E-Commerce Regulations in the EU and the UK - Essay Example

? EU AND UK’S E-COMMERCE REGULATIONS …………………. College/ ………….. …………. Introduction Recent advances in information technology have tremendously changed the way business is carried out. As a result, customers around the world gained access to wider markets and businesses found larger marketing opportunities as well. Since E-Commerce became a reality, it has been a growing concern that consumers might become unwitting victims of such virtual marketing that operated only online and they cannot even be traced if they do not honor their obligations. In order to provide consumers with more comfort when they buy goods or services online and to ensure their rights are protected, EU has introduced a set of rule and regulations (Sparrow 2009, p. 41). This piece of research paper addresses the regulatory activities of UK and EU in last 15 years to encourage the adoption and growth of E-Commerce and how it has provided a framework to protect the rights of consumers. An Overview of EU’s E-Commerce Directive In 2000, European Union has first adopted regulations to foster E-commerce throughout the regions of EU (Plotkin, Wells and Wimmer, 2003, p. 14-60) and in 2002 it also has set certain rules and regulations in order to provide consumers within the EU with more comforts in buying of goods or services from online. One of the very fundamental objective of this regulation was to ensure that customers’ rights are protected. These rules and regulations have clearly defined how the protection can be applied. The protection applied only to those consumers who visited a commercial website setting specific directions regarding how a business should operate its website and virtual business environment (Sparrow 2009, p. 41). According to EU regulations, every company that operates a virtual website must adhere strictly to the rules and regulations if the business offers good or services to its customers online. When a business fails to strictly comply with these regulations, the business will be legally liable and will be prosecuted accordingly. EU’s regulations about E-Commerce has been considered to be a cornerstone in electronic marketplace. These regulations, often termed as E-Commerce Directive or Distance Selling Directive, were established in 2000 to foster the expansion of E-Commerce by developing a ‘country of origin’ rule that promoted free movement of E-Commerce within the EU member countries. The regulations have defined the limit of how extent one member state may regulate electronic commercial activity entering its boarders from another member state (Plotkin, Wells and Wimmer, 2003, p. 14-60). Sparrow (2009, p. 41) stressed that the E-Commerce directive developed by EU was to encourage greater use of E-Commerce by removing the barriers throughout the Europe and to enhance consumers’ confidence by making them and businesses aware of their rights and obligations to each others when dealing through online. The regulations were more likely to promote a single market in Europe by developing movement of ‘information society services’ across the European economic area. EU directive as British Law Internet Magazine in 2002 reported that the E-Commerce regulations implemented by EU has also been adopted by UK and considered as its Law. When it has been considered as part of English law, the wide-ranging legislation particularly affected ISPs and how the businesses would be held if they dealt with illegal content on the websites. When UK has adopted the EU directive, the major intentions were to boost confidence in e-commerce. According to UK’s regulations, those businesses that failed to adhere to the regulations have been subject to a ‘stop now’ order by which these businesses were forced to change their online-procedures or business practices. EU Directive promoted growth of E-Commerce Computer Weekly in 2003 reported that European Union’s E-Commerce Directive has already increased the take-up of online services and proved highly increasing trend towards the growth of E-Commerce in the EU regions. This report quoted the finding of European Commission that the EU directive, which was then in force in around 12 EU member countries, has been found to make substantial impact and positive effect on online services. It expected 54% of European internet users to come online for shopping and e-commercial activities by 2006. It’s important to analyze how and why the EU directive has fostered the E-Commercial activities and its growth in the EU member countries. The EU directive has prohibited member states from restricting information services that are provided from other member states and has obligated each member states to enforce their own legal systems (Perritt, 2001, p. 962). The EU directive has thus created greater awareness among both E-Commerce businesses as well as customers and has fostered its use among its customers. As Perritt (2001, p. 962) denoted, the EU directive set regulations that information service providers must provide certain identifying information to the customers and any specific bodies like government, if they require so, including, a) the name of the service provider, b) the address and particulars including e-mail id of the service provider, c) the trade register, d) legal authorization and e) local professional bodies etc. The EU directive has eventually promoted the E-commerce business and resulted growth in the online business due to that both customers and marketers have become increasingly aware of the rules, regulations and wider opportunities along with how customers are protected of their rights. Additional changes required to boost the growth of E-Commerce One of the very significant determinant of E-Commerce is its wide-marketing opportunities. E-Commerce is essentially a global business opportunity. When it comes to the EU directives, most of the regulations it contained were in relation to the E-Commerce dealing between member countries of the European union. It is highly important to clearly define and describe the legal perspectives of E-Commercial activities between EU countries and non-member countries, because, in recent days, the E-Commerce has widely been practiced by people worldwide, with no further enquiry of whether it is from Europe, or Africa and so on. Conclusion This piece of research paper has highlighted the EU’s E-Commerce regulations, and detailed how this has been later implemented as the legal system in the UK. It is an important matter of concern whether the EU directive has resulted growth in the E-Commerce. This paper has explained how and why the EU directive has resulted in the growth of E-Commerce in the EU regions. References Computer Weekly (2003), EU directive boosts online transactions.(E-Commerce Directive), Academic One-File Infotrac, Gale Cengage Learning, Retrieved from http://find.galegroup.com/gtx/infomark.do?&contentSet=IAC-Documents&type=retrieve&tabID=T003&prodId=AONE&docId=A110806082&source=gale&srcprod=AONE&userGroupName=apollo&version=1.0 Internet Magazine (2002), UK firms subject to UK law: net businesses face changes as the EU's E-commerce Directive becomes British law. (Browser), Academic One-File Infotrac, Gale Cengage Learning, Retrieved from http://find.galegroup.com/gtx/infomark.do?&contentSet=IAC-Documents&type=retrieve&tabID=T003&prodId=AONE&docId=A92081929&source=gale&srcprod=AONE&userGroupName=apollo&version=1.0 Plotkin, ME, Wells, B & Wimmer, KA, 2003, E-commerce law and business, Illustrated edition, Aspen Publishers Online Perritt, HH 2001, Law and the information superhighway, Second edition, Aspen Publishers Online Sparrow, AP 2009, The law of virtual worlds and Internet social networks, Gower Publishing, Ltd Read More