Digital Business in Belgium: Overview | Practical Law

Digital Business in Belgium: Overview | Practical Law

A Q&A guide to digital business in Belgium.

Digital Business in Belgium: Overview

Practical Law Country Q&A 1-620-2591 (Approx. 28 pages)

Digital Business in Belgium: Overview

by Benoit Van Asbroeck, Anne Federle and Camille Vanpeteghem, Bird and Bird
Law stated as at 01 Nov 2022Belgium
A Q&A guide to digital business in Belgium.
The Q&A gives a high-level overview of matters relating to regulations and regulatory bodies for doing business online, setting up an online business, electronic contracts and signatures, data retention requirements, security of online transactions and personal data, licensing of domain names, jurisdiction and governing law, advertising, tax, liability for content online, insurance, and proposals for reform.

Regulatory Overview

1. What regulations apply for doing business online (for business-to-business and business-to-consumer)?
The Belgian law governing the conduct of business online is mainly set out in the Belgian Code of Economic Law (BCEL). Some provisions are specific to online business, while others apply to all business activities. The main applicable books of the Belgian Code of Economic Law are:
  • Book XII of the BCEL relating to e-Commerce (implementing the E-commerce Directive (2000/31/EC)) regarding the provision of mandatory online information, the obligations and liability of content and hosting providers and the abusive registration of domain names.
  • Book VI of the BCEL relating to fair trade practices and consumer protection (implementing the Consumer Rights Directive (2011/83/EU) and Unfair Commercial Practices Directive (2005/29/EC)), which sets out the main rules for conducting e-commerce with consumers, contains provisions in relation to unfair and aggressive commercial practices, unfair clauses, mandatory information to provide to consumers, and advertising and marketing rules.
    The law of 4 April 2019 amending the BCEL with regard to abuses of economic dependency, unlawful terms and unfair market practices between companies adds to Book VI a list of abusive contract clauses and rules regarding abuse of fair market practices. The new rules regarding abusive contract clauses will entered into force on 1 December 2020 in respect of contracts agreed, amended or renewed after that date. The rules regarding unfair market practices have already entered into force.
  • Book VII of the BCEL relating to payment and credit services.
  • Book XI of the BCEL, which contains legislative provisions in relation to intellectual property rights.
Other laws governing the conduct of online business are the:
  • Belgian Civil Code (Civil Code) (in relation to the formation of electronic contracts, e-signatures, general tort and contractual liability), recently amended.
  • Law of 30 July 2018 on the protection of individuals with regard to the processing of personal data (Belgian Privacy Act).
  • Law of 20 October 2000 on the use of telecommunications means and electronic signatures in judicial and extra-judicial proceedings.
  • Law of 13 June 2005 on electronic communications.
2. What legislative bodies are responsible for passing legislation in this area? What regulatory and industry bodies are responsible for passing regulations and codes in this area?
The federal legislative power is exerted collectively by the King, the Chamber of Representatives and the Senate. An Act of Parliament must be determined by parliament (the House of Representatives only) or together with the Senate (the federal legislature), signed by the King and published by the current government (the federal executive power).
Some e-commerce companies are members of a professional association that requires its members to comply with a code of conduct. There are generally two types of code of conduct:
  • Co-regulation. This derives from codes covered by agreements negotiated by professional organisations with consumer organisations and public authorities, in particular within the special consumer advisory commission (Commission consultative Spéciale Consommation). These codes are negotiated and subject to independent and regular monitoring. The supervisory body is the Federal Public Service Economy (Service Public Fédéral Economie).
  • Self-regulation. This derives from the codes of conduct of a professional sector that proposes its own rules and its members. The code may contain rules, control procedures, and possibilities for consumers to make complaints where there has been a failure to comply with the code. Some professional associations require all members to comply with their code.
The Belgian Association of Companies, active in distance selling over the internet, has created a code of conduct which sets out basic principles that must be respected to give the necessary guarantees to the consumer.

Setting up a Business Online

3. What steps must a company take to set up an existing/new business online?
New businesses should establish a corporate vehicle through which the business will operate (for example, a public limited company (Naamloze vennootschap) or public limited liability company (Société anonyme). The deed of establishment must then be filed by hand or by e-deposit at the registry of the Commercial Court. If the business intends to trade through the website, it must apply for a VAT identification number.
The business will also need to hire staff with the necessary expertise, such as a website developer and an internet service provider to host the website.
The company's website must display the following information:
  • Terms of use.
  • Privacy policy.
  • Cookies policy.
  • Terms of sales/services if the business intends to trade through the website.
4. What types of parties can an online business expect to contract with?
Generally, an online business can expect to contract with as few or as many parties as the business model sees fit. The most common relevant parties are:
  • Web developers or general all-round IT companies (IT services companies).
  • Companies that provide website hosting agreements (hosting providers).
  • Companies that provide payment services such as PayPal, Maestro or Banccontact. Payment services can be a big barrier for smaller companies due to their high costs (payment service providers).
  • Online search engines, for indexing, search results, and promotion.
  • Logistics companies, capable of providing delivery required for selling goods (suppliers).
  • The content provider, to obtain the relevant licences (if the online business does not own the copyrighted content).
  • The users and customers of the website, in relation to agreements with users and customers, such as the terms and conditions agreement and privacy policy.
5. Is there any law or guidance that might affect the design of the website or app (for example, relating to access by disabled people or children)?
From the 23 September 2020, all websites and mobile applications of the public authorities have had to comply with the standard imposed by the Web Accessibility Directive ((EU) 2016/2102) This means that all public bodies' websites and mobile applications must be accessible to people with disabilities. The criteria to be met include the following:
  • Live or pre-recorded videos that have an audio track must be subtitled.
  • Information presented in audio form must also be available in text form.
  • Images must contain alternative descriptive text for blind and partially sighted people.
  • Time limits must not be set on individual users to enter data.
  • Internet users must be able to navigate on the site without using a mouse.
  • This obligation does currently not apply to private entities. However private entities operating public services in the following sectors are advised to adopt such measures:
  • Transport (buses, trains and so on).
  • Transport facilities (for examples ports and airports).
  • Utilities (such as electricity, gas, and water).
  • Postal services.
  • Also relevant is the European Accessibility D((EU) 2019/882). Businesses selling certain products and services must make them accessible to persons with disabilities. The covered services include e-commerce and websites, mobile services, electronic tickets and all sources of information for air, bus, rail and waterborne transport services.
  • The Directive does not impose detailed technical requirements but it requires websites to display, for example, information about the accessibility features of services. Users must also be able to consult a website's content and structure and to navigate through webpages, including when using assistive devices.
6. What are the procedures for developing and distributing an app?
Online businesses can use online programs to develop apps without the assistance of a third party. However, the most straightforward way of developing and distributing an app is to enter into an agreement with an app developer. If this route is used, businesses are advised to:
  • Enter into a non-disclosure-agreement prior to discuss an app idea in order to secure all the confidential information that has economic value.
  • Ensure the IP rights that are linked to the app are maintained, including a licence for using and modifying the app.
  • Include a reporting system if the app contains user-generated-content..
  • Ensure the app(s) is/are technologically compliant with at least one of the major platforms for which they are intended (for example, Android, Apple or any other platform).
  • Consider how they will secure a place in the app stores of popular platforms, if the business wants to gain any traction in the distribution of its app.

