROPRIATE MANNER about all transaction details from the beginning to the end of the transaction. This includes:

a. ALL information on prices, including all applicable taxes, all delivery changes, any additional charges of any kind.

b. ALL information of if and how a customer may opt out of accepting any of the charges (e.g. if they can picked up the product itself, or choose another delivery service if being charged for delivery) or services involved with any of the charges.

c. ALL information on shipping and delivery times and possible complications. If the company knows or suspects they will or may be delays, the customer MUST be informed at the time of purchase. If information on delays in service or delivery is learnt at a later time, it must be communicated as soon as possible in a reasonable manner – i.e. by e-mail or telephone or fax.

d. ALL information on warrantees, guarantees, etc.

e. ALL information on how to obtain a refund, full or partial, how to exchange or return the product or service purchased, and what steps or fees might be necessary to accomplish any of these goals.

Customers’ personal information must be treated with proper care. The GOLDEN SEAL bearer must adopt business practices that provide an appropriate standard of care.

1) The company’s Privacy Policy MUST be posted on a GOLDEN SEAL bearer’s website regardless of whether the site asks for any personal information or not.

2) The Privacy Policy must be written in a clear and easily understood manner. (See Tenet II on information clarity.)

3) The Privacy Policy must be easy to find and clearly presented before a visitor to a GOLDEN SEAL site is asked for any personal information.

4) GOLDEN SEAL bearer’s MUST adhere to their privacy policy. Exceptions are only possible for exceptional circumstances such as warranted by applicable law or as are necessary to protect customers, potential customers, or other interested parties, from likely harm.

5) If there are exceptions required by applicable law, these exceptions must be communicated clearly and completely in the Privacy Policy.

6) The Privacy Policy must provide notice as to what personal information the GOLDEN SEAL bearer collects, uses, or discloses, or allows others to collect, use or disclose.

7) All choices that site-visitors may make regarding the Privacy Policy must be stated clearly and in appropriate sections of the site and the Privacy Policy.

8) The Privacy Policy must state what security measures are being currently used to protect personal information. The information on security measures must be up to date at all times.

9) There must be a clear and easy way for clients to opt out of receiving any more advertising e-mails. The client’s choice to opt out of receiving any more advertising e-mails must be respected and implemented immediately.

10) Any personal information obtain from individuals through online business practices must be protect by appropriate levels of security and encryption.

11) A GOLDEN SEAL bearer is responsible for the appropriate security arrangements, or lack thereof, by third parties it has involved in the collection, storage, use, analysis, or transmission of any personal data.

12) Sensitive data (i.e. social security numbers, credit card numbers) must be protected by all means reasonable. If protection of such data cannot be reasonably ensured, customers, potential customers, and other interested parties MUST BE notified before they are required to submit such information.

1) Customers, potential customers, and other interested parties/visitors to an online site must be treated with respect.

2) Customer requests for information must be treated in a respectful and timely manner. They must honored whenever possible. If a question cannot be answered, this should be made clear, along with the reason why the question cannot be answered.

3) At no times can a customer, potential customer, or anyone else be subject to rude or insulting behavior or language in any communication, any advertising, or any website.

4) If a customer is dissatisfied with some element of a product or service, effective action to remedy the complaint must be taken as quickly as possible. Such actions must be communicated to the customer so they aware of what a company is doing.

5) If the business finds it impossible to satisfy the customer’s complaint, or believes the complaint to be unjustified, it must communicate this information to the customer AS SOON AS POSSIBLE in a POLITE and RESPECTFUL manner.

6) GOLDEN SEAL Bearers must include easy-to-understand instructions informing customers exactly what dispute resolution mechanisms are at a customer’s disposal.

7) Said information on dispute resolution mechanisms must be accessible before the customer completes a purchase or an agreement for service(s).

8) Dispute resolution mechanisms so posted MUST be honored.

9) Dispute resolution mechanisms must be clear, easy to use, and not overly onerous on the dissatisfied customer. If there are any fees involved, they must not be large enough to be a reasonable impediment to the process.

10) If the dispute resolution mechanisms include arbitration or intervention by a third party (e.g. the IBSA Complaints Arbitration Committee), this information must be posted, along with easy to understand and use contact instructions.

11) If a business chooses third-party intervention or arbitration, it must agree to abide by the decision of that third party, even as dissatisfied customers need not make any similar agreement. Thus, it is binding on businesses, but does not rule out any additional legal recourse by a client.

Please note that the Internet Business Standards Association takes its guidelines on the Treatment of Children very seriously, and expects those GOLDEN SEAL bearers involved in selling to children, or involved in selling/offering products or services expressly forbidden to minors, to meet a very high standard of conduct.

1) Online business activities targeted at children under 14 must be aware of the ongoing cognitive development of young children and must take special care to protect them.

Businesses targeted clients under the age of 14 should review and adhere to standards such as the CARU Self Regulatory Guidelines for Children’s Advertising.

2) Business selling products to children under 14 must adhere to all “parental permission first” requirements that may be applicable.

3) Businesses involving services meant only for those of majority age must be extremely clear that this is the case and that minors are not allowed to use these services.

4) It is the full responsible of businesses expressly targeting children or selling and/or offering services expressly forbidden to minors, to stay current with all changes in law and common self regulatory codes in effect where they are located AND where they primarily do business. In the case this involves multiple jurisdictions, companies should adhere to the most stringent standard adopted on a large school (i.e. a national level.)

While conflicts amongst different self-regulatory codes and laws are possible, in the case of a complaint, the burden will rest on the business to prove that the standards it chose to uphold were reasonable in the situation. This will be confirmed or denies by third party experts in the matter.