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BRIFFA Trading On-Line New Rules, New Opportunities i n association with. Trading On-line. 2001, boom in Christmas shopping, Europeans spend £1.8 billion, up 40% 2001, US $13.8 billion, 15% increase Law must keep up with such growth EU provisions introduced to facilitate growth
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BRIFFATrading On-LineNew Rules, New Opportunitiesin association with
Trading On-line • 2001, boom in Christmas shopping, Europeans spend £1.8 billion, up 40% • 2001, US $13.8 billion, 15% increase • Law must keep up with such growth • EU provisions introduced to facilitate growth • application of rules • consumer confidence • transparency and clarity • E-commerce directive
Trading On-line • What rules apply? • Forming contracts on-line • Information on your website • Direct marketing
Trading On-line Example: Compaq (see notes pages for more info)
Trading On-line • The E-Commerce Regulations • Background • Overview • Who Do They Apply To? • What’s In Them?
Trading On-line • Scope • Regulations applies to “Information Society Services” “any service normally provided for remuneration at a distance, by means of electronic equipment for processing data, at the individual request of a recipient of the service”
What rules apply? • What rules apply when contracting on-Line? • What the E-Commerce Regulations say • UK laws applies to outbound services • Meaning of “established” • UK authorities cannot prevent information society services being supplied into the UK • Exceptions for public health, public security ad protection of consumers
What rules apply? • What law applies? Where can I sue? Governing law and jurisdiction • Governing law - law as agreed, but websites directed at consumers abroad will have that countries laws governing • Jurisdiction - as above, country as aged, but if you target consumers in a particular country, then they can sue you in their home state and you have to sue them in their home country.
What rules apply? Example: Yahoo (see notes pages)
What rules apply? • Regulation of speech • Offensive • Sensitive material
Contract Formation • Article 9.1 • Implementation • No formal requirements - “writing” satisfied by electronic communication • Contract formation • Offer and acceptance • Consideration • Intention to create legal arrangements
Contract Formation • Invitation to treat, offer and acceptance • Application to the internet • What constitutes acceptance
Contract Formation • Example cases: • Argos (see notes pages) • Kodak (see notes pages)
Contract Formation • Placing the Order, E-Commerce Regulations, Regs 13 - 16 • Acknowledgement of receipt “without undue delay” • What is “undue delay” • When is acknowledgement deemed to have been received • Right to cancel on failure to comply
Contract Formation • Incorporating terms • Specht & Ors v Netscape 2001 • Click Wrap Agreements v Browse Wrap
Contract Formation • BOL's Contract With YouNo contract shall exist between you and BOL until BOL has sent you an email confirming receipt and acceptance of your order. BOL is entitled to withdraw from any contract in the case of obvious errors or inaccuracies regarding the goods or the order appearing on BOL's site or for unavailability (see 3. below). BOL reserves the right to place restrictions on the volume of any goods ordered.
Information Requirements • E-Commerce Regulations and the Distance Selling Regulations • Information on websites generally (E-Commerce Regulations Reg 8) • Information given to consumers prior to conclusion of contract (Distance Selling Regulations, Reg 7) • Information to consumers prior to contract being made (E-C Regs, Reg 11) • Information to consumers on the placing of an Order (E-Co Regs, Reg 13)
Information Requirements • Distance sales and right of cancellation • Conditions of cancellation • Exceptions • E-Commerce Regulations, Reg 11, information on conclusion of the contract
Direct Marketing • Reg 9 and 10 E-Commerce Reg • Commercial communications • clearly identifiable • clear who is sending them • identify it’s a promotion and conditions for the promotion • clear on condition for competitions or games • Unsolicited commercial communication, is clearly identifiable
Direct Marketing • Unsolicited emails and data protection • Section 11 Data Protection Act, 1988 • Information collected on a website
Direct Marketing • Article 7.2 E-Commerce Directive • Implementation in the UK • Opt-out registers
Direct Marketing • Proposed Directive on the processing of personal data in the electronic communications sector • Draft Article 13 • New amended position sent to parliament • Direct marketing emails subject to consent • opt out in respect of marketing e-mails concerning a business’ own products and services which are similar to those purchased by the recipient in the past.
Summary • Directing your site to consumers outside the UK • Comply with the information requirements • Cooling off period • Procedures for placing orders • Clear when acceptance takes place • Bring your terms and conditions to the consumers attention • Consent for direct marketing
If you have any questions or would like further information please contact either: Alex Chapman (alex@briffa.com) or Lee Gage (lee@briffa.com) Briffa, Business Design Centre, Upper Street, Islington, London N1 0QH Tel: 020 7288 6003, Fax: 020 7288 6004 www.briffa.com