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. 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. Online law, e-commerce law, internet law – recent changes in technology such as the internet has drastically altered how businesses can now operate. It’s a huge convenience for consumers and becoming their preferred way to shop. The three legal issues I will discuss are: 1. International disputes and jurisdiction, 2. The swindlers are active mainly in the area of stocks. Many businesses and products are easily available to consumers at the click of a button. 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. Similarly, the exclusive right to exploit one's likeness for commercial gain applies to content available online. Provide Information Security Implement an information security program consistent with the standard generally recognized under federal law and any applicable industry-specific or unique state law requirements in order to protect sensitive data accessible or stored in connection with online websites. The first thing you’ll need to consider is to obtain your domain name or website address. During the first few years of e-commerce, the public witnessed many frauds committed over the internet. The e-Commerce Directive. Legally, it is up to the e-business to store and protect or … 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. Internet businesses have a legal obligation to protect the private information of their customers. Most people incorporate their online business in order for personal liability protection so that their own assets aren’t at risk if debts or bankruptcy occurs. For the average e-commerce startup, the ruling illustrates the importance of clearly defining a product's liabilities and warranties, especially if you deal with third-party vendors. E-Business and Legal Issues The technological basis of e-commerce is basically Web client/server middleware, or what is called three-tier architectures. E-commerce fraud popped out with the rapid increase in popularity of websites. This can potentially cause major issues for consumers and you as the owners. It simply refers to items in question that either don’t require copyright or when the protection has expired. Some of the ethical, social, and political issues raised in each of these areas include the following: In fact, there are several legal issues eCommerce businesses should consider before diving into the brave new world of online business. Learn deep insights about selling more and growing your business. 1. . 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. Both the Indian Contract Act and the IT Act must be read in conjunction to understand the legal validity of e-contracts. When it comes to eCommerce business there are many legal issues that can arise due to the specific nature of the operation. E-Commerce Legal Issues; Privacy ; Access & Equity ; Government Revenue Streams; E-Commerce issues for Industry Regulators. Security is the main concern when it comes to e-commerce. However, taxes and trademark matters can have different legal consequences. But deployment of electronic contracts poses a lot of challenges at three levels, namely conceptual, logical and implementation. If you choose something that is similar to a trademarked name or logo, you may find yourself in hot legal waters. In legal terms, this is called a “nexus,” and each state defines nexus differently. Bogus orders, fake websites, illegal purchases, etc. 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). A legal professional can help with this. (CSO has a good summary of the 18 biggest data breaches of the 21st century.) Consider Agreements with Online Service Providers Negotiate carefully all written agreements with contractors that provide website design, hosting, advertisement, or other related online services. The middle tier is the Web server, often with transaction processing. Consult an information technology expert about your transaction methods and software. In addition, incorporating your business makes you look more professional, often offering tax benefits to you as the owner. When it comes to eCommerce business there are many legal issues that can arise due to the specific nature of the operation. Fortunately, Judith's put together this guide to the key legal issues you Learn how to protect your brand from SEO manipulation, cybersquatting, and phishing scams, Privacy policies are often overlooked. Home; Explore; Successfully reported this slideshow. . The 4 Biggest Challenges Facing International E-Commerce Growth International online retail is where the action is, and where it’ll stay. When implementing an e-business strategy, one must fully understand any key legal issues—like copyright infringement laws and the principles of libel—early on. Ensure data handling procedures align with any practices described in a website privacy policy. In particular, actions of employees can expose the company to liability under certain circumstances. 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. Like any other business, if you’re selling or buying you need to be abiding by taxation laws. To help owners avoid such issues, we’ve outlined below the most common legal issues faced by eCommerce entrepreneurs. E-Commerce - Legal Aspects. If you aren’t registered as a company it means that your company isn’t a separate legal and financial entity from yourself. Amazon, easily the most recognizable face of the e-commerce industry, has faced legal scrutiny for its practices. 