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The Electronic Commerce Regulations 2002

Introduction
The Electronic Commerce (EC Directive) Regulations 2002 (‘Regulations') implement the EU's E-Commerce Directive 2000 (‘Directive'). The Regulations came into force on 21 August 2002 and seek to promote e-business and help build consumer confidence and protection.

Who do the Regulations apply to?

The Regulations apply to those who provide and receive "information society services", which are defined as services "normally provided for remuneration at a distance, by means of electronic equipment at the individual request of a recipient of a service".

Are there any exceptions to the Regulations?

The Regulations do not apply to a number of areas including taxation, particularly VAT, agreements or practices governed by ‘cartel' law (e.g. the Competition Act 1998) and betting, gaming or lotteries.

What are the key features of the Regulations?

	Establishment of Service Providers The Regulations seek to liberalise the provision of online services in two key ways, they require UK-established service providers to comply with UK laws even if they are providing their services in another Member State and they prevent the UK authorities (including the courts) from restricting the provision of information society services from another Member State in the EEA to the UK.
	General Information Requirements The Regulations require service providers to make available to their customers basic information concerning their activities, including the name of the service provider and the geographic address at which the service provider is established.
	Commercial Communications The Regulations require commercial communications to be clearly identified as such. The person on whose behalf the commercial communication is made must be clearly identifiable. Any conditions to be included must be easily accessible and presented clearly and unambiguously. The Regulations require unsolicited commercial communications sent by e-mail to be clearly and unambiguously identifiable as such as soon as they are received.
	On-Line Contracts The Regulations contain new rules relating to online contracts. Service providers must provide certain information in a clear, comprehensive and unambiguous manner, prior to an order being placed, including the different technical steps to follow in order to conclude the contract and the technical means for identifying and correcting input errors made by an end user prior to the placing of the order.
	Liability of Internet Service Providers The Regulations seek to limit the liability of Internet Service Providers in certain circumstances where the provision of information society services might otherwise contravene the civil or criminal law (such as copyright infringement, defamation or obscenity laws). Provided certain qualifying criteria are met the service provider will not be liable if it plays a passive role in transmitting and storing information (i.e. as a mere conduit), or in system caching and hosting. How are the Regulations enforced? The authorities responsible for enforcing the Regulations include any body able to impose a sanction for failure to observe or comply with any provision of UK law, such as the Local Authority Trading Standards Departments, the Office of Fair Trading and the Independent Committee of Standards and Telephone Information Services. © Davenport Lyons 2003. All rights reserved This document reflects the law and practice as at August 2002. It is general in nature, and does not purport in any way to be comprehensive or a substitute for specialist legal advice in individual circumstances. Click here to download a copy of the full guidelines in PDF format