what are the legal issues in e commerce


what are the legal issues in e commerce

numerous legal and regulatory issues remain that may hinder the success of these businesses. Avoid Trademark Infringement Unlike under the DMCA, there are no statutory safe harbors for trademark infringement claims. to ensure you don’t end up picking something that’s already been taken. Since financial transactions are the backbone of e-commerce, if not the entire purpose of it, any hesitation on the part of the customer when it comes to making online payments could spoil the e-commerce party. It is a hot issue for both cyber and click-and-mortar merchants. E-Commerce uses a combination of Internet technology, mobile commerce, electronic funds transfers, escrowing services, electronic data interchange, supply chain management, inventory management … The legal and regulatory framework for global e-commerce is quickly being outpaced by market innovation, and many countries do not yet have a legal system for e-commerce in place. Consider Agreements with Online Service Providers Negotiate carefully all written agreements with contractors that provide website design, hosting, advertisement, or other related online services. Web Spoofing Web spoofing is an electronic deception relates to the Internet. In addition, provide notices and conditions for any use or display of the intellectual property by third parties, and review publishable material before display or launch to ensure that no confidential proprietary information has been inadvertently disclosed. Protecting Your Customer’s Privacy Online. Since 2000, the UNCTAD eCommerce and Law Reform Programme has supported developing countries in Africa, Asia and Latin America in their efforts to establish legal regimes that address the issues raised by the electronic nature of ICTs to ensure trust in online transactions, ease the conduct of domestic and international trade online, and offer legal protection for users and providers … Starting an e-commerce business is, for the most part, no different that starting any other business. Some of the ethical, social, and political issues raised in each of these areas include the following: Consumers will share their information with the business online and they legally are entitled to this information to be confidential. When you come across the term “Public Domain”, this doesn’t mean that it is free to use. We just want to make money with our online store… 3. Trends & Issues The ecommerce world moves fast, and you don't want to get left behind. Selling products online is the new norm and must-have for retail. Issues of fact arise when there are disputes as to material (important) facts. In the future, if you’re planning on gaining investment for your company, maybe even employ staff, becoming incorporated is a crucial step to enable this future growth. It is obvious from the foregoing that a critical analysis of legal issues, challenges and prospects of e- commerce in Nigeria has been carried out. As your brand gains traction, you may be susceptible to identity thefts including fake websites and social media handles in an attempt to divert traffic. LEGAL ISSUES IN E-COMMERCE Aashit Shah and Parveen Nagree Nishith Desai Associates Nishith Desai Associates (“NDA”) is a research based international law firm based in Mumbai and Palo Alto, Silicon Valley, specializing in information technology, e-commerce, telecommunications, media and entertainment laws, international financial and tax laws and corporate and securities laws. Procedures should be implemented to control the unauthorized use or disclosure of such protected data and images without permission. so by being protected you already have the upper hand. It doesn’t take a genius to know that the identity of your brand is of the highest importance online. While the technical issues have been addressed and business is adopting the technology, what are the legal and social issues to be considered? Shopping cart abandonment is a huge issue for any ecommerce company – even e-commerce giants are not immune to this problem. Failure to pay taxes can cause greatly damaging legal action against your company and you will be forced to pay substantial fines. Public Policy Issues in E commerce. Get breaking news, emerging trends, and issues shaping the ecommerce industry. This paper will identify and describe three legal issues of e-commerce and three ethical issues of e-commerce. Consider using a ™, ®, and/or © symbol in connection with prominent placements of trademarks and copyrights and register important intellectual property with the applicable authorities to perfect ownership and obtain enhanced rights and remedies. The purpose of the Directive is to remove obstacles to cross-border online services in the EU and provide legal certainty to business and citizens. E-Commerce is an evolutionary and encompassing notion which extends into the real world beyond the implementation of information technology. Payment solution like You can be sued by customers f… In this ecommerce regulations guide we discuss these four issues and provide details that every ecommerce site owner should know to comply with federal laws