Running a Business Online

Electronic Contracts

7. Is it possible to form a contract electronically? Are there any limitations?

Requirements

Electronic contracts are generally subject to general formation rules, including those in the Civil Code. The Civil Code contains provisions concerning the capacity of the parties, valid consent of the parties, confirmation of the lawful purpose and consideration of the contract.
There are additional requirements for electronic contracts (although, B2B parties can deviate from these requirements). The offer must include the following information (Articles XII.7-9, BCEL):
  • The necessary technical steps to conclude the agreement between service provider and user.
  • The technical means offered for the customer to review and correct information before ordering (that is, the customer must be able to check the details of the order and the total price, and to correct potential errors before expressly consenting to the order).
  • The languages, in which the contract can be concluded.
  • If the contract is to be archived, the terms of this process and the means by which the contract can be accessed.
In addition, the business must acknowledge receipt of the order without undue delay and by electronic means, and the acknowledgement of receipt must contain a summary of the order. The order and the acknowledgement of receipt are deemed to have been received when the parties to whom they are addressed are able to access them.
Book VI of the BCEL relating to fair trade practices and consumer protection requires additional information in the framework of distance contracts in a business-to-consumer (B2C) context (Article VI.45, BCEL). This covers, in particular:
  • The main characteristics of the product or service.
  • The price of the goods or the services, inclusive of all taxes and additional costs including any applicable delivery fees.
  • The date or the time-period in which the seller undertakes to deliver the goods or perform the services.
  • The contact details of the seller (for example address, telephone, fax number, electronic address).
  • The modalities of payment, delivery, and execution, such as:
    • the complaint handling procedure;
    • when the right of withdrawal applies, the conditions, time limit, and procedures for exercising this right along with the model withdrawal form as in Annex 2 of Book VI of the BCEL;
    • the cost of returning the goods in case of withdrawal;
    • when the right of withdrawal is not applicable, confirmation that the consumer will not benefit from a right of withdrawal or, if applicable, the circumstances under which the consumer loses such right;
    • a reminder of the legal warranty of conformity for goods;
    • the duration of the contract or in case of a contract for indeterminate duration or automatically renewable, the conditions for terminating the contract;
    • the minimum duration of the contractual obligations of the consumer;
    • information about any digital content's functionalities, including technical protection measures, and inter-operability;
    • the availability of any after-sales service or assistance, commercial warranties and conditions of such warranties;
    • any bond or other financial securities to be paid or provided by the consumer at the company's request and any related conditions;
    • the cost of using any means of distance communication used to conclude the contract;
    • any relevant codes of conduct and how to obtain a copy of them; and
    • any recourse to an out-of-court complaint and redress mechanism, to which the trader is subject, and the methods for accessing it.
The following information must be provided to the consumers on the order pages (ideally on the first page instead of at the end of the ordering process) before the purchase is made:
  • The main characteristics of the product or service.
  • The total price of the product, inclusive of all taxes and additional costs such as any applicable delivery fees.
  • The duration of the contract or in case of a contract for of indeterminate duration or automatically renewable, the conditions for terminating the contract.
  • If applicable, the minimum duration of the contractual obligations of the consumer.
  • The means of payment accepted.
  • Any delivery restrictions that may apply.
    (Article VI.46, BCEL.)
In addition, the consumer must expressly be made aware of their obligation to pay on making an order. If placing an order requires clicking on a button or a similar function, it must be labelled in a clear and legible manner with the words "order with obligation to pay" or a similar unambiguous indication. Failing such indication, the consumer will not be bound by the order or contract.

Terms and Conditions

General terms and conditions can only be applied if they have been properly brought to the attention of the consumer, and are in principle applicable after the acceptance of the consumer. Therefore, it must be demonstrated that the consumer had effective and reasonable knowledge of the terms and conditions (in this regard, the language of the terms and conditions is relevant). In addition, such knowledge must have occurred before or by the signature of the contract.
If the supplier did not provide a reasonable opportunity for the consumer to discover the general terms and conditions, the terms will not be enforceable.

Required Format of Electronic Contracts

There is no required format for concluding an electronic contract but in a B2C context, the seller must provide the consumer with a "durable medium" (including all the information referred to above), at the time of delivery at the latest.

Right of Withdrawal

In a B2C context, the consumer has 14 days from the conclusion of the agreement or from the day on which the consumer acquires the physical possession of the goods to notify the seller of their withdrawal from the contract and a further 14 days from this date of notification to return the product.
However, there are some exceptions to this right, such as:
  • Customised or personalised goods.
  • Sealed goods not suitable for return due to health protection or hygiene reasons and which were unsealed after delivery.
  • Sealed audio, video recordings or computer software which were unsealed after delivery.
  • Digital content not provided on a physical medium (download).
    (Articles VI.47 to 53, BCEL.)

Enforceability of Click-Wrap, Browse-Wrap and Shrink-Wrap Contracts

A click-wrap contract requires the user to tick a box to mark its agreement with the contract, after having taken cognisance of the content of the contract, while a browse-wrap contract refers to the availability of the terms and conditions via a hyperlink.
For shrink-wrap contracts, terms and conditions are available inside the "package".
Click-wrap contracts are generally valid under Belgian law. Browse-wrap contracts are also accepted under Belgian law if the hyperlink is displayed before concluding the contract. However, mere display of that hyperlink at the bottom of the webpage will not suffice. The acceptance of the terms and conditions is presumed.
As consultation of terms and conditions must be possible before or by the signature of the contract, shrink-wrap agreements are not valid under Belgian law.

