E-minister asks for industry advice on online trade laws

UK e-minister Patricia Hewitt is today expected to call for industry consultation over the European Union's controversial plans for online trading laws.

At the centre of the debate is whether disputes over materials bought on the Internet should be settled in the consumer's country of origin or in that of the merchant.

The Brussels Convention, originally adopted in 1968, gives customers the right to sue in their own country. But this is unpopular with many businesses, which claim that complying with different laws, languages and procedures in every country would be difficult and expensive.

The EU is currently proposing to transform the Convention into legislation. However, because of the Amsterdam Treaty, the law will not apply to Denmark, Ireland and the UK, unless they decide to opt in.

DTI minister Hewitt is thought to favour arbitration rather than legislation and supports the idea of a European 'ombudsman' for the Internet to adjudicate each case on an individual basis. However, she is now opening up the debate and asking for views from UK industry.

Nick Lockett, senior associate at law firm Sidley & Austin, welcomed the DTI's move to consult the industry. "A consultation period is right. The government does need input on this. There are gaps in the jurisdiction and it's vital we get the confidence of consumers," he said.

Lockett added that the EU must be wary of creating 'server havens' which attract companies because of their liberal legislation and leave other countries without investment.

According to Lockett, a central ombudsman, or a dispute resolution centre, would be difficult to create - but if set up properly the idea could be successful. "It depends how you model it," he said. "I think its going to be quite lucrative area for law firms and qualified individuals to act as adjudicators."

The consultation will last six weeks. If you'd like to have you say email your views to editorial@silicon.com.