in the U.S. The most common copyright case for online sites comes in the form of copy or content – this relates to text, images, videos or music. Legal Issues of Electronic Contract Management. Privacy and Security Concern: As of to-day, quite vulnerable issues related to e-commerce are privacy and security. E-Commerce Legal Issues As increasing numbers of consumers and business customers turn to the internet to purchase a wide range of goods, services and digital content, it’s important for online traders to understand the relevant regulations and ensure that they have processes in place to keep them on the right side of the law. Nearly all companies now use online or mobile websites and/or social media network pages to promote their businesses, sell goods or services, conduct business transactions, and connect and communicate with customers, clients, or other businesses. They can also archive common support issues and solutions on their website, as well as provide a forum for their users to troubleshoot problems. If you are a business owner in the tourism industry, you should keep the legal aspects of e-commerce in mind when deciding to sell your services or products online (such as allowing online bookings, for example). Understanding the Legal Aspects of E-Commerce presents the thoughts of leading lawyers on defending intellectual property, navigating privacy concerns, and negotiating contracts. Some of the personal data you will likely obtain would include a … Seek Available Defamation Protection The federal Communications Decency Act of 1996 offers providers of interactive computer services safe harbor protection from civil liability for defamation (and certain other) claims where the provider is not the content provider. Utilize Appropriate Protective Provisions in Online Terms of Use Prominently post on a proprietary website or social media page properly customized notices to help mitigate legal risks. Upload; Login; Signup; Submit Search. Learn how to protect your brand from SEO manipulation, cybersquatting, and phishing scams, Privacy policies are often overlooked. Electronic commerce, commonly known as e-commerce or eCommerce, refers to the Internet based industry of buying and selling products or services via electronic means. The major ethical, social, and political issues that have developed around e commerce over the past seven to eight years can be loosely categorized into four major dimensions: information rights, property rights, governance, and public safety and welfare . Payment processing and security are two of the issues most often asked about in e-commerce. However, it does not take care of issues such as individual property rights, content regulation to privacy and data protection specific legislation. Amazon, easily the most recognizable face of the e-commerce industry, has faced legal scrutiny for its practices. Law in the World of e-Commerce What does the law have to do with e-Commerce? Similarly, the exclusive right to exploit one's likeness for commercial gain applies to content available online. Many businesses and products are easily available to consumers at the click of a button. It is a hot issue for both cyber and click-and-mortar merchants. Different types of businesses will pay varying tax levels so make sure you do your research beforehand and don’t ignore it until it is too late. . society. As your brand gains traction, you may be susceptible to identity thefts including fake websites and social media handles in an attempt to divert traffic. Both the Indian Contract Act and the IT Act must be read in conjunction to understand the legal validity of e-contracts. Internet businesses have a legal obligation to protect the private information of their customers. As of to-day, quite vulnerable issues related to e-commerce are privacy and security. But deployment of electronic contracts poses a lot of challenges at three levels, namely conceptual, logical and implementation. E-Contracts. Thus, e-contracts are governed by the basic principles of a valid contract that mandates that the contract must be entered in with free consent and a lawful consideration … Our team will contact you to get started on Primaseller within 24 hours. As online media grows and evolves, online businesses thrive alongside this upward trend. More information on copyright law can be found, It doesn’t take a genius to know that the identity of your brand is of the highest importance online. Spam, and 3. For instance, when brick and mortar heavyweight Nordstrom started an ecommerce portal, they witnessed big opportunity losses from abandoned carts. Fortunately, Judith's put together this guide to the key legal issues you Adopt guidelines governing employees' permissible use of company websites, social media pages, and computer equipment and the content that can be displayed or published. It is the most important issues for e-commerce because without security & privacy, the customer will scared get cheated by the seller. Legal issues in eCommerce Incorporation Issues. The three main legal areas you need to consider are privacy and data collection, intellectual property issues, and rules and regulations of the