E-commerce

On 22 October 2012, the European Commission launched a consultation on e-invoicing in public procurement.

BIS has published its response to its call for evidence on the European Commission's legislative proposals on alternative dispute resolution for consumer disputes, together with the individual responses themselves.

On 11 January 2012, the European Commission published a Green Paper consultation on developing an integrated European market for card, internet and mobile payments.  It has also published a Communication on the separate, but related, issue of building trust in the digital single market for e-commerce and online services.  

The European Commission has adopted proposals aimed at promoting the use of alternative dispute resolution. It has published a proposed Directive on alternative dispute resolution for consumer disputes and a proposed Regulation on online dispute resolution.

The OFT has opened an investigation into the sale of government services online by non-government organisations (July 2011).

The Information Commissioner's Office has issued guidance on enforcing the Privacy and Electronic Communications (EC Directive) (Amendment) Regulations (SI 2011/1208).

The Information Commissioner's Office has published a code of practice for the sharing of personal information.

The European Parliament has considered the latest version of the Consumer Rights Directive which fully harmonises information requirements, delivery deadlines and withdrawal rights for distance and off-premises sales (March 2011). 

The Internal Market Committee of the European Parliament has approved a version of the Consumer Rights Directive which fully harmonises information requirements, delivery deadlines and withdrawal rights for distance and off-premises sales. The Committee has also voted for minimum consumer protection in other areas, including lack of conformity of goods with contract, with these to apply to all contracts whether concluded at a distance, on a doorstep, in shops or otherwise (February 2011). 

The extension of the CAP Code from 1 March 2011 to cover advertising on an organisation's own website and in other non-paid-for space online under the organisation's control.

On 21 July 2010, the OFT published a consultation on proposals for action to protect consumers and drive competition and economic growth in online markets.

An update on the publication of the apComms (All Party Parliamentary Communications Group) report on a range of internet-related issues, including online privacy, the regulation of behavioural advertising and the role of internet service providers in monitoring network traffic.

On 11 May 2009, the OFT announced the results of a survey of consumers on internet shopping.

An update on the Advertising Standards Authority's 2008 compliance survey for food and drink advertising.

An update on the changes to the limit for customs duty for goods imported by post from non-EU countries.

An update on the 30th International Conference of Data Protection and Privacy Commissioners, which adopted a resolution, among others, on protecting children's online privacy.

Legislation relating to intellectual property and communications will take effect on 1 October 2008, the next twice-yearly standard commencement date. Among other things, the legislation covers the information which a company is required to display on its website and in its communications; new powers to streamline and improve regulatory enforcement and to enable ministers to confer new sanctioning powers on regulators; the introduction of a new right to object if a company's name is the same as a name associated with the objector in which he has goodwill, or is sufficiently similar to such a name that it would be likely to mislead; and changes to the rules on the procedural and operational requirements which apply to registered trade marks and trade mark applications.

On 17 September 2008, the European Commission hosted a consumer and industry roundtable discussion with consumer and industry representatives. The Commission has published an issues paper on the matters discussed and has invited comments on this. In particular, the issue of whether the current competition rules relating to vertical agreements need to be amended to reflect the realities of online trading has been raised for consideration. Competition Commissioner Neelie Kroes has stated her intention to understand whether the competition rules present a barrier to online trading and, if so, to take action to rectify this.

Google has announced that it intends to reduce the period during which it retains search server logs identifying individual users from 18 months to nine months. At the same time Google has provided a response to the EC Article 29 Working Party's opinion, issued in April 2008, on data protection issues relating to search engines (see Legal update, EC Working Party issues opinion on data protection issues relating to search engines). The Working Party had said, among other things, that it could not see a basis for a retention period beyond six months, unless it was strictly necessary for providing the service. Google said that it had not yet resolved all the technical implementation details of its new policy. While it welcomed improvements in privacy, Google expressed its concern about the potential loss of security, quality and innovation to its service that might result from having less data. Privacy campaigners have welcomed Google's announcement, but concern will remain that Google has not made any commitment to reduce the time it retains cookies.Source: Official Google blog, 8 September 2008.

The Regulatory Enforcement and Sanctions Bill received Royal Assent on 23 July 2008. The Regulatory Enforcement and Sanctions Act 2008 is largely identical to the Bill introduced in the House of Lords (see Legal update, Regulatory Enforcement and Sanctions Bill introduced in House of Lords for a detailed report on the Bill). The main substantive change relevant to the intellectual property, information technology and communications sectors concerns the procedure for imposing fixed monetary penalties, one of the new civil sanctions which the Act allows ministers to confer by statutory instrument on certain regulators, including the Information Commissioner and Ofcom. Broadly, the changes mean that instead of imposing a fixed penalty payment notice, a regulator must first serve a "notice of intent" indicating that it intends to impose a penalty (section 40 of the Act). The person notified can then make objections or pay a discharge payment, failing which a final notice may be served. More minor changes include a new provision requiring regulators empowered with civil sanctions under the Act to publish certain information about the sanctions imposed (section 65 of the Act). The Department for Business Enterprise and Regulatory Reform has published guidance on the Act and has indicated on its website that Parts 1, 3 and 4 will commence on 1 October 2008, with Part 2 commencing on 6 April 2009. Source: Regulatory Enforcement and Sanctions Act 2008.

The Serious Crime Act 2007 (Appeals under Section 24) Order 2008 (SI 2008/1863) has been published. The Order, which comes into force on 18 August 2008, sets out the procedure for appeals and related matters on costs in relation to serious crime prevention orders made in the Crown Court under Part 1 of the Serious Crime Act 2007. "Serious crime" for these purposes includes various trade mark- and copyright-related offences, as well as offences relating to online security; for more information on the relevant provisions of the Act, see Legal update, Serious Crime Act 2007 receives Royal Assent. Source: Serious Crime Act 2007 (Appeals under Section 24) Order 2008.

The European Commission has launched an online survey to investigate a common European approach to web and e-accessibility. The survey has been prompted by three factors: the challenges faced by disabled users when attempting to access websites; market fragmentation caused by divergent policies to web accessibility throughout member states; and the Commission's ongoing commitment to improve e-accessibility. The questions in the survey are aimed at three types of stakeholder: disabled people; website owners; and web-technology providers. The closing date for completion of the survey is 27 August 2008. Source: European Commission survey on web accessibility, 8 July 2008.

The new Consumer Protection from Unfair Trading Regulations and the Business Protection from Misleading Marketing Regulations simplify the regime, but this does not mean that businesses can be complacent: they will have to ensure that their compliance programmes are up to scratch if they are to avoid prosecution under the new criminal sanctions.

The European Commission has published the results of an EU-wide survey on e-commerce and cross-border trade, which show that while e-commerce is growing at national level, cross-border e-commerce is not keeping pace. In the light of these results, the European Consumer Commissioner, Meglena Kuneva, has set out five priority areas for action by the Commission to address consumer issues in the digital age, including a single framework of consumer contract law and core consumer principles on privacy. Consumers will welcome the announcement of these priorities by the Consumer Commissioner, although in reality many of the issues she refers to are already being debated and examined in one way or another.

ICANN has announced the launch of a new monthly, subscription-based ICANN policy update that will highlight important internet policy issues which it is addressing through its policy development structure. ICANN intends that the policy update will explain a broad range of ICANN policy development activities, give detailed updates on specific issues and provide links to more information. The policy update will be provided free to subscribers.Source: ICANN announcement, 11 June 2008.

