Internet regulation

In the UK there are a range of regulations which apply to business trading on the internet.

As well as the many UK and EU regulations covering all businesses whether or not they trade on the internet, there are what some loosely describe as "internet regulations" which are specifically directed, or at least very relevant, to online businesses.

The DTI has recently announced that is carrying out a web sweep of the UK's top 600 retail websites to ensure that they comply with key requirements of online shopping laws.

Distance Selling Regulations

One example is the Distance Selling Regulations (full title: The Consumer Protection (Distance Selling) Regulations 2000). This is not a pure internet regulation as it applies to all contracts concluded at a distance ie remotely but is clearly an important regulation for online traders.

Amongst other things, the Distance Selling Regulations require that online traders selling goods or services to consumers provide certain information about their business, their goods and services, their payment and delivery arrangements and consumer’s right to cancel. Some of this information has to be made available before the contract is concluded; part of it has to be confirmed afterwards.

One important aspect of the Distance Selling Regulations is that (subject to some exceptions) consumers are provided with a mandatory "cooling off" period of seven working days. This right to cancel can be extended if consumers haven’t been given the correct information at the outset.

This cancellation right does not apply to services if the supply of services starts before the end of the cancellation period provided the consumer’s agreement to this is obtained in a satisfactory way and provided other parts of the regulations have been properly complied with.

Ecommerce Regulations

The Ecommerce Regulations (full title: The Electronic Commerce (EC Directive) Regulations 2002) are another example of regulation focussed on internet businesses.

Amongst other things, the Ecommerce Regulations, which are based on an EU Directive, require those trading online to make available to buyers certain information such as name, geographic address, contact details, VAT number etc.

In one sense, the Ecommerce Regulations simplify internet regulation in that UK traders are released from having to comply with some regulations in other European Economic Area countries but this excludes certain areas such as consumer contracts.

In the case of a breach of the Ecommerce regulations, customers can cancel their orders, seek court orders requiring compliance and sue for damages for breach of statutory duty if they have suffered loss. The Ecommerce regulations can also be enforced by the Director General of Fair Trading and other bodies.

We can advise on all aspects of internet regulation including distance selling regulations. For a free initial chat and more information about online privacy, call Adam Taylor of Adlex Solicitors on +44 (0) 207 317 8404 or email.