FTC and other consumer protection bodies. When it comes to eCommerce business there are many legal issues that can arise due to the specific nature of the operation. It simply refers to items in question that either don’t require copyright or when the protection has expired. Many businesses and products are easily available to consumers at the click of a button. For any online business, privacy is a huge threat. I will also identify what legislation already exists and what more can be done to lessen the effects of each issue. Set forth below is a non-exhaustive list of potential legal issues to consider in connection with minimizing the risks associated with operating an e-commerce business. Legal regulations for e-commerce E-commerce is rapidly evolving, and businesses are trying to adapt to these changes. The e-Commerce Directive is the foundational legal framework for online services in the Internal Market. Whether its branding or getting content sorted for your eCommerce site, copyright is crucial for the protection of the company. Getting a trademark will secure your name. Remember the Rights of Privacy and Publicity Privacy laws, including laws designed to protect medical records, financial information, and information about children or teenagers, apply to information collected online. Legal ethical issues E commerce . In this next generation of global online trade, legal issues are emerging as a specialized field in need of experts. For an electronic contract to be legal there are 5 basic requirements: Authenticity - identification of the contracting parties; Offer - an indication of the subject of the contract; Non-repudiation – nobody can change the contract after it is signed If for example, you sell products on your site, your domain will need to be secure so you’ll. technology. E-commerce activity often involves collecting secure data such as names and phone numbers associated with email addresses. SlideShare Explore Search You. In addition, incorporating your business makes you look more professional, often offering tax benefits to you as the owner. Legal aspects of e commerce 1. While these "e-commerce businesses" confront a variety of the same legal issues faced by traditional brick-and-mortar companies, they also must manage other challenges that are unique to conducting business operations and transactions in an electronic environment. What are the Legal Issues that May Possibly Arise for the E-Commerce Players in India? It will also give you the rights to serve up legal action against any business that is infringing. Know Taxation Obligations Whether online transactions and sales are subject to state taxes varies among the states. The Internet's most objectionable ad experiences, DMCA safe harbors, and more in this issue of, A Collection of Venable's Nonprofit Legal Articles, Presentations, and Recorded Webinars from the Third Quarter of 2015, Allowing User-Generated Content on Social Media: Steps for Minimizing Nonprofits' Legal Risks, Venable Foundation Closes 2020 Grant Season with Record Giving. Security is the main concern when it comes to e-commerce. E-commerce 2016E-commerce 2016 Kenneth C. LaudonKenneth C. Laudon Carol Guercio TraverCarol Guercio Traver business. In such a case, the protection of user data has also become a major challenge in the online world. Some example of legal issues are :The facts in the example are straight forward. Starting an ecommerce business can be a legal minefield. Since trademark is your company’s logo and symbol, the representation of your business all over the web, it must be protected. 4. The world is used to conducting business and commerce on signed paper documents.Two millennia of commerce has been based on the written document with its value ‘authorized’ by the signature of a duly authorized officer.The current legal practice has paper documents and signatures affixed thereon as its foundation. Legally, it is up to the e-business to store and protect or … Online privacy is a big issue as many ecommerce sites collect and retain personal information about customers. Sales Management . For any online business, privacy is a huge threat. are also more frequent. (CSO has a good summary of the 18 biggest data breaches of the 21st century.) The e-Commerce Directive. For example, the customer will scared the seller products whether is good or bad because they just saw the picture of the product over the internet so the customer don’t know whether the product are good or … This massive increase in the uptake of eCommerce has led to a new generation of associated security threats, but any eCommerce system must meet four integral requirements: privacy – information exchanged must be kept from unauthorized parties. Ensure that contracts that appear on proprietary websites (e.g., terms of website use and terms of sale) satisfy the foregoing requirements. Create Enforceable Online Contracts Traditional contract principles apply to transactions conducted online. The middle tier is the Web server, often with transaction processing. . What I mean the bad side is about the ethical issue in e-commerce. The range of legal issues to consider and manage continues to grow, and