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New Regulations Govern UK Web Hosts, ISPs
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Adam Eisner, theWHIR.com
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August 23, 2002 – Web sites and hosting
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firms in the United Kingdom now have a new set of specific
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accountabilities to consider after new e-commerce regulations were
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introduced this week.
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The regulations, part of the Electronic
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Commerce (EC Directive) Regulations 2002, address several issues
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surrounding Web hosting in the UK, including site content and tax
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regulations. They were published by the government last week, a little
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less than two weeks before they became law. The directive is based on
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the European Union E-Commerce Directive.
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The overall aim of the EUs directive is
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to break down potential legal barriers against e-commerce use across
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Europe by declaring the responsibilities and rights of both businesses
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and consumers. The regulations were also designed to promote the free
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flow of information across Europe, and to protect companies that
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operate networks where it is impossible to track all the information
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being exchanged between servers and users.
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In the United Kingdom, where the
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regulations were slightly altered before becoming law, Web hosting
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firms and ISPs are now responsible for ensuring a number of conditions
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are regularly enforced. One of the most significant obligations for UK
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Web sites surrounds the UK Value Added Tax, or VAT for short. As of
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August 21, Web sites hosted in the UK that sell goods or services are
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required to include an e-mail address, geographical address and VAT
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number where necessary. Whats more, any prices listed on a Web site
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hosted in the UK must now clearly indicate whether they include both
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VAT and delivery costs.
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Web sites must also acknowledge the
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receipt of any orders placed online without delay. “A service provider
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shall acknowledge receipt of the order to the recipient of the service
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without undue delay and by electronic means,” regulation 11(1)(a)
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states, and “make available to the recipient of the service
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appropriate, effective and accessible technical means allowing him to
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identify and correct input errors prior to the placing of the order,”
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according to section 11(1)(b).
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The directive also aims to remove some of
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the ambiguities surrounding the removal of third-party content,
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declaring the onus will be on law enforcement authorities to prove that
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a service provider was aware of the content before being held liable.
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According to the directive, service providers act as a mere conduit
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for the transfer of information so long as specific conditions are met.
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Much of this new clarity, particularly as
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it relates to the UK version of the regulations, is a result of efforts
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by the Internet Service Providers Association (ISPA). The ISPA has been
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lobbying feverishly for changes to regulations surrounding several
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issues, including legal implications when carrying or storing
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controversial content.
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The association, which was established in
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1995 and boasts an impressive membership list that includes BT and
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Level 3 Communications, has repeatedly said that solid definitions and
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provisions are required to inform service providers of what their
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responsibilities are when it comes to storing content that may be
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deemed illegal for one reason or another. Failing to do this, the
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Association argued, could have grave implications for Web hosts.
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Unless there is an effective and
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legally certain notice and takedown procedure agreed between all
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stakeholders, Web hosting in the UK could become unworkable and
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ultimately could deter Internet businesses from establishing themselves
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in the UK, the Association said last year. The E-Commerce Directive
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anticipates such a procedure and ISPA is committed to working with
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Government and other interested groups to achieve this aim. The ISPA
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reportedly won several important concessions prior to the enactment of
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the directive, which makes them believe they have secured at least a
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partial victory thus far.
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Regulations like the EC Directive are
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necessary to guide companies in an age where legal precedents are few.
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They are also important, however, to protect consumers that may be
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vulnerable in a business area where a lack of precedent could affect
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them as well.
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The full text of the EC Directive is available at http://www.legislation.hmso.gov.uk/si/si2002/20022013.htm
About theWHIR.com
Since 2000, The Web Host Industry Review has made a name for itself as the foremost authority of the Web hosting industry providing reliable, insightful and comprehensive news, interviews and resources to the hosting community. TheWHIR is an iNET Interactive property. For more information on iNET Interactive, visit http://www.inetinteractive.com
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