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Frequently Asked Questions about
ILDA's Code of Business Practice

 
What is the Code of Business Practice?

It is a document with recommendations and requirements for how ILDA Members should conduct business in a professional and ethical manner. It is part of the ILDA Code of Ethics, which has been a key element of ILDA since 1986. You can read the Code of Business Practice here.

Will it apply to all Members?

Yes. All ILDA Members pledge to uphold the Code of Ethics; since the Code of Business Practice is a sub-set, this means Members also pledge to uphold the Code of Business Practice.

Is the Code of Business Practice in effect?

Yes. The ILDA Board of Directors voted to adopt the Code on April 8 2008. It should be noted that ILDA Members were able to make official comments on the draft code during a 30-day comment period from Dec. 11 2007 until Jan. 10 2008.

I thought ILDA already had a Code of Ethics. Why do we need a Code of Business Practice?

The ILDA Code of Ethics has worked pretty well since it was started in 1986. But it states general principles. For example, it requires that Members act professionally, and that Members must follow laws in the countries where they operate.
     Members have asked for clarification in some areas. The Code of Business Practice goes into details which the more general Code of Ethics cannot.
     Think of the Code of Ethics as a "constitution" and the Code of Business Practice as the specific "laws" derived from the constitution.

So, does this mean that if the Code of Business Practice conflicts with the Code of Ethics, that the Code of Ethics wins?

Yes, the Code of Ethics remains the governing principle of ILDA Members' conduct. If any provision of the Code of Business Practice is found to be in conflict with the Code of Ethics, then that provision would no longer be enforced. It would be removed from later versions of the Code of Business Practice.
 

MODIFYING THE CODE OF BUSINESS PRACTICE

How can the Code of Business Practice be changed?

The ILDA Business Practices and Product Quality committee would be the primary body to make any changes or additions to the Code of Business Practice. These would be reviewed and approved by the Ethics Committee. Any major changes (e.g., policy changes, not just wording clarifications) would be sent to the Board of Directors for its approval.
     Members seeking to work on the Code of Business Practice are welcomed to join the BP&PQ committee. Contact ILDA if you are interested.
 

SHALL vs. SHOULD

I see "shall" and "should" throughout the Code of Business Practice. What is the difference?

Any clauses or rules with "shall" or "must" mean that ILDA Members are required to follow the clause or rule. If they do not, and someone files a complaint, then the Ethics Committee can investigate and may take action.
     Any clauses or rules with "should" are recommended or suggested. It gives a Member "bonus points" if they follow these. However, the Ethics Committee cannot take action against a member if they do not follow the "should" rules.

What happens if I don't follow the "shall" rules in the Code of Business Practice?

The Code of Business Practice is meant to handle clear, repeated and/or deliberate violations. Note that ILDA does NOT go out and look for violations. Instead, if any person (either a Member or a non-member) believes there has been a clear, repeated and/or deliberate violation, they can file a complaint with the Ethics Committee. The Ethics Committee then follows its standard complaint-checking and problem-resolving procedures.
 

FOLLOWING LOCAL LAWS AND REGULATIONS

It can be difficult to follow the laws in some countries. What happens if I am trying to follow the laws but inadvertently don't turn in the correct paperwork?

If you are making a good-faith effort, there should not be a problem with ILDA. Certainly, after learning the correct forms and regulations, you should follow these in the future.
     Again, the Code of Business Practice is meant for clear, repeated and/or deliberate violations. If the law is truly unclear, then ILDA takes this into account.

Can you help me understand the regulations?

Yes, this is part of the Code of Business Practice. So far, ILDA has only reviewed and summarized U.S. laser importation regulations, but we do hope to add other countries and jurisdictions.
     (We need the help of our Members in these jurisdictions, to write the summaries. Please contact ILDA if you can help.)

Is it true that I must follow ILDA's summaries? How does this work?

