This article discusses common legal needs related to. In such transactions, the products and services are sold through an electronic medium, without using any paper documents. Law in the world of ecommerce what does the law have to do with ecommerce. For this reason all standards which apply outside the internet can also be utilized here, in legal terms. Ecommerce or electronic commerce is a term for any type of business or commercial transaction that involves the transfer of information across the internet. Both the statutory laws as well as the challenges in implementing them are discussed. Economic activity involved interaction occurs electronically the interaction crosses organizational boundaries. During the first few years of ecommerce, the public witnessed many frauds committed over the internet. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Laws governing business incorporation, business name registration, taxation, consumer protection, advertising, importing or exporting, product safety, product standards. However, privacy advocates have argued that the numerical identifier may be used to associate online profiles with a users personally identifiable information.
Pretail also referred to as preretail, or precommerce is a subcategory of ecommerce and online retail for introducing new products, services, and brands to market by pre launching online, sometimes as reservations in limited quantity before release, realization, or commercial availability. Separate sessions were dedicated to the precontractual phase, the actual negotiation and conclusion of the contract, its performance and the postcontractual phase. Ecommerce business alternative to checks and money transfer. To a large degree, however, they are separate pursuits. Social and legal issues in informatics ecommerce cui unige. However, taxes and trademark matters can have different legal consequences. Other portions of this article were published in conjunction with a seminar entitled legal issues of the online retailer in virginia, also through lorman education services. Electronic commerce ecommerce is so new that legal, ethical, and other public policy issues that are necessary for ecommerces existence are still evolving.
This paper highlights the status, potential and constraints to ecommerce development in bangladesh. Ecommerce data protection data protection is an area of the law all website owners should be mindful of. Uncitral model law on electronic commerce original. We just want to make money with our online store 3. In its recent communication on electronic commerce, the european commission stressed that in order to allow for electronic commerce operators to reap the full benefits of the single market, it is essential to avoid regulatory inconsistencies and to ensure a coherent legal and. The world is used to conducting business and commerce on signed paper documents. Electronic commerce, commonly known as ecommerce or ecommerce, refers to the internet based industry of buying and selling products or services via electronic means. In general, all existing laws that apply to traditional commerce apply. Online profiling is the collection of information about internet surfing behaviour across many different websites for the purpose of formulating a profile of users habits and interests. Ecommerce fraud popped out with the rapid increase in popularity of websites. Overview ip in a website contracting via the internet selling goods and services consumer terms what do they need to contain. The expected superior the expected superior economic structure is mainly influenced b y the above two factors. The internet is the most important achievement of the last century.
Expanding market which has become an international did these modern means of communication to be included in trade, by increasing their speed of termination lawful business. Starting an ecommerce business is, for the most part, no different that starting any other business. Please give me a sound basis for the answer to each question. Ecommerce law the term ecommerce extends to all areas of electronic business transactions. Thus, the internet has now given birth to yet another group of consumers. Presentation on ecommerce electronic business e commerce. A special consumer protection act is not available in germany.
Liesl briel from cyberlaw highlights legal aspects relating to ecommerce in south africa. Since business involves not only a legal mechanism but taxation as well, it. Pdf it is obvious from the foregoing that a critical analysis of legal issues, challenges and prospects of e commerce in nigeria has been carried. Fortunately, judiths put together this guide to the key legal issues you should consider its a mustread for any ecommerce entrepreneur. Being aware of and obeying the rules that apply to you as an online business owner is an important aspect of running your shop. Electronic commerce ecommerce is the buying, selling as well as advertisement of goods and services on the internet.
Ellen carson is the author and illustrator of a successful series of childrens books that chronicle the adventures of. Two millennia of commerce has been based on the written document with its value authorized by the signature of a duly authorized officer. The chip was designed to improve security for ecommerce transactions and allow information systems managers to track individual computers across internal networks. Any form of economic activity conducted via electronic connections does not have to involve the internet and www three main components to ecommerce. Ecommerce full text electronic version archive of european. The main objective of uncitral model law of ecommerce is to offer national legislators with a set of internationally acceptable rules as to how the legal obstacles in the communication of legal significant information through paperless messages, may be removed and how a more secure legal environment may be created for ecommerce. Security concerns, spamming, web sites that do not carry an advertising label, cybersquatters, online marketing to children, conflicts of interest, manufacturers competing with intermediaries online, and dinosaurs are discussed. The current dearth of neutrality and basic fairness in ecommerce taxation legislation will become more painfully perceptible at the heart of the debate is the principle that states and other local governments have the right to tax goods sold within their. Starting an ecommerce business can be a legal minefield. An ecommerce service provider often called the intermediary is a thirdparty institution that uses ecommerce systems to facilitate transactions between buyers and sellers in its online marketplace by collecting, processing, and disseminating information pavlou and gefen 2004. But being functional online doesnt mean you can escape legal matters. Hence, the paper succeeded in identifying some of the issues and challenges facing the smooth operation of ecommerce in nigeria which include. In other cases, calls have been made to establish a specific ecommerce regulatory authority. He has taught internet and ecommerce law as an adjunct faculty member of the university of toronto faculty of law and lectured in the law school and ebusiness ll.
