Background E-commerce is transactions conducted via electronic means such as the internet, email and SMS.
It is considered to be one of the most important aspects of the internet to appear. As a result, people are able to exchange goods and services immediately regardless of their geographic location and time. More and more businesses conduct transactions on line, with some trading purely on-line thus reducing overheads and administrative costs. There are two types of e-commerce, direct and indirect.
Direct e-commerce is where services or goods can be delivered on line, such as music downloads. Indirect e-commerce is where goods and services ordered on line but delivered off-line, for example by post or courier. Whether direct or indirect, the potential benefits that e-commerce can bring to businesses and consumers are evident in terms of cost savings and convenience; however it has also brought va
...rious challenges and uncertainty to the formation and enforcement of contract and more importantly to the protection of consumer interests.With a view of protecting consumers thus promoting the development of e-commerce through renewed consumersā confidence, the EU has adopted an array of Directives including the 1995 Data Protection Directive, the 1997 Distance Contracts Directive, the 1999 Electronic Signatures Directive, the 2000 E-Commerce Directive and the 2002 Privacy and Electronic Communications Directive and so on. UKās legal framework governing e-commerce is established as a direct result of implementing the numbers of EU Directives.
The main regulations governing e-commerce in the UK Needless to say, businesses engaging in e-commerce need to comply with the law governing traditional physical world transactions such as the Sale of Goods Act 1979, Supply of Goods and Services Act 1982, The Unfai
Contract Terms Act 1977, The Unfair Terms and Consumer Contracts Regulations 1999, The Consumer Protection Act 1987 and so on. In addition, they must ensure that they comply with an array of regulations governing the actual on-line trading process.These are mainly as follows: ā¢The Consumer Protection (Distance Selling) Regulations 2000 as amended by the Consumer Protection (Distance Selling) (Amendment) Regulations 2005 ā commonly known as āDistance Selling Regulationsā ā¢The Electronic Commerce (EC Directive) Regulations 2002 (āE-commerce Regulationsā) ā¢The Electronic Signatures Regulations 2002 This article will focus on the E-commerce Regulations and explain some of its main requirements that businesses trading on-line should meet.The article is not intended to be a comprehensive guidance, in respect of which, please refer to the DTI. It serves only to highlight some of the very basic requirements governing businesses trading on-line. The E-commerce Regulations (āthe Regulationsā) The Regulations were brought into force in the UK in August 2002 as a direct result of the UK government implementing the EU E-Commerce Directive.
The Regulations govern the provision of āinformation society serviceā, which is defined as āany service normally provided for remuneration at a distance, by means of electronic equipment for the processing (including digital compression) and storage of data, at the individual request of a recipient of the serviceā. Thus, the Regulations cover not only on-line selling and advertising services but apply to services carried out by way of email and SMS. It also covers the services of transmitting or storing electronic content or providing access to a telecommunications network.The Regulations lay down, among other rules, the applicable law, the requirements for minimum information that commercial websites and other providers of āinformation
society serviceā must provide to the customers, additional information to be provided when businesses contract on-line as well as exemptions for mere conduit, caching and hosting.
Applicable law The Regulations apply a ācountry of originā rule. Put simply, it means that a UK based business needs only to comply with UK laws irrespective of where their customers are based.However, this rule is subject to a number of exceptions. Notably, the rule does not apply to some consumer contracts. These consumer contracts will be governed by the rules contained in āBrussels Regulationā and āRome Conventionā which are beyond the scope of this article. As the extent to which the consumer contracts exception would apply is still not very clear; businesses wishing to sell on-line to consumers of other EU countries are recommended by DTI to comply with that consumersā countryās laws.
Nevertheless, this rule may lead to an UK based business having advantages over their EU counterparts when selling on-line to businesses of the other EU country, for example, to businesses based in German where they are subject to more stringent laws regulating on-line trading and marketing. Information that must be provided Regulation 6 prescribes that all business websites whether or not trading on-line must list the following general information:- ā¢Business name; ā¢Business address which must be a geographic address, i. e. street number etc.In other words a PO Box address is not likely to be sufficient; but a registered office address would; ā¢Other contact details such as email address and phone number; ā¢Its registration number and registered office address if a company; ā¢[Its place of registration if a company or a LLP.
Please note this is
a requirement under new regulations which were brought into force on the 1st January 2007 ] ā¢VAT number if the business is VAT registered; ā¢Details of any trade and professional body or scheme with which the business is registered and the registration number if applicable.The required information does not need to be on every page of the website; however, it must be āeasily, directly and permanently accessibleā. It is therefore advisable for the website to display the information on the āAbout Usā or āContact Usā or āDisclaimer and Legal Informationā page. In addition, full prices must be listed on the website and the prices must be clear and indicate whether or not they are inclusive of tax and delivery costs. The above mentioned information must also be included in any commercial communication that carried out by way of email or SMS text message or interactive TV.
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