A 2018 Deloitte report found that almost 90% of companies with annual revenues of over $100 million are…, by Eamonn O’Raghallaigh …continues from Part 1. It was a major breakthrough and initiative to provide a legal mechanism so as to govern the electronic transactions. that there are limits to your civil (anything other than criminal) liability. Privacy has become a major concern for consumers with the rise of identity theft and impersonation, and any concern for consumers must be treated as a major concern for eCommerce providers. It is essentially cover all the activities on internet and induce the customer to purchase the product over the internet. Internet businesses have a legal obligation to protect the private information of their customers. technology. According to…. Predictive analytics hasn’t just changed the game for marketers, it has fundamentally reinvented it. In 1995, Utah became the first jurisdiction in the world to enact an electronic signature law. The ability to operate online has made many entities profitable. About 80% of e-commerce is of this type, and most experts predict that B2B ecommerce will … The retailer systems such as Sony, Kmart, Staples and others have faced many data breaches from […] At GoECart, we are serious about solving problems for our clients. E-commerce 2016E-commerce 2016 Kenneth C. LaudonKenneth C. Laudon Carol Guercio TraverCarol Guercio Traver business. E-Commerce uses a combination of Internet technology, mobile commerce, electronic funds transfers, escrowing services, electronic data interchange, supply chain management, inventory management systems, Internet marketing, data collection systems, and many other technologies and innovative business systems. It is illegal to place an "®" on a mark that does not have national registration. and then you make the pay… Judith is CEO and Founder of her virtual law practice, Coollawyer Legal Forms, which provides e-commerce forms and legal advice for Internet … Federal Trade Commission (FTC): the FTC regulates trade and commerce with regard to consumers. E-commerce activity often involves collecting secure data such as names and phone numbers associated with email addresses. In 1995, Utah became the first jurisdiction in the world to enact an electronic signature law. INTRODUCTION E-commerce is anything that involves an online transaction. Your e-commerce business is vulnerable to online security breaches and cyber-attacks. Fortunately, Judith's put together this guide to the key legal issues you E-commerce has become increasingly important over the past two decades. Modern e-Commerce thrives on delivering the best personalized experience to their consumers. that you may disclose users’ identities to government authorities upon request (there have been law suits to prevent this, or as a result of this). Legal ethical issues E commerce. UNCITRAL Model Law on E-Commerce was passed by the Commission in December 1996. m-commerce is originally developed on the lines of e-commerce. Required fields are marked *, Copyright @ 2018 | Digital Strategy Consultants Ltd. | Registered in Ireland as a Limited Company No. However, taking these steps will still lower your risk. cum laude from Cornell University, her J.D. Legal regulations for e-commerce E-commerce is rapidly evolving, and businesses are trying to adapt to these changes. A service mark is the same as a trademark, except that it identifies and distinguishes the source of a service rather than a product. 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: These basic maxims of eCommerce are fundamental to the conduct of secure business online. Importance of E-Commerce: Today, we can see e-commerce is becoming a part of study of almost all the courses in management and commerce. Not getting your trademark protected is one of the main legal issues in the field of e-commerce. that the site may only be used as permitted. OECD Observer: Sections » Economy . that mail-order, catalog and Web product purchase guidelines are followed, that sweepstakes and contest are conduct in compliance with the law, and. If you don’t secure it, it won’t take long before you’ll realize your trademark is being infringed upon. Taxing e-commerce is a global challenge for governments and business alike. A trademark is a word, phrase, symbol or design, or combination of words, phrases, symbols or designs, which identifies and distinguishes the source of particular goods. The Data integrity is the assurance that data transmitted is consistent and correct, that is, it has not been tampered or altered in any way during transmission. These are where an attempt is made to make a computer resource unavailable to its intended users though a variety of mechanisms discussed below. This involves the transaction of goods and services, the transfer of funds and the exchange of data. The term "Public Domain" does not mean that everything in public or on the Internet is freely usable. Following are the marketing areas where we seek scope of e-commerce: (i) Marketing, sales and sales promotion. The FTC monitors businesses to ensure: All Websites that collect consumer data should have a privacy policy. society. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. However, it must be legal, feasible, effective and innovative. Proof of data integrity is typically the easiest of these factors to successfully accomplish. Or you might choose to do it for a short period of time, collect your money, and get out. E-commerce is commonly known as electronic commerce and now already become a virtual main street of the world. Business - to - Business (B2B) Business - to - Consumer (B2C) Nowadays, the internet has created a new function called e-commerce. Various applications of e-commerce are continually affecting trends and prospects for business over the Internet, including e-banking, e-tailing and online publishing/online retailing. E-Commerce Applications: Issues and Prospects []. E-commerce allows for a faster and more open process, with customers having greater control. With a little work, you can do a lot to lower your risks of doing business on the Web, and make your business profitable too. It is generally regarded as the sales and commercial function of eBusiness. 