1. Most Irish websites break new EU rules

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Aileen O'Toole, Managing Director, AMAS

Regulation is a serious, and costly burden on Irish business. From waste to health and safety, companies are staggering under the weight of EU directives, new regulatory bodies and the mass of paper and process they trigger.

The ultimate aim – consumer protection – is laudable and one which few responsible businesses would dispute. But, as the Business Regulation Forum reveals, compliance costs are rising for Irish businesses and Ireland has much to learn from other countries, which are taking the pain out of regulation, particularly for SMEs.

Irish businesses’ online activities have not escaped. Companies that buy, sell, market and communicate online have to ensure compliance with a raft of legislation. This covers everything from distance selling and the WEE Directive to data protection and copyright legislation.

The latest, the so-called EU Disclosure Directive on company law, should have been applied by all Irish limited companies from 1 April. At its simplest, this means that company details, such as registration number and registered office that appear on a company’s headed paper, should be included on a company website.

But it’s not that simple. The practical application of the Directive is unclear. The current working interpretation of the Directive is that a company:
• Should publish the required information on its website home page
• Or should offer a prominent link from its home page to this information and state clearly that it is connected to a company’s registration details
• Should ensure this information is included in all online forms deemed to be “order forms” under the Directive
• Should include registration information on emails and other business-related electronic communications

A survey by AMAS reveals low compliance levels with the new requirements.

We reviewed the top 50 transactional websites, operated by Ireland-registered businesses. Not only do these businesses have to ensure proper application of the new rules to their home pages but to order forms. The companies operate in sectors such as financial services, entertainment, travel, media, consumer goods and telecommunications. The list includes many market-leading brands.

AMAS found that:
• 72% of the home pages did not comply with the new Directive
• 84% of the online forms were non-compliant

The results did not come as any surprise to the Irish Internet Association (IIA).“The AMAS survey is further evidence of confusion over the levels and requirements of compliance,” said IIA Chief Executive Fergal O’Byrne.

EU Rules. Source: AMAS survey of Ireland's top 50 Ireland-based companies (Latoya Williams)

“The IIA met the Office of the Director of Corporate Enforcement (ODCE) to raise concerns expressed by our members. We got some clarity but the ODCE emphasised that it is not the ultimate arbiter and that only the courts could decide this.

“The strong advice coming from the ODCE and endorsed by the IIA is that a company should make every effort to comply to the best of their understanding.”

The IIA website (www.iia.ie) includes a guide to compliance by solicitors Matheson Ormsby Prentice.

The AMAS survey revealed a far higher level of compliance with data protection legislation. Almost 75% of websites surveyed included a proper privacy statement but 28% of leading Irish companies failed to publish a privacy statement at all, or in the correct way.

Compliance is a component of the AMAS eBusiness Audit, which evaluates an online channel against over 200 checkpoints of best practice. For further information, contact info [at] amas [dot] ie

Back to contents of State of the Net issue 5