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The directive, which was agreed in June 2000, requires online service providers to give consumers certain information; details which national law will apply to online services; and spells out the information a consumer must be given about how to conclude an e-contract.
E-commerce minister Douglas Alexander said, "This consultation will help to make sure that we get the legislation framed so we make the UK the best place to do e-commerce."
The directive has come in for some fierce criticism from industry bodies, which say it will harm small firms.
Businesses and other interested parties have until 2 May to evaluate the draft regulations and respond.