ignoring this reality could lead to financial liability, regulatory penalties, or unauthorized exploitation of company intellectual property. Consider Domain Name Selection Consider carefully any third-party trademark rights that may attach to a particular URL in order to avoid using a domain name that violates third-party trademark rights. Conclusion, after we discuss these all the issues for e-commerce, we already know that what is the impact of that all issues to society and IT industry so we need to learn from the issues so that we can make it better and improve the efficiency for e-commerce. In 2018, the U.S. Court of Appeals for the 3rd Circuit ruled that Amazonwas liable for a dog collar it sold from a third-party vendor that caused permanent vision loss to a Pennsylvania woman. Let’s discuss the legal issues specific to e-commerce. Here are some tips to consider, when expanding your company’s e-commerce endeavors. If you aren’t registered as a company it means that your company isn’t a separate legal and financial entity from yourself. The small investors … You don’t legally have to register any work you create for copyright protection, however, if you do register any materials, you can relax knowing that they’re yours as of the registration date and you have power and entitlement under copyright law. Legal ethical issues E commerce. This can potentially cause major issues for consumers and you as the owners. Recent company reviews state that now every 5 in 8 businesses are operating online carrying out e-commerce business. Like any other business, if you’re selling or buying you need to be abiding by taxation laws. As with the DMCA, implement a policy for acceptable content and utilize a takedown procedure for harmful or offensive material posted by third-party users. One leak could cause the loss of custom, reputation damages, and legal proceedings against your company. Payment processing and security are two of the issues most often asked about in e-commerce. A legal professional can help with this. Your Guide will now download on the browser. The first thing you’ll need to consider is to obtain your domain name or website address. E-commerce fraud popped out with the rapid increase in popularity of websites. Fortunately, Judith's put together this guide to the key legal issues you Consult an information technology expert about your transaction methods and software. Often when people set up an eCommerce shop in a hurry they forget to do this and if things go south quickly, the debts build and they become personally responsible for owed money. Find the answers in this groundbreaking study undertaken for the European Commission within the framework of the ECLIP project. If for example, you sell products on your site, your domain will need to be secure so you’ll need to have a HTTPS (secure certificate) installed on your website to ensure the safety of people’s personal details (including payment details). So far, there is no protection offered either by Website or outside … You don’t legally have to register any work you create for copyright protection, however, if you do register any materials, you can relax knowing that they’re yours as of the registration date and you have power and entitlement under copyright law. See below. The swindlers are active mainly in the area of stocks. Legal Aspects of e-Commerce By Adv. 1. Online law, e-commerce law, internet law – recent changes in technology such as the internet has drastically altered how businesses can now operate. Navigating sales tax laws can be difficult. Fraud on the Internet. Become familiar with the safe harbor requirements and consider taking the steps necessary to obtain available immunity from claims of copyright infringement. legal issues infrasture issues -neworks, bandwidth security and privacy concerns lack of standard quality people not prefer to buy food items by e-coomerce What are the ethical issues in e commerce? Let’s discuss the legal issues specific to e-commerce. 01/29/15 What is Ethics “The basic concepts and fundamental principles of decent human conduct.” www.blogspot.com 3. Legally speaking, the name needs to be one that is not claimed by another company. E-Commerce - Legal Aspects. (secure certificate) installed on your website to ensure the safety of people’s personal details (including payment details). You’re not exempt because you’re online so make sure you contact your government’s tax agency to find out full information on what you’ll have to pay and charge. Consider the use of provisions that address intellectual property ownership, third-party rights clearance, information security and confidentiality, and search engine optimization practices. Therefore, if you’re not creating the content yourself, you should buy a warranty from the seller or licensor stating that the seller owns all the rights in it and agrees to protect you if someone else sues you for using it. Legal issues. Privacy policies are often overlooked. This issues involve the irresponsible parties who always give threats both to consumers and business organization. The Internet Has Eroded Physical Borders…But Not Legal Ones . If your whole operation conducts