But the head of a national Internet users association applauded the protections it offers for online consumers.
The Law on Services for the Information Society is one of the first to comply with a European Union directive on regulating the Internet in the 15 member countries.
The law was adopted Thursday in the Congress of Deputies, the lower house of Spain's parliament. It is expected to become law over the summer after its publication in the Official State Gazette.
The law covers a broad range of Internet commerce issues. It prohibits distribution of mass unsolicited e-mail and stipulates that Internet transactions be considered judicially with the same validity as signed paper agreements.
It will also require ISPs to retain records on users and collaborate with law enforcement authorities by shutting down Web sites involved in illegal activities. Providers must keep a one-year record of IP addresses that can help police identify users who sent threatening e-mails or published sites promoting racial hatred.
Failure to do comply with the law may result in fines of up to $595,000.
Javier Maestre, a lawyer who has led opposition to the bill in Spain, said the law violates constitutional rights to privacy, freedom of expression and the presumption of innocence.
"You can't have the presumption of innocence in the real world and be treated by the police as a suspected criminal in the virtual world," he said.
Maestre and other opponents have started an online petition drive to challenge the law before the Constitutional Court.
But Javier Sola, director of the Association of Internet Users, said the law will be a boost for online shopping because businesses on the Web must identify themselves with their tax identification numbers.
"Consumer[s] want to deal with companies, not Web sites," he said. "If there is a problem, you want to be able to file a claim against the company."
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