An EU proposal for a law to cover cross-border liability for
disputes in which there is no contract, known as Rome II, is back
on the political agenda, despite the Directorate General of Justice
and Home Affairs previously confirming that the Commission had
stopped working on a draft Regulation.
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.
