According to a report by the UK Advertising Association, it is now understood that progress is continuing at the higher level within Commissioners' Cabinets. The Association notes that a draft Regulation is now expected by Summer 2002.
On 1st March 2002, the Brussels Regulation came into force which applies to cross-border disputes in situations covered by contracts. It provides that consumers (as opposed to businesses) can now more easily sue suppliers in their home country, instead of suing where the supplier is based.
The Rome II proposal applied this country of destination principle to non-contractual transactions. So, if a UK-based web site could be accessed in Germany, the UK e-tailer would be subject to the non-contractual liability laws of Germany. At present, such disputes are resolved in the country where the seller is established.
Businesses have opposed the Rome II proposal, seeing it as another burden on e-commerce. It also runs against the country of origin principle applied by the E-commerce Directive.