A guide to ecommerce

4 July 2010

A guide to ecommerce Part 1

Lawdit was first talked about in January 1999. It took planning and finance and of course previous committments meant that it would take time to launch. Nethertheless in August 2001 we did!

Lawdit was to focus on ecommerce and the Internet and of course as we are now in 2010 most companies have a website and require legal advice relating to their website.

So these are the legal issues?

First point of call is the introduction of the the E-commerce Directive. Directive 2000/31/EC of 8 June 2000 on certain legal aspects of information society services, in particular electronic commerce, in the Internal Market. The United Kingdom implemented the E-commerce Directive by the Electronic Commerce (EC Directive) Regulations 2002

This was an important milestone and sought to cover all 'information society services', in both a business to business and business to consumer context. It was relevant only to providers within the EU.

What is an information society service?

Quite simply anyone who provides services on the Internet. It has sought to avoid any conflict with other territores and there are only a few harmonised laws which seeks to ensure all the EU sings from the same hymn sheet. This will be for example in relation to where operators are established, and limiting liability.

Key articles

Article 2 covers the place of origin of the provider. In brief irrespective of the location of the server, website or mailbox, the provider is liable for its services from where it provides these services.

Article 5 requires providers provide in readily accessible and permanent form detailed information about themselves including supplier's name, geographic address, contact details and any trade registration or business authorisation information.

Articles 9-11 covers contract formation. This ensures that contracts can be concluded by electronic means and also obliges Member States to remove any prohibitions or restrictions on the use of electronic contracts.

Article 12 covers liability. Where you are a mere conduit for third party information then the Directive deems you are not liable. In addition there is no obligation on you to monitor content. However UK courts have held that while the lack of monitoring is correct but that once you are informed or made aware of the potentially harmful or libellous material then it should take action as soon as is reasonably possible. However it is fair to say that the more passive a role you play the less likely you will be a publisher.

Michael Coyle is a Solicitor Advocate and heads up the IT/IP team at Lawdit Solicitors. He can be contacted at michael.coyle@lawdit.co.uk.