subject: E-Commerce - What Your Business Needs to Know [print this page] E-Commerce - What Your Business Needs to Know
In August 2002 the European Union introduced the E-Commerce Regulations via a directive. These regulations now implemented into the UK monitor the way in which companies advertise and sell their goods or services online. The dual purpose of the regulations was to ensure that E-contracts entered into within the EU were binding and that online shopping was safer for consumers.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 SolicitorProvided in this article is some information aimed at ensuring that your business complies with the E-commerce regulations:Website InformationYour 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.EmailsThe 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 OnlineIf 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 2006As 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-ComplianceThe 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.