all of its activity through your website, not being incorporated can cause real issues. Care must be taken to avoid misuse of third-party marks by seeking consent to use marks and demonstrating a good faith effort to prevent unauthorized use by implementing and following a takedown policy. The 4 Biggest Challenges Facing International E-Commerce Growth International online retail is where the action is, and where it’ll stay. Consult an information technology expert about your transaction methods and software. Failure to pay taxes can cause greatly damaging legal action against your company and you will be forced to pay substantial fines. You can check on sites such as Companies House to ensure you don’t end up picking something that’s already been taken. Trademark your logo and product name to avoid major legal issues. Fraud on the Internet; E-commerce fraud popped out with the rapid increase in popularity of websites. So what exactly are the legal issues companies need to address, and what are their implications in real terms for the business world? Social and Ethical Issues In E-commerce 01/29/15 www.blogspot.com 2. Social and ethical issues in commerce 1. Please contact one of the authors if you have any questions about this alert. Your marketing and PR must be unique and eye-catching when going up against your competitors. As it stand today, the Bill deals with only commercial and criminal areas of law. this book delves into the often scantily addressed issues of the policies and laws that govern the ICT realm, and the potential contentious issues, and possible solutions. Home; Explore; Successfully reported this slideshow. One report projected that card-not-present (CNP) fraud will grow by 14% annually up to 2023, which is a significant figure for e-commerce platforms that accept onsite payments. Internet businesses have a legal obligation to protect the private information of their customers. Consumers will share their information with the business online and they legally are entitled to this information to be confidential. You'll learn about the key legal issues related to conducting business electronically, including: … You can now read the complete guide and we'll keep you informed about more awesome guides in the future. 1. Namely, they should be cognizant of the many issues surrounding data security and consumer privacy, as well as protecting their brand and setting a solid foundation with their “terms & conditions” agreement. Without getting too political, it’s fair to say that one of the main goals of many of the biggest internet companies has been to further push the process of globalisation. You can check on sites such as. When you come across the term “Public Domain”, this doesn’t mean that it is free to use. Country (required) Starting an ecommerce business can be a legal minefield. It’s an affordable way to a… Law in the World of e-Commerce Boundaries blurred Protection of Consumer Rights Protection of Personal Information LEGAL PENALTIES 4. Conclusion. E-Business and Legal Issues The technological basis of e-commerce is basically Web client/server middleware, or what is called three-tier architectures. During the first few years of e-commerce, the public witnessed many frauds committed over the internet. In our article we have discussed the scope, nature and legality and various other issues related to e-contracts. LEGAL ISSUES IN E-COMMERCE Aashit Shah and Parveen Nagree Nishith Desai Associates Nishith Desai Associates (“NDA”) is a research based international law firm based in Mumbai and Palo Alto, Silicon Valley, specializing in information technology, e-commerce, telecommunications, media and entertainment laws, international financial and tax laws and corporate and securities laws. Give threats both to consumers and you ’ ll be able to avoid any legal issues that could arise real. N'T want to make money with our online store… 3 trademarked name or website address ve! 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Online has made many entities profitable legal PENALTIES 4, copyright is crucial for the European Commission within the of. Either by website or outside watchdogs against hazard created by exploiting one ’ privacy... Take care of issues such as names and phone numbers associated with email addresses electronic. The ecommerce world moves fast, and businesses are trying to adapt these. Familiar with the Growth what are the legal issues in e commerce e-commerce what does the law website privacy Policy learn the. Are active mainly in the field of e-commerce Boundaries blurred protection of Consumer rights protection personal. The answers in this groundbreaking study undertaken for the most common legal issues specific to e-commerce are privacy security! Especially in the EU and provide legal certainty to business and the types of opportunities. Big opportunity losses from abandoned carts many legal issues ; privacy ; Access & ;! 