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 … Let’s discuss the legal issues specific to e-commerce. E-Commerce is an evolutionary and encompassing notion which extends into the real world beyond the implementation of information technology. Failure to pay taxes can cause greatly damaging legal action against your company and you will be forced to pay substantial fines. 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. 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. Selling products online is the new norm and must-have for retail. The owner of a copyright has the exclusive right to: The most common copyright case for online sites comes in the form of copy or content – this relates to text, images, videos or music. Create Enforceable Online Contracts Traditional contract principles apply to transactions conducted online. The Internet Has Eroded Physical Borders…But Not Legal Ones . 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So, do your research and follow protocol and you’ll be able to avoid any legal issues that could arise. During the first few years of e-commerce, the public witnessed many frauds committed over the internet. SlideShare Explore Search You. Ethical, Social, and Political Issues in E-commerce 1. Data theft is a hot topic these days, especially in the eCommerce/retail space. When you come across the term “Public Domain”, this doesn’t mean that it is free to use. Consider refining the scope of jurisdiction to the extent possible by stating the governing law, venue, or forum and limiting online activities to only those jurisdictions in which the e-commerce business is prepared to comply with applicable laws and regulations. First, I will discuss the issues for e-commerce is security & privacy. While certain states have enacted laws that impose obligations on resident businesses or businesses with in-state physical facilities to pay such taxes, others do not currently have a similar requirement. Veronica Pembleton is a freelance writer and research journalist, who specializes in marketing, law, and business. Procedures should be implemented to control the unauthorized use or disclosure of such protected data and images without permission. 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. I will also identify what legislation already exists and what more can be done to lessen the effects of each issue. Consult an information technology expert about your transaction methods and software. 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. 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. Notable data breaches to retailers include Marriot, eBay, Target, Home Depot, Kmart, Staples, Sony and Michaels. It is a hot issue for both cyber and click-and-mortar merchants. The swindlers are active mainly in the area of stocks. The tedious and bug-filled checkout process was causing customers to flee mid-purchase. With the growing financial services, the type of payment your business accepts also effects the e-commerce today. 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. Ninety-six percent of Americans currently shop online. Business Info. This issues involve the irresponsible parties who always give threats both to consumers and business organization. Starting an ecommerce business can be a legal minefield. 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. 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. numerous legal and regulatory issues remain that may hinder the success of these businesses. Some of the personal data you will likely obtain would include a … With a spike in e-commerce activity, the team at William Fry examines the legal issues online retailers need to consider. It will also give you the rights to serve up legal action against any business that is infringing. 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. It doesn’t take a genius to know that the identity of your brand is of the highest importance online. With expert task forces, online educational training, legal consulting services, and annual global summits, GECC offers an open forum to identify and develop e-commerce best practices and strategies on an international level. 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 … Fraud on the Internet; E-commerce fraud popped out with the rapid increase in popularity of websites. Consider Insurance E-commerce businesses should consider obtaining insurance coverage in order to limit their financial exposure for information security breaches, online tort and intellectual property right infringement claims, and certain website-specific practices such as hyperlinking, framing, using metatags, and banner advertising. This can potentially cause major issues for consumers and you as the owners. 3. More information on copyright law can be found here. Legally speaking, the name needs to be one that is not claimed by another company. What are the Legal Issues that May Possibly Arise for the E-Commerce Players in India? While the technical issues have been addressed and business is adopting the technology, what are the legal and social issues to be considered? If these issues are neglected and not taken care of correctly, they can lead to some serious problems for your online company – financially and for everyday operations. Liesl Briel Cyberlaw Consulting CC 2. Here are some tips to consider, when expanding your company’s e-commerce endeavors. The ability to operate online has made many entities profitable. The federal Digital Millennium Copyright Act of 1998 (DMCA) lays out certain safe harbors for Internet service providers that could provide protection from such claims. Payment solution like Conclusion. (secure certificate) installed on your website to ensure the safety of people’s personal details (including payment details). If these issues are neglected and not taken care of correctly, they can lead to some serious problems for your online company – financially and for everyday operations. Country (required) society. Web Spoofing Web spoofing is an electronic deception relates to the Internet. Legal Issues of Electronic Contract Management. E-commerce is a commercial sector where transactions are possible with the help of internet connection. Avoid Trademark Infringement Unlike under the DMCA, there are no statutory safe harbors for trademark infringement claims. 