Businesses that flout a new mandatory code of conduct for the electronic commerce industry currently being devised by Government will face fines or could even be struck off, The Royal Gazette can reveal.

While details are still being thrashed out by the Ministry of Telecommunications and E-commerce, there will be strong penalties for companies that breach the rules.

Minister of Telecommunications and E-commerce Renee Webb said the new code, which is enforceable by law, will cover anyone engaging in e-commerce.

"We are at the forefront of e-commerce legislation,'' said Ms Webb. "Bermuda was the second country in the world to implement legislation, and we are keeping ourselves ahead of the game.

"The code will outline for anyone engaging in e-commerce what they are expected to do.'' The code is an extension of the Electronic Transactions Act, which came into effect on October 4, 1999 and was initially revealed by the Government in the Throne Speech in November.

The Electronic Transactions Act was one of the first laws passed in the world that dealt specifically with the complexities of international e-commerce.

It sets out the legal principles of e-commerce and the processing of business to business and business to consumer transactions which is worth billions of dollars every year. The Act is also a living Act, which can be changed as time goes by or as need be by the Ministry.

With the passing of the Electronic Transactions Act, the E-Commerce Advisory Board was set up and one of their first tasks is to set guidelines for the code.

The board consists of both private and public sector and includes people within the industry, Internet service providers, banks, accountants, and financiers as well as members from BIBA, the Chamber of Commerce and education professionals.

They have been meeting regularly in the past months to set out the framework for the code.

"The board have been assisting in looking at telecommunication policy,'' said Ms Webb. She added: "The code will be enforceable by law. Anyone in breach of the code can be struck off, fined...all sorts of things.'' Although the Electronic Transactions Act is a live law, and can be altered without going through the house, Ms Webb will table the code when it is ready.

"I will table it and any members who wish to discuss the code can do so.'' Renee Webb