Web Content Law for company websites

There are new laws regarding displaying information on e-mails and websites and they have already come into force.

The amendments to the Companies Act 1985, which came into force in January 1 2007, state that companies must include their full company details on websites and electronic business letters or order forms including the name of the UK registered company; company registration number; place of registration and registered office address. If a company fails to comply it is liable to a fine.

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A website must also clearly display the name of the company that the customer is transacting with in addition to its trading name, and with the difference clearly explained. It must also show the business' VAT number, even if it is not selling online; if it is a member of a trade or professional association, it must show details on the site including registration numbers; and prices must be transparent, stating whether VAT or delivery are included.

These regulations are in addition to clauses in the 1985 Act, which already calls for companies to display their company name on all business letters or order forms, notices and other official publications, on all bills of exchange, endorsements, cheques, orders and on all bills of parcels, invoices, receipts or letters of credit.

"These revisions are designed to reflect the fact that much of a company's business is now transacted in the virtual environment and that important business communications are often exchanged in electronic format. People often forget that nowadays an email can be as legally binding and significant to a company as a hard copy letter or agreement." The regulations were originally designed to provide clarity as to the identity of the parties in a business transaction - "they just needed to be updated to provide similar clarification in the electronic environment."

A little noticed amendment to the Companies Act 1985 has come into force requiring a company's website and e-mails to include the same details as are required for its stationery.

Draft regulations are available on the DTI website at http://www.dti.gov.uk/files/file35183.doc (though at the time of writing some of the references to sections of the Companies Act 1985 appear to be wrong).
On 31 December 2006 all companies will have to ensure that their websites, business letters and order forms (both hard and soft copy) contain the company's full name in legible characters and its place of registration, company number and registered office – in other words, the details which currently appear on the company letterhead. Companies and their officers are liable to a fine if they are in breach of these provisions.
So before New Year's Eve you need to ensure that somewhere on your website you have these statutory details, and that they appear on all hard and soft copy business letters and order forms. Rather than worry whether an e-mail sent by a company amounts to a "business letter" or not, it will be advisable to ensure that all e-mails sent on company business contain these details in the standard rubric at the end.

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