Bermuda E-Business Code Will Include Tough Penalties

Tax-news.com

31 January 2000

Bermuda's new e-business Code of Conduct will include tough penalties for non-compliance, ranging from fines to companies being struck off. The Code of Conduct will be mandatory and will apply to any Bermuda based company engaging in either business-to-business or business-to-consumer electronic commerce.

Bermuda's Minister of Telecommunications and E-commerce Renee Webb issued a warning last week to e-commerce companies about the penalties. "The code will be enforceable by law. Anyone in breach of the code can be struck off, fined...all sorts of things," Ms Webb said.

The Code is an extension of Bermuda's Electronic Transactions Act which was passed last year and is in the final stages of being implemented by the E-Commerce Advisory Board which was established under the Act. The Code will be publicly available shortly after it has been tabled in Parliament by the Minister.

The legislation is unique compared to e-commerce laws introduced in other jurisdictions because it is a 'living act', which means that it can be changed from time to time by the Minister without the need for amending legislation in order to meet new market conditions and legal issues in e-commerce. This level of flexibility should allow Bermuda to maintain its position as a market leader in the offshore e-commerce sector. "We are at the forefront of e-commerce legislation. Bermuda was the second country in the world to implement legislation, and we are keeping ourselves ahead of the game," Ms Webb said.

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