Memorandum on the Establishment and Operation
of the International Marketing Supervision Network

1. This Memorandum was agreed at a meeting held in London on 26-27 October 1992. A list of those organisations represented at this meeting is annexed.

Introduction

2. At the 'Supervision of Marketing' conference in Copenhagen in October 1991 it was agreed in principle that it would be desirable to establish an informal network of organisations from various countries in the consumer field involved primarily with the enforcement of fair trading practices. These would mainly be governmental organisations. The purpose was stated as being to find ways of co-operating on tackling consumer problems connected with cross-border transactions in both goods and services, and to help ensure exchanges of information among the participants for mutual benefit and understanding. These arrangements would be on an informal and voluntary basis, and rely on the high level of goodwill among those involved to make such a network effective. The network would build on the many excellent contacts which already existed among the organisations concerned.

3. At the meeting in London it was agreed to establish such a network. The network will be called the International Marketing Supervision Network. Its objectives and methods of operation are set out in this memorandum.

Objectives of the Network

4. The main common objective of the Network is to encourage practical action to prevent cross-border marketing malpractice. The Network should also encourage exchanges of information which may provide more general knowledge of such practices and the way they are dealt with in the various countries. It is not intended to cover product safety or the prudential regulation of financial institutions. Nor will it normally be directly concerned with specific redress for individual consumers.

5. The Network will

(a) establish and maintain an up-to-date list of contacts in each participating country;

(b) maintain regular contacts, in particular by means of an annual conference, and exchanges of view on matters of topical interest through bilateral and multilateral contacts of all kinds;

(c) mutually exchange information to enable participating organisations to build up a picture of each other's methods and legal and administrative arrangements;

(d) co-operate at an operating level in preventing marketing malpractices as they arise. Co-operation will be on an informal basis. Participants should use their best endeavours to help each other, subject to national law and practice and availability of resources.

Participation in the Network

6. Participation is open to organisations from each member country of the OECD, and from each non-member country with observer status in the OECD. Participation will normally be by a single governmental organisation from each country that is involved with the promotion and enforcement of fair trading practices, though for certain countries other arrangements may be necessary. Participation in the Network is also open, on an observer basis, to the OECD Secretariat, the EFTA Secretariat and the Commission of the European Communities.

7. It may be appropriate in due course to consider extending participation to other countries.

Chairmanship

8. One of the participating organisations will be chosen to act as chairman of the Network. This position will rotate annually. The organisation acting as chairman will also undertake the necessary secretarial duties in connection with the list of contacts and the annual conference.

9. The responsibilities of the chairman organisation will be:

(a) to host an annual conference which will review the working of the Network and discuss subjects of mutual interest to the participants;

and to provide a secretariat

(b) to maintain the list of Network contacts and circulate updated versions from time to time;

(c) to act as a focal point for information regarding the operation of the Network itself.

10. Each conference will appoint a chairman-elect, who will be the host for the following year's conference. The chairman-elect will serve for a year as vice-chairman, during which time he or she should prepare for the conference and collaborate with the chairman in the operation of the Network.

Working Languages

11. No particular languages will be formally designated. It is expected that meetings will normally be conducted in English and French, with simultaneous translation. The list of contacts may indicate individuals' particular language skills in order to facilitate effective communication.

Finance

12. The cost of meetings or conferences will be borne by the host country. Travelling expenses will be borne by each participating organisation for its own people.

Operation of the Network

13. The chairman organisation will provide a central address, telephone and fax number to which all notifications regarding the list of Network contacts should be sent, and will circulate corrections and amendments around the Network on a reasonably regular basis. Participating organisations will use their best endeavours to ensure timely notification of changes to entries on the list.

14. Co-operation, bilateral and multilateral, will be for individual participating organisations to initiate among each other as and when required. It will not be a function of the chairman that such contact should be routed through her or him.

15. Where cases and issues arise for which responsibility does not lie with participating organisations, the latter will do their best to put correspondents into direct contact with other relevant bodies or organisations, perhaps at local level or in the private sector (especially in the case of a self-regulatory body), which can deal with the matter. However, the participating organisation will usually be the initial liaison point. The wide variety of communication, cooperation and exchange of information which already takes place among different bodies in each country with an interest in consumer protection will naturally continue.