Lack of Verification Measures. E-commerce site development, its advertising, electronic transaction, money transactions and such involve many legal issues, which need to be taken into account step by step. E-Commerce Legal Issues. If the computer does not work when you take it home, and the store refuses to settle up, then you can probably take the dispute to your local small claims court. The doubling of computer power every 18 months has made it possible for more organizations to depend on information systems for their core production processes. As far as brokers and some of the company employees are concerned, E-Commerce puts them in danger zone and results in elimination from their jobs. Let’s discuss about the ethical and legal issues related to e-business. Therefore businesses have to give the customer first their guarantee, and second peace of mind, that the information passed over is of no risk to any invading eyes. The services provided by intermediaries are. (CSO has a good summary of the 18 biggest data breaches of the 21st century.) The services required to support or complement e-commerce are provided by the web as new opportunities for reintermediation. By: Roslyn Frenz. The ethics in e-commerce is very important as the unethical or oppressive behaviour of a business entity may ruin the balance of the market. Should governments tax cyber trade? Sayer, Peter and Deveaux, Sarah, "Jurisdiction in Cyberspace" IDG News Service Friday, July 28, 2000 see also http://www.pcworld.com, 3. For example, the Electronic Communication and Transaction (ECT) Act facilitates the conclusion of most transactions and communications electronically by placing such transactions on an equal footing with traditional transactions or communications. Electronic commerce makes it possible to do almost any kind of business in a very simple way. Thank you very much for your article.Indeed,it really helped me understand underlying issues in e commerce,particularly in relation to ethical and legal aspects.Good work ! Others are traditional issues applied to the Internet, such as copyright, contracts, consumer protection, privacy, taxation, regulated industries and jurisdiction. Many e-business activities also involve transactions, so customer banking or credit card … DOUBLING OF COMPUTER POWER. Top 10 E-Retailers, 2001 26 List of Boxes Box 1. More and more industries are moving their operations via online mode as it is the choice of the consumer.Its prevalence continues to grow and prosper without any signs of slowing down. Electronic commerce (or e-commerce) has evolved over the years to become a major channel through which businesses can exchange goods and services, coordinate production and market to customers. Between the two all-or-nothing extremes lies a broad spectrum of possibilities [2]. Intermediation is one of the most important and interesting e-commerce issue related to loss of jobs. So, what are the issues particularly related to e-commerce? There are various legal issues associated with eCommerce businesses as well. The judge determined that it was technically impossible for Somm to close the illegal newsgroups in question [2]. At the same time, copyright industries are also adapting their business methods and uses of technology to exploit digital opportunities, while guarding against new risks. What is Electronic Newspaper? In general, many ethical and global issues of Information Technology apply to e-business. Privacy policies and procedures should be clearly explained to customers. The first type of service (matching and providing information) can be fully automated, and this service is likely to be in e-marketplaces and portals that provide free services. Identify any legal, ethical, or regulatory and social issues that might negatively impact people, organizations and/or society. The different legal and ethical issues that have arisen as a result of a global ‘virtual’ market. Without knowing which particular set of laws apply, it's impossible to know whom to sue. and Legal Issues”, fairly engaging and also the blog post was a wonderful read. Ethical Issues in E-Business: Models and Frameworks offers audiences a diverse and global perspective concerning the ethical consequences of e-business transactions, e-commerce applications, and technological advancements in secure online use. The need to educate the public about the ethical and legal issues related to e-commerce is highly important from a buyer as well as seller perspective. From one perspective, the Internet has been described as "the world's biggest copy machine" [7]. Web shopping is generally very easy. Generally, a trademark can be owned by an individual, a company, or any sort of legal entity. There is a chance of a crime over the internet when buyers and sellers do not know each other and cannot even see each other. and then you make the paym… The manner in which employees are treated may raise ethical issues, such as how to handle displacement and whether to offer retraining programs. E-commerce fraud popped out with the rapid increase in popularity of websites. Software that is available free of cost on the Net allows the transfer of songs and videos without the authorization of rights holders (e.g. The number of Internet users is currently estimated to be in the region of 100 million people [1]. What I mean the bad side is about the ethical issue in e-commerce. Many employees don’t want to be under the monitoring system even while at work. 2. It’s a huge convenience for consumers and becoming their preferred way to shop. By: Roslyn Frenz. Wow! 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).In this situation, you are required to follow European legislation on e-commerce regulations. What about fraud e-commerce websites? What makes it simple? The issue of law on the Internet is a complex one. Defining rules and regulations for the advertisement of the site by placing banners on other known sites is another. ETA enables contractual dealings, such as offers, acceptances and invitations, to be conducted electronically, and also allows people to use an electronic signature to satisfy any legal requirement. E-commerce is a popular term for electronic commerce or even internet commerce. We click on a related site, go into that site, buy the required merchandise by adding it to our cart, enter our credit card details and then expect delivery within a couple of days. In legal terms, this is called a “nexus,” and each state defines nexus differently. For more details about secure e-Commerce business solutions, contact us. Auctions are also conductive to fraud, by both sellers and buyers. Companies track individual’s movement through tracking software and cookie analysis. Legal Issues in e-Commerce By: Saifullah Khan - Managing Partner S.U.Khan Associates Corporate & Legal Consultants (Islamabad – Pakistan) ... • Double tax treaties are based either on OECD or UN model treaties. It is essential that legal rules are set and applied appropriately to ensure that digital technology does not undermine the basic doctrine of copyright and related rights. For example, if you buy software you have the right to use it and not the right to distribute it. "Small claims courts don't work in cyberspace," according to Ron Presser of the American Bar Association. Older technologies such as photocopying, recording and taping are bound by rules and regulations regarding quantity, content, quality and time