E-commerce and the law
Privacy and Electronic Communications Regulations
E-marketing activities are regulated by the Privacy and Electronic Communications Regulations that came into force in December 2003. The Privacy and Electronic Communications Regulations superseded the Telecommunications (Data Protection and Privacy) Regulations. The new regulations include additional rules which legislate against unsolicited emails or Standard Messaging Service (SMS), ie text messages, commonly referred to as spam.
They prohibit sending direct marketing communications by email where the identity of the person who sent it is disguised or concealed. They also prohibit marketing emails that do not provide the recipient with a valid address they can use to request such communications cease.
Addressing the problem of spam
The Privacy and Electronic Communications Regulations require that an individual's consent is obtained prior to sending them unsolicited advertising by email unless they have already 'opted-in' or expressly consented to the receipt of such emails.
Existing customers can be sent unsolicited advertising, on the condition that the direct marketing relates to products and services similar to those they have already purchased. However, the recipient should also be given the option to 'opt-out' of receiving such emails.
Under the Privacy and Electronic Communications Regulations, corporate bodies may also opt-out of receiving such emails, but there is no 'opt-in' requirement.
It is important to remember that it is also a requirement of the Regulations that unsolicited advertising emails must contain both the identity and the contact details of the sender.
Cookies
The Privacy and Electronic Communications Regulations also cover the use of 'cookies'. These are files downloaded from a web server to the website visitor's computer. They can provide the owner of the website with personal details about the visitor such as what purchases were made from the site, what files were downloaded and the information viewed.
The aim of the regulations is to allow the visitor to choose whether they want cookies on their computer. In practice this is likely to involve providing them with information about cookies, and how to disable them should they wish to do so.
Subjects covered in this guide
- Introduction
- E-commerce Regulations
- Tips for complying with the E-commerce Regulations
- Regulations applying to telephone and fax marketing
- Privacy and Electronic Communications Regulations
- Tips for complying with the Privacy and Electronic Communications Regulations
- Distance Selling Regulations
- Provision of Services Regulations

Actions
- Privacy and Electronic Communications Regulations guidance on the Information Commissioner's Office website - Opens in a new window
- Online selling regulations guidance on the Office of Fair Trading website - Opens in a new window
- Manage your personal list of starting-up tasks with our Business start-up organiser



