COMMERCIAL LIABILITY
47. The Government has also decided against
introducing a statutory commercial liability regime for TSPs and
instead expects TSPs "to make clear to their customers the
extent of their liability".[134]
In our first Report on electronic commerce we suggested that "if
consumers are to have confidence in electronic commerce, the liability
rules covering TSPs must be clear, simple, fair and well-known".[135]
Several respondents to the draft Bill argued that the liability
of TSPs required further attention by Government.[136]
We recommend that the Government inform Parliament of what
action it will take to ensure that TSPs make clear to their customers
the extent of their liability.
EXPORT CONTROLS
48. In March 1999 DTI consulted on the possibility
of streamlining procedures for the export of cryptographic products.
Many respondents were critical not only of the procedures by which
export licences for such products are issued, but of the extent
to which the export of cryptographic products is controlled by
the Government. There were several calls for the licensing of
cryptographic exports to be ended and we recommended that the
Government consider the case for a review of the rationale of
the continuation of export controls on cryptographic products,
as well as the procedures by which such controls are implemented.
The Government told us that export controls on encryption were
reviewed internationally as recently as December 1998 and that
new, relaxed controls would soon be implemented.[137]
There have been a number of significant international developments
since December 1998, including the unexpected relaxation of export
controls by the US Government, which suggest to us that the need
for a wide-ranging review of the UK's export controls on cryptographic
products is increasingly urgent.[138]
In response to the draft Bill, Vodafone described export controls
as "major obstacles that the Bill fails to address"
and there were also critical comments made by the Law Society.[139]
We recommend that, in the light of recent and unexpected changes
in US policy on the export of cryptographic products, the Government
look again at the case for a review into the rationale of export
controls on such products.
128 A Report for DTI summarising response to "Building
Confidence in Electronic Commerce", Jul 99, URN99/891,
paragraphs 20-5; disappointment at the lack of legislation
on tax and other issues was expressed by the Real Time Club p1;
and Taylor Joynson Garrett p3 called for legislation on cybersquatting Back
129
For instance on consumer protection see HC648, paragraph
122 Back
130
Ev, p1; there were calls for such legislation from Donne Milcham
and Haddock section 1, Taylor Johnson Garrett p3, London Investment
Banking Association pp2, 4, R. I. Howland p4, the Post Office
p3 and the Institute of Chartered Accountants in Scotland paragraph
1.1 Back
131
HC648, paragraphs 110 and 118 Back
132
Cm4417, p14 paragraphs 52-4 Back
133
HC648, paragraph 37; Cm4417, p10 paragraph 34 Back
134
Cm4417, p10 paragraph 31 Back
135
HC187 paragraph 79 Back
136
Responses to Government from British Computer Society p2, EDS,
Vodafone p2, Association of Payment Clearing Services p2 and Association
of British Insurers paragraph 3.4 Back
137
Cm4417, p15 paragraph 56 Back
138 See
judgement in Berstein v. US Department of Justice, US Court of
Appeals for the Ninth Circuit, 6 May 99; and Telegraph
20 May 99; and Financial Times 1 Jul 99, 2 Jul 99, 17 Sep
99 Back
139
Responses to Government from Vodafone pp1-2, Law Society p4 Back
