Code of Business Practice


Background

Since ILDA's founding, the association has had a Code of Ethics. To be an ILDA Member, you must agree to follow the Code of Ethics. If someone files an ethics complaint against an ILDA Member, the Ethics Committee investigates. They try to reach a solution satisfactory to all parties.

One problem with the Code of Ethics is that it is vague. Recently there have been some areas where more specific guidance is needed, such as online selling and importation of laser projectors. In addition, it was felt that ILDA Members could better differentiate themselves from non-member competitors, if they had a published 'code of conduct' that would make consumers prefer to buy from Members.

To help solve these problems, the Business Practices & Product Quality committee was formed.  The BP&PQ committee developed the "Code of Business Practice". You can read more about this at a FAQ (Frequently Asked Questions) page, which covers issues raised during adoption of the Code.

Because the Code of Business Practice is part of the Code of Ethics, it applies to every ILDA Member.

Overview/Summary

The Code has these main features:

1. Members shall comply with "generally accepted ethical business practices and guidelines." Reference is made to the Better Business Bureau, eBay's selling guidelines, and the Australian Trade Practices Act.
2. Members shall comply with the laws and regulations of the jurisdictions where they do business. While this is already part of the Code of Ethics, the Code of Business Practice contains examples in areas where laws may be unclear or complex. In addition, reference is made to ILDA webpages with additional requirements for specific locations (e.g., U.S. laws).
3. The relationship between Members and their non-member business partners (such as dealers or suppliers) is clarified. This helps in cases such as if an end-user has a problem with an authorized dealer (non-member) of a Member manufacturer.
4. Product claims in advertisements, auctions, etc. should be accurate.
5. Safety features (or lack thereof) should be disclosed.
6. Proper use of the "ILDA" and "ILDA Member" logos is spelled out. This helps to avoid some problems we have had in the past with non-members who falsely claimed an "ILDA Seal of Quality".
7. In case of problems, it is first suggested to privately contact the ILDA Member. If this does not work or is not desired, an official complaint can be filed with the Ethics Committee.
8. The official way of resolving complaints is by having the Ethics Committee try to find a resolution. In extreme cases, a violator may have their ILDA Membership revoked. Note that this would be the strongest action -- ILDA cannot fine or otherwise penalize violators.

Advantages

The BP&PQ committee, ILDA Board, and Executive Director feel that the Code of Business Practice is helpful for the following reasons:

1. It gives specific guidance to ILDA Members. This is especially helpful to Members from areas where business practices or laws may be different than in other areas. For example, laws in the U.S. regarding importation of laser devices are more complex than those in most other countries.
2. It directly addresses some problems which ILDA and the Ethics Committee has dealt with before. Hopefully, these problems will be reduced or eliminated in the future.
3. This helps increase Members' business. Members can reference the Code in their advertising, webpages, etc. By stating "We comply with the ILDA Code of Business Practice", Members can give potential customers greater confidence in selecting them, over a non-member.
4. If there are problems, ILDA can help resolve them. Instead of a dissatisfied customer, who may not want to deal again with lasers or specific laser companies, ILDA can help make the customer satisfied.
5. It makes for a "level playing field" for all ILDA Members.

One early comment about the Code said that this might violate the Sherman Antitrust Act, as being "anti-competitive." ILDA has researched the Sherman Act, competition law in general, and association antitrust concerns. We made changes (in version 1.9 and 2.2) to address areas of concern. Therefore, we do not see any elements of the Code of Business Practice which could be a problem.

Code of Business Practice (version 2.4)

International Laser Display Association
 Code of Business Practice
V. 2.4

INTRODUCTION

All ILDA Members agree to be bound by the ILDA Code of Ethics. These serve as general guidelines for legal and ethical business transactions. However, some Members have asked for more specific guidance.

To help in specific cases, this Code of Business Practice has been developed. It is a subset of the Code of Ethics. This means that it derives its authority from the Code of Ethics and especially from these sections:

• "Members agree to conduct their business in a professional, ethical, safe and courteous manner...."

• "Members agree not to make inaccurate or misleading claims in advertising and/or promotion."

• "Members agree to observe and obey any and all regulations governing the use of lasers in any country or area in which the member operates."

This also means that any complaints regarding violations of required elements ("shall" clauses) of the Code of Business Practice are taken as violations of the Code of Ethics, and are handled by the ILDA Ethics Committee.

ILDA Members are expected to follow the Code of Business Practice. Customers and end-users can buy with confidence from these ILDA Members.
 

IMPLEMENTATION AND ENFORCEMENT

The Code is performance oriented. It does not dictate the methods for achieving the goals.

