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Business and the Web

14 Oct 2011

In this digital age, where businesses are carrying out communication electronically and possibly have a website on the internet, it is important that we keep the right side of the law.

For websites, basic information requirements are laid out in the Electronic Commerce (EC Directive) Regulations 2002, The Companies Act 2006 and Business Names Act 1985. The Ecommerce Regulations basic disclosure requirements apply to “...a person providing an information society service..” (Regulation 6). In short, this means that a simple “brochure” site, by advertising a business on the internet, will constitute an information society service, even if it is free to users. So if you have a website for your business, then you, the service provider, should ensure you provide the following information

  • name of the service provider, including any differences with regards a trading name, e.g. “xyz.com is a trading name of xyz Ltd”
  • email address must be given. A simple ‘contact us’ form is not sufficient, and it must be possible to communicate with the service provider in a direct and effective manner
  • the geographic address of the service provider. A PO box is unlikely to be sufficient
  • companies must also provide their company registration number, place of registration and registered office address. They do not need to show the name of their directors, but should they choose to, they must list all of them. Those exempt from using “limited” in their name, must disclose that they are a limited company
  • sole traders and partnerships who are service providers under a business name (other than that of their own) must include the individual’s name (sole trader) or those of each member (partnership). In all cases, an address where any document relating to the business may be effectively served
  • if the service is subject to an authorisation scheme, the details of the relevant supervisory authority
  • if the service provider exercises a regulated profession, then the details of the professional body; their professional title and member state where granted; a reference to the professional rules applicable and a means to access them
  • if the service provider is registered in a trade or similar organisation, details of the register and his registration number or equivalent means of identification in that register (sometimes referred to as a “badge”)
  • if an activity from the service provider is subject to value added tax, then the relevant identification number (even if it is not being used for ecommerce transactions)
  • where prices are given they must clear and unambiguous and must indicate whether they include VAT and delivery costs
  • if the company is being wound up, there must be a statement declaring as such

The question of where this information should appear on your site, is open to legal interpretation, but it might be suggested that company registration details should appear at the footer of each page (and VAT, if an ecommerce site) while the rest could appear on your contact us page, about us or legal section.

Text Messaging
If your business uses text messaging to promote its goods and services, you are still subject to these information requirements. Obviously it is not possible in 160 characters, but the Government envisages that the criteria of being met if the information is easily accessible, e.g. inclusion of a website URL at the end of the message may be sufficient.

Commercial communications
To avoid making this article too long, this will only deal with email “business letters” rather than where a contract is completed by electronic means. Email footers have the same requirements, as a business letterhead, in that they must contain

  • the name of the company
  • the registered office of the company
  • the place of incorporation of the company
  • the registration number of the company

Future articles will deal with other aspects of the web and information about its legal ramifications.

The following articles have been used, which you may wish to read in more detail.

http://uget4.me/pv64I8 and http://uget4.me/qYqmEx Website-law.co.uk which also contains useful free legal notices to download
http://uget4.me/p8p2ly The Out-Law.com
http://uget4.me/r8bvmf Business Link

Disclaimer: The legal information given in this article do not constitute legal advice. It asserts that no warranties or representations are given in relation to the legal information. And it seeks to exclude any liabilities that may arise out of the use or misuse of the information.

 

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  • the review writer - 27/12/2011
    Thankyou for sharing this information