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. Many businesses and products are easily available to consumers at the click of a button. E-commerce activity often involves collecting secure data such as names and phone numbers associated with email addresses. 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. Public Policy Issues in E commerce. 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. It is a hot issue for both cyber and click-and-mortar merchants. As online media grows and evolves, online businesses thrive alongside this upward trend. Seek Available Immunity for Copyright Infringement Given the ease with which material can be obtained and posted online, avoiding copyright infringement based on the use, display, reproduction, or distribution of content posted on social media pages or proprietary websites will always be a concern for e-commerce businesses. Let’s discuss the legal issues specific to e-commerce. 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. Explain The Legal And Ethical Issues In E-Commerce 1429 Words | 6 Pages: MBA Batch : 2015-2017 Shift : 1ST Shift Section : ‘B’ Subject : E - Business Subject Code : MS - 114 Topic of Assignment : Legal and Ethical issues in E-commerce Subject Teacher’s Name : Ms. Ritu Bansal RESEARCH ASSIGNMENT Subject: e –business Subject Code: MS - 114 Semester: II Recent company reviews state that now every 5 in 8 businesses are operating online carrying out e-commerce business. 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. Legally speaking, the name needs to be one that is not claimed by another company. Just because you’re not a physical store, it doesn’t mean that you can avoid paying tax. Adopt guidelines governing employees' permissible use of company websites, social media pages, and computer equipment and the content that can be displayed or published. You’re not exempt because you’re online so make sure you contact your government’s tax agency to find out full information on. To help owners avoid such issues, we’ve outlined below the most common legal issues faced by, Just because you’re not a physical store, it doesn’t mean that you can avoid paying tax. This should be easy for your target market to remember and should reflect your business. A word of warning, however, whilst it does, for the most part, offer a level of security, even if you’re registered it doesn’t protect you from any criminal charges. Legal ethical issues E commerce. Technical Issues: Security (DOS) • Denial of Service (DOS) • Two primary types of DOS attacks: spamming and viruses • Spamming – Sending unsolicited commercial emails to individuals – E-mail bombing caused by a hacker targeting one computer or network, and sending thousands of email messages to it. Law in the World of e-Commerce What does the law have to do with e-Commerce? 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. are also more frequent. However, business owners that are interested in e-commerce must be aware of the accompanying legal challenges. 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. The internet continues to alter both the way we do business and the types of business opportunities that are available. 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. Like any other business, if you’re selling or buying you need to be abiding by taxation laws. Issues of law arise when the facts are not in dispute but how the law will apply to the undisputed facts is in dispute. In such a case, the protection of user data has also become a major challenge in the online world. For any online business, privacy is a huge threat. 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. You don’t want your rivals to have a brand that’s a replica of yours. You'll learn about the key legal issues related to conducting business electronically, including: … Incidences involving payment fraud, and other issues related to online security, have skyrocketed over the past few years, coinciding with the growth of the e-commerce industry. Protect Website Content Protect content and materials appearing on proprietary websites or social media pages from unauthorized commercial exploitation by users. You can check on sites such as Companies House to ensure you don’t end up picking something that’s already been taken. So far, there is no protection offered either by Website or outside watchdogs against hazard created by exploiting one’s privacy. Data breaches happen on a daily basis, but some are bigger than others. If your whole operation conducts all of its activity through your website, not being incorporated can cause real issues. Protecting Your Customer’s Privacy Online. The first thing you’ll need to consider is to obtain your domain name or website address. E-commerce activity often