E-commerce refers to the carrying out of business using electronic means. This generally means over the internet, but in law the term is often used to include remote selling by telephone and email, as well as online. It is also frequently used to refer to legal issues generally relating to the internet.

There are many kinds of contracts which are required when a business becomes involved with e-commerce. These include:

• Website development, content and hosting agreements
• Internet service provider agreements
• Website use and privacy policies
• Website and telephone sales terms and conditions

When a business wishes to set up a website, it needs to ensure that the design and content of the website do not infringe any third party rights. It also needs to be sure that its website is properly hosted and will not suffer from excessive down time. These issues can be dealt with by website development, content and hosting agreements.

Online or telephone sales are governed by the Consumer Protection (Distance Selling) Regulations 2000 and the Electronic Commerce Regulations 2002. Such sales are generally conducted in a manner where there will be no scope for negotiating terms. Accordingly, any business hoping to sale in this way will require standard terms and conditions of sale. There are special rules which cover most sales to consumers (subject to some exceptions), and give them more rights than they would have in a face to face purchase. These include:

• A right to receive certain information as to the products and the identity of the seller
• A right to cancel goods without penalty (for up to seven days after delivery if the necessary information has been provided to the consumer, and three months if it has not)
• A duty imposed on the seller to deliver goods within 30 days of the order (subject to an ability to extend or cancel)

Because the relevant regulations are laid down by European law, these rights apply to all consumers located in any European Union country.

Anyone wishing to carry on e-commerce should also be aware of the Privacy and Electronic Communications Regulations 2003, which restrict the ability for direct marketing via electronic means.

Finally, the Data Protection Act 1998 governs the way in personal data must be kept, handled and used. One issue which is of particular concern to those involved in e-commerce, particularly with an international element, it that data protection law put limits on the transfer of personal data outside the European Union. This means the location of servers and databases must be carefully considered.

We have extensive experience and expertise in advising on, drafting and negotiating internet and e-commerce contracts. We take a realistic and commercial approach to a client's needs, and ensure that we understand the commercial imperative behind the proposed e-commerce venture, in order to properly tailor documents to the client's requirements.