The section of this document entitled "In Case of Issues and Complaints" discusses how to resolve the situation when an ILDA Member appears to have violated the Code. See this section for more details.
 

REQUIREMENTS VS. RECOMMENDATIONS

In this document, the word "shall" is used to indicate required conformance with the Code of Business Practice. In some places the word "must" is used because the Code is quoting or paraphrasing existing laws (usually examples from the U.S.) which use "must".

The word "should" indicates areas where ILDA recommends conforming with the Code of Business Practice. The ILDA Ethics Committee cannot take formal action against a Member if they do not follow "should" recommendations. However, by following all or most "should" recommendations, a Member indicates to ILDA and to customers that they are trying to live up to the spirit of the Code of Business Practice.

The word "may" indicates areas where an ILDA Member can take certain actions, and these actions are optional.
 

GENERAL BUSINESS PRACTICES
 

1. ILDA Members shall comply with generally accepted ethical business practices and guidelines. This includes compliance with guidelines issued by reputable organizations such as the Better Business Bureau and eBay online selling guidelines. In Australia, this is the Trade Practices Act (search “Overview of the Trade Practices Act” at the Australia ACCC website for more information).
    
2. This document (ILDA Code of Business Practice) cannot include all possible generally accepted ethical business practices and guidelines. Therefore, clear, repeated, and/or deliberate violations of generally accepted ethical business practices and guidelines shall be taken as violations of this document and of the ILDA Code of Ethics.
    

WHO IS COVERED
 

3. This document applies to all paid-up, current ILDA Members.
    
4. Complaints before a company joins ILDA: If a complaint is filed due to a problem that primarily occurred before a company or person became an ILDA Member, the complaint may be handled through normal ILDA channels only if both parties to the complaint agree to ILDA’s involvement.
    
5. Complaints against ex-members. If a Member withdraws from ILDA, or does not renew, while an active complaint is still open, ILDA may at its discretion continue to try to resolve the complaint. This is because
    
   1. ILDA may still be able to come up with a solution agreeable to all parties, and
       
   2. ILDA will keep a record of the complaint and its ultimate outcome, should the former Member try to rejoin at a later date. Obviously, it would be better for the former Member to leave on good terms.
       
6. Responsibility between Members and their non-member business partners. ILDA Members often work closely with business partners such as dealers, who are not members. Members shall be responsible for the actions of their non-member business partners, to the degree that the Member has control over the non-member’s products and services.
    
   1. Examples:
       
      1.  ILDA Member manufacturers often appoint dealers and distributors; they may not be members. If the Member is aware of an authorized dealer (non-member) who is violating the Code of Business Practice (for example, importing the manufacturer’s product without proper permits or variances), the Member shall take corrective action.
          
      2.  If an ILDA Member manufacturer is aware of an authorized dealer (non-member) who is not providing required information in sales materials, websites, etc., the Member shall work with the dealer to ensure that all information is accurate and complete.
          
      3. ILDA Member dealers who purchase products from a non-member manufacturer shall confirm that the products comply with applicable safety, importation and other laws in the end user’s jurisdiction. If the product does not conform, the Member shall take corrective action such as modifying the product.

2. The ILDA Member’s responsibility shall be lessened if the business partner is acting in a way that is not authorized or to be reasonably expected by the member. The exact degree of responsibility is determined on a case-by-case basis, based on factors such as the ILDA Member’s awareness of the problem, ease with which the Member can monitor the non-member's unauthorized actions, steps taken to prevent or correct the problem, etc.
    
3. The end user should not get a “run-around” between the ILDA Member and their non-member business partners. ILDA Members are held to a higher ethical standard – one reason for end users to prefer ILDA Members over other suppliers. Therefore, Members should help solve any problems created by their non-member business partners in the course of advancing the Member’s products or services.
    

ADVERTISING/MARKETING CLAIMS
 

7. ILDA Member sellers shall not engage in deceptive or misleading marketing practices.
    
   1. The sales material shall be factual and verifiable.
       
   2. The sales material shall relate to and be valid for the item being sold.
       
   3. Where claims are made on measurable factors such as power outputs and component life, this data shall be verifiable.
       
4. Use of videos or photographs shall be a true and accurate representation of the product and its typical use. Where the video or photos have enhancements applied through the use of Photoshop-type techniques, the techniques must result in a true depiction of what a viewer would see in a typical use environment.
    
5. Some sellers have taken sales material from other companies without permission. All sales material such as photographs, videos and text shall be original to the seller, or shall have verifiable permission from the original source, or shall be in the public domain. If permission cannot be obtained, it is acceptable to provide links to the original source, such as saying "Our laser looks like this", where the link is text-only and takes one to the original source.
    

