Understanding Spain’s LSSI-CE E-commerce Law
Who Is Subject to the LSSI-CE Law?
The LSSI-CE (Law on Information Society Services and Electronic Commerce) applies to individuals or entities conducting business over the Internet or other electronic means, provided that:
- The management and business operations are centralized in Spain.
- They have a branch, office, or other permanent establishment in Spanish territory from which the provision of information society services is directed.
Are Free Services Within the Scope of the Law?
All services offered for a fee or compensation are subject to the LSSI-CE.
Does the LSSI-CE Law Apply to Public Authorities?
Generally, the LSSI-CE does not apply to public authorities, as they typically do not qualify as service providers of the information society as defined in the annex.
Application of Spanish Law to Foreign Online Stores
Question: Does Spanish law apply if a consumer resident in Spain purchases a product or contracts a service from a foreign online store?
Answer: Spanish law applies to consumer contracts concluded with service providers established in Spain. The place of establishment in Spain of a service provider must be indicated on their website and can be determined by consulting the Commercial Register or another register in which the provider is registered.
Spanish law also applies to purchases made from service providers established in another EU state, provided that Spanish legislation is more beneficial to the consumer than the law of the country where the service provider resides.
If the purchase or service contract is with a service provider established in a country outside the European Economic Area, Spanish law only applies if:
- The virtual store targets the Spanish market.
- There has been contact with the consumer through email.
Websites with Informational Content
Question: Imagine that your company has a website with information about your activities, services, and products, but these cannot be contracted through the site. Are we affected by the obligations for the provision of service?
Answer: The Act applies to all activities with economic significance conducted by electronic means. In this case, the company is obliged to provide, through its website, the general information set out in Article 10, which mainly relates to:
- Name
- Address
- Activity
The company must also ensure that advertising from other companies, if any, appearing on the web page can be clearly distinguished from the page’s own content and that the advertiser is identified.
If the company is registered in a public register where registration is required for the acquisition of legal personality or publicity purposes, it must advise the same domain name or Internet address it normally uses for identification on the Internet.
When a Site Presents an Economic Activity
A site is understood to have an economic activity when it receives direct income (e.g., from e-commerce activities conducted through the site) or indirect income (e.g., from advertising, sponsorship) arising from the website, regardless of whether the income covers the cost of maintaining the page, matches it, or exceeds that amount.
Personal Websites with Advertising
Question: Imagine you have a personal website, but to finance expenditures, you have hosted some banners on it. How does the new law affect you?
Answer: The Act does not apply to a personal web page if the holder does not engage in any economic activity through it.
If the website hosts advertising in the form of banners, pop-ups, etc., the holder will be subject to the law if they receive compensation for them. If the ads do not generate any income for the holder (e.g., they have been imposed in return for the provision of a free hosting service), the holder is not obliged to comply with the obligations under the Act. However, other legislation may still apply, such as the Criminal Code or intellectual property laws, as the page is publicly accessible.