Limitations

All contracts can be formed electronically apart including those:
  • That create or transfer rights on real property (except rental rights).
  • For which the law requires the intervention of the courts, public authorities or professions exercising public authority.
  • For securities and guarantees provided by persons acting for purposes which do not fall within the scope of their professional or commercial activity.
  • Relating to family law or inheritance law such as wills, deeds of sales or family law agreements that must be drawn up and signed by the parties before a notary, as a matter of valid proof.
Before 20 October 2018, the above contracts could not be concluded electronically, however the amended Article XII.16 of the BCEL now allows this unless the competent courts and tribunals consider that "practical obstacles" exist.
This amendment is aimed at harmonising the concepts of electronic signature and durable medium and removing obstacles to the conclusion of contracts by electronic means.
Only in exceptional circumstances, when a judge finds that the legal formal requirements are impeded in the electronic environment, the judge can consider that the contract has not been validly concluded.
There are no specific limitations on choice of language, except that before the point where the order is placed by the recipient of the service, a service provider must give in a clear, comprehensible and unambiguous manner all information about the languages offered for the conclusion of the contract (Article XII.7, BCEL).
8. What laws govern contracting on the internet?
The general rules of the Civil Code and Book XII of the BCEL apply to both B2C and B2B contracts.
Book VI of the BCEL contains additional requirements relating to fair trade practices and consumer protection that apply to B2C contracts only.
The law of 14 April 2019 adds to Book VI of the BCEL a "black list" and a "grey list" of unfair contract terms in B2B contracts and extends the prohibition of unfair commercial practices to the B2B context (see Question 1).
The Platform to Business Regulation ((EU) 2019/1150) (P2B Regulation) has applied in Belgium since 12 July 2020. Since then, online intermediation services and online search engines that provide their services to business users must include in their general terms and conditions a description of the key parameters that determine how prominently goods and services are displayed on their platform.
For more information in relation to governing law in an international context, see Question 29.
9. Are there any data retention requirements in relation to personal data collected and processed through electronic contracting?
The service provider must confirm, before the customer places their electronic order, whether it will retain the concluded contract and whether it will be accessible to the customer (Article XII.7, §1, 4°, BCEL).
Furthermore, the service provider must be able to demonstrate to the customer that it has fulfilled its duty of information and issued an order confirmation (Article XII.11, BCEL). This requires the retention of the data relating to such obligations.
10. Are there any trusted site accreditations available to confirm that the website has complied with minimum cybersecurity standards?
The Trusted list of Belgium provides a list of qualified service providers established in Belgium, together with information related to the qualified trust services they provide. This list is published by the European Commission (EU list of trusted providers).
There are no other governmental or official trusted site accreditations for websites in Belgium.
However, there are trusted site accreditations and labels by private companies or consumer protection organisations aimed at guaranteeing the quality of products and services as well as the reliability on online businesses, such as SafeShops.be, UNIZO, Trusted Shops, Euro-Label and u-cert.org.
11. What remedies are available for breach of an electronic contract?
There is no distinction under Belgian law between remedies for businesses or consumers for breaches of electronic contracts.
The remedies for breach of an electronic contract are identical to the remedies available for breach of any other type of contract. Under Belgian civil law, the main legal remedies are cancellation, unenforceability, specific performance, and/or damages (but not punitive damages).
In addition, where a specific regulatory requirement is breached, other remedies may be applicable (for example, a breach of the obligation to provide and inform on the right of withdrawal extends the period in which the consumer can exercise such right).

E-Signatures

12. Does the law recognise e-signatures or digital signatures?
Belgian law recognises e-signatures.

Applicable Legislation and Use

The specific laws applicable to e-signatures in Belgium are the following:
  • Regulation (EU) 910/2014 on electronic identification and trust services for electronic transactions in the internal market (Electronic Identification Regulation).
  • Law of 20 October 2000 on the use of telecommunications means and electronic signatures in judicial and extrajudicial proceedings.
  • Book XII of the BCEL relating to e-Commerce.

Definition of E-Signatures/Digital Signatures

Book I of the BCEL defines an e-signature as a qualified electronic signature or qualified electronic seal referred to in the Electronic Identification Regulation ((EU) 910/2014) or any other electronic signature that satisfies the criteria set by law to guarantee the identity of the parties and their consent to the content of the document.

Format of E-Signatures/Digital Signatures

In relation to the format of an e-signature, Belgian law recognises three types of format:
  • An electronic signature (Article 3(10), Electronic Identification Regulation). This is defined as data in electronic form which is attached to or logically associated with other data in electronic form and which is used by the signatory to sign.
  • An advanced electronic signature (Article 3(11), Electronic Identification Regulation), provided all of the following apply:
    • it is unambiguously linked to the signatory;
    • it allows for the identification of the signatory;
    • it is created using electronic signature creation data that the signatory can, with a high level of confidence, use under its exclusive control; and
    • it is connected to the data to which it relates in such a way that any subsequent changes in the data are detected.
  • A qualified electronic signature (Article 3(12), Electronic Identification Regulation), provided all of the following apply:
    • it is an advanced electronic signature (see above);
    • it is created by a qualified electronic signature creation device; and
    • it is based on a qualified certificate for electronic signatures.
13. Are there any limitations on the use of e-signatures or digital signatures?
There are no limitations on the use of e-signatures under Belgian law. However, in some sectors (for example, the financial sector) additional means of identification will be required at a later stage.

Implications of Running a Business Online

Data Protection

14. Are there any laws regulating the collection or use of personal data? To whom do the data protection laws apply?
The collection or use of personal data in Belgium is regulated by the:
  • General Data Protection Regulation (Regulation (EU) 2016/679) (GDPR).
  • Law of 30 July 2018 on the protection of individuals with regard to the processing of personal data (Belgian Privacy Act).
The Belgian Privacy Act applies to:
  • Data controllers and processors established in Belgium.
  • Data controllers and processors that are not established in the EU, but that process personal data of data subjects in Belgium, when the processing relates to either:
    • the offering of goods or services to such data subjects in Belgium (regardless of whether payment is required); or
    • the monitoring of data subjects' behaviour taking place in Belgium.
  • Data controllers established in a place where Belgian law applies pursuant to principles of public international law.
For further information on data protection laws in Belgium, see Data Protection in Belgium: Overview.
15. How does the law define personal data or personal information?
The GDPR and the Belgian Privacy Act apply to the processing of personal data wholly or partly by automated means and to the processing other than by automated means of personal data which form part of a filing system or are intended to form part of a filing system.
Personal data means any information relating to an identified or identifiable natural person (data subject). An "identifiable natural person" is one who can be identified, directly or indirectly, in particular by reference to an identifier.
Special categories of personal data include:
  • Personal data revealing racial or ethnic origin, political opinions, religious or philosophical beliefs, or trade union membership.
  • Genetic data.
  • Biometric data for the purpose of uniquely identifying a natural person.
  • Data concerning health.
  • Data concerning a natural person's sex life or sexual orientation.
16. Are there any limitations on collecting, storing, or using personal data?
The processing of personal data (including collection) is lawful if it is based one of the following grounds:
  • The unambiguous, freely given, specific and informed consent of the data subject.
  • Processing necessary:
  • for the performance of a contract.
    • for compliance with a legal obligation;
    • to protect the vital interests of the data subject;
    • for the performance of a task carried out in the public interest or in the exercise of official authority;
    • for the purposes of the controller's legitimate interests.
"Processing necessary" must be interpreted restrictively and narrowly, therefore requiring a close and substantial connection between the processing and the purposes.
The collection of special categories of personal data or "sensitive personal data" is subject to more specific and reinforced grounds and will be prohibited unless:
  • The data subject has given their explicit consent.
  • The processing is necessary:
    • for carrying out the controller or data subject's obligations and rights in the field of employment and social security and social protection law;
    • to protect the vital interests of the data subject or of another natural person;
    • for the establishment, exercise or defence of legal claims;
    • for reasons of substantial public interest, on the basis of EU or EU member state law;
    • for the purposes of preventive or occupational medicine, for the assessment of the working capacity of the employee, medical diagnosis, the provision of health or social care or treatment or the management of health or social care systems and services on the basis of EU or EU member state law or pursuant to a contract with a health professional;
    • for reasons of public interest in the area of public health;
    • for archiving purposes in the public interest, scientific or historical research purposes or statistical purposes.
  • The processing is carried out in the course of its legitimate activities with appropriate safeguards by a foundation, association or any other not-for-profit body with a political, philosophical, religious or trade union aim and on condition that the processing relates solely to the members or to former members of the body or to persons who have regular contact with it in connection with its purposes and that the personal data are not disclosed outside that body without the consent of the data subjects.
  • The processing relates to data manifestly made public by the data subject.
  • Processing of personal data relating to criminal convictions and offences or related security measures must only be carried out:
  • By natural persons or by private or public legal persons as far as is necessary for the management of their own disputes.
  • By lawyers or other legal counsels to the extent that the defence of the interests of their clients so requires.
  • By others, if the processing is necessary for reasons of substantial public interest to fulfil tasks of general interest which have been established by or under a law, a decree, an ordinance or EU law.
  • To the extent necessary for scientific, historical, or statistical research or for archiving.
  • If the data subject has given express written consent to the processing of the data for one or more well-defined purposes and the processing is limited to those purposes.
  • If the processing relates to personal data clearly made public by the data subject on their own initiative for one or more specified purposes and the processing is limited to those purposes.
There are no specific limitations on the storage of personal data in the cloud. However, it must comply with the general data protection principles and requirements (see Data Protection in Belgium: Overview).
Personal data can be transferred within the European Economic Area (EEA) if a lawful basis for the processing exists. Transfers of personal data outside of the EEA to third countries and international organisations are only allowed based on:
  • An adequacy decision granted by the European Commission to a third country, a territory or one or more specified sectors within that third country or an international organisation.
  • Appropriate safeguards, such as contractual clauses and binding corporate rules.
  • Derogations from the general prohibition for specific situations, for example if:
    • the data subject has explicitly consented to the proposed transfer;
    • the transfer is necessary for the performance of a contract between the data subject and the controller; or
    • the transfer is necessary for important reasons of public interest.
  • Non-repetitive transfer relating to a limited number of data subjects, is necessary for the purposes of compelling legitimate interests pursued by the controller which are not overridden by the interests or rights and freedoms of the data subject and for which the controller has provided suitable safeguards for the protection of the personal data.
17. Can government bodies access or compel disclosure of personal data in certain circumstances?
The following public authorities have powers to access or compel disclosure of personal data relevant to the exercise of their public functions:
  • Judges can impose investigative measures, such as the disclosure of personal data, in the framework of criminal proceedings.
  • The Belgian police services can store and access data in the National Police Database under the Law of 5 August 1992 on the Police Service.
  • Under the Law of 18 September 2017 on the prevention of money laundering and the financing of terrorism and to limit the use of cash, a specific administrative authority (the Financial Intelligence Processing Unit) must be alerted and given any relevant information by specified companies or individuals (for example, banks, insurance companies, accountants, and so on) who know or suspect that a certain transaction is linked to money laundering or the financing of terrorism.

