Trading online internationally

If I am trading online do I have to comply with laws in other jurisdictions as well?

Because your website can be accessed by consumers anywhere in the world, it is important to be aware that laws in other jurisdictions may also apply to you.

Any business that is incorporated in Australia or carries on a business in Australia is subject to the Competition and Consumer Act in respect of its activities. This applies whether you are dealing with Australian customers or suppliers, or trading with people in other countries.

Whether you will also be subject to competition and consumer protection laws in other countries will depend on the laws in those countries.

How do I ensure that my business complies with laws in other jurisdictions?

While it may be difficult to identify all the laws in other jurisdictions that could effect you, there are ways to minimise this risk. These include the following.

• Ensuring your website complies with accepted International standards of practice or guidelines where available. The Organisation for Economic Co-operation and Development (OECD) has published Guidelines for Consumer Protection in the Context of Electronic Commerce (1999) which tells you about the basic minimum standards for consumer protection that would be expected when dealing in most jurisdictions. These guidelines are similar to the Australian Best Practice Model (see link to the eCommerce website of the Department of the Treasury).
• Using disclaimers. If you want to limit the number of countries you will trade with, you need to disclose this very clearly on your website. However, you should be aware that different jurisdictions may have different views on the use of disclaimers. A disclaimer may not be effective to avoid the scope of jurisdiction if you engage in trade with persons in that jurisdiction.

You can find further information about consumer protection laws related to eBusiness in other jurisdictions at www.econsumer.gov