SAFETY AND CERTIFICATION DISCLOSURE
 

8. A Member shall comply with all relevant laws relating to safety and certification disclosure, in advertising, sales and promotional materials whether in print, Internet or other format.
    
9. ILDA recommends that Members provide additional safety and certification details even if these are not legally required by any jurisdiction.
    
   1. The seller of a laser product should clearly state the product’s safety features.
       
      1. Specifically, the following should be stated if present and legally required: key switch, aperture shutter, emission indicator light, aperture label, caution/warning label, laser power label, manufacturer's identification label with name and address or URL, compliance label indicating variance number or similar regulatory/certification compliance.
          
      2. If any of the previous safety features are NOT present, this should be clearly stated; for example: “Does not have a key switch or emission indicator light, as may be required in some jurisdictions.”
          
      3. Any additional safety features, beyond those mentioned previously (example: scan-fail safeguards) should also be stated if present.
          
      4. The above (i, ii, and iii) do not apply to laser pointers below 5mW with a momentary on-off switch, and parts may not apply to OEM products.
          
   2. The seller should clearly state the status of the product's compliance with laser safety standards such as IEC and U.S. FDA/CDRH. At a minimum, the information should alert the buyer if the product may not meet governmental requirements in the buyer’s location. It is suggested to give more information, such as a list of major countries or regions where the product is and is not certified.
       
      1. If there is no permit, variance or similar legal approval, a statement to this effect should be included in the sales information.
          
         1. Example wording: “This product has not been tested or submitted to any safety regulation agencies. It cannot be sold or used in countries or jurisdictions which require certification, licensing, variances, or other governmental permission.”
             
         2. Alternative wording may be used as long as it completely and accurately expresses the product’s compliance status in the country(ies) and jurisdiction(s) where it may be sold or used.
             
   3. The seller should clearly state whether the product may require the buyer or end user to obtain permits, variances or similar legal approval to use the product for the advertised or reasonably expected purpose. It should also be stated if the permit/variance is required for legal transfer of the product, whether any assistance is available, and what the cost (if any) is of the assistance.
       
      1. Example wording: “Before purchasing this laser projector, you must obtain a laser light show variance from the U.S. government, which we can help you obtain for $200.”
          
   4. The seller should clearly state the product's compliance with any appropriate electric and/or other safety standards and, if relevant, compliance with appropriate safety Directives such as LVD, EMC and RTTED in Europe (including CE marking requirements).
       
   5. The seller should clearly state the product's compliance with any environmental Directives such as RoHS and WEEE for Europe.
       

WARRANTY
 

10. Having a written warranty is highly recommended and may be legally required in many jurisdictions.
     
    1. The warranty should clearly spell out terms and conditions regarding suitability for use, workmanship and materials, refund conditions (if any), term of warranty, any exclusions, etc.
        

HOW TO DISCLOSE INFORMATION
 

11. The above information (any legally required and additional recommended information relating to safety features, compliance status, and warranty terms) shall be disclosed within detailed pre-sales information provided to prospective buyers, or easily found by them. This gives a prospective buyer the opportunity to understand key facts about the product, before making the final buying decision.
     
    1. The pre-sales information shall be communicated in one or more ways such as a brochure, a dedicated webpage, or a webpage with links to where the information can quickly and conveniently be found.
        
12. The above information should also be included in the product’s users manual, or a similar document included with the product.
     
    1. U.S. and/or IEC standards state that certain information must be present in all user information for laser products. An ILDA Member shall follow the standards that legally apply in their area(s) of business operations.
        
13. When space is limited, such as in a brochure or ad, the potential buyer shall be directed to a webpage or other location where more detailed information can be found.
     
    1. This reference can be as simple as the URL of the seller’s home page, if it is easy to find the necessary links to the safety, warranty and other information.
        
    2. This reference can also be the seller’s phone number. However, in such a case where sales contact is by phone, the information shall be verbally disclosed or the buyer can be directed to visit a webpage, receive a fax, be mailed a brochure or in other ways be informed – before purchasing -- about the safety, warranty and other information.
        
    3. U.S. and/or IEC standards state that certain information such as the laser's Class, and the warning label associated with that Class, must be present on all online and printed sales materials. An ILDA Member shall follow the standards that legally apply in their area(s) of business operations.
        

COMPLIANCE WITH LOCAL LAWS
 

14. All transactions shall comply with the laws pertaining to laser-light emitting products in the jurisdiction(s) where the intended end user is located.
     
