University Business Law: Principles of E-Commerce Directive Report

This report provides an overview of the E-Commerce Directive, its aims, and key concepts. It explores the regulatory structure for electronic commercial services, emphasizing the directive's goal of simplifying the digital system to ensure legal clarity and customer trust within the EU. The report defines Information Society Services (ISS) as services provided for remuneration, remotely, and by electronic means. It also discusses the relevant legislative instruments, including the Securities and Financial Services Act 2000 Order 2002 and the Directive on the Electronic Commerce Legislation 2002, which came into effect to apply the Directive. The report highlights the importance of the free flow of resources and the right of settlement within the EU and how the directive aims to create fair standards for electronic communications and online transactions across member states. The report is a useful resource for students studying business law, especially those interested in electronic commerce and EU regulations.

Running head: PRINCIPLES OF BUSINESS LAW
Principles of Business Law
Name of the student
Name of the University
Author’s Note

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What is the aim of the E-Commerce Directive?
A regulatory structure for the electronic commercial services was developed by the
implementation of the Directive on some legislative dimensions of information technology
infrastructure, in specific electronic commerce. The goal of the Directive is for simplifying the
digital system to ensure that the legal clarity is maintained and customer trust is built within the
EU to establish fair standards for electronic communications and online transaction in all the
member states (Lodder, 2014). The e-commerce directive is designed to guarantee that the
infrastructure of the knowledge system profit from the free flow of resources and the right of
settlement in the EU. The goal of the directive is to better explain the regulatory obligations of
the service providers and thereby to better boost a high degree of customer trust within the
current national legislation and foreign legislation, which encourages greater consumer interest
and stability in the digital world (Stalla-Bourdillon, 2017). The goal of the Directive is to create
that the services of the Information Society will usually comply with the regulations in the place
where the provider of the service is founded that enables the services of the information society
to operate freely. The unique free flow in resources is part of a broader concept in community
law.
Key concept in this directive is the concept ‘information society service’. What is meant by
this concept?
Information Society Services (ISS) implies that the E-Commerce Directive encompasses
ISS which is commonly defined as the services usually rendered for the distance remuneration,
by implies of electronic equipment for storage and processing of the data, and at the request of
the service receiver (Wendehorst, 2016). The ISS includes electronic banking resources and

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related internet advertisement and advertising. Multiple cross-border financial companies would
most possibly come under the framework of the Directive.
Directive 2000/31/ECIn following two legislative instruments come into effect with a view to
applying the Directive on 21 August 2002 (Lodder, 2017).
 The Securities and Financial Services Act 2000 Order 2002. This order would exempt
those activities which consist of the procurement of an ISS from the EEA State other than
the United Kingdom from the scope of controlled activities. Such operations shall be
subject to the regulation in the nation where the service provider is founded.
 Directive on the Electronic Commerce Legislation 2002. It would broaden the
administrative geographic framework under the FSMA to include the outgoing ISS. The
section 418 of the FSMA should be changed such that any person carrying on
the operation consisting of delivering an information technology service from the United
Kingdom to any individual in another EEA state may be called carrying on the task in the
United Kingdom.

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References
Lodder, A. R. (2014). Information requirements overload? Assessing disclosure duties under the
E-commerce Directive, Services Directive and Consumer Directive. In Research
Handbook on EU Internet Law. Edward Elgar Publishing.
Lodder, A. R. (2017). Directive 2000/31/EC on certain legal aspects of information society
services, in particular electronic commerce, in the Internal Market. In EU Regulation of
E-Commerce. Edward Elgar Publishing.
Stalla-Bourdillon, S. (2017). Internet Intermediaries as Responsible Actors? Why It Is Time to
Rethink the E-Commerce Directive as Well. In The Responsibilities of Online Service
Providers (pp. 275-293). Springer, Cham.
Wendehorst, C. (2016). Platform intermediary services and duties under the e-commerce
directive and the consumer rights directive. Journal of European Consumer and Market
Law, 5(1), 30-33.