Privacy Protection

18. Are there any laws regulating the use of cookies, other tracking technologies like digital fingerprinting, or online behavioural advertising?
The use of cookies is governed by the Law of 13 June 2005 on electronic communications, which requires prior informed consent for storage of or access to information stored on a user's terminal equipment.
However, a cookie is exempt from the requirement of consent if the following applies:
  • It is used for the sole purpose of carrying out the transmission of a communication.
  • It is strictly necessary to provide an information society service explicitly requested by the user.
Belgian law applies when:
  • The use of cookies is part of the activities of an establishment of the data controller on Belgian territory.
  • The storage or reading of cookies on the workstation located on Belgian territory is carried out by a data controller who does not have a fixed establishment in the territory of the EU.
If the use of cookies concerns the processing of personal data, the applicable data protection legislation must be complied with, specifically the requirements for consent (see Question 16). A pre-GDPR recommendation of the Belgian Data Protection Authority on cookies, states that the following should be taken into consideration:
  • Consent is preferably differentiated by the type of cookie and should be able to be revoked.
  • The website owner should inform the website user (for example, through a cookie policy) of the different types of cookies it stores on the user's terminal equipment and how these can be deleted.
  • The website owner should properly inform the website user and obtain their specific consent for the cookies that the owner may not be able to control the re-use of cookies (for example, in case of transfer outside the EU or social network platforms).

Cybersecurity

19. What measures must contracting companies or internet providers take to guarantee internet transactions' security?
The data controller and processor must implement appropriate technical and organisational measures to ensure a level of security appropriate to the risk, including (among other things):
  • The pseudonymisation and encryption of personal data.
  • The ability to ensure the ongoing confidentiality, integrity, availability and resilience of processing systems and services.
  • The ability to restore the availability and access to personal data in a timely manner in the event of a physical or technical incident.
  • A process for regularly testing, assessing and evaluating the effectiveness of technical and organisational measures for ensuring the security of the processing.
The Law of 13 June 2005 on electronic communications provides for similar obligations with respect to publicly available electronic communications services. Appropriate technical and organisational measures must be taken to safeguard the security of these services. In case of a security or data breach, providers of publicly available electronic communications services (for example, telecommunications companies, internet service providers and e-mail providers) must notify the competent authorities and the users as soon as possible.
20. Is the use of encryption required or prohibited in any circumstances?
The use of encryption is free but not required (Law of 13 June 2005). However, in some instances, encryption has been recommended by the Belgian Data Protection Authority, notably with regard to health data and ''bring your own device''. In the proposed revision of the law on electronic communications (implementing the European Electronic Communications Code) there is an obligation for operators of electronic communications networks to take appropriate and proportional technical and organisational measures. This includes encryption, properly managing the risks to the security of their networks and services and minimising the impact of security incidents on users and on other networks and services.
The GDPR also refers to encryption as an example of an appropriate security measure.
21. Are electronic payments regulated?
Under Belgian law, electronic payments are considered as payment services and are consequently subject to the regulations concerning normal payment services (Book VII, BCEL). These regulations are not directed to e-commerce providers but to payment services providers, and are therefore beyond the scope of this guide.
Companies and internet providers must guarantee the security of internet transactions (see Question 19).
22. Do any specific rules or guidance apply to websites aimed at (or that might be accessed by) children?
The age of consent regarding the process of personal data with respect to offering information society services to children is 13 years (Belgian Privacy Act). If the child is below 13, such processing can only lawfully be carried out if and to the extent that consent is given by the child's legal representative.
Minors are entitled to enter into contracts under Article 5.43 of the Civil Code and can therefore make purchases of consumer goods online provided they are not "injured" by the act of acquisition (that is, provided the purchase remains acceptable in relation to the minor's financial means and interests). If the purchase is disproportionate, the minor's parents have the right to return the purchased item to the seller and claim a refund for the amount spent.
Under Belgian law, advertising aimed at minors is regulated under unfair commercial practices and unfair business practices (Book VI and Book XIV, BCEL). According to these provisions, a website aimed at children must not contain incentive advertising that directly encourages minors to buy or persuades their parents to buy goods or services.
However, some important areas of consumer law do not take into account the vulnerability of minors and does not offer any particular protection to minors. These areas include, for example, information and the right of withdrawal in the event of distance purchasing. For internet purchases, the adult or minor consumer must receive more information than for a normal purchase.
In relation to the content of websites aimed at children, Belgian law prohibits any content that presents a risk for minors (that is, pornographic content, violent content, incentives to violence and so on).
23. Are there any laws protecting companies within your jurisdiction that resell or market online digital content, services, or software licences provided by a supplier outside the jurisdiction?
There are no general laws in place protecting companies that resell or market online digital content, services or software licences provided by a supplier outside of Belgium.

