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Local Commerce in Social Networks in Mexico and its Regulations.

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Presentation on theme: "Local Commerce in Social Networks in Mexico and its Regulations."— Presentation transcript:

1 Local Commerce in Social Networks in Mexico and its Regulations.

2  Mexican consumer in 2013 spent 9.2 thousand million dollars.  Government they are limited by their territorial jurisdiction.  Mexico doesn’t have tools capable of supervising the local commerce through social networks, which makes the consumers vulnerable to frauds and affecting the formal merchants.

3  Municipalities can collect revenue when giving licenses or taxing, but if a local commercial practice occurs in a virtual space the local government is unable to exercise his power.  it will not be available to verify that all the requirements for the business are approved.  Municipalities are the cornerstone of the sociopolitical transformations and the fundamental axis of Mexico's development so it is very important to be sure that their faculties are being improved according to the social evolution, such as may happen when the 43.5% of the Mexicans are Internet users, and 90% of them have at least one Social Network and only 5.8% of more than 46 million users purchase goods or do their billings online.

4 PROFECO  National Institute of the Consumer and the Federal Attorney's office of the Consumer (PROFECO).  Organism decentralized of social service, juridical personality and own patrimony with functions of administrative authority entrusted to promote and protect the interests of the consuming public.  PROFECO cannot give permission or licenses for local commerce but it can impose fines or in case of serious misconduct, it can also close down establishments

5 The objectives of PROFECO are: To protect and defend the consumers’ rights. To promote consumers’ rights. To foment a culture of intelligent consumption. To promote equity in trade relationships. To ensure legal certainty in trade relationships. To improve Institutional performance. There is also a monitoring of virtual stores, the last one, for instance, was taken in January 15, 2015, in which the PROFECO supervised: this virtual shops had proper privacy policies, personal security and financial data, physical address, landline number, detailed description of the goods or services, total costs and taxes, reporting of payment methods, terms of delivery or shipping, conditions in case of cancellation, refunds or exchanges, and if the store is committing any kind of fault law.

6 LOCAL REGULATIONS OF BUSINESS.  On a commercial subject, the City Halls would regulate the area of municipal jurisdiction, commercial performing, industrial, agro-industrial and service activities both private and public.  If a citizen want to open a new store, the first step is to obtain the municipal license. In the Municipality of Zapopan for instance, in order to require a license for a beauty shop the next documents must be delivered: Append Charter Manager or Market Square. Opinion of business. (Purchase registration form to register in boxes) Copy and original documents of whom accredits the property. Current photographs of business premises and / or property or area. An original and one copy of the holders identification. Original and copy of the notice of operation to the secretary of health.

7 SOCIAL NETWORKS AND THEIR USE IN LOCAL COMMERCE  20% of Mexicans buy online, and 16% of the companies acquire internet so they can manage social networks for commercial uses.  The use of Internet is increasing year by year and with the national telecommunications reform entering in January 1st 2015 an increase in the expansion of fundamental rights such as the freedom of expression and access to information is expected.

8 CONCLUSIONS.  Consumers in Mexico are protected by PROFECO, Municipalities are the ones to regulate all the local commerce, but they do not have tools or rules for the developing commerce of a virtual space just as the social networks do. Since 90% of the 46 millions of users have a Social Network, plenty of those local companies have tried using the same as a tool for sales and consumer's attraction, resulting in a 20% of online buyers. However, this percentage is not being noticed by City Halls. The Telecommunications Reform released in this year will increase the number of internet users, and as a consequence of the quantity of Social Network users. On the other hand, is more attractive for merchants and regular citizens to establish commerce through Social Networks instead, and so, avoiding all the administrative procedures.

9  The government has been making efforts to improve the right of access to information and communications technology. That means, laws need to evolve just like the society is. All this, led us to a few proposals: 1-.Creating a collaboration agreement with the Federal Government through PROFECO, so that Municipalities can be aware of the business that might be taking place in their own jurisdiction. 2.- Easing of bureaucracy, since there are too many requisites previous to obtaining a municipal license. 3.- Improving the faculties in hands of City Halls, making it available to have a virtual jurisdiction within occurring Trades in social networks but which are also complete in their territory.

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