The Department for Business, Enterprise and Regulatory Reform has issued a call for evidence as part of a review of UK consumer law.

Following their publication in draft form (see Legal update, Revised draft regulations implementing directives on misleading advertising and unfair commercial practices), the Business Protection from Misleading Marketing Regulations 2008 and the Consumer Protection from Unfair Trading Regulations 2008 have now become available in their final form. Both sets of regulations will come into force on 26 May 2008. For a full note on the regulations, see Practice note, Consumer Protection from Unfair Trading Regulations 2008.Source: Business Protection from Misleading Marketing Regulations 2008 and Consumer Protection from Unfair Trading Regulations 2008, 16 May 2008.

On 8 May 2008 the Department for Business, Enterprise and Regulatory Reform (BERR) published a consultation paper on reforming the current UK consumer law regime. BERR is gathering views and supporting evidence on improving the consumer law regime. All consumers and organisations trading with consumers could be affected by changes to consumer law. The consultation envisages a wide-ranging review which will need to take into account the concurrent EU review of eight consumer directives. The review covers the body of legislation, redress and enforcement arrangements that underpin the core principles of protecting business-to-consumer transactions: commercial practices, contract fairness, product and service quality, accurate measurement of quantities and product safety. Responses are requested by 31 July 2008.

The Advertising Standards Authority (ASA) has upheld a complaint against Paddy Power plc in one of the first adjudications to be made since the new rules regarding gambling advertising were introduced in September 2007, to coincide with the Gambling Act 2005 coming into force. The decision is a useful illustration of the ASA's approach with regard to the new rules, and shows that the ASA will take action to ensure that the gambling industry complies with the new rules. The gambling industry is expected to use its new-found freedom to advertise responsibly.

On 18 April 2008, the European Commission published a "mid-term review" report on the progress of its i2010 strategy, the EU policy framework for the information society and media. The report highlights developments in the area of information and communication technologies (ICT). In particular, it notes the increased internet usage and broadband take-up in the EU. The report identifies the Commission's future priority actions in this area, including progressing the proposed reforms to the telecoms regulatory framework.

The European Parliament has adopted a report on the cultural industries in Europe which, among other things, rejects the idea of making consumer (that is, non-profit-making) file-sharing a criminal activity. The report, which is non-binding but will be taken into account by the European Commission when it considers its legislative programme, also addresses matters such as the desirability of extending broadband networks into less densely-populated areas, the need for telecoms operators and internet service providers to participate in developing new models to remunerate rights-holders for use of their works, and the idea of reducing the level of VAT on cultural products, including online works. Source: European Parliament vote, 10 April 2008.

The EC Article 29 Data Protection Working Party has published an opinion on data protection issues relating to search engines. Among other things, it concludes that the Data Protection Directive (95/46/EC) (Directive) applies to search engine providers even if they are established outside the EEA; that server logs and IP addresses fall within the Directive's definition of "personal data"; and that search engines may only process such data for legitimate purposes. The Working Party criticises the failure of many providers to provide their users with adequate information about the way in which, and the purpose for which, users' data is collected and processed. It concludes that data stored by search engines must be subject to strict purpose limitation, must not be excessive in relation to the purpose for which it was collected, and must be deleted or anonymised once that purpose has been achieved. Many of the conclusions drawn in the opinion will be viewed with concern by search engine providers, as much as they will be welcomed by privacy groups.

The text of the Food Products (Marketing to Children) Bill 2007 to 2008 (Bill) has just been made available. The Bill, which was introduced as a Private Members' Bill by Nigel Griffiths MP, received its first reading in the House of Commons on 5 December 2007. The Bill would make it an offence to advertise and promote "less healthy" food and drink products to children under 16 on broadcast media before the 9pm watershed and across a range of non-broadcast media, including print, cinema and video; electronic media (including online advertisements in paid-for space, websites, e-mail and SMS text messages); and on packaging and point of sale material. The Bill would place a duty on the Food Standards Agency to use its nutrient profiling model to identify "less healthy" foods, namely those high in fat, salt and sugar. The Bill, which is supported by groups such as the British Heart Foundation, has attracted cross-party support from over 190 MPs. The Bill will receive its second reading on 25 April 2008.Source: Food Products (Marketing to Children) Bill 2007 to 2008, 2 April 2008.

The Gambling Commission has issued an advice note on remote-gambling equipment. The note sets out the Commission's interpretation of which elements of a gambling system will meet the definition of remote-gambling equipment in the Gambling Act 2005 - if such equipment is located in Great Britain, the operator will need to obtain a remote-gambling licence (see Legal update, Gambling Commission publishes licence conditions and codes of practice). The note provides advice on, and specific examples of, the Commission's interpretation of whether equipment is used in the provision of facilities for gambling, and lists the components which it considers meets the definition. It also provides additional advice for operators in completing the Commission's application forms for a remote-gambling operating licence.Source: Press release, 14 March 2008; Remote gambling equipment advice note.

The Information Commissioner's Office (ICO) has issued a statement indicating that it is reviewing information provided to it by the advertising technology company, Phorm Inc., regarding the company's privacy policies. Phorm's proprietary technology uses anonymised internet service provider (ISP) data to target online users with tailored advertising. The ICO has also stated that it is discussing Phorm's product with a number of ISPs who are working with the company. This follows Phorm's recent announcement that it has entered into agreements with British Telecommunications plc, TalkTalk Telecom Limited and Virgin Media Inc. Although some privacy groups have expressed concerns about Phorm's product, the company claims that its technology protects consumer privacy and that it does not retain any personal information or details of browsing activity. It will be interesting to see whether the ICO agrees with Phorm's analysis of its technology.Source: ICO press release, 3 March 2008.

The government has published revised drafts of the Consumer Protection from Unfair Trading Regulations 2008 (CP Regulations) and the Business Protection from Misleading Marketing Regulations 2008 (BP Regulations), both of which will come into force on 26 May 2008. The CP Regulations, which will implement the Unfair Commercial Practices Directive (2005/29/EC), are targeted at underhand sales practices, and will replace many provisions of the Trade Descriptions Act 1968. The BP Regulations will implement the consolidated Directive on misleading and comparative advertising (2006/114/EC), replacing the Control of Misleading Advertising Regulations 1988. This report focuses on both sets of regulations insofar as they are relevant to intellectual property and e-commerce; PLC will publish a report on the more general implications of the draft regulations at a later date.

On 12 February 2008, the Council of the European Union issued a press release stating that it had adopted new legislation changing the rules on the place of supply of services for VAT purposes. A more detailed press release on this development was released by the European Commission on the same day. The legislation as adopted has subsequently been published (see European Commission, Legislation recently adopted).The legislation as adopted is in largely the same form as the version published on 13 December 2007 (see Legal update, Legislation published on new VAT place of supply rules). The major changes in the adopted version are:1. The legislation confirms that the special rules for telecommunications, broadcasting and electronically-supplied services will not start until 1 January 2015. The current regime is extended to 31 December 2014 and the Commission is to report on the feasibility and suitability of the new rules at that time.2. The fact that the member state of establishment of the supplier is to retain a reducing proportion of VAT receipts arising under the special rules mentioned above until 2019 (see Legal update, Revised press release on change of VAT place of supply rules) is enshrined in the legislation.3. The new refund rules have been refined so that they do not apply where an application for the relevant refund is made before 1 January 2010 (when the rules come into effect).

