Rules of advertisement in an electronic age

Abstract

Purpose

The purpose of this paper is to examine the possible application of the principle of paper advertisement in the context of communication via the web.

Design/methodology/approach

The paper analyses case law decisions pertaining to advertisements.

Findings

Web and paper advertisement are both communications anticipating contracts made to the public, nevertheless the issue of web advertisement deserves discussion because of the distinct features of web communication. Interactive feature of many web advertisements, the irrelevance of the limited stock argument in web advertisement trading digital service, the utilisation of stock control and customer selection method which protects the vendor against the risks of limited stock and the risk of making contract with everyone, and finally the global feature of web communication are some of the characteristics of web communication justifying a revisit to this topic, as these features may add a layer of complexity to the issue. Commentators have taken different stances as to the position of web advertisement, with some viewing any type of web advertisement as an offer, whilst others confine the binding status only to interactive web advertisement and to advertisements providing digital services. The paper seeks to ascertain the position of web advertisement under UK law, including the Electronic Commerce (EC Directive) Regulations 2002.

Research limitations/implications

The finding of the research is relevant for policy and law makers when considering whether to enact or amend electronic commerce‐related legislation.

Practical implications

The paper reveals how the status of advertisement applies in business situations in the context of virtual environment.

Originality/value

The analysis shows that the non‐binding status should, without indications of a contrary intention, apply to a web advertisement despite its features being distinct from those of a paper advertisement.

Citation

Kadir, R. (2013), "Rules of advertisement in an electronic age", International Journal of Law and Management, Vol. 55 No. 1, pp. 42-54. https://doi.org/10.1108/17542431311303813