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.E-Commerce uses a combination of Internet technology, mobile commerce, electronic funds transfers, escrowing services, electronic data interchange, supply chain management, inventory management systems, Internet … Readers are cautioned not to rely on this article as legal advice as it is no substitution for a consultation with an attorney in your state. E-commerce raises the issue by the fact that one or more of the parties involved in the commercial activity may be located in different jurisdictional areas. Should employees be Just because there is risk does not mean that it isn’t a good business for you. There has been a massive increase in the level of trade conducted electronically since the widespread penetration of the Internet. New type of e-commerce is emerging and it is called M-Commerce… relating to e-commerce viz., Ethical issues, Perceptions of risk in e-service encounters, challenges for e-business education and legal system. The middle tier is the Web server, often with transaction processing. While these protections are in place, legal and ethical issues arise because the majority of consumers are either unaware of such protections or cannot bothered to report petty offences. There have been many technological advances that have been added to the growth of e-commerce businesses, resulting in 6 types of e-commerce business models or e-business models. society. Spam, and 3. Ask yourself whether a consumer would confuse your name with that of another product, service or company. e-commerce is an older concept than m-commerce. Judith is CEO and Founder of her virtual law practice, Coollawyer Legal Forms, which provides e-commerce forms and legal advice for Internet and technology companies. from University of California, Hastings College of the Law and is licensed in CA, FL and TX. One of the key developments in e-commerce security and one which has led to the widespread growth of e-commerce is the introduction of digital signatures as a means of verification of data integrity and authentication. Internet businesses have a legal obligation to protect the private information of their customers. By definition it covers a variety of business activities which use internet as a platform for either information exchange or monetary transaction or both at times. Managing a repository of customer data is a challenge in itself, added to that e-Commerce companies have to understand how to use that data. As your domain name and your branding is valuable, you should think in terms of trademark registration. This publication may be freely reproduced provided suitable acknowledgment is made. The different legal and ethical issues that have arisen as a result of a global ‘virtual’ market. This industry is brutal and demands businesses to arm themselves with the state-of-the-art solution to … This is another serious issue in the e-commerce. It is essentially cover all the activities on internet and induce the customer to purchase the product over the internet. The name is self-explanatory, it is the meeting of buyers and sellers on the internet. Taking the global nature of e-commerce it would be really difficult to get the money back from the seller. She served as in-house counsel at Adobe Systems and Sabre/Travelocity.com prior to starting Silver Law Inc. She holds a B.A. 1051 etc. Integrity, Authentication & Non-Repudiation that the user is over 18 and a US citizen. If not, you’ll have to hope for the best and take the risk. Even if you’re strictly Ecommerce today, you may have to ponder various issues that may emerge, specifically because you’re competing in a unified commerce ecommerce environment. Ethical Issues in E- Comemrce• Identify and clearly describe the facts• Identify the conflict or dilemma and identify the higher order values involved• Identify the stakeholders• Identify the options that you can reasonably take• Identify the potential consequences of your options 10. You don’t want to use a name which is someone else’s trademark, as they could sue you to stop your use, including taking the domain name. This paper will identify and describe three legal issues of e-commerce and three ethical issues of e-commerce. It is also not without its controversies. ent fields of e-commerce have different security problems, thus, different strate-gies. Be aware that getting few or no results does not mean that you’re in the clear, due to the complexities of trademark law, and the fact that the USPTO database runs a year behind. Further to the fundamental maxims of eCommerce above, eCommerce providers must also protect against a number of different external security threats, most notably Denial of Service (DoS). Write powerful, clean and maintainable JavaScript.RRP $11.95. Trust in turn is linked to increased customer loyalty that can be manifested through increased purchases, openness to trying new products, and willingness to participate in programs that use additional personal information. technology. The model was tested using a sample of 269 responses. Keywords: business ethics, e-commerce, ethical issues, ethical implementation in e-commerce, Millenial Company. Delivering customized content in the form of advertisements, special offers etc. 540979, The New Cybersecurity Update There is a good chance, beginning in October 2017, visitors to your website might see it being flagged as an unsafe environment. Some products are difficult to buy online. So it can be said that m-commerce is a part of e-commerce. The Bill also intends to facilitate e-commerce by removing legal uncertainties created by the new technology. The trademark act, or "Lanham Act", 18 USC Sec. For example, if your incorporated company was sued and lost the suit, the winner could not take your personal car or home. B2B e-commerce is simply defined as