The concept of self-regulation requires the formulation of a set of rules to which those being regulated adhere. Such codes already exist in many of the sectors now engaging in electronic commerce and some of these can readily be adapted or extended to make them relevant to on-line transactions. Other organisations are attempting to create new codes There are suggestions that various "umbrella" codes should be created in an effort to bring consistency to this burgeoning field, but because of the complexity of any large organisation’s activities and relationships it may already be too late to achieve this.

The advantages of codes to the trader are that they stand in place of additional law, they can be tailored to the needs of a particular sector, competitors are subject to the same costs and liabilities, and publicising the fact of adherence to them is good for business.

The advantages of codes to the consumer are that they provide a measure of certainty in a confusing area, they identify individual traders as meeting certain standards and - when backed by self-regulation with enforcement procedures - they are a means through which redress can be obtained if a transaction goes badly wrong.

Codes for electronic commerce should

• be based on and linked into the equivalent codes for physical commerce (e.g. the UK Codes of Advertising and Promotion);
• make it clear what standards (including any specific legislation) are being complied with;
• require controls safeguarding the security and privacy of all information provided by users (including credit card and other payment authorisation details), unless they give express permission for other uses;
• include accessible, effective and independent routes for the resolution of disputes, which are, as far as possible, also capable of operating on-line.

They should also require the display, before contract formation, of clear and concise information covering:

• identification of the supplier - legal name, address, country/state of establishment, main physical business address, e-mail address, telephone and fax numbers, hours of business with reference to time zones;
• any registration/ licensing information (e.g. VAT number) required for physical trading;
• the goods and services to be delivered (including itemised descriptions in sufficient detail);
• price (including delivery charges and applicable taxes, or "free on board");
• delivery arrangements (including expected time scale);
• payment arrangements;
• guarantees, process for obtaining warranty (if any) and after sales support (if any);
• information on consent and commitment (including cooling-off periods if applicable);
• routines and policy for the cancellations of orders, returning products, refunds;
• complaint and redress procedures and other significant terms and conditions;
• membership of relevant trade organisations and contact details for validation;
• the jurisdiction under which the contract is made and subsequent disputes will be settled;
• privacy statements covering the use and sharing of any personal information being gathered, with a routine for confirmation of consent, before such information is requested.

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In the current debate, codes are being referred to interchangeably as "Codes of Conduct" or Codes of Practice", which is adding to confusion. It would be well to return to the traditional distinctions. A Code of Conduct should relate to principles and generalised standards of behaviour. A Code of Practice sets out in some detail the way in which a particular group will operate and Codes of Practice will vary significantly between sectors and over time. A multi-national company may well derive a single Code of Conduct for electronic commerce but will probably need a different Code of Practice for each jurisdiction in which it is located. Best practice is achieved through the day-to-day methodical and appropriate implementation of the codes by all parts of an organisation.