Linking, Framing, Caching, Spidering, and Metatags

24. Are there any limitations on linking to a third-party website and other practices such as framing, caching, and spidering?
There is no general prohibition on linking or framing a third-party website.
The Court of Justice of the EU cases, Svensson case of 13 February 2014, C-466/12 and BestWater International case of 21 October 2014, C-348/13 apply here. Under these cases, it is permissible (under copyright law), to hyperlink to a third party's website, provided the linked material:
  • Is still publicly available.
  • Was originally communicated on the Internet with the consent of the content owner.
  • If the linked material has been removed or the link circumvents any subscription, pay, or other technical barriers imposed by the original content owner, the link may be infringing. Traders must also review the terms of use of the third-party website for restrictions.
The GS Media case of 8 September 2016, C-160/15 further specifies the rules applicable when the material was communicated on the internet without the consent of its owner. Under these rules, if the person hyperlinking is aware of the unlawful source of the material, their act is considered a communication to the public subject to the authorisation of the right holder. Such knowledge is presumed, however, when the person hyperlinking pursues a commercial gain.
The compatibility of some types of linking, such as framing, could potentially be challenged under the prohibition of unfair trade practices towards other enterprises.
25. Are there any limitations on the use of metatags or advertising keywords?
There is no general prohibition on the use of metatags or advertising keywords.
The EU Court of Justice (ECJ) stated in the Belgian Electronic Sorting Technology case of 11 July 2013, C-657/11 that the use of a domain name and that of metatags in a website's metadata falls under the concept of advertising. The court came to this conclusion since the use of metatags constitutes a promotion strategy in that it aims to encourage the internet user to visit the site of the metatag user and to take an interest in its goods or services. It is thereby irrelevant that the metatags are invisible to the internet user.
Therefore, the provisions of title 4 of Book VI of the BCEL (implementing the Unfair Commercial Practices Directive) apply to the use of metatags and advertising keywords (see Question 31)
More particularly, the provisions on comparative and misleading advertising must be taken into account when using metatags of keyword advertising. A company which refers to a competitor or its products in the metadata of its website must be careful not to cause confusion by taking unfair advantage of the reputation of a trade mark, trade name or other distinguishing marks of its competitor and not to mislead as to its identity. The same applies to the purchase of keywords, in that it should not result in disguised or misleading advertising or unfair commercial practices.
With respect to keyword advertising, the ECJ clarified in the Google and Google France case of 23 March 2010, C-236/08 to C- 238/08 and the Interflora case of 22 September 2011, C-323/09, that the proprietor of a trade mark is entitled to prevent a competitor from advertising on the basis of keywords which are identical with the trade mark, of goods or services identical with those for which that mark is registered where:
  • That use is liable to have an adverse effect on one of the functions of the trade mark.
  • The competitor takes unfair advantage of the distinctive character or repute of the trade mark (free-riding).
  • The advertising is detrimental to that distinctive character (dilution) or to that repute (tarnishment).

Domain Names

26. What limitations are there in relation to licensing of domain names?
Belgian domain (.be) names as well as Belgian regional domain names (.brussels and .vlaanderen) must be applied for through one of the registered agents of DNS Belgium, which is the Belgian domain-name authority. Domain names are awarded on a ''first come, first served'' basis.
There is no requirement that the applicant of a Belgian domain name must reside in Belgium.
For more information, the general terms and conditions for .be domain names (applicable as from 25 May 2018) or the general terms and conditions for .vlaanderen and .brussels domain names can be consulted on the DNS Belgium website.
27. Can use of a domain name confer rights in a word or phrase contained in it?
The first person who carries out a registration within a certain domain holds the ownership of such domain name. Apart from that, domain names do not confer any additional rights. However, under Benelux trade mark law it is possible to register a domain name as a trade mark, if it fulfils the necessary requirements for trade mark registration. Furthermore, the use of a domain name can be used to establish prior use of a sign or business name.
Under Benelux trade mark law and the specific Belgian rules on abusive registration of domain names in Book XII of the BCEL, it is possible to oppose the registration of a domain name that infringes on an existing trade mark, business name, geographical indication, original work, surname, or a name of a geographic entity.
28. What restrictions apply to the selection of a business name, and what is the procedure for obtaining one?
The right to a business name accrues to the business that makes the first visible, public, and constant use of that business name. A formal registration is therefore not required to acquire rights to a particular business name. However, to prove the first use it may be useful to have the business name registered with the Belgian "Crossroads Bank for Enterprises" (Kruispuntbank van Ondernemingen/Banque-Carrefour des Entreprises).
A business name allows the holder to prohibit third parties from using an identical or similar name which could cause confusion with the trade name. However, this practice only applies within the limits of the trade name's influence (that is, within the region and sphere of activities where this trade name is known and used).
The scope of protection of a trade name is therefore entirely determined by the way in which this name is used. The more well-known a trade name is, the larger is its protection. Conversely, the right to use a trade name expires once it is no longer used.
When selecting and using a business name, the business must take into account existing third-party trade marks (see Question 27).

Jurisdiction and Governing Law

29. What rules do the courts apply to determine the jurisdiction and governing law for internet transactions (or disputes)?

Jurisdiction

Business to business (B2B) agreements. Within a European context, the applicable jurisdiction for contractual obligations (including internet transactions) is the jurisdiction in which the obligation is performed (Article 7, Regulation (EU) No 1215/2012 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (Brussels Recast Regulation)). In the case of the sales of the goods, the jurisdiction will be where the goods were delivered or should have been delivered. In the case of the provision of services, the jurisdiction will be where the services were provided or should have been provided. However, the parties can agree on another jurisdiction to govern their internet transactions.
In an international context, in the absence of a specific international convention or specific agreement between the parties, Belgian private international law rules will apply.
Business to customer (B2C) agreements. Regardless of any choice of jurisdiction made by the parties, a consumer can always bring proceedings against the other party to a contract either in the courts of the member state in which that party is domiciled or the courts where the consumer is domiciled (Article 18, Brussels Recast Regulation). However, proceedings can only be brought against a consumer in the courts of the member state in which the consumer is domiciled.

Governing Law

B2B agreements. The existence and validity of a contract is determined according to the governing law stated in the contract itself (Article 10, Regulation (EC) No 593/2008 on the law applicable to contractual obligations (Rome I)).
The parties are free to choose the law which will govern their international contract. In the event that the parties do not choose which law will govern the contract, the applicable law is determined in accordance with the rules set out in Rome I (in particular, the procedure set out under Article 4).
B2C agreements. The governing law in a B2C contract will be the law of the country in which the consumer has their habitual residence, provided that the seller pursues their activities in that country or, by any means, directs their activity to that country (Article 6, Rome I).
The parties are free to specify a different governing law within the contract, but in the event that the law cannot be derogated from by agreement, the consumer will have the benefit of the provisions of their national legislation.
30. Are there any alternative dispute resolution/online dispute resolution (ADR/ODR) options available to online traders and their customers?

