iStock_000048822690_smThe European Commission has announced new draft laws that would give consumers new remedies where digital content supplied online is defective or not as described by the seller.

On Dec. 9, 2015, the European Commission proposed two new directives on the supply of digital content and the online sale of goods. In doing so, the Commission is making progress towards one of the main goals in the Digital Single Market Strategy (the “DSM Strategy”) announced in May 2015: to strengthen the European digital economy and increase consumer confidence in trading across EU Member States.

This is not the first time that the Commission has tried to align consumer laws across the EU; its last attempt at a Common European Sales Law faltered earlier this year. But the Commission has now proposed two new directives, dealing both with contracts for the supply of digital content and other online sales (the “Proposed Directives”).

National parliaments can raise objections to the Proposed Directives within eight weeks, on the grounds of non-compliance with the subsidiarity principle—that is, by arguing that that regulation of digital content and online sales is more effectively dealt with at a national level.

Objectives

Part of the issue with previous EU legislative initiatives in this area is that “harmonized” has really meant “the same as long as a country doesn’t want to do anything different.” This time, the Proposed Directives have been drafted as so-called “maximum harmonization measures,” which would preclude Member States from providing any greater or lesser protection on the matters falling within their scope. The Commission hopes that this consistent approach across Member States will encourage consumers to enter into transactions across EU borders, while also allowing traders to simplify their legal documentation by using a single set of terms and conditions for all customers within the EU.

An outline of the scope and key provisions of each of the Proposed Directives, as well as the effect on English law, are summarized after the jump.


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  • Bad chords. A European musician’s attempt to stop a negative concert review from continuing to appear in Internet search results is raising questions about whether the EU’s “right to be forgotten” ruling could prevent the Internet from being a source of objective truth.  Established in May by the European Court of Justice, the right to

Earlier this year, the French consumer association UFC-Que Choisir initiated proceedings before the Paris District Court against Google Inc., Facebook Inc. and Twitter Inc., accusing these companies of using confusing and unlawful online privacy policies and terms of use agreements in the French versions of their social media platforms; in particular, the consumer association argued that these online policies and agreements provide the companies with too much leeway to collect and share user data.

In a press release published (in French) on its website, UFC-Que Choisir explains that the three Internet companies ignored a letter that the group had delivered to them in June 2013, containing recommendations on how to modify their online policies and agreements. The group sought to press the companies to modify their practices as part of a consumer campaign entitled “Je garde la main sur mes données” (or, in English, “I keep my hand on my data”).

According to the press release, the companies’ refusal to address UFC-Que Choisir’s concerns prompted it to initiate court proceedings. The group has requested that the court suppress or modify a “myriad of contentious clauses,” and alleged that one company had included 180 such “contentious clauses” in its user agreement.

The group has also invited French consumers to sign a petition calling for rapid adoption of the EU Data Protection Reform that will replace the current Directive on data protection with a Regulation with direct effects on the 28 EU Member States. UFC-Que Choisir published two possibly NSFW videos depicting a man and a woman being stripped bare while posting to their Google Plus, Facebook and Twitter accounts. A message associated with each video states: “Sur les réseaux sociaux, vous êtes vite à poil” (or, in English, “On social networks, you will be quickly stripped bare”).
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The European Court of Justice (ECJ) issued a quite surprising decision against Google which has significant implications for global companies.

On May 13, 2014 the ECJ issued a ruling which did not follow the rationale or the conclusions of its Advocate General, but instead sided with the Spanish data protection authority (DPA) and found that:

  • Individuals have a right to request from the search engine provider that content that was legitimately published on websites should not be searchable by name if the personal information published is inadequate, irrelevant or no longer relevant;
  • Google’s search function resulted in Google acting as a data controller within the meaning of the Data Protection Directive 95/46, despite the fact that Google did not control the data appearing on webpages of third party publishers;
  • Spanish law applied because Google Inc. processed data that was closely related to Google Spain’s selling of advertising space, even where Google Spain did not process any of the data. In doing so, it derogated from earlier decisions, arguing the services were targeted at the Spanish market, and such broad application was required for the effectiveness of the Directive.

The ruling will have significant implications for search engines, social media operators and businesses with operations in Europe generally. While the much debated “right to be forgotten” is strengthened, the decision may open the floodgates for people living in the 28 countries in the EU to demand that Google and other search engine operators remove links from search results. The problem is that the ECJ mentions a broad range of data that may be erased. Not only should incorrect or unlawful data be erased, but also all those data which are “inadequate, irrelevant, or no longer relevant”, as well as those which are “excessive or not kept up to date” in relation to the purposes for which they were processed. It is left to the companies to decide when data falls into these categories.

In that context, the ruling will likely create new costs for companies and possibly thousands of individual complaints. What is more, companies operating search engines for users in the EU will have the difficult task of assessing each complaint they process and whether the rights of the individuals prevail over the rights of the public. Internet search engines with operations in the EU will have to handle requests from individuals who want the deletion of search results that link to pages containing their personal data.

That said, the scope of the ruling is limited to name searches. While search engines will have to de-activate the name search, the data can still be available in relation to other keyword searches. The ECJ did not impose new requirements relating to the content of webpages, in an effort to maintain the freedom of expression, and more particularly, press freedom. But this will still result in a great deal of information legally published to be available only to a limited audience.

Below we set out the facts of the case and the most significant implications of the decision, and address its possible consequences on all companies operating search engines.
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Cisco estimates that 25 billion devices will be connected in the Internet of Things (IoT) by 2015, and 50 billion by 2020. Analyst firm IDC makes an even bolder prediction: 212 billion connected devices by 2020. This massive increase in connectedness will drive a wave of innovation and could generate up to $19 trillion in savings over the next decade, according to Cisco’s estimates.

In the first part of this two-part post, we examined the development of, and practical challenges facing businesses implementing, IoT solutions. In this second part, we will look at the likely legal and regulatory issues associated with the IoT, especially from an EU and U.S. perspective.

The Issues

In the new world of the IoT, the problem is, in many cases, the old problem squared. Contractually, the explosion of devices and platforms will create the need for a web of inter-dependent providers and alliances, with consequent issues such as liability, intellectual property ownership and compliance with consumer protection regulations.
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INTRODUCTION

This year, as the world celebrates the 25th anniversary of the World Wide Web, the Web’s founder, Tim Berners-Lee, has called for a fundamental reappraisal of copyright law.  By coincidence, this year we also anticipate a rash of UK and European legislative developments and court decisions centring on copyright and its application to the Web.

In our “Copyright: Europe Explores its Boundaries” series of posts—aimed at copyright owners, technology developers and digital philosophers alike—we will examine how UK and European copyright is coping with the Web and the novel social and business practices that it enables.
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Peer-to-peer (“P2P”) business models based on the Internet and technology platforms have become increasingly innovative.  As such models have proliferated, they frequently result in clashes with regulators or established market competitors using existing laws as a defensive tactic.  The legal battles that result illustrate the need for proactive planning and consideration of the likely legal

Europe is currently undergoing a significant reform of its privacy regime. Under the current European Union (EU) Privacy Directive, individuals already have broad rights curtailing companies’ ability to process their personal data. The proposed EU Privacy Regulation seeks to broaden these rights even further. In particular, the proposed “right to be forgotten” may ultimately

In the June 2011 issue of Socially Aware, we reported on a Brussels Court of Appeal ruling in favor of Copiepresse, the Belgian association for the protection of French-language press copyright, in a case against Google.  To recap, on May 5, 2011, the Brussels Court of Appeal upheld an earlier ruling that Google had