Legal development of e-commerce activities in

Mexico

15 Top Countries Internet Usage

Internet Statistics in Mexico

Internet users in México(in millions)

57

1012

14

18

20

23

0

5

10

15

20

25

2000 2001 2002 2003 2004 2005 2006 2007

Fuentes: COFETEL. Estimado de usuarios de internet del 2000 al 2005. AMIPCI. 2006 y estimado 2007 al cierre del año.

Internet in México

2005 2006 2007

2008*

PC´s 10.884 12.361 14.626

17.856

PC´s with Internet Access 6.190 7.140 8.740

11.106

Cell Phones 44.206 55.589 66.774

75.642

Installed base of devices with the possibility of accessing the Internet in Mexico, 2008

(Millions)

27% is the annual growth rate of the installed base of personal computers with Internet access

         Source: Select. Quarterly Survey of personal computers and Internet in Mexico, April, 2008           * Estimated figures         ** The number of mobile phones adjusted reflects the total phones in use.

More than 60% of the PC´s are conected to Internet

/ 2007/ 2007

/ 765 million dlls/ 765 million dlls

Annual Growth 2006-2007: 59%Annual Growth 2006-2007: 59%

Study perception of Internet banking Internet users in México: 23.7 millions Internet banking users: 64% of internet banking users (10.4 millones) 15.6% of the internet users (last 30 days) work with internet banking

Relevant conclusions:Relevant conclusions:1) Still incipient channel: There are 23.7 millions of internet users of which 10.4 millions have

an account in a bank and less than 3 millions use internet banking2) The average internet banking user has more than one electronic account: The

average of the banking internet accounts is 1.4 per person   3) Experience: 40% of the internet banking users have used it for three years or more 4) Main Activities: Balance enquiry, service payments and taxes   5) Security knowledge: 94% is said to know the security measures that they should take in

order to do internet banking.6) Access: Only 1% uses internet banking in public places (52% office y 47% home)7) Responsability: 83% still considers that the bank is responsible of the security on internet

banking. 8) The average of active accounts that internet banking users use in México is 1.49 per

person, which is equivalent to 3.7 millions of banking accounts with the possibility to access internet banking.

Made in December 2007 by AMIPCIMade in December 2007 by AMIPCI

Mexican Legislation and regulation

E-commerce, Commercial Code and other statutes amendments May 29, 2000

Administrative process lawProvisions about “Tramitanet”

Intersecretarial commission for the development of electronic government

Guidelines related to the homologation, implementation and use of advanced electronic signature in Mexican Federal Public

Administration

May 30, 2000January 17, 2002

December 9, 2005August 24, 2006

Mexican standard regulation on data messages preservation (NOM 151)

Resolution related to taking effectEffective date

June 4, 2002

December 19, 2005February 17, 2006

Extended security infrastructure (Central Bank of México)Circular Telefax 1/2002Circular Telefax 6/2005

Circular Telefax 6/2005 bis

January 2, 2002March 15, 2005

December 23, 2005

Electronic signatures ,Commercial Code amendments Regulations on the Commerce Code regarding CSP

General Rules regarding CSP requirements CSP Acrediting (Advantage Security y PSC World)

Amendments to General Rules in order to consider CSP of conservation

August 29, 2003July 19, 2004

August 10, 2004December 13 y 15, 2005

March 5, 2007

Federal Tax Code amendments “Miscelánea” Tax Resolution (Other tax provisions)

January 5, 2004

General dispositions to be applied in the credit institutions by CNBV

Amendments related to the General dispositions

December 2, 2005March 3, 2006

Registration authority

UsersRegistration Agencies.

Certification Agencies.

Certification agents

P.F.

ARC ARAC

AC

AgC

AgC

AgC

AgC

Banco de Banco de México México

Banco de Banco de México México

Ministry of Ministry of the Economythe EconomyMinistry of Ministry of

the Economythe Economy

Ministry of Ministry of the Public the Public

FunctionFunction

Ministry of Ministry of the Public the Public

FunctionFunction

Banks /Banks / CECOBAN –Bank CECOBAN –Bank ClearingClearing

SATSAT - - Fiscal & Customs Authority- Fiscal & Customs Authority- (Individuals)(Individuals)

MinistriesMinistriesIMSSIMSS

Public NotarysPublic NotarysBrokers Brokers

Public InstitutionsPublic InstitutionsTrade companysTrade companys

Banks /Banks / CECOBAN –Bank CECOBAN –Bank ClearingClearing

SATSAT - - Fiscal & Customs Authority- Fiscal & Customs Authority- (Individuals)(Individuals)

MinistriesMinistriesIMSSIMSS

Public NotarysPublic NotarysBrokers Brokers

Public InstitutionsPublic InstitutionsTrade companysTrade companys

CERTIFICATION SERVICES PROVIDERSCERTIFICATION SERVICES PROVIDERS CERTIFICATION SERVICES PROVIDERSCERTIFICATION SERVICES PROVIDERSI

E S

On a federal level

SATSAT(Companies)(Companies)

SATSAT(Companies)(Companies)

o ADVANCED ELECTRONIC SIGNATUREo As an authentification form

o STANDARD ON CONSERVATION OF DATA MESSAGES o As a guarantee as a prove at trial

States of the Mexican Republic with laws or

iniciatives.