Let's take the U.S. laser importation regulations webpage as an example. (This webpage is in the ILDA Members-Only area, so you need a username and password to access the page.)
     ILDA has provided a summary and interpretation of our best understanding of federal laws related to importing lasers. ILDA asked the U.S. federal laser agency (FDA/CDRH) to review ILDA's text. The CDRH said "yes, your summary and interpretation is correct."
     Therefore, ILDA Members must follow the parts of the summary that have been reviewed by CDRH. This is because CDRH agrees that these are the laws, and ILDA Members agree to follow the laws.
     For any ILDA-created summaries which have NOT been reviewed, ILDA Members should follow the summaries but do not have to. This is because no official review has been done.

What about European or other laws?

At this time (Dec. 2007), ILDA has not created summaries of regulations in any jursidiction other than U.S. federal laws. ILDA Members are still bound by the Code of Business Practice to follow all regulations -- it is just that ILDA is unable to provide any assistance or summaries to try to understand those regulations.
     As mentioned earlier, we welcome the help of any ILDA Members who would like to write summaries for Europe or elsewhere.
 

MEMBER CONTROL OF NON-MEMBER BUSINESS PARTNERS

I am an ILDA Member manufacturer. I sell to dealers who are not ILDA Members. Am I responsible for what my dealers do?

You are responsible to the degree that you have control over the non-member's products and services. For example, if you have a dealer who is exporting lasers into another country without proper permits, and you become aware of this, you must take corrective action.
     To give another example, if a dealer is falsely advertising the laser equipment (saying it has more power or capabilities than it really has), and you become aware of this, you must again take corrective action.
     This is because end-users expect more from ILDA Members. It would not work well if manufacturers advertised that they follow the Code of Ethics and Code of Business Practice, but they permitted their dealers to clearly and blatantly violate the same code.

What if I'm an ILDA Member manufacturer, but I don't know that my dealer (a non-member) is violating the Code of Business Practice? Am I still responsible?

The Code says it best: Your 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 Member's awareness of the problem, the ease with which the Member can monitor the non-member's unauthorized actions, steps taken to prevent or correct the problem, etc."

ILDA AND COMPETITION

Have you looked at the anti-competitive aspects of the Code? Are there any potential antitrust violations?

ILDA has heavily researched this issue. We believe there is nothing in the Code which promotes anticompetitive behavior, or which violates antitrust laws. The code incorporates reasonable requirements, such as following generally accepted business practices, and complying with the laws in the areas where business is conducted.
     It should be noted that ILDA is incorporated in the U.S., and must therefore follow U.S. laws in this area. We are assured by our research that we have no antitrust issues.
 
 

THE ROLE OF ILDA AND ITS MEMBERS

Why does ILDA want Members to go through this extra trouble?

We do not believe there is any extra trouble. The Code requires Members to follow the law, and to follow professional and ethical business practices. By doing this, ILDA Members will stand out from non-members. A potential customer should therefore have a significant reason to choose to buy from a Member.
     Another benefit is that the Code of Business Practice gives specific guidance to ILDA Members, on issues that can be unclear. This makes it easier for the Member to know what actions to take.

Is ILDA checking on me?

ILDA does not check up on Members. But we do act on complaints which are filed with the Ethics Committee, as well as inquiries which may not rise to the level of an official complaint.

Is ILDA telling me what to do?

ILDA is telling you what we consider professional and ethical behavior in certain areas. In some cases, we have researched the laws so we can understand them better (for example, our summaries of U.S. laser importation regulations).
      If you agree to follow these guidelines, then we are pleased to have you as an ILDA Member, and you are permitted to advertise your ILDA Membership.
 

THE ROLE OF ILDA AND CUSTOMERS

If I buy from an ILDA Member, am I guaranteed to have a smooth transaction?

While we cannot guarantee this, we do promise the following: 1) ILDA Members are held to a higher standard than other laser show companies and suppliers. 2) If you are dissatisfied with your transaction, you can file a complaint with ILDA and we will try to resolve it. 3) In extreme cases, if the case is not adequately resolved, ILDA will de-list a Member.
     We hope that these steps will give you confidence that you are in better hands with an ILDA Member, and that ILDA is actively trying to protect your interests in the transaction.