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On 8 June 2000, the EU adopted the landmark ‘electronic commerce’ directive, a legal framework for the development of information society services. This article examines the rationale and evolution of EU policy for e‐commerce and the key features of the directive. These include establishing the responsibilities of service and intermediary service providers, procedures for concluding on‐line contracts and redress and enforcement mechanisms. It also explores the extent to which the directive clarifies the national law applicable to cross‐frontier transactions and the relationship between the directive and private international law. The directive makes an important contribution to encouraging trust in the new technologies by establishing an EU‐wide model for e‐commerce, but it is by no means clear that it goes far enough. The continuing divergence of consumer protection policies and uncertainties about jurisdiction, securing redress, the liabilities of service providers and the status of contracts based upon web‐site advertisements may continue to discourage the development of e‐commerce in the Community.
