Eu Stops Companies Shopping For Best E-Commerce Base

A legal framework for e-commerce within the European Union will insist that companies conform to the laws in the country where their main physical activity is based - regardless of where their web site or server is situated. The main proposal of draft regulations by the European Commission will prevent organizations basing their e-commerce activities in the country with the most lax requirements. While the EU was designed to create a single market, countries still operate different tax regimes and consumer protection laws and the EU wants to ensure that rapidly growing e-commerce businesses do not gravitate to favorable environments. There is a huge amount at stake for EU countries plagued by unemployment and the EU estimates that one in four new jobs is related to the "information society." E-commerce sites must be strictly regulated by members states so that they display basic information concerning their activities. Member states are told to change their laws to remove any restriction to on-line contracts, dropping outdated legislation that insists that these must be completed on paper. ISPs would be exempt from liability arising from those using their facilities where they only have a passive role as a "mere conduit" of information. Advertising and direct marketing will be subject to strict rules and email communications has to be easily identifiable. The only excuse governments will have to restrict services from other members states will be the protection of minors, to prevent hatred on grounds of race, s ex, religion or on grounds of public health, security or consumer protection. But they will only be able to do this after the government of the country where the service is based has failed to take action. The EU is already under fire from consumer organizations for leaving shoppers at the mercy of different laws in the 15 member states while many businesses fear they could be disadvantaged by the laws of the countries in which they are based.

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