The ECJ has held that Community law does not require member states to oblige internet service providers (ISPs) to disclose details of suspected file-sharers to enable a copyright owner to bring civil proceedings. However, it said that Community law required that, when transposing the E-Privacy Directive (2002/58/EC) (which requires protection of personal data but permits exemptions to protect the rights of others) and various directives requiring effective enforcement of intellectual property rights, member states had to interpret them to allow a fair balance between the various fundamental Community rights, including the rights to property, effective judicial protection and protection of personal data. Further, in implementing the relevant national law, national courts had to interpret it in a manner consistent with those directives and in a way which did not conflict with those fundamental rights or principles of Community law, such as the principle of proportionality. The decision will disappoint copyright owners insofar as it means they cannot invariably invoke Community law to require ISPs to disclose information for the purpose of civil enforcement proceedings. However, it does leave open the possibility that national courts may deem such disclosure to be required in appropriate cases, applying the ECJ's guidance as to how national law should be interpreted. Case: Productores de Música de España (Promusicae) v Telefónica de España SAU, 29 January 2008.

The House of Commons Select Committee on Culture, Media and Sport has published a report on its inquiry into the reselling, particularly over the internet, of tickets for popular entertainment and sporting events, commonly known as ticket touting. It rejects calls by concert promoters and sports bodies for statutory restriction on such activities, but recommends that operators of online services should "clean up their act". The Select Committee welcomed a proposal that would see concert promoters endorse the secondary market and not invalidate tickets that had been resold, provided that a levy was paid to the original organisers.

A draft of The Companies (Trading Disclosures) Regulations 2008 (Regulations), which concern trading disclosures that must be made by a UK company, was published on 8 January 2008. The Regulations, made under section 82 of the Companies Act 2006, will replace the relevant provisions of the Companies Act 1985 (1985 Act) and the Business Names Act 1985, with effect from 1 October 2008. Among other things, the 1985 Act requires companies to display specified information in electronic communications and on their websites (see Legal update, New requirements for information on company websites and e-communications for further details). The obligations imposed on companies to include information on websites and in electronic communications under the Regulations are largely the same as those set out in the 1985 Act, but are not identical. In particular, the Regulations require a company to disclose its registered name not only in the particular forms of communication specified by the 1985 Act (such as order forms and business letters), but also in any other forms of business correspondence and documentation. For full details of the Regulations, see Legal update, Companies Act 2006: revised draft of the Companies (Trading Disclosures) Regulations 2008.

ICANN has announced that on 17 January 2008 it will introduce a new procedure for handling Whois conflicts with national privacy laws. The procedure sets out how ICANN will deal with a situation where a registrar or registry indicates that it is prevented by local or national privacy laws or regulations from complying with the provisions of its ICANN contract regarding the collection, display and distribution of personal data via Whois. The procedure does not impose any new obligations on registries, registrars or third parties, but aims to inform them of the steps ICANN will take. The procedure was first published in draft in December 2006. Source: ICANN procedure for handling Whois conflicts with privacy law; ICANN announcement, 18 December 2007.

The MCPS-PRS Alliance has announced that a new body called the Resale Rights Society (RRS), to be formed by early 2008, will collect a levy from resellers on the online sale of concert tickets. The proceeds of the levy will be split between promoters, booking agents, artists and songwriters. The RRS will also work on introducing a certification mark for ticket resale websites and producing a standard set of terms for the sale of concert tickets, which will contain a provision limiting the onward sale of tickets to RRS-approved resellers only. The move will be welcomed by the live-music industry, which has long complained that it should take a share of the proceeds of ticket resales. Source: MCPS-PRS Alliance press release, 4 December 2007.

The Office of Fair Trading (OFT) will be working with local-authority trading-standards services (TSS) during December 2007 to check whether the UK's top 600 retail websites comply with the Consumer Protection (Distance Selling) Regulations 2000 (SI 2000/2334) (Regulations). In particular, the TSS will be checking whether the websites provide consumers with the correct information about their cancellation rights under the Regulations (which give consumers an unconditional right to cancel within seven working days) and contain contact details (see PLC Practice note, Overview: Supply contracts, Other statutory provisions for more information on the Regulations). The checks, which will involve TSS in over 100 local authorities, follow an OFT study in June 2007 which found that online shoppers had low awareness of their rights, and that many sites appeared to impose conditions that could deter consumers from exercising their cancellation rights (see Legal update, OFT publishes results of its market study into internet shopping). The OFT plans to publish an assessment of the results of the web sweep after 1 January 2008. It has also published advice for businesses on the laws that apply to selling on the internet. Source: OFT press release, 23 November 2007.

The European Commission has published a proposal for a Council Framework Decision which would enhance the harmonisation of anti-terrorism laws across the EU. The document proposes that (by way of amendment to Framework Decision 2002/475/JHA on combating terrorism) member states legislate to criminalise certain acts, including that of public provocation to commit a terrorist offence. "Provocation" is defined as distributing or making available a message to the public with the intent to incite the commission of a terrorist act, where such conduct, whether or not directly advocating terrorist offences, causes a danger that one or more such offences may be committed. The amendment is aimed at preventing the use of the internet as a "virtual training ground" and platform for terrorism, and the provisional deadline for implementation is 31 December 2008. The proposed offences are similar to those created in the UK under the Terrorism Act 2006 (see Legal update, Terrorism Bill contains new offence of disseminating terrorist publications). The proposed amendment would not, however, alter the liability regime for service providers established under the E-commerce Directive (see Legal update, New E-Commerce Regulations include exemptions for ISPs from terrorist offences for more information).Source: Commission proposal, 6 November 2007.

Following talks with the Office of Fair Trading (OFT), a number of internet auction sites, including eBay and Tazbar, have agreed to include or update information on their sites to advise consumers on their rights under the Consumer Protection (Distance Selling) Regulations 2000 (SI 2000/2334) (DCR Regulations) which, among other things, give consumers an unconditional right to cancel within seven working days. The sites have also agreed to inform businesses selling goods on their sites of their legal obligations under the Electronic Commerce (EC Directive) Regulations 2002 (SI 2002/2013) (ECR Regulations), which include an obligation that businesses make specific information, such as their names and addresses, available to consumers. (See PLC Practice note, Overview: Supply contracts, Other statutory provisions for further information regarding the DCR and ECR Regulations.) The OFT has welcomed the sites' efforts to raise awareness of consumers' rights. This follows an OFT study in June 2007 which found that online shoppers had a low awareness of their rights, and that some businesses trading through online auction sites were failing to identify themselves as businesses (see Legal update, OFT publishes results of its market study into internet shopping). Source: OFT press release, 14 November 2007.

The Regulatory Enforcement and Sanctions Bill has had its first reading in the House of Lords. The Bill has been redrafted and restructured following consultation on a draft Bill earlier in 2007. The main objects of the Bill are to streamline and improve regulatory enforcement and to enable ministers to confer new sanctioning powers on regulators. Although the Bill is wide-ranging in its scope, it has an impact on businesses in the IP, IT and communications sectors; for example, it permits guidance to be issued to local authorities seeking to enforce certain provisions of the Copyright, Designs and Patents Act 1988 and the Trade Marks Act 1994.

