The document discusses several key issues related to international e-commerce: - E-commerce faces borders due to differing national laws and consumer distrust, but is growing each year. - Sellers interested in cross-border sales must identify legal risks and adapt activities to limit risks through terms and conditions, disclaimers, and privacy policies. - Upcoming EU directives aim to create more uniform rules across Europe to harmonize consumer protection and address issues like applicable law, competent courts, and value-added tax (VAT) for e-commerce transactions.

1. Sirius Legal
De Scheemaecker Bogaerts Van den Brande
SIRIUS LEGAL
"It's not what you look at that matters, it's what you see“
Henry David Thoreau

2. Sirius Legal
De Scheemaecker Bogaerts Van den Brande
International aspects of e-commerce
The Global e-Conomy
E-commerce knows no borders
Internet is global
Access at any place in any country
One currency in Europe €
Growing language skills amongst young people
E-commerce is full of borders
Mozaik of national laws
Uncertainty amongst retailers
Distrust amongst consumers
E-commerce is growing every year, yet only 7% of European
consumers orders cross border products

3. Sirius Legal
De Scheemaecker Bogaerts Van den Brande
International aspects of e-commerce
Seller’s interest in cross border sales
Eliminate (or better: Identify and limit) legal risks
Identify risks
Adapt activity to limit risks
Use good GTC, disclaimers and privacy policies
Clear and uniform rules across Europe
Upcoming European Directive on distance selling
VAT Package
ECJ decisions on competent courts and applicable law

4. Sirius Legal
De Scheemaecker Bogaerts Van den Brande
International aspects of e-commerce
1. Do my GTC apply abroad?
Real question n 1 is: “which law applies to your
transactions?”
B2B: Mostly without problems (“Rome I” Regulation
593/2008)
Beware however: “battle of the forms”
CISG convention
Public Order
B2C: Strong consumer protection rules in the EU
“Rome I” Regulation 593/2008

5. Sirius Legal
De Scheemaecker Bogaerts Van den Brande
International aspects of e-commerce
1. Do my GTC apply abroad?
Real question n 2: “Can I go to court in Belgium?”
B2B: Mostly without problems (“Brussels I” Regulation
44/2001)
Beware however: “battle of the forms”
B2C: Strong consumer protection rules in the EU
“Brussels I” Regulation 44/2001

6. Sirius Legal
De Scheemaecker Bogaerts Van den Brande
International aspects of e-commerce
1. Do my GTC apply abroad in B2C?
“Rome I” and “Brussels I” Regulations
Basic principle: freedom of parties to apoint law and court (in
GTC)
Absence of choice: Mostly law of seller + court of defendant
But B2C: Regulations contain consumer protection rules:
• If seller’s “activities aim to reach a certain market”:
consumer can claim protection of local law and court
• Consumer cannot lose mandatory protection of his own
law (almost all consumer protection law is mandatory,
cfr. WMPC, e-commerce law) + can always go to court in
home country

7. Sirius Legal
De Scheemaecker Bogaerts Van den Brande
International aspects of e-commerce
1. Do my GTC apply abroad in B2C?
What is “aim to reach a certain market”?
ECJ decisions “Pammer” and “Alpenhof”:
• Language and currency in itself are not sufficient
• International caracter of activity
• Driving instructions from abroad on website
• Local phone number
• Phone number mentioned with international extension
• Local top level domain name extension
• Google Ad campaign aimed at certain country
• Language or currency in combination with above
• Delivery costs to certain country

8. Sirius Legal
De Scheemaecker Bogaerts Van den Brande
International aspects of e-commerce
1. Do my GTC apply abroad in B2C?
Consequence of “aim to reach a certain market”?
Consumer is protected by his local law:
• Consumer protection
• Civil and commercial law (e.g. hidden defects)
• Privacy law (although law of “responsable for treatment”)
• Obligatory mentions on website
• Pricing, sales, …
• Advertisement
• Specific rules (alcohol, financial services, medical
services, gambling, contests, …)
• …

9. Sirius Legal
De Scheemaecker Bogaerts Van den Brande
International aspects of e-commerce
1. Do my GTC apply abroad in B2C?
Consequence of “aim to reach a certain market”?
• Consumer can go to local court
• Seller has to go to court abroad
• Seller may find himself involved in court proceedings in 27
different countries
• High cost for legal assistance (e.g. repeated hidden defect
in product that has been shipped to 10 countries…)
• Loss of time
• Uncertainty on result
• Applicable court may have influence on applicable law,
despite choice of law…

10. Sirius Legal
De Scheemaecker Bogaerts Van den Brande
International aspects of e-commerce
1. Do my GTC apply abroad in B2C?
How to limit your risk:
• Consider who you want to sell to
• Check local law (ask your lawyer)
• Be clear in website communication strategy:
 Choose languages carefully
 Add “we deliver to” list
 Exclude certain countries explicitely
 Be careful with local domain name extensions
• Do not sell outside EU without proper legal advise
 Beware: the above only covers the EU
 Outside EU: IPL will appoint law case-by-case

11. Sirius Legal
De Scheemaecker Bogaerts Van den Brande
International aspects of e-commerce
2. Upcoming European harmonisation
EU aims to harmonize consumer protection
• Draft Directive is being finalized
• Concerns all distance selling in EU
• Should be published end of this year
• Member states will have 2 years to adopt into national
law
• Belgium already adapted to most articles
 Competitive advantage for Belgian webshops

12. Sirius Legal
De Scheemaecker Bogaerts Van den Brande
International aspects of e-commerce
2. Upcomming European harmonisation
Measures for harmonization of consumer protection:
• 14 day cooldown period
 Sanction: extension of period to 1 year (!)
 At customer’s cost
 Not for music, films, software, “urgent services”
 Standard forms
• 30 day delivery period maximum
• Clear pricing, no hidden or extra costs
• Information of customers on sellers ID

13. Sirius Legal
De Scheemaecker Bogaerts Van den Brande
International aspects of e-commerce
3. VAT & E-commerce
Indirect e-commerce
• Distance sales
• Place of supply
• Principle: VAT customer
Direct e-commerce
• Definition: “electronically supplied services”
• Place of supply:
• Until 31/12/2014: B2B = customer
B2C = supplier
• From 01/01/2015: Customer

14. Sirius Legal
De Scheemaecker Bogaerts Van den Brande
International aspects of e-commerce
5. How to solve payment issues with foreign
customers
European Payment Order and Small Claims Order
• Fast debt recovery throughout EU since 2008
• No court procedure (unless opposition by other party)
• Fill out form and send to court
• 30 days waiting period
• Payment Order is delivered if no opposition by other
party
• Payment Order can be executed
• If opposition: normal court procedure
• Limited costs, fast solution

15. Sirius Legal
De Scheemaecker Bogaerts Van den Brande
International aspects of e-commerce
Your lawyer and e-commerce
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Full audit of your (e-commerce) website
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16. Sirius Legal
De Scheemaecker Bogaerts Van den Brande
International aspects of e-commerce
Sirius Friday 2
25 November 2011
Sirius Legal Offices
12:00-14:00
Subject: Taks optimisation tips
• End of year taks optimisation
• Be part of the movie industry and pay less taxes by
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• How copyright can reduce your taxes
Within 24 hours