Intellectual Property Law

U.K Legislative Acts Establishing Website Requirements for U.K. Companies

By IBLS Editor

The United Kingdom (?U.K.?) implemented regulations for U.K. businesses? websites under the Companies Act of 2006.  The Act introduced a variety of rules for U.K. businesses whose implementation schedule extends until 2009.  Hence, rules regarding websites entered into force in 2007 and complement the U.K. E-commerce Regulations of 2002 and the Distance Selling Regulations of 2005.  This article provides a brief description of the website rules under these three legislations. 

Minimal Information Required

The U.K. E-commerce Regulations of 2002 requires any U.K. business with a website, not only those engaged in e-commerce transactions, to include the following information:

1.  The name, physical address, and e-mail address of the service provider (?SP?).  The SP?s name must be the trading name and the name under the SP contract. P.O. Boxes or just e-mail addresses is not enough to comply with this rule;

2.  The company?s registration number and the place of registration;

3. Membership details, if applicable.  This must be provided when the company is associated to any professional or trade organization.  The membership number must also be provided;

4. The company must clearly and unambiguously display prices of goods or services offered.  The company shall also mention if the price includes tax and delivery costs;

5. The VAT number of the company, if any.  Companies with website for e-commerce transactions, and even those who do not electronically transact but which possess a VAT number, must make this number available.

The Companies Act of 2006 complemented The E-commerce Act of 2002 by requiring that the company?s registration information be also included on order forms and electronic communications and documents.  This means an U.K. company sending commercial electronic communications or including order forms in their website must include the company?s registration number, place of registration and physical address.  This requirement previously existed for any business letter sent by the company and for the company?s websites.  Yet, the Companies Act of 2006 extended this requirement to electronic communications like business letters, order forms, any other electronic document.  Even though the Companies Act if 2006 does not clarify whether an e-mail is an electronic business letter, experts and legal advisors recommend the inclusion of this information in any e-mail sent by the company regardless of whether that e-mail is technically considered a ?business letter.?    

 Commercial Communications

U.K. businesses that send commercial communications either by e-mail or direct text message, whether solicited or unsolicited, must identify the following information,

1. The person on whose behalf the commercial information is sent;
2. That the message is a ?commercial communication;?
3. Any conditions applicable to the offer, including time, discounts, promotions, etc;
4. Text messages or SMS are limited to 160 characters;
5. Unsolicited commercial communication can be sent previous consent form a consumer and provided that the sending company complies with data protection laws and the terms and conditions set by their respective Internet Service Providers- ISP. Additionally, Opt-out options must be provided.

Online Purchase Orders

Under the U.K. E-commerce Act 2006, any e-business (B2B or B2C) selling online must provide the following information in their purchase orders;

1. The technical process and steps required to conclude the contract online;

2. Whether the contract or purchase order will be accessible in the future or stored by the e-business in any manner;

3. Whether the user can correct errors or make changes before placing the final order;

4. The rules of code of conduct regulating the e-business.  This requirement is not necessary if the purchase order is submitted by e-mail instead of an online page;

5. The terms and conditions of the purchase.  They must be accessible store or ready for future access.  The above e-mail exception also applies to these terms and conditions.  They would not require their reproduction on a purchase orders by e-mail.  

Other Important Regulation

In addition to the two above Acts, e-business must follow the U.K. Distance Selling Regulation 2000 (?DSR?), as amended by The Consumer Protection (Distance Selling) Amendment Regulations, SI 689/2005.  The DSRs implement the European Council Directive (97/7/EC) whose objective is to provide rights to distance buyers and encourage confidence on this method of buying among E.U. Member States. 

For instance, the DSR requires that an e-business provides the following information in their website:

1. Details about the business;
2.  the goods or services sold;
3. Payment arrangements;
4. Delivery arrangements;
5. Consumers? right to cancel orders and procedure.

Full post as published by IBLS Internet Law Blog on February 18, 2008 (boomark / email).