The European Commission has adopted Regulation 1255/2007, which amends the list of .eu top-level domain names reserved for member states (and reservable by certain third countries, including candidate countries to accession to the EU). The ability of member states to reserve names in this way was envisaged by Regulation 874/2004, which established public policy rules on the implementation and functions of the .eu top-level domain and the principles governing registration (see Legal update, Public policy rules on .eu domain names come into force). A list of reserved names was first added to Regulation 874/2004 in October 2005 by Regulation 1654/2005. The new Regulation updates the original list with the names reserved by the new member states, namely Bulgaria and Romania. Source: IPR Helpdesk, European Commission adopts Regulation 1255/2007, 30 October 2007.

ICANN has published a report on the practice of domain-name frontrunning, which occurs when a person monitors an internet user's attempts to check the availability of a domain name and then pre-empts that user by registering the domain himself. He then usually offers to sell the domain name to the user, or otherwise uses the domain to earn pay-per-click revenue. The paper explains the various ways in which domain-name availability checks can be monitored, discusses the pros and cons of whether frontrunning is legitimate or not, and examines the evidence that it is actually taking place. It then calls for public comments on instances of frontrunning, with a view to formulating a policy for tackling it. Source: ICANN advisory committee report, October 2007.

The UK Information Commissioner's Office (ICO) has updated its guidance on the Privacy and Electronic Communications (EC Directive) Regulations 2003 (SI 2003/2426) (Regulations) by excluding Bluetooth messages from their scope. Previously, the Information Commissioner considered Bluetooth marketing messages to be "electronic mail" and therefore subject to the Regulations, which control the sending of unsolicited electronic communications via a public electronic communications network. However, the Commissioner does not now believe that this definition covers Bluetooth technology, which allows the wireless exchange of information between mobile phones. The decision seems curious, particularly as Bluetooth messages had only been included in the ICO's guidance in 2006. Privacy campaigners will be concerned that this will lead to an upsurge in the use of the medium for direct marketing. Although users can avoid receiving Bluetooth messages by disabling the function on their mobile phones, this would affect the way they can use the technology.Source: ICO Guidance on the Privacy and Electronic Communications (EC Directive) Regulations 2003, 10 October 2007.

The government has issued the Electronic Commerce Directive (Racial and Religious Hatred Act 2006) Regulations 2007, which will come into force on 1 October 2007. The Regulations create exemptions from liability for stirring up religious hatred offences under the Racial and Religious Hatred Act 2006 where service providers act as mere conduits, caches or hosts of information. UK internet service providers will generally welcome the Regulations, but like the Electronic Commerce Directive (Terrorism Act 2006) Regulations 2007 (see Legal update, New E-Commerce Regulations include exemptions for ISPs from terrorist offences), some provisions will require further interpretation by the courts.

The Gambling Commission has published an information document on the compliance regime under the Gambling Act 1995, which will come into force on 1 September 2007. The document has three sections: in Part 1, the Commission sets out the background and context of the compliance provisions under the Act; Part 2 covers the details of the risk-modelling system and the annual-visit programme for both premises and operator licensees; and Part 3 describes the various key-risk areas and categories which will determine the risk band for premises or an operator governed by the Act, states how the visit process will be carried out and explains the role of compliance managers. Source: Gambling Commission Information paper, 24 August 2007.

In June 2007, the Gambling Commission published its new general licence conditions and associated codes of practice (LCCP), which will come into force on 1 September 2007 and apply to operating licensees and personal licensees under the Gambling Act 2005 (see Legal update, Gambling Commission issues revised licence conditions and sector-specific briefings). The Gambling Commission has now issued illustrative examples of LCCP by sector. These sector-specific LCCP are typical of the LCCP component of operating licences that will be issued to licensees, and are designed to aid understanding of the requirements placed on licensees. They do not replace the conditions and codes which will be attached to the operating and personal licences. Several of the sector-specific LCCP are relevant to the remote gambling industry, including those for betting, bingo, casinos, lotteries and gaming machines.Source: Gambling Commission, Licence conditions and codes of practice, 16 August 2007.

The Gambling Act 2005 (Advertising of Foreign Gambling) Regulations 2007, which specify the non-European Economic Area (EEA) states to be treated as EEA countries so that advertisements for gambling services provided from them are permitted under the Gambling Act 2005, have been laid before Parliament. Section 331 of the Act provides that the advertising of "foreign gambling" (that is, non-remote gambling taking place in, or remote gambling originating from, non-EEA states) is not permitted in the UK unless those states can demonstrate that their regulatory regime satisfies the government's "white-list" criteria (see Legal update, Planned restrictions on advertisements for non-EEA gambling websites). The only places found to have met this criteria, so as to be specified in the Regulations as being treated as EEA states for the purpose of section 331, were the Island of Alderney and the Isle of Man. The Regulations mean that many gambling websites which operate in other non-EEA countries or jurisdictions will be unable to advertise in the UK from 1 September 2007, when the Act and the Regulations come into force. Gambling Act 2005 (Advertising of Foreign Gambling) Regulations 2007; DCMS press release, 9 August 2007.

The Rome II Regulation (Regulation (EC) No. 864/2007) was published in the Official Journal of the European Union (L199, Vol 40) on 31 July 2007. The Regulation will apply from 11 January 2009.For background information on Rome II, see Practice note, Rome I and Rome II: a summary and Legal update, Agreement reached on Rome II (law applicable to non-contractual obligations).

Ofcom has published the results of research into the use of Voice over Internet Protocol (VoIP) telephone services. The research follows the publication of Ofcom's statement on the regulation of VoIP services in March 2007 (see Legal update, Ofcom publishes statement on regulation of Voice over Internet Protocol services). The research report concludes that VoIP usage is increasing, although most calls are still made in the form of PC-to-PC calls rather than into the public switched telephone network (PSTN). So far, consumers seem to be using VoIP in addition to PSTN services rather than instead of them. The report highlights consumers' confusion about whether they can make emergency calls via VoIP. This has already led Ofcom to publish a further consultation on requiring VoIP services to allow users to call the emergency number 999 by early 2008 (see Legal update, Ofcom consults on requiring VoIP services to contact emergency services).Source: Ofcom Research Report: Voice over Internet Protocol, 26 July 2007.

The Copyright Tribunal has issued an interim decision in relation to a dispute between the MCPS-PRS Alliance (Alliance) and various online music service providers and mobile network operators, over royalty rates for the online use of musical works. Among other things, the Tribunal made various findings regarding the extent to which advertising revenue in connection with licensed music should attract a royalty, a point which remained in dispute even though many of the parties had reached settlement with the Alliance in relation to the other issues which had originally been referred to the Tribunal. The case is the first reference to the Tribunal in relation to valuing the use of copyright material made available online for sourcing and consumption and will, therefore, be of considerable interest to those interested in the exploitation of music online. Case: BPI and Ors v MPCS and Ors, CT84-90/05, 19 July 2007.

The European Commission has published a Communication to report to the European Parliament and the Council on the implementation, functioning and effectiveness of the .eu country-code top-level domain (TLD), as required under Article 8 of EC Regulation (733/2002) on the implementation of the .eu TLD. The .eu domain was introduced to the public in April 2006 (see Legal update, .eu domain name registrations become open to all EU citizens). The Commission concludes that the launch of the .eu domain has been a success, attracting more registrations than anticipated, with 2.4 million .eu domain names having been registered a year after launch. EURid, the registry for .eu, has performed efficiently overall and the Commission states that there is no indication that the level of disputes and problems within .eu was any higher than for any comparable TLD. It also notes that EURid is working on further improvements to the service, including the adoption of a code of conduct for registrars.Source: EURid press release, 13 July 2007; European Commission Communication on the implementation, functioning and effectiveness of the .eu TLD, 6 July 2007.

