Out-Law / Your Daily Need-To-Know

Officials in the European Commission have said they are reconsidering their plans for new rules that would affect whose laws apply in certain cross-border e-commerce disputes between businesses and consumers. Previously, the Commission’s stance was that the laws in the country where a consumer is situated govern any transaction.

However, according to the New York Times, the Commission has said it will now consult with those who argue that this approach places an unnecessary burden on e-commerce businesses. Drafters of the new EU Regulation on jurisdiction, known as Rome II, will speak to industry and consumer groups. Two months ago they said that doing so would be a waste of taxpayers’ money.

If implemented, the Rome II Regulation would cover cross-border liability in non-contractual situations, such as defamation and product liability. A consultation exercise for the Regulation was previously withdrawn and, at the last EU update, a Draft Regulation was pending, due in October or November of this year. It now seems that the Commission has reverted to its original intention to consult on the matter.

E-commerce industry officials want the law to provide that the governing laws in such internet transactions are those of the country where the goods originate and not the country of destination.

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