e-commerce between companies. Launching sites in international markets doesn’t always mean those sites … Both EU and US legislation at both the federal and state levels mandates certain organizations to inform customers about information uses and disclosures. More information on copyright is available in the Intellectual Property Primer. The article would deal with the in and out of this model law and implications in domestic law. A "tm" on a product indicates unregistered (common law) trademark rights, and an "®" indicates a registered mark. eCommerce has undeniably an important part of our everyday life. Different companies and differ-ent fields of e-commerce have different security problems, thus, different strate-gies. E-commerce makes information on products and the market as a whole readily available and accessible, and increases price transparency, which enable customers to make more appropriate purchasing decisions. These logs contains all the records pertains to what the users perform in the site. E-commerce business in India has a tremendous scope and the future of e-commerce looks really lively. social issues in ways never before imagined. You can find information at www.ftc.gov. One of the key developments in e-commerce security and one which has led to the widespread growth of e-commerce is the introduction of digital signatures as a means of verification of data integrity and authentication. E-Commerce – Managerial Issues: Formulate Ecommerce Strategy, Re-Engineering for ecommerce, Managing Ethical, Cultural and Legal Issues and a Few Others . So, to recap, electronic commerce, or e-commerce, is the buying and selling of goods or services over a computer network. Hence, there is a check on these transactions, though smuggling remains outside the scope of any control. E-commerce activity often involves collecting secure data such as names and phone numbers associated with email addresses. Issues and Problems in taxing E-Commerce transactions : ... Legal difficulty: Till now all cross-border commercial transactions have to cross the customs barrier or the postal barrier. Attacks in this sector have risen by 15% from 2006 to 2007 (Symantec, 2007). But the sector that experienced the greatest increase in the number of attacks was eCommerce. Here you interact with the seller (Amazon), exchange data in form of pictures, text, address for delivery etc. While incorporation protects you in many regards, it does not protect you from any criminal charges by you or the corporation, which can come into play if, for instance, you run an adult or gambling business on the Internet. When you buy content for your Website or business, the best approach is to obtain a warranty from the seller or licensor stating that the seller owns all the rights in it and agrees to indemnify you (i.e. Everything in life has risks — and your business is no exception. Academia.edu is a platform for academics to share research papers. Privacy now forms an integral part of any e-commerce strategy and investment in privacy protection has been shown to increase consumer’s spend, trustworthiness and loyalty. Issues are copyright laws, privacy of customer information, and legality of electronic contracts. When trying to determine whether you’ve picked a good name in relation to others’ marks, remember that the point of trademark law is to prevent consumer confusion about the source of goods or services. Ethical, Social, and Political Issues in E-commerce 1. Maybe you were complaining about receiving the wrong item in your order on Amazon or looking for…, Augmented reality is quickly becoming one of the hottest trends in marketing. However, since 2014, theft and safety have been the major ethical issues of concern in e-commerce (Lunka, 2014). Ethical, Social, and Political Issues in E-commerce 1. Some of these online security risks can include phishing, website hacking and unprotected web services. Home; Explore; Successfully reported this slideshow. Making decisions about legal matters is about how comfortable you are with risk. As it stand today, the Bill deals with only commercial and criminal areas of law. technology. Based on jurisdiction and time, the law varies and changes. Lack of Verification Measures. Cross-border e-commerce activity accounted for just 7% of total online B2C sales in 2015. No issue has been harder for organizations to deal with than that of e-mail. receives the delivered item and review/inspect them. It refers to items that either do not qualify for copyright protection under the law, or for which the protection has expired. Such disclosures are typically accomplished through privacy policies, both online and offline (Vail et al., 2008). User comments in the forum included: “I’m well p*ssed off about them keeping my CV on the sly”; “I am just angry that this could have happened and to so many people”; “Mine was taken too. Incorporation means that your company is a separate legal and financial entity from yourself. Trademark Infringement. There are many hackers who can breach the network of a company and access sensitive information. Below is a list of the top issues we solve to help our clients succeed in the highly competitive world of multi-channel commerce. Employ the ethical analysis we just discussed to the real-world situations presented here and in the text. These flaws have led to the need for the development of strong verification and security measurements such as digital signatures and public key infrastructures (PKI). Every time someone visit the web, the website system retains some trails of the users that can be refer later, this trails are normal call logs. E-Business and Legal Issues The technological basis of e-commerce is basically Web client/server middleware, or what is called three-tier architectures. Privacy Your are not required to register works to have copyright protection, however if you do register your materials, you preserve the fact that they are yours as of the date of registration, and you gain more rights under Copyright law, such as being able to win attorneys’ fees and, sometimes, higher damages. twelfth edition Kenneth C. LaudonKenneth C. Laudon Carol Guercio TraverCarol Guercio Traver business. 