On 2 July 2007, the European Commission published a questionnaire to seek views on a range of issues that might affect access by Europe's information and communication technology (ICT) industries to global markets. The Commission wishes to inform its development of an international strategy for ICT, which would identify trade barriers and business opportunities, and promote the competitiveness of the EU ICT industry globally. In particular, the Commission seeks input on which regulatory issues should be prioritised in dialogue with non-EU countries, the need for harmonised standards, the effectiveness of intellectual rights protection internationally, issues connected with access to the radio spectrum, priority areas for international ICT research and development, and the role of international collaboration. Input is also requested in relation to the impact of social issues (such as the digital divide), global challenges (such as network and information security) and how to improve existing bilateral agreements with third countries. Responses are invited by 17 September 2007 (see Commission press release IP/07/988).

In Copland v The United Kingdom, the European Court of Human Rights found that the UK had violated C's right to respect for her private and life and correspondence under Article 8 of the European Convention on Human Rights, by the way in which it monitored her telephone calls, e-mail correspondence and internet use. The case highlights the care that employers should take in managing employees' expectations and in ensuring that policies are applied fairly in practice.

The EC Article 29 Data Protection Working Party has stated that while analysing Google's response to the Working Party's criticism of certain of Google's privacy practices (see Legal update, Google responds to EC Working Party on new privacy practices), it also intends to review the privacy policies of other search engines and to evaluate the data protection issues raised by search engines in general. Source: Article 29 Data Protection Working Party press release, 21 June 2007.

The Information Commissioner's Office has published a Good Practice Note for website operators on the data protection aspects of collecting personal information. The note answers sixteen practical questions, such as what type of information should be provided to individuals following the collection of their personal information through a website; what is the impact of using cookies or IP addresses to profile website users; are there any special rules for websites directed at children; what are the implications of using another company to host a website; and does the Data Protection Act 1998 apply if a website is operated from outside the UK? The note does not cover the collection of personal information for marketing purposes, which is dealt with in a separate ICO guidance note on the Privacy and Electronic Communications Regulations 2003. Source: ICO's Data Protection Good Practice Note, Collecting personal information using websites, 20 June 2007.

On 19 June 2007, the Office of Fair Trading (OFT) published a report setting out the results of its market study into internet shopping. The OFT has found that the rapid growth of internet shopping has brought benefits to consumers and businesses, and has introduced a welcome dimension of competition. However, it considers that shoppers are not making the most of the benefits due to ineffective searching, concerns about security and privacy and lack of knowledge about cancellation rights. The OFT intends to work with consumer groups, businesses and others to improve the level of advice and information given to businesses and consumers, and to improve compliance and enforcement of consumer protection rules in the internet environment.

The Gambling Commission has published its new general licence conditions and associated codes of practice (LCCP June 2007), which will come into force 1 September 2007 and apply to operating licensees and personal licensees under the Gambling Act 2005. The Gambling Commission last published licence conditions and codes of practice in November 2006 (see Legal update, Gambling Commission publishes licence conditions and codes of practice), followed by a supplement in December 2006. LCCP June 2007 replaces both documents and incorporates a number of new or amended provisions following further work and consultation. LCCP June 2007 is accompanied by an explanation of the changes made to the previous versions of the licence conditions and codes, and a number of sector-specific briefings, including one which is directed at the remote gambling industry. Source: Gambling Commission, Licence conditions and codes of practice, 1 June 2007; Explanation of changes, June 2007; Remote gambling key points, June 2007.

The Department of Trade and Industry is consulting on regulations implementing the Unfair Commercial Practices Directive.

Ofcom's second Communications Market Report for the Nations and Regions of the UK has revealed that the significant differences in the availability, take-up and use of the internet, telecommunications and broadcasting services across the nations and regions of the UK, which were apparent last year, have abated. For example, in 2005 there was a 12% difference between the regions with the highest and lowest number of adults with access to broadband at home. By 2006, this gap had closed to a 3% difference. Other findings of the report include the fact that the number of UK households which are able to receive competitive broadband and phone services through local loop unbundling increased to 67% by the end of 2006; 29% of UK households took multiple services from a single telecoms provider in 2006; Wales has more wi-fi hotspots than the other UK nations, Germany, the US and Japan; and the Scots use VoIP services more than any other UK nation. Source: Ofcom Communications Report, 24 May 2007.

The EC Article 29 Data Protection Working Party, an independent EC advisory body on data protection and privacy, has written to Google about Google's new privacy practices relating to the anonymisation of server logs that are more than 18 to 24 months old. The Working Party first notes its appreciation of Google's readiness to consult with the Working Party on data-protection-related issues. It goes on to observe that a reduced storage period for server logs generated by Google users is a valuable step towards improving Google's privacy policies. However, it considers that the new storage period does not so far meet the requirements of the EC data protection legal framework. Among other issues addressed in the letter, the Working Party's concerns include that Google has not sufficiently specified the purposes for which server logs need to be kept and why such a long period has been chosen. Source: Letter from Article 29 Data Protection Working Party to Google and attachment, 16 May 2007.

The Advertising Standards Authority (ASA), the independent body which polices the self-regulatory codes on broadcast and non-broadcast advertising, has published its Annual Report for 2006. Among other things, the report indicates that the number of complaints about internet advertising rose by 33% in 2006, making it the second most complained about non-broadcast advertising format (the national press being the most complained about). This increase was highlighted by the ASA's Chairman, Lord Borrie QC, who said that despite this rise, which was unmatched by any other media, the boundaries of regulatory responsibility online were still unclear, and he called on the industry to address this issue. Currently, internet advertising is only covered to a limited extent by the CAP Code (which regulates non-broadcast advertising), since the Code covers online sales promotions and online advertisements in paid-for space, such as banners and pop-ups (rule 1.1, CAP Code), but does not otherwise apply to website content (rule 1.2, CAP Code). Source: ASA press release, 9 May 2007.

The Committee of Advertising Practice (CAP) has announced new rules which will apply to non-broadcast advertising of food and soft-drink products to children from 1 July 2007. The new rules will be added to section 47 of the British Code of Advertising, Sales Promotion and Direct Marketing (the CAP Code), a self-regulatory code which applies to all types of non-broadcast marketing communications in the UK, including e-mails and online advertisements in paid-for space. The additional rules are aimed at protecting children's health and provide, for example, that advertisements for food or soft-drink products should not encourage poor nutritional habits, or encourage excessive consumption of such products. Although the CAP Code does not have legal force, the Advertising Standards Authority, which administers the rules, can impose a range of sanctions for non-compliance. CAP has published a help note to assist marketers and their agencies in interpreting the new rules.Source: ASA press release, 11 April 2007.

A range of legislation relevant to intellectual property, information technology, communications and media has taken effect on the twice-yearly standard commencement dates at the beginning of April 2007. This includes new powers for trading standards officers to take enforcement action in relation to certain copyright infringements, and new offences dealing with mobile phone reprogramming and internet ticket touting.

The Home Office has launched a consultation on draft regulations that will enable the initial transposition of the EC Data Retention Directive (2006/24). As currently drafted, the regulations only apply to data generated by fixed-line and mobile telephony providers, and envisage a retention period of 12 months. The draft regulations allow the Home Secretary to reimburse any additional expenses incurred by providers in complying with the regulations as long as such expenses have been notified to the Home Secretary and agreed in advance.

