This is UK Legislation on E-Commerce pertaining to web-hosting:
6.7 Regulation 19 provides that where an information society service is provided which consists of the storage of information provided by a recipient of the service (e.g. the provision of server space for a website or newsgroup), the service provider (if he otherwise would) is not liable for damages or for any other pecuniary remedy or for any criminal sanction as a result of that storage provided that:
(a) the service provider—
(i) does not have actual knowledge of unlawful activity or information and, where a claim for damages is made, is not aware of facts or circumstances from which it would have been apparent to the service provider that the activity or information was unlawful; or
(ii) upon obtaining such knowledge or awareness, acts expeditiously to remove or to disable access to the information; and
(b) the recipient of the service was not acting under the authority or the control of the service provider.
6.8 Again, the Regulations do not specify how “actual knowledge” or “awareness” is obtained by a service provider. It is expected that the onus will be on the party alleging that liability has arisen to demonstrate that a service provider had actual knowledge or awareness but did not act upon it appropriately.