constraints. Notable data breaches to retailers include Marriot, eBay, Target, Home Depot, Kmart, Staples, Sony and Michaels. the webpage is also very bland once you scroll past the subscribe link. Thank you! Issues are copyright laws, privacy of customer information, and legality of electronic contracts. A little legislation can go a long way toward helping parties to establish better boundaries to work within. E-commerce provides a qualitively different challenge to tax regimes. Figure 1. Governments are developing legislation to support and strengthen the privacy protection measures of many businesses. Here you interact with the seller (Amazon), exchange data in form of pictures, text, address for delivery etc. Privacy legislation is designed to protect a person's personal information. Can cyberspace be regulated by one, or by many authorities? . Top level domain names are assigned by a central non-profit organization which also checks for conflicts or possible infringement of trademarks. So it is necessary to protect the identity of a buyer who uses Electronic Payment System. India is considered as a profitable market for these e-commerce businesses. Security involving the privacy of a user's data is always one of the main concerns while doing business online. post to my website? Approximately 100 countries now enjoy Internet access, and a recent survey reported that there are approximately 20 million Internet hosts worldwide. ... party with the intent to authenticate a writing” (Blythe, 2006). Post . Navigating sales tax laws can be difficult. While shopping on the Internet, most people typically do not think about what is happening in the background. McGinty, Jim, http://www.ministers.wa.gov.au, 5. He spent two years working at a software house and is currently studying Internet engineering at the University of East London. Security features such as authentication, non-repudiation and escrow services can protect the sellers in e-commerce. Share your requirements and we'll get back to you with how we can help. For example, software such as Privacy Guardian, My Privacy, etc can protect user’s online privacy by erasing browser’s cache, surfing history and cookies. Share of B2B and B2C E-Commerce in Total Global E-Commerce (2000 and 2004) 10 Figure 3. If they do not, they face the same penalties – including fines, reparation payments, court-imposed dissolution, and even jail time for officers and … The middle tier is the Web server, often with transaction processing. (16) (or) (b) (i) Explain Business to Business E-Commerce in detail … By applying laws and sketching boundaries around the borderless Internet do we negate the term "freedom of information"? In seeking to apply the law to the Internet, problems arise owing to the fact that most laws largely apply to the pre-cyberspace world. The brokers who provide value added services or who manage electronic intermediation (also known as infomediation), are not only surviving but may actually prosper, this phenomenon is called Reintermediation. PART B – (5 X 16 = 80 marks) 11. This may reduce administrative duties, storage and operational costs for businesses. Why can't I get the printer friendly version in stead of te text cut of? Western Australia Dept of Industry and Resources, http://www.law.gov.au/www/securitylawHome.nsf/, 4. Bond, Robert, "International Legal Issues of E-Commerce" Legal Updates, http://www.faegre.com, 2003. This paper provides an overview of some of the legal issues and related problems in e-commerce. SW: In short, non-discriminatory treatment of e-commerce; the application of existing rules and concepts; the importance of a fair sharing of the tax base internationally; and a commitment to pursuing these ends through intensified dialogue with business and non-OECD members. Internet fraud and its sophistication have grown even faster than the Internet itself. It is very difficult to protect Intellectual property in E-Commerce. The tracking history is stored on your PC’s hard disk, and any time you revisit a website, the computer knows it. Other areas of potential fraud include phantom business opportunities and bogus investments. The Impact of Electronic Commerce on Business E-Commerce and E-Business are not solely the Internet, … "Its the World's Biggest Copy Machine," PC Week, January 27, 1997. Some federal, state and territory governments encourage the adoption of electronic commerce by enacting and enabling legalisation. However, just as any new business tool has associated issues and risks so does e-commerce. Learning Objectives Understand why e-commerce raises ethical, social, and political issues Recognize the main ethical, social, and political issues raised by e- commerce Identify a process for analyzing ethical dilemmas Understand basic concepts related to privacy Identify the practices of e-commerce companies that threaten privacy Describe the different methods used to protect online … © QBurst 2020. The factors that should be considered here are the enormous number of participants, extensive information processing, delicate negotiations, etc. The client tier is the Web browser involving some type of form processing. Discussing the ethical implications and challenges faced through online business communication and dealings, this reference work raises issues and … "As of now, there is no comprehensive set of laws or regulations that exist for international electronic commerce," says David D. Barr [5]. E-commerce is a commercial sector where transactions are possible with the help of internet connection. ... Electronic Commerce Act … Tweet . ... E-commerce activity often involves collecting secure data such as names and phone numbers associated with email addresses. E-Commerce is not about the technology itself, it is about doing business leveraging the technology. The problem of domain names was alleviated somewhat in 2001 after several upper level names were added to com. Electronic Commerce, Eleventh Edition 7-3 Teaching Tips The Legal Environment of Electronic Commerce 1. Share It. — Original documentation, in terms of TAX and VAT requirements. In contrast, on the Internet one person can send millions of copies all over the world [8]. The exponential growth of the Internet and online activity raise a number of new regulatory issues and legal questions. surbhi says: … The value added service requires expertise and this can only be partially automated. There are various consumer protection issues in e -commerce, including: unfair commercial practices unfair … New legislation brings some questions such as, For how long will these acts be valid? Following in the footsteps of the CompuServe's case, Yahoo is arguing that it would be technically impossible to block only French citizens from access to its online auctions if should the auctions contain objectionable items. Can privacy and data protection exist on the Web? In this article, I will explain some ethical issues which always surround the world of e-commerce. The Web server in turn links to the third tier, a database processing the order information. Napster, MP3 Providers). E-businesses draw information on how visitors use a site through log files. The vastness of Internet advertising offers a solid platform for Electronic Commerce (or e-commerce) to explode. A data miner application, SahAgent collects and combines Internet browsing history of users and sends it to servers. 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