6 9 September 2004

News:

Following accusations that HM Treasury was “fence-sitting” by not issuing definitive guidance on the meaning of “distance contract” under the new Distance Marketing Regulations, the Financial Services Authority has published its own Guidance setting out clearly when certain transactions may be caught by the new distance marketing rules.

Banks have the key role to play in stopping online underage purchases of adult goods and services claim Internet industry leaders. Certain cards, such as Solo and Visa Electron may be issued to children as young as 11. Up to one million such cards may be in the hands of under-18s according to Michael Smeaton of GamCare, which recently published a report highlighting the problems of underage Internet gambling.

The latest draft of the EU Sales Promotion Regulations, which have been in discussion for eight years, has been criticised as ineffectual by marketing industry lawyers.

Features:

The problem of children buying adult products and services online will not go away of its own accord - and is set to grow unless both the online industry, the banks and the government take action.

Update on Rome II Regulation

Consultation launched on Wireless Telegraphy Bill

Ofcom gives go ahead for radio spectrum licence trading

UK Internet registry warns of new Internet invoicing scam

Spam gives way to new form of digital junk mail

Dates for your diaries

Voice over IP (VoIP) now presents a viable and attractive alternative to traditional public switched telephone network (PSTN) based voice services but the development of this new form of telephony presents interesting regulatory and legal challenges.

Most areas of UK gambling law are heavily regulated - with the organisers requiring some form of permit, probity check, and supervision by regulatory authorities. However, one major growth area in gambling entertainment currently operates with little or no such regulation - indeed its very legal status is far from clear. Commercially run free prize draws or skill competitions are currently springing up on television, SMS and internet, mostly through premium rate telephone lines. This article discusses the legal position and asks whether the Gambling Bill will restrict or further liberate this growth area of the industry.

Forum selection clauses in online contracts have had a mixed fate in the Courts. In this case involving AOL the court chose to uphold AOL's contract.

On 8 March 2004, the Court of Appeal handed down judgment in a long running dispute between HM Customs and Excise and United Utilities plc. The problem illuminates one area of the law of VAT, but also has wider reaching consequences in understanding when a third party service provider may or may not have become involved in providing betting, lottery or other forms of gambling services.

Nominet is celebrating its success in the Federal Court of Australia in its claim against five respondents for copyright infringement of its Registry and WHOIS Database. In addition the issuing of misleading notices to addressees in the United Kingdom was held to be in breach of Australian fair trading laws.

The US Court of Appeals has upheld a ruling that the distributors of P2P software used for illegal file-sharing are not liable for contributory or vicarious copyright infringement.

Companies that disclose consumers’ personal information to third parties for use in direct marketing should prepare for the new obligations imposed by California’s direct marketing disclosure statute, which takes effect January 1, 2005. This statute requires a covered company to provide individual California customers, upon request, with certain information about such disclosures. It also requires companies to notify these customers of their ability to request this information, and to provide a means of submitting requests.

The European Commission’s decision permitting the merger of Sony and BMG raises some interesting questions as to how the growth of online music sales will influence its future attitude.