Out-Law / Your Daily Need-To-Know

An advertising industry group says it will soon begin lobbying the European Commission over its green paper called Rome II that would, if implemented, cover cross-border liability in situations where there is no contract, for example, defamation and product liability.

The Rome II Group was set up earlier this year week by the Federation of European Direct Marketing (FEDMA) and the Advertising Information Group (AIG). It is opposed to the Commission’s draft Rome II Regulation, which follows the Brussels Regulation, passed last year. The Brussels Regulation provides that consumers (but not other businesses) can sue e-tailers in their home country, instead of suing where the e-tailer is based.

The draft Rome II law applies the country of destination principle in non-contractual transactions – i.e. the place where the act has its effect. So, if a UK-based web site can be accessed in Germany, the UK e-tailer would be subject to the non-contractual liability laws of Germany. At present, such disputes are resolved in the country where the seller is established.

Advertisers have expressed concern that advertising across Europe would become “a game of Russian roulette.” The Rome II Group is calling for a period of public consultation on the draft regulation.

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