Next month will see discussions on an international treaty which
could make web sites and ISPs more exposed to lawsuits from other
countries, whilst posing major dilemmas for internet
multinationals.
For seven years a draft convention has been discussed which
would set rules for jurisdiction and the enforcement of foreign
judgements in other countries. The draft allows consumers to raise
actions in their home courts and stops web sites solely relying on
terms in their conditions of use to determine where they can be
sued. It also ensures that judgments of a court in one country can
be enforced by other countries.
Delegates of the Hague Conference on Private International Law
will meet on 6th June in the hope of finalising the draft.
Critics have warned that the draft, as it stands, means that all
web sites should comply with the laws of the strictest countries to
avoid liability for their content. They also observe that most of
the discussion surrounding the draft took place before the advent
of e-commerce, hence its terms may be difficult to apply.
Further, critics warn that the growth of e-commerce could be
harmed because web sites will refuse to do business with consumers
from certain countries. However, this is already the advice that is
given to web sites, i.e. that they should identify their target
markets, identify the laws of these markets, and comply with them.
The commonly held view is that web sites should not sell to
consumers in countries where they do not comply with local laws or
where they do not know what these laws are.
