UK government urged to support changes to ecommerce law

NEWS The UK government must support changes to European ecommerce laws if it is not to leave online traders vulnerable to litigation, according to London-based law firm Dibb Lupton Alsop. The firm recently held an industry forum in the European Parliament to urge governments to radically change the Brussels and Rome conventions and remove the legal uncertainty that currently exists in the ecommerce market. Under the current format, the Brussels convention makes it easier for foreign consumers to sue online traders within their own jurisdiction, as opposed to the country the site is based in. The Rome convention leaves online traders open to unfair competition laws in certain countries. For example, a three for the price of two deal might be legal under UK law, but under German law it is illegal and the trading company could face sanctions. The meeting, held in the European parliament, was designed as a forum to encourage debate between industry and consumers. Dibb Lupton Alsop lawyer, Mike Pullen, said: "It's actually the first time that consumers and industry can get together for consultation. It is also unusual for a private company to be invited to hold a forum in the European Parliament. "But the reason it is held there is that there is a great deal of concern among members of Parliament about the way in which member states and the EC have decided to adopt this legislation without any level of consultation," he explained. Participants at the meeting decided that cross-border mediation instead of litigation and a country of origin policy were needed. Such a policy would mean consumers would have a pan-European consumer law. But Pullen claimed it has taken a long time, and much lobbying, to make the UK government see this problem: "There is a big policy issue here and the government hasn't got to grips with it. They say there is an ecommerce policy, but when you get down to it, it's just all sorts of people doing different things." The DTI is to hold hearings in October to debate the issue while the EC has set aside 4th and 5th November to hear all final arguments. Pullen believes the UK government must break ranks with the other member states and declare that the conventions are not acceptable in their present format.