Good news for UK e-tailers

By Matt Loney

E-tailers received some welcome news today as the government announced it was going to make it easier for them to ensure any legal action they face is dealt with in UK courts.

The measures are contained in the Electronic Commerce (EC Directive) Regulations 2002, which were finally published by the government on Monday, less than two weeks before they are due to come into force.

But the e-tailers will have to make some minor changes to the way they operate. Under the new law, which comes into force on 21 August, websites hosted in the UK that sell goods or services will have to include a geographical address, email address and VAT number where applicable.

Prices must clearly state whether they include VAT and delivery costs.

But according to John Enser, partner in the media and communications technology group at City law firm Olswang, the biggest win for UK e-tailers is a measure that makes it easier for them to ensure that if they are sued, the case will be heard in an English court.

Recent changes to the Brussels Convention mean that if a European company sells products or services in another European country then any legal action against it can be taken in that destination country, but now UK e-tailers will have much greater legal certainty about where any action may be taken.

"It doesn't mean there is no risk of being sued abroad," said Enser. "But it does put e-tailers in a better position than they otherwise would have been." The quid pro quo, said Enser, is the extra amount of red tape that companies will have to deal with but even this, he said, is "not as onerous as it once threatened to be".

Matt Loney writes for ZDNet UK