ECONOMIC Development Minister Philip Ozouf may be sued by an online retailer as a result of a policy change made earlier this year.

It emerged during an Economic Affairs Scrutiny Panel session yesterday that legal action may result from the Senator’s decision in February that companies selling CDs and DVDs VAT-free over the internet into the UK must have a licence to conduct business.

Previously, no Regulation of Undertakings licence was required by businesses using local third-party service providers to distribute orders taken online from the Island.

The decision has led to 14 of 70 online retailers effectively being given notice to quit trading from Jersey, with one high-profile business having relocated to Guernsey.

Meanwhile, it emerged that the business of wholly locally owned online retail companies Play.com and Flying Flowers generated about £101,000 per employee to the Island’s economy in 2005 – almost as much as companies in the finance industry.

But the business of local third-party service providers was worth £24,000 per employee.