Be aware: don't get caught by e-commerce laws09 February 2005
There are so many laws regarding e-commerce that you can be forgiven for finding yourself bewildered by them. Any business trading on the Internet now has obligations under the Data Protection Act, Electronic Commerce Regulations, the VAT directive, defamation laws and regulations on cookies and spam.
The main areas you should be aware of are:
The price is right?
Offering goods for sale at the wrong price can cost your business dear. In the past few years, high profile cases involving Argos, Kodak and Amazon have seen television sets mistakenly offered for £3, expensive digital cameras for only £100 and a palm pilot advertised at only £7.32. In each of these cases, the companies involved had to honour their dubious prices, or face court action.
The Code of Practice for Traders on Price Indications gives practical guidance on complying with the Consumer Protection Act 1987 (CPA). The update covers the Internet and other distance selling methods. Although the Code is not legally binding, it can enforce a fine of up to £5,000 for providing a misleading price - including prices on out of date web pages.
To make sure you don't fall foul of this regulation, you should make sure all pricing information on your website is up to date and that all your old or unused web pages are also updated or deleted.
Cookies
Under the EU Directive on Privacy and Electronic Communications, you have a requirement to tell your users about any cookies on your site - and give them the opportunity to refuse them. Visit the European Union website to download a PDF file of the EU Directive for more information.
Spam
Mass-marketing emails, or 'spam' emails are covered in the same section of the EU directive.
The rules state that an EU-wide 'opt-in' approach should be followed. This means you are only permitted to send emails and other electronic communications to users who have agreed their details can be used.
It's important to remember you should only send out information that your customers have requested. Mass emailing of promotions and offers breaches the EU directive will only serve to annoy your users - and you may lose their custom.
Protecting data
The Data Protection Act 1988 states 'Appropriate technical and organisational measures shall be taken against unauthorised or unlawful processing of personal data and against accidental loss or destruction of, or damage to, personal data'.
This means all your procedures for accepting online payments must comply with the law - so make sure you have adequate protection for your users' credit card information and you supply the correct information about their purchases. You can view a full copy of the Data Protection Act here.
