New UK report on regulating e-commerce

Entitled “Regulating E-commerce,” the report set out to examine the extent to which regulatory barriers have been preventing UK businesses and consumers from engaging in e-commerce.

The Task Force makes the following recommendations for government action:

• The establishment on the web of a single portal to provide business with clear guidance of regulatory obligations and rights.
• There should be more effective representation and consultation with e-commerce businesses nationally and globally, to ensure that their interests are fully recognised by government.
• The Government should ensure that departments deliver their commitment to electronic working.
• There should be a constant review of the e-commerce market to identify any possible competitive disadvantage experienced by smaller businesses.
• Consumers must be given all the necessary information about their rights to protection, and about the possible risks involved in purchasing on-line.
• The Data Protection Act must be enforced effectively.
• The effect of the Regulation of Investigatory Powers Act (RIPA) should be reviewed a year after it has been in operation.

Ms Hewitt said:

"I welcome this independent endorsement for the Government's light touch regulatory approach to e-commerce. Over the last year there has been a surge in businesses getting on-line. However, while the results are promising, relatively few are exploiting the full power of e-commerce and consumers still lack confidence in buying on-line.

"This report makes some useful recommendations which will help overcome the barriers to achieving our goal of making the UK the best place in the world for e-business. We will consider these very seriously in our response."

Lord Haskins, Chair of the Task Force said:

"In general, businesses, and particularly small ones, dislike regulation, yet some consider that an element of State endorsement might enable the SMEs to earn the confidence of potential customers. We reject this. Another dilemma is that consumers might seek additional regulatory protection when trading on the web across national boundaries, but it would be difficult to enforce and we do not recommend it."

The report can be downloaded from http://www.cabinet-office.gov.uk/regulation/PressNotices/2000/141200A.htm. The response will be published early in the New Year.