Are you ready to trade online?
Sep 04 2002
Small businesses trading on the internet need to be aware of regulations covering e-commerce, which came into effect last month.
Government e-commerce advisory service UK online for business has produced a guide outlining any necessary changes, Complying With the E-commerce Regulations 2002. It is aimed at companies that sell or advertise goods and services online and transmit or store electronic content.
The regulations are intended to encourage greater use of e-commerce by breaking down barriers across Europe and improving consumer confidence by clarifying the rights of both consumers and businesses.
Generally, companies selling on the internet must provide full contact details of their business, details of trade organisations they belong to, VAT number and a clear indication of prices, including any delivery or tax charges.
Regulations on "electronic contracting" apply to any company that enables consumers to place orders online. The following information must be provided before an order is placed:
* the different technical steps to follow in order to conclude the contract so that end users are made aware of what the process will involve and the point at which they will commit themselves to the contract
* whether or not the concluded contract will be filed by you and whether it will be accessible
* the technical means for identifying and correcting input errors made by an end user prior to placing an order so that end users know how to correct any mistakes they make
* the languages offered for the conclusion of the contract
Non-compliance with the laws could result in customers cancelling their orders or even taking legal action, which could result in a fine, or in extreme cases, imprisonment.
The guide is available to download from www.ukonlineforbusiness.gov.uk. More detailed information on the laws can be found on the Department of Trade & Industry website at www.dti.gov.uk and the official text of the regulations is on the HMSO website at www.hmso.gov.uk.
(4/9/02)