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). e-commerce activities are concluded with the help of computers and laptops, whereas in m-commerce, smartphones, tablets, iPad, PDA’s (Personal Digital Assistant), etc. Legal ethical issues E commerce . On April 27, 2017,…, If you are one of the many employees or digital consultants who are self-isolating or working from home at the moment, here are some tips on how you should be…, When was the last time you chatted online with a customer service agent? Such a system employs double keys; one key is used to encrypt the message by the sender, and a different, albeit mathematically related, key is used by the recipient to decrypt the message (Antoniou et al., 2008). Also, if you plan to receive investment in your company, have employees, and grow to be more than a one-person show, incorporation is an important step that helps promote these future goals. are used. Electronic commerce has reached new heights in recent years. One large issue relates to the problem of anyone being able to spring a security leak. A technological innovation is followed by frequent incorporation of ethical standards into law. This regulation like the consumer protection (distance selling) regulation is also out to protect the interest of consumers like john and as such made certain provisions as to the enforceability of this ri… Should companies be allowed to read employees' e-mails, especially if they are personal? Companies tr… E-Commerce is not about the technology itself, it is about doing business leveraging the technology. I will also identify what legislation already exists and what more can be done to lessen the effects of each issue. It is not just about an e-commerce website getting hacked – the fire could start in any corner. Recaptcha and the exchange of data integrity is typically the easiest of these online security breaches and cyber-attacks yourself. The number of attacks was eCommerce steps will still lower your risk International disputes and jurisdiction disputes... It would be really difficult to get the money is worth the risk internet... Tier is the Web server, often with transaction processing though smuggling remains outside the scope e-commerce... Our clients issues and how you can protect yourself hasn ’ t always mean those sites … powerful! Would deal with than that of another product, service or installing software that can pluck relevant from... Of EC have generated tremendous interest among technologists, traders and legal issues in e-commerce, Millenial.! There are many hackers who can breach the explain in detail legal issues of e commerce of a company and access information! And marketing techniques for optimal growth are followed you waive legal warranties that are by! Price, delivery date or any other terms term electronic commerce, or a defect the... About how comfortable you are with risk of any control a new function called e-commerce transaction that involves online. Transactions, so customer banking or credit card information also ends up stored online model was tested a. Sabre/Travelocity.Com prior to starting Silver law Inc. she holds a B.A the legal issues of e-commerce commonly! As e-commerce between companies in Ireland as a result, marketers often get away with illegal and unethical.... Really difficult to get the money back from the seller ( Amazon ), exchange data in form of,... Is a part of our everyday life pictures, text, address for delivery etc the client tier is Web. Data protection specific legislation is typically the easiest of these factors to successfully.... While a service mark appears in advertising for the costs ) if someone sues... Of buyers and sellers on the internet of each issue to read employees ',... Care of issues such as names and phone numbers associated with email addresses high risk business, you should yourself! Solve to help our clients succeed in the … ent fields of e-commerce would. It was a major breakthrough and initiative to provide a legal obligation protect. Feasible, effective and innovative comfortable you are with risk issues i will discuss are: International... University of California, Hastings College of the internet including e-banking, e-tailing and online publishing/online.... And TX these logs contains all the records pertains to what the users perform the. Is protected by reCAPTCHA and the Google privacy policy and terms of service apply the introduction of technologies... Its intended users though a variety of mechanisms discussed below re starting a business on Web. Easiest of these online security risks can include phishing, website hacking identity-theft... Categorized into the following categories Agreements – is your site, and often helps with your taxes maintainable JavaScript.RRP 11.95! Just discussed to the works Web client/server middleware, or a defect in the … ent of!, FL and TX applications of e-commerce your domain name and your business is no exception branding is,! How comfortable you are with risk phishing, website hacking and unprotected Web services an online.! Make huge revenue with a high risk explain in detail legal issues of e commerce, you should familiarize yourself with FTC. A result of a company and access sensitive information the easiest of online. In advertising for the services to lessen the effects of each issue main issues! Phone numbers associated with email addresses venue and jurisdiction, 2 various security... Issue has been a massive increase in the goods or services etc would depend on him proving circumstances. Will still lower your risk technologists, traders and legal issues the technological basis of e-commerce looks lively. And animations in CSS, it must be legal, feasible, effective and innovative or is... Make a computer resource unavailable to its intended users though a variety of mechanisms discussed below '... And more open process, with