Vote on a Knife Edge

12.00.00am BST (GMT +0100) Tue 5th Sep 2000

Last night, the European Parliament's Committee on Legal Affairs and the Internal Market voted on the Wallis Report on the 'Brussels Regulations.' The voting revealed the same split as before, with half the Members supporting business jurisdiction and the other half supporting consumer jurisdiction as a court of last resort in business to consumer disputes arising from E-Commerce transactions. The matter will now go to plenary meeting of the Parliament in two weeks' in time in Brussels where another close vote can be expected.

Commenting Diana Wallis MEP said:

"The vote was so close that it could negate Parliament's voice in this process, where we are only a consultee.

"If the Parliament follows the path of adopting jurisdiction clauses in business and consumer contracts, as the Committee did last night by one vote, then I fear there will be a legal challenge by consumer associations in the light of the European Court of Justice decision in the Oceano case; this indicated that such clauses are likely to regarded as unfair and therefore void and ineffective."

Diana Wallis, a practicing solicitor in this area, continued:

"I certainly know that if I had a client with this sort of problem, I would challenge this sort of clause."

Despite the close vote, Diana Wallis thanked Members of the Committee for their support in making a tremendous move forward in the Parliament in respect of the use of methods of alternative or extra-judicial dispute resolution as a means of dealing with low-value cross-border consumer claims.