involves collecting secure data such as names and phone numbers associated with email addresses. Your marketing and PR must be unique and eye-catching when going up against your competitors. E-Commerce Legal Issues. It’s an affordable way to a… Starting an ecommerce business can be a legal minefield. E-commerce 2016E-commerce 2016 Kenneth C. LaudonKenneth C. Laudon Carol Guercio TraverCarol Guercio Traver business. Starting an e-commerce business is, for the most part, no different that starting any other business. In this article, I will explain some ethical issues which always surround the world of e-commerce. The client tier is the Web browser involving some type of form processing. Like any business – online or offline) -companies are still susceptible to legal implications if they don’t abide by the law. E-commerce – Features, Drivers, Factors, Issues, Applications E-commerce is the use of electronic communication and digital information processing technology in business transactions to create, transform and redefine relationships for value creation between or among organisations and individuals. However, it does not take care of issues such as individual property rights, content regulation to privacy and data protection specific legislation. When you come across the term “Public Domain”, this doesn’t mean that it is free to use. Fortunately, Judith's put together this guide to the key legal issues you So far, there is no protection offered either by Website or outside … The small investors … 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 We just want to make money with our online store… 3. You can now read the complete guide and we'll keep you informed about more awesome guides in the future. This is very common legal issue and can become a deadly threat to your e-business. Further, while legal and regulatory frameworks for e-commerce are evolving at the national – and sometimes … Not getting your trademark protected is one of the main legal issues in the field of e-commerce. Navigating sales tax laws can be difficult. 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. Find the answers in this groundbreaking study undertaken for the European Commission within the framework of the ECLIP project. For instance, when brick and mortar heavyweight Nordstrom started an ecommerce portal, they witnessed big opportunity losses from abandoned carts. Legal regulations for e-commerce E-commerce is rapidly evolving, and businesses are trying to adapt to these changes. 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. Be Mindful of Jurisdiction Because electronic transmissions through the internet reach parties throughout the world, businesses may become subject to the laws of many different countries or states within the United States when engaging in e-commerce activities. Be aware of those states in which taxes must be collected for online sales and transactions, and keep in mind that any such obligation may change at any time. Your marketing and PR must be unique and eye-catching when going up against your competitors. Consumers will share their information with the business online and they legally are entitled to this information to be confidential. Payment processing and security are two of the issues most often asked about in e-commerce. society. 01/29/15 What is Ethics “The basic concepts and fundamental principles of decent human conduct.” www.blogspot.com 3. This will help you if you ever run into a legal battle and need the help of consumer rights lawyers so by being protected you already have the upper hand. Legal ethical issues E commerce . To avoid punitive action from state attorneys general and/or the Federal Trade Commission, prominently post on the website a carefully drafted privacy policy that accurately explains collection practices for personally identifiable information in accordance with applicable laws at the state and federal levels, and strictly comply with any such policy. In this next generation of global online trade, legal issues are emerging as a specialized field in need of experts. Understanding the Legal Aspects of E-Commerce presents the thoughts of leading lawyers on defending intellectual property, navigating privacy concerns, and negotiating contracts. 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. Payment processing and security are two of the issues most often asked about in e-commerce. 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. You can be sued by customers f… This paper will identify and describe three legal issues of e-commerce and three ethical issues of e-commerce. Consumers will share their information with the business online and they legally are entitled to this information to be confidential. 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. It is the most important issues for e-commerce because without security & privacy, the customer will scared get cheated by the seller. 1. Sales Management . Remember the Impact of Agency Liability Remember that actions taken by individuals online (even without the approval of management) can implicate an entity. To ensure you are in compliance with tax laws, it’s always best to contact your state’s revenue agency to ensure you have the correct information on … If your whole operation conducts all of its activity through your website, not being incorporated can cause real issues. Know Taxation Obligations Whether online transactions and sales are subject to state taxes varies among the states. technology. 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