New Regulations Govern UK Web Hosts, ISPs

• By The WHIR, August 23, 2002

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New Regulations Govern UK Web Hosts, ISPs

Adam Eisner, theWHIR.com

August 23, 2002 - Web sites and hosting

firms in the United Kingdom now have a new set of specific

accountabilities to consider after new e-commerce regulations were

introduced this week.

The regulations, part of the Electronic

Commerce (EC Directive) Regulations 2002, address several issues

surrounding Web hosting in the UK, including site content and tax

regulations. They were published by the government last week, a little

less than two weeks before they became law. The directive is based on

the European Union E-Commerce Directive.

The overall aim of the EU’s directive is

to break down potential legal barriers against e-commerce use across

Europe by declaring the responsibilities and rights of both businesses

and consumers. The regulations were also designed to promote the free

flow of information across Europe, and to protect companies that

operate networks where it is impossible to track all the information

being exchanged between servers and users.

In the United Kingdom, where the

regulations were slightly altered before becoming law, Web hosting

firms and ISPs are now responsible for ensuring a number of conditions

are regularly enforced. One of the most significant obligations for UK

Web sites surrounds the UK Value Added Tax, or VAT for short. As of

August 21, Web sites hosted in the UK that sell goods or services are

required to include an e-mail address, geographical address and VAT

number where necessary. What’s more, any prices listed on a Web site

hosted in the UK must now clearly indicate whether they include both

VAT and delivery costs.

Web sites must also acknowledge the

receipt of any orders placed online without delay. "A service provider

shall acknowledge receipt of the order to the recipient of the service

without undue delay and by electronic means," regulation 11(1)(a)

states, and "make available to the recipient of the service

appropriate, effective and accessible technical means allowing him to

identify and correct input errors prior to the placing of the order,"

according to section 11(1)(b).

The directive also aims to remove some of

the ambiguities surrounding the removal of third-party content,

declaring the onus will be on law enforcement authorities to prove that

a service provider was aware of the content before being held liable.

According to the directive, service providers act as a “mere conduit”

for the transfer of information so long as specific conditions are met.

Much of this new clarity, particularly as

it relates to the UK version of the regulations, is a result of efforts

by the Internet Service Providers Association (ISPA). The ISPA has been

lobbying feverishly for changes to regulations surrounding several

issues, including legal implications when carrying or storing

controversial content.

The association, which was established in

1995 and boasts an impressive membership list that includes BT and

Level 3 Communications, has repeatedly said that solid definitions and

provisions are required to inform service providers of what their

responsibilities are when it comes to storing content that may be

deemed illegal for one reason or another. Failing to do this, the

Association argued, could have grave implications for Web hosts.

“Unless there is an effective and

legally certain notice and takedown procedure agreed between all

stakeholders, Web hosting in the UK could become unworkable and

ultimately could deter Internet businesses from establishing themselves

in the UK,” the Association said last year. “The E-Commerce Directive

anticipates such a procedure and ISPA is committed to working with

Government and other interested groups to achieve this aim.” The ISPA

reportedly won several important concessions prior to the enactment of

the directive, which makes them believe they have secured at least a

partial victory thus far.

Regulations like the EC Directive are

necessary to guide companies in an age where legal precedents are few.

They are also important, however, to protect consumers that may be

vulnerable in a business area where a lack of precedent could affect

them as well.

The full text of the EC Directive is available at http://www.legislation.hmso.gov.uk/si/si2002/20022013.htm

Tags:  government  Europe  Appro  Directi  Level 3 Communications  NEC  THUS 

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