Parliament has approved the Ticket Touting (Designation of Football Matches) Order 2007 (SI 2007/790), which comes into effect on 6 April 2007. The Order designates the football matches to which the provisions of section 166 of the Criminal Justice and Public Order Act 1994 apply: these make it an offence for an unauthorised person to sell, or offer for sale, tickets to a statutorily designated football match. Following the passing of the Violent Crime Reduction Act 2006 (which also comes into effect on 6 April 2007), this offence will extend to ticket sales over the internet, for which internet service providers established in the UK may be liable, as well as ticket touts (see Legal update, Violent Crime Reduction Bill receives Royal Assent).Source: OPSI, Ticket Touting (Designation of Football Matches) Order 2007 (SI 2007/790), 16 March 2007.

The European Parliament has adopted an own-initiative report in response to the European Commission's recommendation on collective cross-border management of copyright and related rights for legitimate online music services (2005/737/EC) (Recommendation) (see Legal update, European Commission recommends pan-European copyright licensing). Among other things, the report criticises the Commission's decision to put forward a non-binding recommendation and calls, instead, for the proposal of a framework directive to deal with the issue. The adoption of the report is of interest, not least since the Commission is currently seeking views on various aspects of the Recommendation, including its non-binding nature (see Legal update, European Commission seeks views on recommendation for online music sector). It will be interesting to see whether the Commission takes Parliament's suggestions on board.Source: European Parliament press release, 13 March 2007.

According to press reports, the Edinburgh Sheriff Court has ordered an internet service provider, Transcom Internet Services Limited, to pay £750 damages, plus costs, to a recipient of a "spam" e-mail advertisement, Gordon Dick. Transcom had obtained Mr Dick's e-mail address from a private mailing list. Mr Dick successfully argued that Transcom was in breach of the Privacy and Electronic Communications (EC Directive) Regulations 2003 (SI 2003/2426) and the Data Protection Act 1998. This is the second action of its kind in the UK: in 2005, an action was brought by Nigel Roberts in the small claims court against the sender of spam e-mail advertisements, which was ultimately settled (see Legal update, First successful "anti-spam" claim under Privacy Regulations).Source: The Times, Court orders firm to pay spam victim £750, 6 March 2007.

The Gambling Commission is consulting on the content of gambling advertisements.

The High Court has upheld an conviction under section 1(b) of the Malicious Communications Act 1988, and in doing so has provided helpful guidance on the meaning of the phrase "indecent or grossly offensive", making it clear that the words are ordinary English words and that communications of a political or educational nature fall within their scope. The case is also interesting as it shows how the offence should be construed in the light of the right to freedom of expression under Article 10 of the European Convention on Human Rights. Case: Veronica Connolly v DPP, 15 February 2007.

Parliament has approved the Sexual Offences Act 2003 (Amendment of Schedule 3 and 5) Order 2007 (SI 2007/296) (the Order), which will come into force on 19 February 2007. The Order considerably widens the scope of offences which could qualify for the making of a sexual offences prevention order under the Sexual Offences Act 2003 (the Act), one of the consequences of which is that the offender subject to the order is added to the sexual offenders register. Among other things, the Order incorporates into Schedule 5 of the Act the offence of "improper use of public communications networks" described in section 127 of the Communications Act 2003 which could include, for example, sending e-mails of a sexual nature to a work colleague. For more information, see Legal update, Draft order to extend sexual offences prevention orders to online offenders. Source: OPSI, Sexual Offences Act 2003 (Amendment of Schedule 3 and 5) Order 2007 (SI 2007/296), 12 February 2007.

HM Revenue & Customs has published new internet-based guidance on the tax rules which apply to people who trade online for a profit. The guidance explains the circumstances in which those who sell goods online on sites such as eBay may be liable for tax.Source: Directgov press release, 6 February 2007.

The Gambling Commission has published a consultation document on the technical standards for remote gambling operators under the Gambling Act 2005. This will be of interest to suppliers of software for use in remote gambling, and prospective remote-gambling operators, who will need to conform to the standards once they have been finalised and before they come into effect on 1 September 2007. The consultation closes on 30 March 2007.

HM Revenue & Customs has published draft legislation for a new tax, called remote gaming duty (RGD), which will apply to providers of facilities for remote gaming. The introduction of RGD will coincide with the entry into force of the Gambling Act 2005, likely to be in September 2007. RGD will be a percentage of the profits made by the provider from its remote-gaming activities. The rate of RGD will be announced in the 2007 Budget. In setting the rate of RGD, the government must balance the desire to raise revenue from online gaming against the need to make the UK tax environment sufficiently attractive to tempt gaming providers to establish their activities in the UK.

The government has published new "white-list" criteria which will be applied from 1 September 2007, when the Gambling Act 2005 comes fully into force. Advertisements for gambling services provided from non-EEA countries will only be allowed if the country in question can show that its gambling licensing system meets all the criteria on the list. The measures are designed to protect the public from poorly run and dishonest gambling websites. Countries on the "white list" will have to ensure that gambling operators are checked for financial irregularities and money-laundering; conduct the gambling in a fair manner; do not allow children and other vulnerable groups to be harmed or exploited; and do not permit the gambling service to facilitate criminal activity. They must also have a robust and independent enforcement scheme in place.Source: DCMS press release, 29 January 2007.

The Music Publishers Association, a non-profit organisation which looks after the interests of all music publishers based or working in the UK, has negotiated a template agreement with the MCPS-PRS Alliance which will enable publishers who sign up to it to license their repertoire collectively to all online and mobile music services in Europe. This approach is in line with the European Commission's recommendation to use collective licensing to manage online rights in musical works.

The European Commission has called for comments on the development of Europe's online music industry in the light of the Commission's recommendation on collective cross-border management of copyright and related rights for legitimate online music services (2005/737/EC) (see Legal update, European Commission recommends pan-European copyright licensing). The Commission has invited comments from interested stakeholders on four main topics: the non-binding nature of the recommendation; the existing and potential arrangements for EU-wide licensing in this sector; the relatively narrow scope of the recommendation; and governance and transparency issues for rights managers. Responses to the 16 questions set out in the paper are required by 1 July 2007.Source: European Commission, Call for comments, 17 January 2007.

EURid, the registry for the .eu domain, has published updated versions of its terms and conditions, and registration policy. Under the current terms and conditions, EURid can give a registrant 14 days to remedy a breach of his domain-name registration contract. The changes, which take effect on 19 February 2007, will give EURid the right to block a registrant's domain name at the same time as it gives notice of this 14-day period. They will also entitle EURid to suspend or cancel a domain-name registration if the registrant is in breach of its contract.Source: EURid notice, 10 January 2006; Updated terms and conditions and Updated registration policy.

Gambling operators can now apply to the Gambling Commission for operating and personal licences either offline or online via its website. Applications must be with the Commission before 27 April 2007 for existing operators to continue working after 1 September 2007, when the new regulatory system under the Gambling Act 2005 comes fully into force. (Applications to the local authority for premises licences should be made between 30 April and 31 July 2007.) Smaller operators may be exempt from the requirement to hold a personal licence: see Legal update, Legislation on personal licences under Gambling Act comes into force. Once licensed, all operators will need to conduct their business in line with the Commission's licence conditions and codes of practice (see Legal update, Gambling Commission publishes statement of principles and updated licence conditions). For details of the licence fees, see Legal update, Legislation setting Gambling Act licence fees published.Source: Gambling Commission press release, 5 January 2007.

