In the last year alone, more than ten pieces of legislation have come into force at EU and local level, which impact the establishment and operation of e-business. Ireland has been one of the leaders in implementing the necessary legal and regulatory framework to enable it to become a European telecommunications and e-commerce hub.
This article seeks to highlight the basic kinds of issues that are relevant to any business with an online presence – whether its website is there to provide information, or an interactive retail site. The three issues addressed in this article are website content, electronic contracts and privacy/data protection.
Website content
Information appearing on a website must be accurate and legal.
Libel takes place when a defamatory statement (i.e. one that holds a person open to ridicule or contempt) is published to a third party. In the context of the internet, any organisation with a website may be liable for any defamatory statement it places on the site. In the case of an internet service provider (ISP), it is generally understood now that by providing the simple transport of information, an ISP is not liable if that information is defamatory.
If the ISP actively monitors or selects the offending information posted on its website, it may be liable in defamation or libel with respect to that information.
There is no Irish legislation that specifically deals with advertising on the internet. Under Irish law, publication of advertisements in relation to the supply of goods and services is not allowed if it is likely to mislead and cause loss or injury to members of the public. Any person can apply for a High Court order to prohibit the continued publication of the misleading advertisement.
Electronic contracts
Under the Electronic Commerce Act, 2000, a contract may be concluded wholly or partly in electronic form, provided it would be seen as a valid agreement.
Care should be taken in website design to ensure that the terms and conditions of any contract (for example for the sale of goods or services) are made available to the website user. This is particularly important when the goods and services are being offered to consumers by way of an interactive website.
Consumer protection laws in Ireland require that the consumer be given a real opportunity to become acquainted with the terms and conditions of a contract – otherwise the contract will not be binding on the consumer.
As many e-businesses may not have a physical office or outlet, it is important that consumers and other businesses contracting with them are provided with basic information that would be taken for granted in a traditional business.
This information includes the e-merchant’s correct legal name (not just the trading name), its address and telephone number, its e-mail address, its VAT number, and the territory to which the contract applies.
Details that would not be relevant in a traditional contract, but which must be provided in the context of online contracts include the technical steps that are required to conclude the contract, the technical means for the consumer to identify and correct any input errors, and the languages in which the contract may be available.
When the EU Electronic Commerce Directive is implemented in Ireland, there will be a legal obligation to provide all of this information.