Aguascalientes Chiapas Distrito Federal Durango Estado de México Guanajuato HidalgoJalisco (Guadalajara) Morelos (Cuernavaca) Puebla SinaloaSonora Yucatán

Regulation Standarize Proyect

• To design and orchestrate “models of law” for the 32 federal entities regarding the tecnologies of the information (TI), electronic commerce and electronic government

• To qualify the members of House of the Congress and the Senate, judges , court employees and the representatives of the local public administation.

When the tax regulations demand the presentation of documents, this should be done on digital form and they should contain the author´s advanced electronic signature.

Taxpayers are going to be able to issue electronic invoices (electronic tax receipts)

Reforms decree of the Federal Tax Code (January 5, 2004)

1999 Amendments to the Federal Penal Code:o Art. 211 Bis 1.- Virus and hackerso Arts. 211 Bis 2 and 3.- Informatic systems of

the State.o Arts. 211 Bis 4, 5 and 6.- Financial system

equipments.

o

Offences due to the illicit access to systems and informatic equipments.

Criminal aspects

o Aproved in the senate on April 22, 2008 in order to categorize as an offence the illegal copy (clonation) of payment instruments

o As a serious offence (that wouldn´t allow the possibility of a release on bail)

Offences in Financial and Commercial legislationFinancial and Commercial legislation

1. Electronic operations with the bank 2. The possibility to suspend or restrict operations

due to improper use3. General Dispositions

• Terms and conditions of the service• Information security• Password management and composition• Monetary transactions with third parties process• Account register• Information to the user• Fraud prevention• Auditing clues

Legislation and General dispositions to be applied in the credit institutions by SECURITIES COMMISSION AND BANKING SUPERVISION (CNBV)

Legislation and General dispositions to be applied in the credit institutions by SECURITIES COMMISSION AND BANKING SUPERVISION (CNBV)

Privacy and personal data protection legislation and

iniciativesMexico doesn´t have a specific personal data protection general or privacy statute, but we have some scattered laws governing it:

• The law on credit institutions which regulates banking secrecy

• Legislation about national credit bureaus• The Federal Law of Copyright, in its articles

provides legal protection to databases • Civil Code and Commercial Code in relation to

Public Registry • etc…

Mexico doesn´t have a specific personal data protection general or privacy statute, but we have some scattered laws governing it:

• The law on credit institutions which regulates banking secrecy

• Legislation about national credit bureaus• The Federal Law of Copyright, in its articles

provides legal protection to databases • Civil Code and Commercial Code in relation to

Public Registry • etc…

Constitutional Amendment Proposal

Amendment proposal to the 16 Constitutional Art. Aproved by the Senate on April 8, 2006 and aproved edited in the Congressmen Chamber: “PRIVACY AS A CONSTITUTIONAL GUARANTEE”

Amendment proposal to the 73th Constitutional article refering Personal Data presenting on March 27, 2007 aproved in the Congressmen Chamber: “FEDERAL FACULTY TO LEGISLATE REGARDING PERSONAL DATA IN PARTICULAR’S POSSESIONS”.

Colima’s State legislation Jalisco’s State legislation Two initiatives for Mexico City (European model)

Data Privacy Legislation proposals

There are at least 4 proposed laws of personal data en the Congress:

European model: Congressmen Luis Miguel Gerónimo Barbosa Huerta’s

(PRD) initiative. Presented in September 06, 2001. Congressmen. Jesús Emilio Martínez Álvarez’s

(Convergencia) Initiative Presented in December 1, 2005.

American model: Congresswoman. Sheila Aragón’s (PAN) initiative

Presented on March 22 , 2006. Congressmen David Hernández Pérez’s (PRI) initiative

presented in February 23, 2006

Proposed laws to Federal Penal Code

• Proposed laws to diverse provisions tabled in the Senate by Leticia Burgos Ochoa (PRD) on December 7, 2004:

• Disclosure of secret except with the consent expressed compared to the jurisdictional authority

• Proposed laws to diverse statutes in the cybercrime subject presented at the Chamber of Deputies by Lic. Sheyla Fabiola Aragon Cortes (PAN) on April 12, 2005:

• Obtain or transmit personal data without consent • Proposed laws presented by the Dep. Cristina Portillo Ayala

(PRD) on June 29, 2005. Turn to Committee on Justice and Human Rights:

• Insert false data in personal data file• Proposed laws submitted by Sen. Oscar Cruz Lopez (PRI) on

November 24, 2005. Turn to the Committee on Justice ye Legislative Studies:

• Access, transfer or manipulation Personal Data.• Proposed laws submitted by Senator Alfredo Rodriguez y

Pacheco and (PAN) on February 2, 2007: • Send commercial messages without express authorization

Federal law on the protection of the consumer

Federal law on the protection of the consumer

Contract withAMIPCI

Contract withAMIPCI

Privacy frameworkAPECPrivacy frameworkAPEC

Ethic codeAMIPCIEthic codeAMIPCI

Mexican Trust sealMexican Trust seal

Electronic firm

Public function

Consumer protection

ConservationData MessagesData messages

Social creditinformation

IMSS

Electronic invoice

IESBANXICO

ElectronicRPPC

DigitalitationDocument

CNBV

Informatic crimes

ProceduralAspect

.......

Legal development of e-commerce activities in Mexico

Growth

Supply and Demand

Future Prospects

Advertiser and media

Online publicity

Search and content-services websites

Media agencys

Access supplier

Cheaper, faster internet

Triple Play

Device convergenceGovernment initiatives

Procedures by internet

e-México

Government websites

Private Initiatives

Internet banking

Electronic commerce

Services

Academy

Internet in schools

Prívate and public universities

Education online

Users

Web 2.0

Blogs

Social networks