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By Joey Gardiner, 15 March 2002 17:00

NEWS UK e-tailers have expressed grave doubts about the government's implementation of the European ecommerce directive. Industry is concerned that protection given to businesses using the web to trade overseas have been dramatically watered down. However, e-tailers are in danger of missing its chance to get the rules straightened out, with industry consultation due to end in just six weeks. Mike Pullen, partner at ebusiness law firm DLA, said: "This doesn't correctly implement the directive passed by the EU. Businesses expected the UK to deliver a strong message to the other member states on this issue, as a liberal trading state. "However, it has singularly failed to do this. Indeed it has written the regulations in such a way as to make a good likelihood of being taken to court by the EU for failure to implement a directive correctly." Of prime concern is the drafting of the regulations around the so-called "country of origin" principal, which decides under which jurisdiction cross border trade disputes are settled. Businesses argued that if consumers in other countries could require them to meet local consumer protection laws, this would make trading on the web unfeasibly complex. Pullen added: "The country of origin laws as drafted are far too uncertain to give industry the confidence it needs to do business online." The Confederation of British Industry was amongst those to put its head above the parapet. It said it had yet to consult its members on the issue but an initial survey of the bill gave it cause for serious concern. Pamela Taylor, senior ebusiness policy adviser for the CBI, said: "The implementation of the directive is supposed to help clarify the rules - this implementation doesn't help at all. Businesses will be very disappointed. "Hopefully this will be a wake-up call to industry to not wait until the last minute to add their voice." The government published a consultation paper on the draft regulations just last week and is thought to favour a laissez-faire approach to the regulations to ensure flexibility is built in to the laws. Sources within government are confident the country of origin issue is dealt by the current drafting. The Department of Trade and Industry, which is leading the implementation, was not able to comment before deadline.