15. In some jurisdictions, such as the United States, laws can be complex. Also, it is possible to have a "loose" interpretation of the laws or a more strict interpretation. Therefore, ILDA may provide a summary and/or interpretation ("interpretation") of ILDA's best understanding of the laws for a specific jurisdiction.
     
    1. ILDA interpretations will be readily available (for example, on a page at the ILDA website) so that Members and their potential customers can review the information.
        
    2. ILDA may ask the jurisdiction's regulatory agency(ies) to review part or all of the interpretation.
        
       1. If the reviewed part of ILDA's interpretation is found to be consistent with how the agency(ies) interpret and apply the laws, then it shall be binding on Members as a part of the Code of Business Practice.
           
          1. This is because the Code of Ethics states that "Members agree to conduct their business in a professional, ethical, safe and courteous manner...." The ILDA Board has determined that following ILDA's interpretation is professional, ethical and safe.
              
          2. If there is any conflict between ILDA's interpretation and a Member's interpretation of a jurisdiction's laws, ILDA's interpretation shall prevail. If necessary, ILDA and/or the Member may request additional clarification from the appropriate regulatory agency(ies), who shall be the ultimate authority.
              
       2. If any part of ILDA's interpretation has not been reviewed and agreed to by the agency(ies), then ILDA's recommends that Members should follow this part of the interpretation, but Members are not required to do so.
           
       3. ILDA shall clearly identify the reviewed (binding) and non-reviewed (recommended) parts of ILDA's interpretation.
           
       4. ILDA may update any part of its interpretation based on new information or understandings. If this does not materially change a reviewed section (for example, if a clarification or example is added) then the section does not need to be re-reviewed and the section remains binding on ILDA Members.
           
16. ILDA Members shall not put the burden of compliance on end users, or other customers who are not dealers or distributors, unless there are specific laws, permits or variances that only apply to the end users.
     
17. If permitted by local regulations, the ILDA Member may provide the end user with the laser product, even if the end user has not yet obtained a permit or variance.
     
18. While sellers must rely upon the truthfulness of their buyers, if there are reasonable indications that a buyer will be using a product in an unlawful manner, the seller should take action such as: investigate further, educate buyers and/or refuse to sell, as appropriate.
     
    1. For added ethical protection, the ILDA Member may wish to provide buyers with information about the safety and regulatory requirements in the buyer/end-user’s location, and have the buyer sign a document stating that they understand these requirements. Such a document indicates that the seller has transferred some of the ethical obligation for safe, legal use to the buyer.

                                                              i.      Caution: This may not transfer any legal obligation. For example, the seller may still be legally liable for selling unvarianced equipment, or for other violations.

USE OF LOGOS AND SEALS
 

19. Sellers shall not mislead customers by creating the false impression of sponsorship, endorsement, popularity, trustworthiness, product quality or business size through the misuse of hyperlinks, meaningless or self-created “seals”, other technology, or another’s intellectual property.
     
20. Sellers shall not use the word “ILDA” or the association’s name in a way that indicates acceptance, endorsement or other false relationship with ILDA. Instead, they shall use the word “ILDA” to describe the organization and its standards in general.
     
21. Only ILDA Members in current standing (having paid dues for the current membership year) shall display an “ILDA Member” logo.
    1. They shall not use the ILDA Logo; instead, if they choose to use a logo it must be a logo which clearly indicates membership in ILDA. ILDA provides sample logos such as those shown below:

                                                              i.     
 

                                                            ii.     
 

2. Any online use of an “ILDA Member Logo”,  or any mention in text that the seller is an ILDA Member, shall be hyperlinked back to either the ILDA home page (currently www.laserist.org) or to an ILDA Member landing page specified by ILDA. The landing page will discuss what the ILDA Member logo means for the seller and buyer.
    
3. If an ILDA Member logo is used, it shall be clear what company or person is the registered ILDA Member.

                                                              i.      In cases where there are subsidiaries or divisions which are the primary seller, the name of the registered ILDA Member shall be listed in close proximity to the ILDA Member Logo, and the relationship (division, subsidiary, etc.) shall be disclosed.

1.      For example, if lasers are sold under the EFG name:  “EFG Company is a division of ABCD Inc., which is an ILDA Member [ILDA MEMBER LOGO HERE].”
 

22. If a company ceases to be an ILDA Member, they shall cease any new use of the ILDA Member logo, and shall remove old uses.
     
    1. In the case of Internet auctions and sites where it is easy to remove graphics, they have up to 30 days from the cessation of their membership, to remove the graphics.
        
    2. In the case of printed material with a longer life, they have up to 1 year to reprint or otherwise cease use of the material with the ILDA Member logo.
        
