The global reach of e-commerce makes goods and services available to millions more around the world than ever before. But as e-commerce transactions cross national borders at the speed of light, they also make consumer protection and related laws extremely difficult to enforce. Some salient issues on the subject were raised late last year in a legal conflict between U.S.-based Yahoo and the consumer protection arm of the French government. Yahoo serves as an auction site for businesses and subscribers selling a wide range of products and services, including paraphernalia from the Nazi party traded among collectors.
French law prohibits the sale of Nazi-related merchandise.
Yahoo later voluntarily removed the Nazi merchandise from its auction sites. The proposal, slated to take effect by 2005, assumes that an organization making e-sales to consumers in other EU countries have full protection under the laws of the country in which the organization is headquartered. Known as the Brussels Regulation, the legislation sets down a number of precise rules on how cross-border disputes are to be handled with U.S. consumers. Opponents of Rome II say the laws will cause a significant barrier to entry for businesses looking to enter global e-commerce, because each business would have to understand the legal constraints of every market in the EU before doing so. They fear the potential risks and significant legal overhead associated with this task will prevent many businesses from offering their products and services globally, dramatically reducing consumer product selection.