This applies in germany especially to the laws set out in the german civil code bgb and the code of commercial law hgb. Pfohl previously served as counsel to the united states senate judiciary committee, subcommittee on technology and government information. Within this 5cs framework, the activity domains progressively underlie one another. Many virtual retailers represent a single company while others, such as top online shopping, represent a consortium of companies. Ecommerce uses a combination of internet technology, mobile commerce, electronic funds transfers, escrowing services, electronic data interchange. Legal issues in ecommerce nishith desai associates. The current legal practice has paper documents and signatures affixed thereon as its foundation.
There is no doubt that banks actively attending plastic card sales organizations and purchases services will take advantage of the ecommerce technology in. Thus, the establishment of commercial relations by computer or other. With the advanced and increased use of online media, online business is becoming a fast emerging trend. Ecommerce entails the use of the internet in the marketing, identification, payment and delivery of goods and services. Yet, such issues are extremely important to the success of ecommerce as they encompass one of the major pillars that support ecommerce applications. A revolution in the way we do business understand how ecommerce has changed todays business practices discuss the positive impact of ecommerce on global society differentiate between the various ecommerce business models. Every five in eight companies are operating online, conducting ecommerce business. The emergence of new communication methods that allow transfer of information in real time and with great precision resulted in their use and trade. There are various legal issues associated with ecommerce businesses as well. Arabic, chinese, english, french, russian, spanish part one. Purchase ecommerce law and practice in europe 1st edition. The global governance of online consumer protection and e. Among the central issues we discuss are defining electronic commerce, identifying the extent of a firms internet usage, explaining how electronic commerce can address the three strategic challenges facing all firms, and understanding the parameters of disintermediation. Taxation issues in a world of electronic commerce by dale pinto the australian commissioner of taxation, mr michael carmody, recently stated that.
The kit is primarily intended for private sector operators, including smes, lawyers, legal counsel, professionals working in the areas of trade information. In general, all existing laws that apply to traditional commerce apply to business conducted via the internet. Any word, name, symbol, device, or any combination, used, or intended to be used, in commerce with the owners permission by someone other than its owner, to certify regional or other geographic origin, material, mode of manufacture, quality, accuracy, or other characteristics of someones goods or services, or that the work or labor on the goods or services was performed by members of a union. Ecommerce activities refer to the activity of buying and selling by a company through the ecommerce platform the current regulatory status with respect to foreign investments in the ecommerce space is as follows. They may sell their products with different buinesses, that is called business to business b2b or they may want to sell it to consumers, that type of ecommerce is called business to consumer b2c. Presentation on ecommerce free download as powerpoint presentation. Internet, extranets, email, databases, and mobile phones.
Ecommerce law and its legal aspects international journal of law. Ecommerce is the buying and selling the goods and service through digital communication. Legal aspects of electronic commerce munich personal. Virtual stores operate 24 hours a day, 7 days a week. It influences the development of ebusiness and, in particular, ecommerce. Such a market will be of a serious commercial interest to cis countries approximately in 35 years.
The law of electronic commerce by alan davidson, 9780521678650, available at book depository with free delivery worldwide. If you intend to collect personal information about your website visitors, you will need to be registered under the data protection act, and to handle your data in compliance with the law at all times. Consumer protection since the ecommerce businesses rely mostly on consumers, the transactions are mainly based on these regulations. Globalization and ecommerce are expected to chang e economic structure of nations. Sphere of application this law applies to any kind of information in the form of a data message used in the context of commercial activities. Ecommerce is a way for a company or business to start an online shopping website. Limitations of e commerce can be technical like lack of system security, reliability, standards, and some communication protocols and non technical limitations like the cost involve in developing in house e commerce and the security of data exercise. Uncitral model law on electronic commerce guide to. The purpose of this report is to identify possible implications of ecommerce in. In four halfday sessions, the lifecycle of an online business transaction was examined from a legal perspective. Protecting your brand, your assets, and maintaining a positive customer relations are all affected by your ability to understand and obey the law. Ecommerce is the practice of buying and selling goods and services through online consumer services on the internet. Issues related to distant contracts turkish law requires the ecommerce businesses to stipulate a distant sales.
Pdf legal framework for ecommerce transactions and. Ecommerce provides a new venue for connecting with consumers and conducting transactions. Legal aspects of electronic commerce munich personal repec. There are four common ways to deliver products based on interactions that take place on the web. As shown in table 1, the aspects of ecommerce fall into five activity domains. Ethical issues in electronic commerce springerlink. While marketers have long profiled large consumer groups on the basis of demographics, online profiling allows companies to collect information from individuals across a wide range of traits. Ecommerce legal considerations before you launch your store. Tax administrators face greater difficulties in enforcing tax laws and maintaining their communitys legitimate revenue base. Lets discuss the legal issues specific to ecommerce. It also include intercompany function such as marketing, finance, manufacturing, negotiations and selling, that involves commercial transactions and use email, edit, eft, file transfer, fax, video conferencing or interacting with remote computers. Ecommerce and the law anna soilleux and katherine teasdale may 2014.
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