by: Tim Bishop
A European Community Directive introduced the E-Commerce Regulations into the
UK. The main objectives of these regulations were to ensure that any E-contracts
entered into across Europe were binding and that using the Internet to buy was
made safer for the consumer. The regulations also introduced rules on how
companies are able to advertise their goods or services online.
The regulations apply to any business that advertises or trades using online
services i.e. on their company website or via email. It also applies to those
who use online services for communication networks. Any business wanting to
trade online should make sure they have a good understanding of the basics of
e-commerce law and if there are in any doubt about the position, they would be
well advised to get the advice of an experienced and specialist intellectual
property or IP Solicitor
Provided in this article is some information aimed at ensuring that your
business complies with the E-commerce regulations:
Website Information
Your business website must display the following information:
- Your businesses name, address and contact details.
- Your VAT registration number.
- Details of any publicly held register in which your business features and the
appropriate registration number.
- Details of any professional registers under which your business is enlisted
and the appropriate registration number.
- The particulars of any supervisory body under which your business is
regulated.
- Any professional titles held by your business and in which European states
this title is recognised.
If you are selling goods via your website, then details of tax and delivery
costs should be provided.
Emails
The regulations also apply to businesses that send promotional emails.
'Unsolicited commercial communications' or 'spam' emails as they are more
commonly known, have to be advertised as such upon receipt by the consumer.
Consequently, a spam notification must appear in the subject box and be visible
before having to read the main body of the email.
On a more general note, commercial communications via email should display the
following information:
- A clear indication of whom the email has been sent by
- A decisive indication of which good or services are premium, promotional or
belonging to a competition
- A clear explanation of any terms and conditions relating to these goods or
services.
You must also be aware that the Companies Act 2006 (incorporating the Business
Name Act 1985) applies to electronic letters and emails as well as hard copies.
This means that the information that is on your company letterhead should also
be present in any electronic correspondence, such as the name of your business,
its registered address and the number under which it is registered at Companies
House.
Contracting Online
If your business conducts contracting online, then you must make the following
information available and clear for the consumer:
- A description of any technical steps that the consumer has to take in order to
complete the contract online.
- A description of any technical steps to take if the consumer experiences an
input error.
- Indication to whether or not your business will file the contract and how this
can be accessed by the consumer.
- A list of the different languages in which you can obtain the closing stages
of the contract
- Details of the relevant code of conduct for online trade and information on
where the consumer can access this information.
The consumer must be able to access any terms and conditions to the contract and
these should also be available to print. If an order is placed online or a
contract is formed, then a receipt should be emailed to the purchaser.
Rules under the Companies Act 2006
As mentioned earlier a company must display certain information about itself on
letterheads and electronic communication. Nevertheless, a company which is
registered by Companies House should provide the following information somewhere
on the website:
- Company registration number
- Place of registration
- Their registered office
- Information on whether or not the company is currently in administration or
liquidation.
Information such as this does not have to be present as a disclaimer on every
website page. Often however, it is put together under a 'Legal' tab somewhere on
the website.
Non-Compliance
The E-commerce regulations introduced certain reprimands for non-compliance. If
your business is found to be non-compliant the regulations provide that
consumers or clients can rescind their contracts. If the client or consumer
suffers a loss because of a breach of the regulations, then they can sue you for
damages for a breach of your statutory duty. The courts also have the authority
to order your business to issue a corrective statement.
In serious situations the Director General of Fair Trading and Trading Standards
can apply to the court for a 'Stop Now' Enforcement Order. These are awarded if
the Director General and/or the court feels that your E-commerce could
potentially "harm the collective interests of consumers" as a whole. If you then
fail to comply with the enforcement order you run the risk of receiving a heavy
fine and/or imprisonment.
The law regarding trading online is getting increasingly complex. That was
getting it wrong - ensure that you instruct an experienced intellectual property
('IP') solicitor who has detailed knowledge of e-commerce law.
About The Author
Bonallack & Bishop (http://www.bishopslaw.co.uk ) in Salisbury are a firm of
specialist intellectual property solicitors with a team experienced in
E-commerce law. Senior partner Tim Bishop is responsible for all major strategic
decisions and has expanded the firm by 1000% in 12 years. He has plans for its
continued growth, seeing himself as a businessman who owns a law firm.
The author invites you to visit:
http://www.bishopslaw.co.uk
Article Source: http://www.articlecity.com/articles/legal/article_2548.shtml
Tags: E-Commerce Law
- The Basics -
E-Commerce -
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