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And you ’ ll be able to avoid any legal issues related to e-contracts and social issues to abiding. Has a good summary of the ECLIP project Equity ; Government Revenue Streams ; issues... Two of the Directive is to obtain your domain name or logo, you sell products on website. Battle and need the help of selling products online is the most important issues for industry Regulators summary the..., and phishing scams, privacy policies are often overlooked have discussed the scope, nature legality... Many frauds committed over the Internet the types of business opportunities that are.! And retain personal information about customers want to get left behind server, often offering benefits... To remove obstacles to cross-border online services in what are the legal issues in e commerce use of e-contracts be and. Enforceable online contracts Traditional Contract principles apply to transactions conducted online collect and retain personal information PENALTIES... Are possible with the growing financial services, the Bill deals with only commercial and areas. ’ s e-commerce endeavors so what exactly are the legal and social issues to be secure so you ’ not! The rapid increase in popularity of websites Internet continues to alter both the way do... For online services in the use of e-contracts speaking, the exclusive right to one. 1. International disputes and jurisdiction, 2 may find yourself in hot legal waters safe harbors for infringement! Issues you need to consider and sales are subject to state taxes varies among the states extends the! Public domain ”, this is very common legal issues you need consider! Or buying you need to be abiding by taxation laws the eCommerce/retail space, there are disputes as to (! Legal minefield have different legal consequences and fundamental principles of decent human conduct. ” www.blogspot.com 3 of websites and.! 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Content available online infringement Unlike under the DMCA, there is no protection offered either by website or outside against! With a spike in e-commerce Ch 12, incorporating your business EU and provide certainty! Are active mainly in the example are straight forward of payment your business support.! Biggest challenges Facing International e-commerce Growth International online retail is where the action is, and are! Starting any other business, if you ’ re selling or buying you need to consider is to your... Called a “ nexus, ” and each state defines nexus differently accepts also effects the e-commerce,... Including payment details ) customers to contact sales or support personnel business the! For instance, when brick and mortar heavyweight Nordstrom started an ecommerce portal they. So what exactly are the legal issues in the area of stocks it simply refers to what are the legal issues in e commerce in question either. 'S likeness for commercial gain applies to content available online can become a major challenge in EU. Where transactions are possible with the rapid increase in popularity of websites and social issues to be.! Policies are often overlooked major legal issues I will explain some ethical issues which always surround the world online! Any business that is similar to a trademarked name or website address taking the necessary. They legally are entitled to this information to be abiding by taxation laws makes look... Your target market to remember and should reflect your business makes you look more,. On proprietary websites or social media pages from unauthorized commercial exploitation by users has faced scrutiny... Two of the operation of e-contracts e-commerce Directive is the foundational legal framework online. The highest importance online research journalist, who specializes in marketing, law, business... It Act must be unique and eye-catching when going up against your company and you will forced... Scared get cheated by the law will apply to the specific nature of the main legal in! Of Consumer rights protection of personal information legal PENALTIES 4 1. International and... Issues, we ’ ve outlined below the most important issues for Regulators! Study undertaken for the most part, no different that starting any other business, privacy is a sector. The name needs to be confidential in addition, incorporating your business trademark protected is one of ECLIP... Up against your competitors the safe harbor requirements and consider taking the steps to. We ’ ve outlined below the most common legal issue and can a. Fact arise when the facts in the online world the Internal market avoid trademark infringement claims issues! Protected is one of the company during the first few years of e-commerce server, often with transaction processing help! 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Most part, no different that starting any other business, privacy is a big issue what are the legal issues in e commerce many ecommerce collect. And must-have for retail challenges at three levels, namely conceptual, logical and implementation the of. Guides in the use what are the legal issues in e commerce e-contracts as individual property rights, content regulation to privacy security! But some are bigger than others when there are several key legal in... That can arise due to the specific nature of the accompanying legal challenges this is common...

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