ADR/ODR Options

CEPANI/CEPINA is the organisation that specifically deals with ADR/ODR options in Belgium. The main problem with a successful ADR/ODR procedure is its high price. For example, a dispute with regard to a domain name can easily cost more than EUR1,600 before CEPANI/CEPINA.
The Belgian Act on the Out-of-Court Resolution of Consumer Disputes (Law of 4 April 2014 on the insertion of Book XVI "Extrajudicial settlement of consumer disputes" in the Code of Economic Law), implementing the ADR Directive (2013/11/EU), focuses on the internal complaints procedures of companies. The most important development, however, is the creation of a Consumer Mediation Service (Consumentenombudsdienst/Service de médiation pour le consommateur) and the definition of a number of quality requirements for the different ADR entities in Belgium (Book XVI, BCEL).
Consumers in Belgium can choose between various forms of ADR:
  • Arbitration (Articles 1676 to 1723, Belgian Judicial Code (Judicial Code)).
  • Mediation (Articles 1724 to 1737, Judicial Code).
  • Judicial (court-ordered) mediation (Articles 1734 to 1737, Judicial Code) or non-judicial (out-of-court) mediation (Articles 1730 to 1733, Judicial Code).
  • Conciliation (Articles 731 to 734, Judicial Code).
  • Sectoral ADR bodies.
Various professional associations have collaborated with consumer organisations to set up bodies for ADR purposes. The following arbitration, mediation and conciliation bodies have been created:
  • Real Estate Conciliation, Arbitration and Mediation Board.
  • Furniture Disputes Commission.
  • Travel Disputes Commission.
  • Arbitration Commission for Consumers and Textile Carers.
  • Construction Reconciliation Commission.
  • AUTOMOTO Conciliation Commission (B2C Automotive sector).
  • Ombudsmen (in various sectors including insurance, energy, notaries, postal sector, retail, financial services, telecom mediation service, rail passengers).
Under the ODR Regulation (EU 524/2013), the European Commission established a web-based platform specifically designed to assist consumers who have problems with their online purchases. This European ODR platform leads to a more streamlined process for online traders and customers to resolve issues without having to go to court. The online dispute resolution can take place in all European languages. All EU online traders are required to provide a link from their website to the ODR platform. This link must be visible and easily accessible on the website. In Belgium, the contact point that provides support with the resolution of disputes relating to complaints submitted through the ODR platform is the European Consumer Centre (ECC).
The Belgian platform, Belmed, deals with disputes arising between European consumers and companies registered with the Crossroads-Bank for Enterprises (CBE) or with B2B disputes. If the seller is not registered with the Belgian CBE, Belmed cannot be relied on. Belmed can deal with all commercial disputes, irrespective of whether they arise from e-commerce.

Remedies

The remedies available for ADR/ODR options are:
  • Arbitration. Arbitral tribunals have the power to order any interim or conservatory measures that it deems necessary, however they cannot issue conservatory attachment orders (Article 1691, §2, Judicial Code).
    The final remedies that are available from arbitral tribunals depend on the law applicable to the dispute. The Judicial Code contains no statutory provisions regulating the final remedies awarded by an arbitral tribunal. The remedies available under arbitration vary from the award of damages, injunctions, declarations, payment of costs and interests. In any event, remedies cannot be contrary to public policy, and the tribunal cannot exceed its powers (Article 1721, Judicial Code) (see Arbitration Procedures and Practice in Belgium: Overview).
  • Mediation. If the parties reach a settlement and if the mediator is recognised by the Federal Mediation Commission, each of the parties can request the competent court to ratify the settlement agreement. The court can only refuse ratification if the agreement is contrary to the public interest or, in the sphere of family law mediations, if the agreement affects the interests of minors.
    On ratification, the settlement agreement has the force and effect of a final judgment.
    Non-ratified settlement agreements reached in the framework of non-judicial mediation are enforced as contracts. Any disputes arising out of or in connection with the agreement can be brought before the competent court or arbitral tribunal.
    In judicial mediation, the court remains competent to intervene with any measures it deems necessary to assist the mediation. At the request of the mediator or of one of the parties, the court can terminate the mediation before the end of the specified mediation term. If the parties do not reach an agreement during the initial mediation term, they can ask the court either to grant an additional mediation term or resume the proceedings. These measures are not subject to appeal.
  • Other forms of ADR/ODR (Conciliation, Ombudsmen, ODR).
    Other forms of ADR/ODR listed above are based on the voluntary cooperation of the parties. The remedies available for the parties vary on a case-by-case basis, depending on what the parties see as appropriate for resolution. In principle, there are no restrictions on the type of remedies that can be imposed through these forms of ADR/ODR provided any remedy sought is not contrary to public policy.

Advertising/Marketing

31. What rules apply to advertising goods/services online or through social media and mobile apps?
Under Belgian law, there is no code governing advertising standards. Commercial advertising in Belgium is governed by a regulatory framework made up of binding legal provisions (mainly from the BCEL) and self-regulated, non-binding professional rules.
There are also additional rules in particular sectors or specific media channels, such as online or TV/audio-visual content, specific products (such as toys, food, tobacco, alcohol, medication, consumer credit, and lotteries) and rules aimed at protecting vulnerable consumers such as minors.
Advertising is also regulated by self-regulatory bodies that publish various codes, rules, and recommendations on professional ethics. For example, the Jury for Ethical Practices in Advertising (JEP) has published recommendations on influence marketing based on the principle that all commercial communications must be clearly identifiable as such.
The main general legal provisions are:
  • Title 4 of Book VI of the BCEL (implementing Directive 2005/29/EC on unfair commercial practices). The relevant provisions are:
    • Articles VI.92 to 103, which prohibit unfair commercial practices (practices contrary to the requirements of professional diligence that materially distort the economic behaviour of the average consumer). ''Commercial practices'' (such as advertising) may be considered unfair and therefore misleading or aggressive;
    • Articles VI.104 to 109, which prohibit unfair practices towards other enterprises.
  • Article VI.17 of the BCEL, which lists the conditions under which comparative advertising is legal.
  • Book XII of the BCEL, regarding online commercial communications specifically states that:
    • commercial communication must be clearly identifiable;
    • natural or legal persons on whose behalf the commercial communication is made must be clearly identifiable; and
    • promotional offers (such as discounts and gifts), competitions, or games must be clearly identifiable as such, and the relevant terms and conditions must be easily accessible and be presented clearly.
  • Book XII, Article XII.13 of the BCEL governs spamming and provides an opt-in regime.
  • The legal provisions on data protection and the use of cookies must also be taken into account whenever personal data is processed through direct marketing or online behavioural advertising (see Question 16 and Question 18).
32. Are any types of services or products specifically regulated when advertised or sold online (for example, financial services or medications)?
Several types of products or services are prohibited from being advertised or sold online, or are subject to additional restrictions. For example:
  • The advertising of tobacco products is strictly forbidden (Act on the protection of the health of the users concerning certain food and other products of 24 January 1977).
  • Online gambling services require specific additional remote operating licences from the Gaming Commission (Act on gaming and betting of 7 May 1999).
  • The online sale of medicinal products is subject to strict rules and requirements. It can only be performed by pharmacies that operate premises open to the public (not by virtual operators), following notification of their existence to the Federal Agency for Medicines and Health Products (FAMHP) and to the College of pharmacists (Royal Decree concerning instructions of pharmacists of 21 January 2009). In addition, since 1 July 2015, pharmacies selling medicinal products online to the general public in Belgium must show the European logo of internet pharmacies (Commission Implementing Regulation (EU) No 669/2014).
  • The provision of online financial services is regulated by Article VI.54 et seq. of the BCEL.
To sell products or services that are covered by regulatory rules and authorisations (for example, medicines, financial services, and games of chance), accreditation from the relevant Belgian governmental agency (or a professional chamber) must be obtained. In addition, the advertisement of these products or services, and many other products (for example, financial services, alcohol, and foods), are subject to additional specific requirements set out under the BCEL, and in more specific relevant legislative provisions.
Enforcement of these rules lies with the Inspection Services of the competent Federal Public Services and Agencies, such as the Federal Public Service Economy for general economic matters or the Federal Agency for Medicines and Health Products, for health products matters.
33. Are there any rules or limitations relating to text messages or spam e-mails?
The use of electronic mail for commercial purposes is prohibited without the prior, free, specific and informed consent of the recipient (Book XII, BCEL). "Electronic mail" is interpreted broadly to include not only emails but also text messages.
When sending commercial electronic mail, the service provider must:
  • Provide clear and comprehensible information on the right to object to receive advertisements in the future.
  • Indicate a suitable means to efficiently exercise this right electronically and make such means available.
Therefore in the event of a dispute, the service provider must prove that advertising by means of electronic mail was requested by the recipient.
However, prior consent may not be necessary provided that all of the following conditions are met:
  • The contact details were obtained directly in the context of the sale of a product or service.
  • The contact details are used solely for marketing of that service provider's own similar products or services.
  • The recipient was given the opportunity to refuse the marketing, free of charge and in an easy way, at the moment of collection of the contact details.
A company is also allowed to send electronic mail to legal entities if the contact details used for that purpose are impersonal. This exception applies even if the legal entity is not an existing customer.
34. Does your jurisdiction impose any language requirements on websites that target your jurisdiction or whose target market includes your jurisdiction?
The law on language use in Belgium also applies to e-commerce. The most important aspect is that the parties concerned understand the terms and conditions. Under Belgian law, general terms and conditions drafted in a language that the customer does not understand are not enforceable against them (Ghent Court of Appeal, 9 April 2008, RAAG, 2008, livr 15, p 959). Therefore, it is customary for the terms and conditions to be available in all languages in which the website is available.