The European Council has adopted a Directive (2006/138/EC) which extends until 31 December 2008 the current system of value added tax (VAT) on electronically-supplied and radio and broadcasting services. The extension was necessary because of continuing delays in reaching agreement on substantive proposals to amend the current VAT regime (see Legal update, European Council endorses proposal to extend VAT and E-Commerce Directive). The Directive took effect on 1 January 2007, following the expiry of the previous extension on 31 December 2006.Source: EU Official Journal, L 384/92, 29 December 2006.

Certain provisions of the EC Regulation on co-operation between national authorities responsible for the enforcement of consumer protection laws (2006/2004/EC) (the Regulation) came into force on 29 December 2006. These establish a co-ordinated network of public enforcement agencies in every EU member state, facilitating co-operation on cross-border infringements of consumer law committed within the EU which affect the collective interests of consumers (such as illegal prize draws conducted online, and e-mail scams). The UK's co-ordinating body is the Office of Fair Trading (OFT). The Regulation also obliges member states to ensure that the relevant national authorities have certain powers of entry, search and seizure when dealing with such cases. The UK government has complied with this requirement by issuing the Enterprise Act 2002 (Amendment) Regulations 2006 (SI 2006/3363), which amend the Enterprise Act 2002 in order to give such powers to the UK authorities (primarily the OFT, but also certain other bodies, such as the Financial Services Authority) from 8 January 2007. For more information, see Legal update, Regulation on consumer protection cooperation published.Source: OPSI, Enterprise Act 2002 (Amendment) Regulations 2006, SI 2006/3363, 29 December 2006.

Residents of Romania and Bulgaria, which joined the EU on 1 January 2007, can now register .eu domains. Interested residents can contact an accredited registrar and instruct it to register a .eu domain name on their behalf. EURid is also offering language support in Romanian and Bulgarian and may be contacted in these languages. Source: EURid press release, 21 December 2006; EURid press release, 3 January 2007.

The government has published a paper explaining the arrangements that it has put in place for the commencement and implementation of the Gambling Act 2005. The Act received Royal Assent on 7 April 2005 (see Legal update, Gambling Act introduces regime for internet gambling) and is due to be implemented on 1 September 2007. The guidance paper is divided into chapters covering the main constituent parts of the gambling industry. Each chapter is divided into two parts dealing with information for existing operators and new operators respectively, and remote gambling operators are covered in chapter 14. Source: DCMS, Gambling Act 2005: Transitional Arrangements.

The High Court has granted Microsoft Corporation relief under the Privacy and Electronic Communications Regulations 2003 against a website operator who sold e-mail lists which were subsequently used to send unsolicited e-mails or "spam". The court held that the defendant had instigated the transmission of unsolicited e-mails under regulation 22(2) of the Regulations, and ordered an injunction and an enquiry as to damages in favour of Microsoft. Case: Microsoft Corporation v Paul Martin McDonald (trading as Bizads), 12 December 2006.

The government has launched a mini-consultation on framing and enforcing criminal sanctions in the legislation to implement the EC Directive on unfair commercial practices (2005/29/EC). This follows on from its earlier consultation on the implementation of the Directive (see Legal update, Government launches consultation in implementing EC Directive on unfair commercial practices) and coincides with the release of its formal response to the consultation (see Legal update, Government publishes responses to consultation on EC Directive on unfair commercial practices). The government is now seeking views on two issues: first, should the offences in the implementing regulations include a mental element, or rely on the current approach of strict liability and due diligence offences, or a combination of the two; second, should the Office of Fair Trading have the power to bring criminal prosecutions? The consultation period ends on 5 February 2007.Source: DTI consultation, 11 December 2006.

The Advertising Standards Authority (ASA) has upheld a complaint that talkSPORT breached the CAP Code rules on truthfulness (rule 7.1) and on designing and presenting marketing communications to ensure that they are clearly identifiable as such (rule 22.1). A weblog which was placed on numerous football club related websites invited fans to apply to represent their clubs on talkSPORT radio with the opening words, "Have you heard what [talkSPORT] are doing this season?". The complaint was that it was not clear that the weblog was an advertisement placed by talkSPORT. The company stated that it had intended to recruit listeners through its radio station and its website but not by posting weblogs on third-party websites: an employee had posted the weblog independently. The ASA noted talkSPORT's position but concluded that the advertisements had been placed by an employee and were unclear.Source: ASA adjudication, talkSPORT Ltd, 6 December 2006.

Ofcom has published an International Communications Market Report containing an analysis of trends in the global television, radio, telecommunications and wireless communications industries. From an e-commerce perspective, the report notes, among other things, that the internet now attracts almost 10% of all advertising spending in the UK (a higher proportion than in any of the other countries surveyed), and that the take-up of broadband is now higher in the UK (at around 39% of households) than in the US (38%), France (38%) and Germany (28%), but behind Japan (44%), Sweden (45%) and the Netherlands (58%).Source: Ofcom press release, 29 November 2006; International Communications Market Report 2006.

The European Parliament and the European Council have reached agreement on proposals to protect children while accessing material via the internet. The Parliament's Committee on Culture and Education adopted a second reading report, without amendments, on proposed recommendations which, among other things, support the creation of a new .kid generic top-level domain to provide child-safe internet areas. The report on the proposals received its first reading before the Parliament in September 2005 (see Legal update, European Parliament calls for creation of .kid gTLD). Since this article first appeared, the final version of these recommendations has been published. Source: European Parliament press release, 28 November 2006.

The European Commission has published a Communication on fighting spam, spyware and malicious software in which it calls on member states to co-operate more and on internet service providers to improve e-mail and data security. The proposals will be received with interest by the communications industry, which is under increasing pressure to take responsibility for addressing the threat posed by spam and malicious code.

The High Court has held that the sale in the UK of products intended for sale in Japan only, via a Hong Kong company's website, infringed a number of intellectual property rights.

The ADR Centre for .eu domain disputes has upheld a complaint brought by the licensee of the word marks ASK JEEVES and ASK! regarding the registration of ask.eu by First Internet Technology Limited (F), which it claimed warehoused domain names for sale to brand owners. F had registered the domain based on its Benelux trade mark registration for the word ASK in respect of plectrums (used to play guitars). It had 47 other Benelux registrations for English words in respect of such goods. The ADR panel found that F, which provided web-hosting and internet-advertising services rather than supplying musical instruments, had registered the Benelux mark solely in order to secure the ask.eu domain with no intention of trading under it, and so it had no legitimate interest in the name. The panel also said that the domain registration was in bad faith, since it was made primarily in order to sell it to the complainant.Case: IAC Search & Media Europe Ltd v First Internet Technology Ltd, Case 02438, 24 November 2006.

In advance of next week's vote by the European Parliament on proposed revisions to the Television without Frontiers Directive (89/552/EEC), the European Commission has published a set of FAQs relating to the proposals.Source: Europa, Modernisation of the Television without Frontiers Directive: Frequently-asked questions, 9 November 2006.

Ofcom has approved the latest code of practice issued by the Independent Committee for the Supervision of Standards of Telephone Information Services (ICSTIS), which will come into effect on 4 January 2007. The code has been amended to (among other things) clarify its compatibility with the E-Commerce Directive (2000/31/EC) and to include information-society service providers within its scope.Source: Ofcom, Approval of the ICSTIS Code of Practice (11th edition), 9 November 2006.

