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The introduction of a new legal framework for e-commerce in the UK has been postponed until the summer.

The Department of Trade and Industry (DTI) has put back the implementation of the EU’s E-commerce Directive to allow further consultation on the new legislation. The directive was agreed in May 2000, and originally meant to be introduced by 17 January this year.

The directive requires EU member states to draw up legislation regarding consumers’ rights on-line. It will outline the information that service providers need to give in business-to-business as well as business-to-consumer on-line trading.

Draft regulations will now be published in the first quarter of 2002, according to one DTI spokesperson, and then consulted on. The department estimates that the e-commerce industry is worth Ł57 billion in the UK alone.

“It is more important that we get the legal framework for e-commerce right. It is too important to rush,” said e-commerce minister Douglas Alexander. “The UK is not alone in this approach, with most other member states working to a similar timescale.”

The DTI says the directive will set out important information that on-line service providers will have to give their customers and the terms consumers of such services can expect to receive. This should help the two parties to conclude e-contracts.

In addition the DTI explains that the directive will include what on-line advertisers must say about any offers and discounts they send out. It also sets out to what extent service providers are liable for unlawful activities or information they carry or store.

Claire Walker, a solicitor specialising in e-commerce at law firm Olswang, commented that the changes mean a whole raft of legislation will have to be implemented, pushing up the costs for small businesses, who will have to go back and reassess their websites.

Walker concluded that some might also have to take legal advice to ensure they are compliant.

A DTI spokeswoman said it was too early to say what the impact of the new e-commerce legislation might be on small businesses. “Part of the work of the consultation is drawing up the advice for small businesses,” she said adding that this can’t be done “until the Directive has been decided”.

For further information on European law that may affect your e-commerce business, download Don’t Panic! Do E-Commerce – A Beginner’s Guide to European Law Affecting E-Commerce, “advice prepared by consultants at the direction of the European Commission”, from www.dti.gov.uk/cii/ecommerce/europeanpolicy/ecommerce_directive.shtml .

With thanks to Lloyds TSB Success4Business. For more news and information visit www.success4business.com.

(18/1/02)