Tax

35. Are sales concluded online subject to tax?
Sales concluded online are subject to VAT (see Question 36). Belgian online businesses may be required to pay VAT abroad.
Sales concluded online are also subject to income tax. Income taxes may not only be due in the country where the online business is established, but also where it uses a permanent establishment outside the country of establishment.
Rules are in constant development and vary from country to country (for example, access to a website could potentially trigger a permanent establishment to which the online business must allocate part of its profits). Belgian online businesses may therefore be required to also pay income tax abroad.
36. Where and when must online companies register for value added tax (VAT) (or equivalent) and other taxes? Which country's VAT (or equivalent) rate applies?

VAT

In Belgium, online-business must register for VAT purposes with their competent VAT office (that is in the jurisdiction of their establishment) before engaging in any activities that trigger VAT.
Foreign online businesses that would be liable to Belgian VAT should, in principle, register with VAT Central Office for Foreign VAT taxpayers (Bureau Central de TVA pour Assujettis Etrangers/Centraal Btw- Kantoor Buitenlandse Belastingplichtigen). The new "One Stop Shop" rules (applicable from July 2021) however in most cases allow foreign online businesses to render taxable services in Belgium without registering in Belgium (see below).
The Belgian VAT rate is 21% (although reduced rates apply to specific services and goods).
Online sales can be subject to foreign VAT rules and rates, depending on where a transaction is deemed to be located for VAT purposes. The localisation rules depend on (among others) the:
  • Type of transaction (services or goods).
  • Way services are delivered (digitally or physically).
  • Type of client (B2C or B2B).
As of 1 July 2021, the new "One Stop Shop" (OSS) EU rules were introduced. This means that online businesses not established in Belgium but in another member state no longer have to register and complete VAT filings in Belgium if they want to sell goods or provide services in Belgium. It is now sufficient for online businesses to register in their country of establishment, and declare and pay VAT due in Belgium via a web-portal in the member state in which they are identified. The country of identification then forwards the tax money to Belgium. The use of OSS is optional and online sellers liable for VAT in Belgium can still chose to register for VAT in Belgium and pay it directly in Belgium.
Due to the introduction of this simplified scheme, the registration threshold simplification is withdrawn. This means that foreign online businesses will have to charge the Belgian VAT rate on every sale they make in Belgium. However, if the total turnover for all distance sales together of the business is less than EUR10,000 excluding VAT, this business can use the micro-enterprise scheme and charge the VAT of its country of identification for all distance sales.
OSS is not available in all instances for non-EU online businesses. The OSS scheme can only be used by non-EU established VAT payers that choose to register under the OSS scheme in Belgium. This concerns, for example, telecommunication services, broadcasting services and transport services.

Income Tax

Online-business generally do not have to formally register with the direct income tax authorities. However, they should closely monitor deadlines for filing tax returns, as there is no automatic request or reminder to file a tax return for the first tax year (because there is no formal registration requirement).
Belgian online-business or permanent establishments of foreign online-business are, in principle, subject to a 25% corporate income tax rate. If qualified as an SME, lower rates may apply.

Protecting an Online Business and Users

Liability for Content Online

37. What restrictions are there on what content can be published on a website (for example, laws regarding copyright infringement, defamatory content, or harmful content)?

Tort

The (un)lawfulness of content is assessed under the general principles of tort liability. These are set out under Belgian law in Articles 1382 and 1383 of the Civil Code. Under these general provisions, anyone can introduce a tort claim where the existence of a fault, of damage and of a causal link between the fault and damage can be demonstrated.
Under Belgian tort law, a person must compensate for the damage caused by their fault (Article 1382, Civil Code) or by their negligence (Article 1383, Civil Code). This fault or negligence can be due to:
  • The infringement of any statutory rule.
  • Not complying with a duty of care. This duty of care is examined on a case-by-case basis.
Accordingly, when online content is examined under these provisions, its lawfulness will largely depend on the context and previous standards set out in case-law.

Unfair Practices

Additionally, certain content can be examined in the framework of unfair market practices, such as where a person posts misleading or false statements on an online platform about a competitor (Article VI. 104, BCEL).

