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Ecommerce guide
This page provides an outline for businesses of the effects of the Electronic Commerce (EC Directive) Regulations 2002.  These have important requirements both for electronic contracting and web site design.  They apply to all commercial websites, including what may simply be brochure sites.

The rules break down into three categories.

Information requirements

Commercial communications

Electronic contracting

We deal with each category in turn.

Information requirements

Applies to

Requirements

Anyone who advertises or sells goods or services on line (e.g. via the internet, mobile phones or interactive television)

Note: The information must be easily, directly and permanently accessible. In practice in the case of a web site this means on the site itself

The business must provide the following information:-

The name of the business

The geographic address where it is established

Contact details (including the email address of the business) to enable direct and rapid communication with the business

And

  If the business is registered in a public trade or similar register:

The business must provide:-

Details of the register

The registration number (or other means of identification in the register)

  If the business is subject to an authorisation scheme, (e.g. authority to sell financial services):

The business must provide:-

Particulars of the regulatory authority

  If the business carries on a regulated profession:-

The business must provide:-

Details of its professional body

The professional title

The EC member state where that title has been granted

A reference to the professional rules applicable to the business and how to access them

Commercial communications

Applies to

Requirements

Any electronic communication designed to promote the goods, services or image of a business

Note: Allowing people to access a web site would not seem to be a "communication" for this purpose

The communication must:-

Be clearly identifiable as a commercial communication

Clearly identify on whose behalf it is made

If it contains a promotional offer, discount, premium or gift, clearly identify the fact and the terms of the offer

  If the communication is an unsolicited email, it must be clearly identifiable as (i.e. as an unsolicited commercial communication) such as soon as it is received

Electronic contracting

Applies to

Requirements

Anyone who enables users to place orders on line

Note: However that contracts made only by exchange of emails are not covered.

In the case of online contracts concluded between two businesses, the parties can agree to exclude these rules

Before the order is placed the business must provide the following information which must be clear:-

The way the contract will be made

Whether it will be filed by the business and be accessible in future

The way in which the customer can correct input errors before placing the order

The lanaguage(s) offered for the making of the contract

And

  If the business subscribes to any relevant codes of conduct, these must be specified and information given as to how these can be consulted electronically
  If the business provides terms and conditions applicable to the contract, they must be made available to the customer in a way that allows the customer to store and reproduce them
When the customer places his order through technological means The business must:-

Acknowledge the order without undue delay and by electronic means

Make available to the customer effective ways to allow him to identify and correct input errors prior to the placing of the order

Sanctions

With some exceptions, failure to comply gives rise to an action for damages for breach of statutory duty
Where the business has failed to comply with a duty to make available the terms of business applicable to a contract, the customer can seek a court order requiring compliance
Where a contract has been concluded and the business has not made available a means of identifying and correcting input errors, the customer can cancel the contract unless a court orders otherwise

Note

The above is a very simplified summary of the regulations. In designing web pages and systems for electronic ordering, businesses should read the regulations themselves, have regard to guidance on the rules available at the DTI web site and take appropriate professional advice.

Further information

More information is available on the DTI website at:

 www.dti.gov.uk/sectors/ictpolicy/ecommsdirective/ecommsdirectiveguidance/page10142.html

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