Internet service providers (ISPs) in the UK are to receive protection from legal action over content held on or passing through their sites.

The measures providing protection are part of the Electronic Commerce (EC Directive) Regulations 2002, which come into force tomorrow. The regulations also provide greater legal certainty for online retailers but so-called spammers will have to clean up their act.

The regulations follow the EC e-commerce directive, which was adopted in June 2000.

E-commerce minister Stephen Timms said: "The regulations will strengthen the development of e-commerce. They will help to break down barriers across Europe and boost consumer confidence in online shopping. After extensive consultation, we have arrived at the right framework for UK business and consumers.

"The regulations are another important step towards making the UK the best place to do e-commerce."

The new rules have been welcomed by the ISP industry after Laurence Godfrey successfully sued Demon Internet for its failure to remove defamatory remarks from a newsgroup it hosted.

The regulations provide ISPs and network operators with a defence to criminal liability and limits to civil liability. The next step could introduce notice and take down schemes, which force companies to quickly remove or disable access to offending material upon proper notification.

The regulations also place further obligations on online retailers but make important concessions. Sites hosted in the UK will have to publish a geographical address, an email address and a VAT number where applicable. It is now easier for e-tailers being sued to ensure the case will be heard in an English court, rather than in the destination country.

Spammers have also been targeted and all commercial communications, such as marketing and promotional emails and SMS messages, will need to be clearly identifiable and identify the person or company on whose behalf it is been sent.

The DTI has issued a guide on the regulations for businesses.

www.dti.gov.uk