Criminal Offences

In certain circumstances, online content can also violate the Belgian criminal law and therefore amount to a criminal offence:
  • If the content violates:
    • the Belgian criminal code, for example, child pornography or content that encourages terrorism; or
    • other specific legislation that imposes criminal sanctions for violation (Law of 30 July 1981 punishing certain acts inspired by racism and xenophobia; Law of 10 May 2007 on combatting certain forms of discrimination; Law of 10 May 2007 on combatting discrimination between women and men).
  • If the content is considered defamatory: Articles 443 to 448 of the Criminal Code provide for criminal sanctions in case of insults, slander, and defamation.
    The minimum punishment for slander, defamation, and insult can be doubled if the defamatory content is motivated by hate, contempt, or hostility against persons due to their supposed race, skin colour, heritage, national or ethnic origin, birth, age, fortune, religious or philosophical conviction, present or future state of health, disability, language, political conviction, union conviction, physical or genetic characteristic, or social origin (Article 453bis, Criminal Code).
  • In some instances, infringing online content can be considered a press offence. The Belgian Court of Cassation stated that publications made on the internet can be equated to the publication of content through the printed press. Therefore, Article 150 of the Belgian Constitution applies, which states that press offences in Belgium can only be heard by the Court of Assize (Hof van Assisen; Cour d'Assises), a jury-based tribunal that is reserved for serious felonies. In practice, press proceedings before the Court of Assize are extremely rare, and almost all defamation cases brought against the media are handled in civil courts.
38. Who is liable for website content that breaches these restrictions (including, for example, illegal material or user-generated material that infringes copyright or other laws, such as the law of defamation)?
In principle, the internet user who writes or places illegal content online is responsible.
The (civil and criminal) liability of a service provider (such as websites hosting user-generated content) for unlawful or infringing content of others stored by this service provider will often be exonerated by Article 14 of the E-Commerce Directive, which has been transposed to Belgian Law in Article XII. 19 of the BCEL.
The service provider is not responsible or liable for the information of others that it stores, as long as the service provider:
  • Has no knowledge of the (unlawful) activity or of the (unlawful) information, and in a claim regarding the payment of damages, could not have reasonably been aware of the activity or information.
  • Promptly deletes the information or makes gaining access to it impossible as soon as it becomes (or should reasonably have become) aware of the information.
The service provider is therefore not liable for storing unlawful content of others, as long as it has no knowledge of the (unlawful nature of) the content, or deletes (or makes inaccessible) the content immediately after becoming aware of it (for example, after it received a take-down notice regarding the content).
39. What legal information must a website operator provide?
The legal information that a website operator must provide are:
  • Name or corporate name.
  • Geographic address at which the service provider is established.
  • Details of the service provider (including the electronic mail address), so it can be contacted rapidly and communicated with in a direct and effective manner.
  • Company number, if applicable.
  • If the activity is subject to an authorisation scheme, the contact details of the competent supervisory authority.
  • Where the service provider undertakes an activity that is subject to VAT, the identification number referred to in Article 50 of the VAT Code.
  • Any codes of conduct to which it is subject and information on how to access such codes electronically.
  • Information about how the business activity is regulated and by whom.
  • Any references to prices must be indicated clearly and unambiguously and, in particular, whether they are inclusive of tax and delivery costs.
    (Article XII.6, BCEL.)
See Question 6.
40. Who is liable for the content a website displays (including mistakes)?
The website operator is liable for any content it published on its website; including any mistakes (see Question 38).
In the event of incorrect pricing, the online trader is compelled to sell at the advertised price. However, when the displayed price is a manifest error, the online trader can refuse to sell consumers the product.
Unfair commercial practices, such as misleading claims, (see Question 1 and Question 31) are also regulated online. Compliance with Book VI of the BCEL is monitored by the General Management of the Economic Inspection Department (Direction Générale de l'Inspection économique; Algemene Directie Economische Inspectie).
Regarding content uploaded by third parties, a specific statutory liability regime (safe harbour) applies to hosting providers who merely store content (for example, technical hosting providers or neutral large content platforms). The hosting provider will not be liable for the stored content if one of the following applies (Article XII.19, BCELBCEL (implementing the E-commerce Directive)):
  • The hosting provider does not have actual knowledge of illegal activity or information and, as regards claims for damages, is unaware of facts or circumstances from which the illegal activity or information is apparent.
  • The hosting provider, on obtaining actual knowledge or awareness of illegal activity, acts expeditiously to remove or to disable access to the information.

Disclaimers

It is good practice for a trader to include disclaimers as regards the accuracy and the availability of content on its website so as to limit potential liability if the trader has displayed content by mistake. However, this may not always be sufficient. For instance, traders will generally be bound by pricing errors and in a B2C context, liability clauses are generally considered as unfair or abusive.
In a B2B context, the terms and conditions or terms of use of a website is sufficient to limit any liability in case of mistake of the retailer on the site.
41. Can an internet service provider (ISP) shut down (or be compelled to shut down) a website, remove content, or disable linking due to the website's content, without permission?
To benefit from the defences under the E-Commerce Directive (see Question 40), ISPs can reserve rights to take down infringing websites, content or links without permission. These defences protect ISPs where they act as mere conduits, hosts of information, or merely cache information. However, to benefit from the hosting and caching defences, the ISP must "act expeditiously" to remove or to disable access to infringing content once it has actual knowledge of it, for example, as a result of a notice and takedown system.
Frequently, ISPs will not disable content or access to such content unless they are obliged to do so by a court order. Content owners are able to obtain injunctions against ISPs whose services are being used by a third party to infringe intellectual property rights (Article XVII.14§4, BCEL). Belgian courts have granted website-blocking injunctions on this basis (for example, Pirate Bay websites).

Liability for Products/Services Supplied Online

42. Are there any specific liability rules applying to products or services supplied online?
Liability for products or services supplied online is the same as for offline sales.
However, the Digital Content and Digital Services Directive ((EU) 2019/770) seeks to introduce explicit liability of suppliers towards the consumer. Under the provisions of the Directive, the liability of the supplier would cover three situations:
  • Failure to supply the digital content or service.
  • Any non-conformity existing at the time of the supply of the digital content or service.
  • In situations where the digital content and/or service is provided on a continuous basis, the liability of the supplier is extended for the duration of the supply.
The Directive further provides that a reversal of the burden of proof (that is, on the supplier) applies throughout the liability periods referred to above.
This Directive has been implemented into Belgian law by the Law of 30 March 2022 amending the provisions of the former Civil Code relating to consumer sales, inserting a new Title VIbis in Book III of the old Civil Code and amending the BCEL.

Insurance

43. What types of insurance does an online business usually need?
Online businesses should obtain the same insurance policies as other businesses (in particular, insurance for civil and professional liability). An insurance broker should ideally be consulted to assess the most appropriate insurance depending on the activities at stake.

Reform

44. Are there any proposals to reform digital business law in your jurisdiction?
As part of the EU Digital Single Market strategy, several instruments have been adopted by the European Commission which will impact Belgian legislation, once implemented.
Additionally, several other reforms are still in the pipeline.
The Digital Markets Act (Regulation 2022/1925) was adopted in September 2022. It aims at preventing gatekeepers (platforms that have a significant impact on the internal market, serve as an important gateway for business users to reach their end users, and which enjoy, or will foreseeably enjoy, an entrenched and durable position) from imposing unfair conditions on businesses and end users.

Contributor Profiles

Benoit Van Asbroeck, Partner

Bird & Bird

T +32 (0)2 282 6000
F +32 (0)2 282 6011
E [email protected]
W www.twobirds.com
Professional Qualifications. Brussels, Barrister, 1984
Areas of Practice. Commercial; intellectual property; dispute resolution; privacy and data protection; technology and communications; media; public procurement.
Languages. French, English, Dutch, German
Professional Associations/Memberships. Expert member of the Belgian Council of Intellectual Property; Substitute commercial judge and mediator/arbitrator at the World Intellectual Property Office.

Anne Federle, Partner

Bird & Bird

T +32 (0)2 282 6000
F +32 (0)2 282 6011
E [email protected]
W www.twobirds.com
Professional Qualifications. Düsseldorf, Barrister, 1992
Areas of Practice. Competition and EU; automotive; technology and communications; media; healthcare; food and beverage; energy and utilities.
Languages. German, English, French

Camille Vanpeteghem, Associate

Bird & Bird

T +32 (0)2 282 6000
F +32 (0)2 282 6011
E [email protected]
W www.twobirds.com
Professional Qualifications. Brussels, Barrister, 2020
Areas of Practice. Intellectual property; commercial; technology and communications; media.
Languages. Dutch, French, English