Transnational Consumer Protection in E-Commerce

Abstract

This article deals with the protection of consumers when they enter e-commerce transactions with foreign companies. Most states reacted to the growing importance of e-commerce by enacting data protection and consumer protection legislation and by requiring registration of e-businesses. Companies have found a way to circumvent the consumer legislation by offering the consumers to agree to a choice of foreign courts and laws which are included in their terms and conditions. Consumers give away the protection of their home state simply by clicking to accept the general terms and conditions on the company’s website. The purpose of this article is to examine if the solutions and the experience from the United States and the European Union could serve as a model for transnational protection of consumers in e-commerce. The authors discuss the different levels of protection offered in the United States and the European Union and consider unification of the standards by a multilateral convention.