Government officials must respect the unique nature of the medium and recognize that widespread competition and increased consumer choice should be the defining features of the new digital marketplace. Many businesses and consumers are still wary of conducting extensive business over the Internet because of the lack of a predictable legal environment governing transactions. This is particularly true for international commercial activity where concerns about enforcement of contracts, liability, intellectual property protection, privacy, security, and other matters have caused businesses and consumers to be cautious. Many companies and Internet users are also concerned that domestic or foreign governments will impose extensive regulations on the Internet and electronic commerce including taxes and tariffs, restrictions on the type of information transmitted, control over standards development, licensing requirements, and extensive regulation of Internet service providers. Indeed, signs of these types of commerce-inhibiting actions already are appearing in many nations.
Governments can have a profound effect on the growth of electronic commerce.
By their actions, they can facilitate electronic trade or inhibit it. This report articulates my Administration's vision for the emerging digital marketplace by declaring a set of principles, presenting a series of policies, and establishing an agenda for international discussions and agreements to facilitate the growth of electronic commerce. I expect all executive departments and agencies to review carefully the principles in this framework and implement appropriate policies. Therefore, the Federal Government should encourage industry self-regulation wherever appropriate and support private sector efforts to develop technology and practices that facilitate the growth and success of the Internet. Therefore, the Federal Government should refrain from imposing new and unnecessary regulations, bureaucratic procedures, or taxes and tariffs on commercial activities that take place on the Internet.