23. In the past, there have been problems with companies that made their own “Seal of Quality” or logo which looked as if they were members of a (non-existent) organization. Also, companies have indicated compliance with standards or testing that only they (the selling company) performs. Therefore,
     
    1. ILDA Members shall not use, state or imply certification, membership, or compliance with standards which appear to be from impartial third-parties, but in fact do not exist or are run primarily by or for the company.
        
    2. Any online use of third-party “seals” or endorsements which use, state or imply regulatory or ethical standard programs shall include functional links so that customers can easily verify membership in the seal program and determine its purpose, scope, and standards.
        
    3. Any ILDA Member Seller that participates in any third-party self-regulatory or ethical standard or seal program shall do so in conformity with that program’s instructions regarding the display, activation, and uses of the seal or endorsement.
        
    4. If an express or implied claim is made through the use of a seal or text, the seller shall provide customers with the opportunity to understand the details behind the program, including the program’s claims, scope and standards.
        
24. If a product is claimed to comply with ILDA standards, then all relevant aspects of the product shall comply.
     
    1. For example, a product with a DB-25 connector shall have all pins and signals also compliant with the ILDA DB-25 connector standard, in order to truthfully state that the product complies with ILDA standards.
        
    2. Use of terms such as “ILDA Compliant” or “ILDA Compatible” where initial capital letters seem to indicate there is some formal program, are prohibited. Instead, lower-case shall be used, such as “ILDA compliant” or “ILDA compatible”.
        
25. ILDA may introduce programs where there are special seals, logos and/or terms indicating ILDA standards compliance. These programs will have rules and guidelines for approved use of the seals, logos and terms. If or when such programs are introduced, sellers using these programs shall comply with these rules and guidelines.
     

ONLINE SELLING
  

26. Guidelines of special interest to online sellers include the following. (Most items were discussed earlier and are repeated briefly here for emphasis. In cases of discrepancies between the guidelines below, and other sections of this Code, the other sections shall take precedence.)
     
    1. Business shall be conducted in accordance with generally accepted ethical online business practices. eBay’s policies in various areas are an excellent resource. Also, the Australian Competition and Consumer Commission (ACCC) publications Advertising and Selling and Tips for Good Business Online (both available online at the ACCC’s website) are good resources for those in Australia and elsewhere.
        
    2. Members shall provide to buyers all legally required safety information, and should provide additional details regarding safety, warranty and other information. This can be done in the online text or via hyperlinks.
        
    3. If using an ILDA Member Logo and/or describing the company in text as an ILDA Member, Members shall provide a hyperlink back to ILDA.
        
    4. Be sure that the laser equipment complies with the laws in the buyer’s location.
        
5. Provide a way for customers to contact the company in case of problems or disputes.
    
6. Do not engage in predatory or deceptive practices such as pricing products at an unreasonably low price simply to capture bidder details or to switch the buyer to higher priced merchandise.
    
7. Review the ILDA Code of Ethics and ensure that your business practices comply with these general guidelines.
    

IN CASE OF ISSUES AND COMPLAINTS
 

27. ILDA Members should seek to ensure their customers are satisfied by honoring their representations, answering questions, and resolving customer complaints and disputes in a timely and responsive manner.
     
28. If anyone (Member or non-member) believes that an ILDA Member may be violating the Code of Business Practice, it is suggested to first contact the Member privately. Inform them politely of the potential violation and the appropriate section(s) of the Code, and suggest possible solutions.
     
    1. Note the section "Requirements vs. Recommendations". (Briefly, sections of the Code which use "shall" or "must" are required of ILDA Members. Sections with "should" or "may" or "recommend" are suggestions.) You may bring violations of either type to the attention of the ILDA Member. However, please note that they are only required by the Code and by their ILDA Membership to comply with the "shall" sections.
        
29. If you wish to file an official complaint against an ILDA Member, this process is handled by the Ethics Committee. Please see the Code of Ethics page, "How to File" section for details. Complaints can be filed by anyone (Member or non-member).
     
30. If you have suggestions for changes, improvements, etc. to the Code of Business Practice, please email to the Business Practices & Product Quality Committee. You may wish to send copies to the Ethics Committee, the Board of Directors and/or the Executive Director as well, if appropriate.
     

REFERENCES AND FURTHER INFORMATION

 eBay policies

 Australia:

Trade Practices Act – Australian Competition and Consumer commission (ACCC): in particular the publication Selling and Advertising and Selling.
http://www.accc.gov.au/content/index.phtml/itemId/3653

ACCC eCommerce Guide:
http://www.e-businessguide.gov.au/managing/legal/trade