eCommerce laws to be upgraded

Karen Dearne  |   April 23, 2009

Australian eCommerce laws will be upgraded so Australia can adopt the United Nations Convention on the use of Electronic Communications in international contracts.

DOMESTIC e-commerce laws will be upgraded so Australia can adopt the United Nations Convention on the use of Electronic Communications in International Contracts - a new legal standard that underpins business activity conducted over the internet.

The Standing Committee of Attorneys-General (SCAG) yesterday agreed to amend state and territory Electronic Transactions Acts, following "overwhelming support" for reforms aimed at addressing technological advances since the present uniform ETAs -- based on the 1996 Model Law on E-Commerce -- were adopted.

The rules address means of confirming the validity of electronic transactions, including the recognition of legal contracts, and rules for establishing the time and place of dispatch and receipt of electronic communications.

"Submissions from the business community and other interested groups all supported proposed amendments that will allow Australia to accede to the Convention on Electronic Contracting," SCAG said in a communique.

"A number also provided useful comments on specific policy issues.

"We have agreed to draft amendments to the uniform ETAs to directly reflect the outcome of the consultations."

When the proposal was announced last November, federal Attorney-General Robert McClelland said the Government wanted "to maximise the potential of technology to promote international legal and business engagement".

To date, 18 countries, including China, Singapore and the Republic of Korea have signed the convention.

The Law Council of Australia's e-commerce committee has urged the SCAG to also remedy variations in electronic transactions rules across Australia.

"Given the benefits to be achieved in international harmony in relation to electronic transactions, it would be ironic if the opportunity were not taken to also achieve better harmony on the domestic side at the same time," the council said.

"We believe the extent of variations is beyond what is appropriate in an internet context, where state boundaries ought to be irrelevant."

The attorneys-general also agreed that a SCAG working group would develop "voluntary guidelines" to assist employers and workers on workplace privacy issues, such as surveillance and email, and internet monitoring.

The guidelines are to be developed in consultation with federal and state Privacy Commissioners, as well as employer groups, unions and other interested parties.