Small UK Firms Struggle To Comply With E-Commerce Laws

by Robin Pilgrim, LawAndTax-News.com, London

08 August 2003

Research recently released by online legal documents and information provider, Clickdocs has revealed that the e-commerce operations of many of the UK's small businesses do not comply with the relevant laws, undermining their ability to protect online consumers.

The three principle laws covering internet sales in the UK, namely the E-Commerce Directive, the Data Protection Act, and the Distance Selling Regulations, are designed to ensure that consumers are afforded the same degree of protection shopping online as they are on the high street.

However, according to Clickdocs, although 68% of UK websites claim that they are in compliance with data protection rules, only 18% are registered with the Information Commission. The survey also revealed that nearly 50% of sites do not have a privacy statement, and only 37% comply with the Distance Selling Regulations.

Speaking to the UK media this week, director of Clickdocs, Jon Aslin warned that this lack of compliance may scare away potential customers, forcing them to opt for larger internet operations, which are generally more compliant with the country's e-commerce laws.

'If consumers stick to big sites, new sites won't be able to make a go of it,' he explained, continuing: 'This is damaging in the long term. You don't want people to stick with big names all the time.'

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