THE WHITE HOUSE

Office of the Press Secretary

PRESIDENT CLINTON ANNOUNCES NEW ON-LINE CONSUMER PROTECTION TIPS AND

                    ENCOURAGES ON-LINE PHILANTHROPY
                           FOR HOLIDAY SEASON

With electronic commerce expected to reach record levels during the holiday shopping season, in his weekly radio address President Clinton will unveil "tips for online shoppers," and will announce a series of private sector initiatives to help protect and educate the online consumer. This holiday season, about 4 million American families will buy gifts online for the first time. President Clinton will also urge Americans to use the Internet to make this holiday season a record season for giving as well as shopping. The President will commend organizations and Internet companies that are making it easier for Americans to use the Internet to find volunteer opportunities, make on-line donations, gather information on non-profit organizations, or give toys to underprivileged children.

The Growth of E-Commerce

In his weekly radio address, President Clinton will discuss the remarkable rise of the Internet as a destination for holiday shopping - and how the Clinton Administration is working to ensure that online commerce will live up to its enormous promise. This holiday season, shoppers will spend as much as $9.5 billion purchasing gifts and products on-line [Harris Interactive], and as many as 1.3 billion people will visit on-line shopping sites. [Industry Standard] The percentage of the online population planning to purchase at least one product over the Internet has increased from 8 percent last year to 32 percent this year. [Harris Interactive] And, e-commerce sales during the holidays are expected to double, and possibly triple, between 1998 and 1999. [Industry Standard] Overall, e-commerce could exceed $1.4 trillion by the year 2003. [Forrester Research]

Consumer education and protection will accelerate the growth of electronic commerce by increasing consumer confidence in the online marketplace. The explosion of the Internet and electronic commerce has also strengthened the U.S. economy, with information technology industries accounting for 1/3 of U.S. economic growth in the last three years and generating high-wage jobs that pay almost 80 percent more than the private sector average.

Tips for Online Shoppers

In his weekly radio address, the President will announce new Federal Trade Commission consumer protection tips to help first-time on-line shoppers. These tips encourage consumers to:

• Know Your Merchant It's a good practice to be familiar with the name or reputation of any company you're dealing with. You can often find helpful information about online companies from news sources, directories, and rating services. A web site maintained by the Federal Trade Commission (www.consumer.gov) provides many buyers' guides, lists of tips, and links to helpful resources.
• Protect Your Privacy Know what information the merchant is collecting about you, how it will be used and if they share it with or sell it to others. You can do this by checking the web site to make sure there is a privacy policy posted, and that you're comfortable with the way your personal information is treated under that policy. Look for seals from privacy enforcement organizations like TRUSTe, BBBOnLine or WebTrust. Be cautious if you're asked to supply personal information not needed to make a purchase, such as your Social Security number or personal bank account information.
• Get the Details. Check for shipping and expected delivery dates, shipping and handling fees, warranties, return policies and other important information. Look for an e-mail address to write to or a phone number to call if you have a question, a problem or need help.
• Use a Credit Card and Safeguard Your Password. It's a good practice to pay with credit cards, because your liability for an unauthorized charge on your credit card bill is limited to $50 under federal law and under your credit card agreement. When using a credit card online, make sure there is an unbroken key or padlock usually located in the corner of the web page or a policy that indicates use of strong security technology such as SSL. This indicates that your credit card data is transmitted securely. Make sure to keep your passwords secure, and don't share them with other people.
• Keep Good Records. Make sure to print or save electronically any records related to your online transactions. This will help you keep track of shipping dates, shipping and handling fees, and other details of your transactions.

New Private-Sector Actions to Protect Consumers

President Clinton and Vice President Gore have challenged the private sector to protect and educate consumers in preparation for "e-shopping." Below are just a few of the commitments that the private sector has made:

• NetCoalition, a coalition of nine major Internet companies (Yahoo!, theglobe.com, Lycos, Inktomi, Excite@Home, Ebay, DoubleClick, America Online, and Amazon.com) will be answering questions about online privacy using banner ads, links, and e-mail confirmations.
• TRUSTe, one of the nonprofit Internet privacy seal program, is issuing a video news release that will give consumers guidance on how to best protect themselves while shopping online -- covering issues such as privacy statements and children's privacy.
• American Express has promised to take back any item purchased on-line, up to $300 per item, from now until December 31st with an American Express card.
• MasterCard has teamed up with the National Consumer League to launch a new consumer education initiative -- "BE E-Wise."

E-philanthropy

During this holiday season, President Clinton also challenged Americans to use the Internet to help those in need and give something back to our communities. Today, signing up to contribute time or money in your community is as easy as turning on your computer. Already, foundations and Internet companies have developed Web sites that are allowing Americans to:

• Find a volunteer opportunity in their community that matches their skills and interests.
• Donate toys to underprivileged children.
• Donate funds to a non-profit organization with confidence by downloading information on the effectiveness and performance of non-profit organizations.
• Donate a percentage of their online purchases to charities.

Examples of these sites include http://www.helping.org, http://www.guidestar.org, and http://www.volunteermatch.org.

A Strong Record of Promoting Electronic Commerce and Protecting Consumers

President Clinton and Vice President Gore have worked hard to promote electronic commerce and build consumer confidence in the online marketplace. They have supported private sector leadership and industry self-regulation whenever possible, but have fought for new laws in some areas such as children's privacy. In the upcoming weeks, the Vice President will unveil a report detailing the Administration's progress in promoting e-commerce, and new steps to help unleash its full potential.

Administration accomplishments include:

• Encouraging the private sector to protect individual privacy through self-regulation, third-party audits and enforcement mechanisms. In just over a year, the number of commercial Web sites with privacy policies has jumped from 15% to 66%.
• Fighting for the Children's Online Privacy Protection Act, which requires commercial Web sites to get a parent's permission before collecting personal information.
• Ensuring effective consumer protection online through industry self-regulation, and the prosecution of fraudulent practices under existing consumer protection laws.
• Working to close the "digital divide" by tripling support for Community Technology Centers in low-income and rural neighborhoods, and ensuring that all students have access to educational technology. The number of classrooms connected to the Internet has increased from 4 percent in 1994 to 51 percent in 1998.

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