“Where Can We Be Sued?”- The Implications Of The New Jurisdiction Rules Under The Brussels Regulation For Online Consumer Contracts

The terms and application of the new Regulation:

The Brussels Regulation (the "Regulation") takes effect on 1st March 2002, replacing the Brussels Convention of 1968 (the "Convention") which sets out the rules for determining which EU court will have jurisdiction over a dispute in relation to a commercial contract and facilitates the recognition and enforcement of judgements between member states. It is intended that the Regulation should increase uniformity between the member states in their application of the rules of jurisdiction contained in the Convention and take into account the development of e-commerce. The Regulation will apply in all member states of the EU, other than Denmark. The relations between Denmark and the other member states will continue to be governed by the Convention.

The Regulation makes important changes to the jurisdiction rules that apply to consumer contracts. When considering the question "Where can we be sued?", suppliers who sell to consumers in other EU member states may unwittingly find themselves subject to the jurisdiction of foreign courts in the event of a dispute brought by a consumer. Online consumer e-commerce businesses should, therefore, review their foreign sales efforts and identify those territories where their activities could lead to unfavourable jurisdiction rulings under the Regulation. A prudent review in advance of the introduction of the Regulation will at least give those businesses advance warning of the effect of the new Regulation on their foreign activities.

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