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  1. Point in time
    2006-11-06

ECO 3.1 Application and purpose

Application

ECO 3.1.1 R

This chapter applies to a domestic ECA provider.

Purpose

ECO 3.1.2 G

The main purpose of this chapter is to implement the provisions of the E-Commerce Directive as these affect firms regulated by the FSA. In particular, this chapter imposes the information requirements of the E-Commerce Directive on firms when they carry on an electronic commerce activity with an ECA recipient who is in the United Kingdom or located outside the EEA. These requirements are in addition to the requirements otherwise applicable to firms when they carry on a regulated activity.

ECO 3.1.3 G

Accordingly, ECO 3.2.1 R requires a domestic ECA provider to supply minimum information to an ECA recipient regardless of the recipient's location.

ECO 3.2 Minimum information requirements

ECO 3.2.1 R

In relation to an electronic commerce activity carried on from an establishment in the United Kingdom with or for a UK ECA recipient, or an ECA recipient in a non-EEA State, a domestic ECA provider must comply with the requirements set out in ECO 3 Annex 1 R (1), (2) and, if it is a professional firm (or a person that is regulated by the equivalent of a designated professional body in an EEA State other than the United Kingdom), (3).

ECO 3.2.2 G

ECO 3 Annex 1 R 1 implements provisions contained in the E-Commerce Directive as follows:

  1. (1)

    ECO 3 Annex 1 RR(1) implements articles 5 (except paragraph 1(f)), 6 and 10 of the directive; these provisions require certain information to be provided by a domestic ECA provider before any contract is entered into;

  2. (2)

    ECO 3 Annex 1 RR(2) implements article 11 of the directive, which relate to matters arising after the contract has been entered into; and

  3. (3)

    ECO 3 Annex 1 RR(3) implements article 5.1(f) of the directive; these requirements apply where a domestic ECA provider is a professional firm (or a person that is regulated by the equivalent of a designated professional body in an EEA State other than the United Kingdom); this annex is therefore mainly relevant to firms which are solicitors, accountants, and actuaries.

ECO 3.2.3 G

In contrast to an outgoing ECA provider (see ECO 2.2.1 R), a domestic ECA provider is not relieved of the obligation to comply with the COB requirements specified in ECO 1.2.6 E, or, in the case of an insurer, ECO 1.3.3 R. A domestic ECA provider must therefore comply with COB in full, as well as the provisions set out in ECO 3.2.1 R.

ECO 3 Annex 1 E-Commerce Directive: Minimum Information Requirements

R

1

Information about the ECA provider and its products or services

(1)

An outgoing or domestic ECA provider must make the following information easily, directly and permanently available to any ECA recipient, in relation to any electronic commerce activity which it provides:

(a)

the name of the provider1;

(b)

the address in the United Kingdom at which it is established;

(c)

the provider's e-mail address (if it has one);

(d)

a statement of the provider's statutory status (in accordance with GEN 4 Annex 1 (Statutory status disclosure)), accompanied by a link to the FSA Register in the form www.fsa.gov.uk/register;2

(e)

a statement that the provider is entered in the FSA's Register and its FSA Register number;

(f)

if the service is subject to Value Added Tax, the relevant identification number.

(2)

If an outgoing or domestic ECA provider refers to the price (including any charges) of its services or products, it must do so clearly and unambiguously and, where relevant, indicate whether the price is inclusive of tax and delivery costs.

(3)

An outgoing or domestic ECA provider must ensure that commercial communications which are part of or constitute an electronic commerce activity comply with the following requirements:

(a)

the commercial communication must be clearly identifiable as such;

(b)

the person on whose behalf the commercial communication is made must be clearly identifiable;

(c)

promotional offers, competitions or games must be clearly identifiable as such and any qualifying conditions must be set out clearly and unambiguously.

(4)

An outgoing or domestic ECA provider must ensure that any unsolicited commercial communication sent by it by electronic mail is clearly and unambiguously identifiable as such as soon as it is received.

Information about the technical steps required to place an order

(5)

An outgoing or domestic ECA provider must make the following information clearly, comprehensibly and unambiguously available to an ECA recipient, before the recipient places an order:

(a)

the technical steps the recipient should follow in order to conclude the contract;

(b)

an indication of whether the provider will keep a record of the contract and whether it will be accessible to the ECA recipient;

(c)

the technical means of identifying and correcting input errors before the ECA recipient submits the order; and

(d)

the language or languages in which the contract may be concluded.

(6)

An outgoing or domestic ECA provider must mention any relevant code of conduct to which it subscribes and provide information on how to access the code electronically.

(7)

An outgoing or domestic ECA provider must ensure that the terms and conditions of the contract are made available in a way that allows an ECA recipient to store and reproduce them.

(8)

Where the recipient of the service is not a consumer, an outgoing or domestic ECA provider may agree with him that some or all of paragraphs (5), (6) and (7) do not apply.

(9)

Paragraphs (5) and (6) do not apply to contracts concluded exclusively by exchange of electronic mail or by equivalent individual communications.

2

Requirements relating to the receipt of orders

(1)

When an ECA recipient places an order by electronic means, an outgoing or domestic ECA provider must ensure that receipt of the order is acknowledged without delay.

(2)

For the purposes of (1) the order and the acknowledgment of receipt are deemed to be received when the parties to whom they are addressed are able to access them

(3)

An outgoing or domestic ECA provider must ensure that it makes available to an ECA recipient, appropriate, effective and accessible technical means allowing him to identify and correct technical errors before placing an order.

(4)

Where the recipient of the service is not a consumer, an outgoing or domestic ECA provider may agree with him that some or all of paragraphs (1), (2) and (3) do not apply.

(5)

Paragraphs (1) and (3) do not apply to contracts concluded exclusively by exchange of electronic mail or by equivalent individual communications.

3

Requirements for professional firms and EEA equivalent firms

(1)

If an outgoing or domestic ECA provider is a professional firm, or a person that is regulated by the equivalent of a designated professional body in an EEA State other than the United Kingdom, it must make the following information easily, directly and permanently available to any ECA recipient:

(a)

the name of the professional body (including designated professional body) or similar institution with which the provider is registered;

(b)

the provider's professional title and the EEA State where it was granted;

(c)

details of the professional rules to which the provider is subject in the EEA State where it has its establishment.