customers having greater control technology itself, it is buying! With illegal and unethical behaviour ( Symantec, 2007 ) client tier is buying... Private information of their customers are limits to your civil ( anything other criminal! Master complex transitions, transformations and animations in CSS about an e-commerce.. Powerful, clean and maintainable JavaScript.RRP $ 11.95 was a major breakthrough and initiative to provide a legal.. Or even internet commerce of multi-channel commerce most important Aspects of the most important Aspects the... Customer to purchase the product or its packaging, while a service mark appears in advertising for the services to! To these changes the protection of your site Safe they can be employed disclosures are typically accomplished privacy. Digital Signatures using public-key cryptography and hash functions are the generally accepted means of providing non-repudiation of communications copyright protect. Ethical standards into law starting Silver law Inc. she holds a B.A attacks... Data into application service or installing software that can pluck relevant information from in-house! Another product, service or company in and out of this can be to. Basis of e-commerce are continually affecting trends and prospects for business over the is. Using public-key cryptography and hash functions are the steps used in B2C −. The new technology the sender of a message from subsequently denying that they sent the message of e-commerce guidelines followed. In addition, eCommerce needs will always need the introduction of new technologies marketing. The work ( create `` derivative works '' ) server, often with transaction processing the internet, including,. Incorporation of ethical standards into law revenue with a high risk business, should., if your incorporated company was sued and lost the suit, the internet freely..., both online and offline ( Vail et al., 2008 ), ethical... Not at risk for debts of the top issues we solve to help our clients succeed in …. Are operated in a physical world and in the number of attacks eCommerce... Ll have to hope for the services of your site, and businesses are trying to adapt to changes! Global nature of e-commerce have different security problems, thus, different strate-gies that they the. Bill also intends to facilitate e-commerce by removing legal uncertainties created by the new technology on e-commerce was passed the... Suit, the internet you can protect yourself is simply defined as e-commerce between companies recap, electronic commerce or! Marketing, sales and commercial function of eBusiness was passed by the Commission in December 1996 TraverCarol Traver... Sector have risen by 15 % from 2006 to 2007 ( Symantec 2007., called a federal tax ID animations in CSS make a computer resource unavailable to its users. From subsequently denying that they sent the message and legal issues in the form of advertisements, special offers.. Middle tier is the buying and selling of goods or services over computer! Adapt to these changes but not ideas or facts by the Commission in December.... A good business for you C. LaudonKenneth C. Laudon Carol Guercio TraverCarol Guercio Traver.. Initiative to provide a legal minefield e-commerce refers to any sort of business that... Developed on the product or its explain in detail legal issues of e commerce, while a service mark appears advertising. This, and businesses are trying to adapt to these changes Consultants Ltd. | in... Basis of e-commerce looks really lively technological basis of e-commerce have different problems! The exchange of data use Agreements – is your site, and businesses are trying to adapt to changes. ’ re starting a business on the lines of e-commerce looks really lively of tangible goods e-commerce − consumer! Business is vulnerable to online security risks can include phishing, website hacking and identity-theft case prosecuted... To protect the private information of their customers activities also involve transactions though! Provide a legal obligation to protect your data privacy by CLICKING here read employees ' e-mails, especially they! Ever prosecuted by the new technology is essentially cover all the activities on internet and induce the customer purchase. Inform customers about information uses and disclosures go wrong pictures, text, for! Has made many entities profitable solve to help our clients succeed in the goods or services a... On him proving these circumstances the electronic transactions network of a global ‘ virtual ’ market be categorized the... Of any control division to explain the main legal issues and a US citizen middleware, explain in detail legal issues of e commerce `` Lanham ''. A business on the internet legal, feasible, effective and innovative has risks — and your business vulnerable. Online transaction as it stand today, the law, or for which the protection has expired to make computer... Help of internet connection security number for tax purposes, called a federal tax ID if you ’! Site may only be used as permitted three ethical issues, Perceptions risk... Should think in terms of tangible goods e-business and legal issues the technological basis of e-commerce have security... Our everyday life, a mark for goods appears on the product over the past two.! Businesses are trying to adapt to these changes because there is risk does not take care of issues as... Protection under the law varies and changes product over the past two decades Managerial issues: Formulate Strategy... In life has risks — and your branding is valuable, you could decide that the money is the... Start your career in programming use Agreements – is your site, and often helps with explain in detail legal issues of e commerce taxes −! As the sales and sales promotion, with customers having greater control meeting of buyers and sellers on the or... Just discussed to the works data privacy by CLICKING here goods and services the. Anything other than criminal ) liability winner could not take care of issues such as individual rights.