The Safeguarding Vulnerable Groups Bill, which requires that those who apply for jobs moderating internet chat rooms aimed at children must be vetted by prospective employers, has just been given Royal Assent. Although copies of the Act are not yet available, it is due to come into force in 2007. For details of the Bill, see Legal update, Safeguarding Vulnerable Groups Bill will vet moderators of internet chat rooms.Source: UK Parliament, Safeguarding Vulnerable Groups Bill, 8 November 2006.

Following on from the World Summit on the Information Society held in Tunis in November 2005 (see Legal update, European Commission issues communication following Tunis Summit), StopSpamAlliance, a joint initiative of six international organisations to combat spam, has launched a website. The website will include links to information on anti-spam legislation, enforcement activities, consumer and business education, best practices, international co-operation and an events agenda.Source: StopSpamAlliance press release, 31 October 2006.

In a complex dispute involving alleged unauthorised access to a computer system in London, the High Court has held that service out of the jurisdiction was justified under the Civil Procedure Rules in relation to the two defendant companies in Russia, but not in relation to the two individual defendants.

The Court of Appeal has upheld the Crown Court's conviction of a bank's employee for conspiracy to defraud and confirmed that it had been correct to allow another employee to give expert evidence of the online banking system.

The ICC (International Chamber of Commerce) has published the eighth version of its International Code of Advertising Practice, which for the first time consolidates the self-regulation of all forms of marketing communications, including advertising, sponsorship and direct marketing. Under the new code, principles which previously applied only to the use of electronic media and direct marketing have been integrated to apply to all marketing communications.Source: ICC press release, 28 September 2006, and ICC Advertising and Marketing Communication Practice, Consolidated ICC Code.

The Fraud Bill 2005 signals the introduction of a more aggressive regime for combating fraud in the UK. It is part of a suite of reforms including the introduction of the Serious Organised Crime Agency in April 2006 and the potential removal of jury trials in cases of serious and complex fraud if section 43 of the Criminal Justice Act 2003 becomes effective.

The European Commission has proposed to extend the EC VAT and E-Commerce Directive until 31 December 2008.

There are potentially significant consequences for UK credit providers following the Court of Appeal's recent judgment that connected lender liability under section 75 of the Consumer Credit Act 1974 extends to transactions abroad.

HM Revenue & Customs has published a brief guidance note on the application of value added tax (VAT) to businesses which trade on the internet. The guidance includes information regarding the VAT payable on website income and an overview of the different VAT schemes available.Source: HM Revenue & Customs press release, 27 February 2006.

The European Commission has published a proposal for a Regulation on the law applicable to contractual obligations. This will replace the existing Rome Convention of 1980 and, together with the proposal for a Regulation on the law applicable to non-contractual obligations, presents a coherent set of EC rules.

Criminal charges brought under the Computer Misuse Act 1990 have failed because the five million e-mails sent by the defendant as a denial-of-service attack were received by a server that was set up for the express purpose of receiving e-mails, and they did not therefore result in "unauthorised" modifications to computer material (a necessary element of the relevant offence).NOTE: On 11 May 2006, the High Court allowed the Director of Public Prosecutions' appeal and remitted the case to the district judge to continue the hearing (see Legal update, High Court rules denial-of-service attack an offence under Computer Misuse Act). The defendant was subsequently sentenced to a two-month curfew (see Legal update, Sentence handed down in denial-of-service attack case). (Click here for details of PLC IPIT & Communication's policy on annotating case reports.)

In one of the first prosecutions under the Regulation of Investigatory Powers Act 2000, Cliff Stanford, who founded Demon Internet, was fined and given a six month prison sentence, suspended for two years, after being found guilty by Southwark Crown Court of unlawfully intercepting e-mails.NOTE: Leave to appeal against this conviction was refused on 1 February 2006 (see Legal update, Demon Internet founder refused leave to appeal against conviction for intercepting e-mails). (Click here for details of PLC IPIT & Communication's policy on annotating case reports.)

The government has launched a consultation on whether to extend to providers of hyperlinks, location tool services and content aggregation services the provisions of Articles 12 to 14 of the E-Commerce Directive, which limit the liability of online service providers where they act as mere conduits, caches or hosts of information.

The Consumer Credit Act 1974 (Electronic Communications) Order 2004 has come into force.

On 14 December 2004 Statutory Instrument 2004 No. 3236 - The Consumer Credit Act 1974 (Electronic Communications) Order 2004 (the Order) was made available on the HMSO website. The Order inserts or modifies provisions of the Consumer Credit Act 1974 and secondary legislation made under that Act to enable and facilitate the use of electronic communications for concluding regulated agreements and when sending notices and other documents. The Order was laid before Parliament on 9th December 2004 and comes into force on 31 December 2004.

An international action plan to combat spam has been agreed during a meeting in London last week hosted by the Office of Fair Trading and the US Federal Trade Commission.

A VAT tribunal has held that, for VAT purposes, the time of supply of goods sent in response to an internet order is seven days after the goods have been received by the customer.

Authorities in Australia, the US and the UK have signed a Memorandum of Understanding to provide a framework to tack the problem of cross-border unsolicited e-mails or "spam".

The ASA has upheld a complaint based on the provisions of the British Code of Advertising, Sales Promotion and Direct Marketing dealing with direct marketing by e-mail.

The ASA has reversed its earlier decision that Carphone Warehouse breached the CAP Code by sending a text message offering free telephone handsets without the recipient's consent.

The EC Article 29 Data Protection Working Party has published an opinion commenting on several issues of interpretation and practice in relation to Directive 2002/58/EC on the processing of personal data and the protection of privacy in the electronic communications sector.

In a summary judgment application, easyGroup, the well-known web-based trader, has succeeded in preventing the use of the word "easy" on a number of websites owned by the defendant on the grounds of passing off.

The Department of Trade and Industry has published a consultation document on the electronic conclusion of credit and hire agreements under the Consumer Credit Act 1974.

E-conveyancing - A Land Registry Consultation and Land Registry 10-year Strategic Plan. The Land Registry has published both its Electronic Conveyancing Consultation and 10-Year Strategic Plan (28 May, 2002). The consultation paper is the first of several consultations proposed in the process of overhauling conveyancing in England and Wales and introducing electronic conveyancing. Responses are requested by 30 August, 2002. Responses are important to the Land Registry, which is urging responses from everyone involved with the conveyancing process, including members of the public, as the responses received will play a central part in the construction of the e-conveyancing system. The 10-year Strategic Plan, which follows from the Land Registry's Quinquennial Review report (June, 2001), establishes key targets which include full implementation of the Land Registration Act 2002 and the development of a fully electronic conveyancing system.

The Institute of Chartered Secretaries and Administrators has published an update to its guide on electronic communications with shareholders which clarifies certain points raised since the publication of the original guide in December 2000.

Five major investor bodies have recently written to CREST calling for the 'speedy introduction' of systems to allow electronic voting at company general meetings.

The Organisation of Economic Co-operation and Development has issued more guidance on the taxation of profits from e-commerce.

German stock corporation law has to date only permitted extremely restricted use of the Internet at shareholders' meetings of public stock corporations (Aktiengesellschaft) (see www.plcinfo.com 'Germany: the GmbH', EC, 1999, IV (1), 21 and 'Squeezing out minority shareholders', EC, 1998, III(7), 53 ). However, under the provisions of the current ministerial draft bill for a law on Registered Shares and the Execution of the Right to vote (NaStraG), this is set to change.