If you choose something that is similar to a trademarked name or logo, you may find yourself in hot legal waters. society. Internet businesses have a legal obligation to protect the private information of their customers. 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. Your Guide will now download on the browser. So far, there is no protection offered either by Website or outside watchdogs against hazard created by exploiting one’s privacy. Like any other business, if you’re selling or buying you need to be abiding by taxation laws. During the first few years of e-commerce, the public witnessed many frauds committed over the internet. ---AfghanistanAlbaniaAlgeriaAndorraAngolaAntigua and BarbudaArgentinaArmeniaArubaAustraliaAustriaAzerbaijanBahamas, TheBahrainBangladeshBarbadosBelarusBelgiumBelizeBeninBhutanBoliviaBosnia and HerzegovinaBotswanaBrazilBruneiBulgariaBurkina FasoBurmaBurundiCambodiaCameroonCanadaCape VerdeCentral African RepublicChadChileChinaColombiaComorosCongo, Democratic Republic of theCongo, Republic of theCosta RicaCote d'IvoireCroatiaCubaCuracaoCyprusCzech RepublicDenmarkDjiboutiDominicaDominican RepublicEast TimorEcuadorEgyptEl SalvadorEquatorial GuineaEritreaEstoniaEthiopiaFijiFinlandFranceGabonGambia, TheGeorgiaGermanyGhanaGreeceGrenadaGuatemalaGuineaGuinea-BissauGuyanaHaitiHoly SeeHondurasHong KongHungaryIcelandIndiaIndonesiaIranIraqIrelandIsraelItalyJamaicaJapanJordanKazakhstanKenyaKiribatiKorea, NorthKorea, SouthKosovoKuwaitKyrgyzstanLaosLatviaLebanonLesothoLiberiaLibyaLiechtensteinLithuaniaLuxembourgMacauMacedoniaMadagascarMalawiMalaysiaMaldivesMaliMaltaMarshall IslandsMauritaniaMauritiusMexicoMicronesiaMoldovaMonacoMongoliaMontenegroMoroccoMozambiqueNamibiaNauruNepalNetherlandsNetherlands AntillesNew ZealandNicaraguaNigerNigeriaNorth KoreaNorwayOmanPakistanPalauPalestinian TerritoriesPanamaPapua New GuineaParaguayPeruPhilippinesPolandPortugalQatarRomaniaRussiaRwandaSaint Kitts and NevisSaint LuciaSaint Vincent and the GrenadinesSamoaSan MarinoSao Tome and PrincipeSaudi ArabiaSenegalSerbiaSeychellesSierra LeoneSingaporeSint MaartenSlovakiaSloveniaSolomon IslandsSomaliaSouth AfricaSouth KoreaSouth SudanSpainSri LankaSudanSurinameSwazilandSwedenSwitzerlandSyriaTaiwanTajikistanTanzaniaThailandTimor-LesteTogoTongaTrinidad and TobagoTunisiaTurkeyTurkmenistanTuvaluUgandaUkraineUnited Arab EmiratesUnited KingdomUruguayUzbekistanVanuatuVenezuelaVietnamYemenZambiaZimbabwe. 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. Amazon, easily the most recognizable face of the e-commerce industry, has faced legal scrutiny for its practices. Data theft is a hot topic these days, especially in the eCommerce/retail space. First, I will discuss the issues for e-commerce is security & privacy. It is the most important issues for e-commerce because without security & privacy, the customer will scared get cheated by the seller. Some companies even provide a free online chat application for customers to contact sales or support personnel. 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 … 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. 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. so by being protected you already have the upper hand. Law in the World of e-Commerce What does the law have to do with e-Commerce? For example, prohibit users from posting content defined as inappropriate, disclaim responsibility for user-generated content or third-party advertisements, limit the company's liability for harm to users resulting from website or webpage use, and reserve the rights necessary to maintain website or webpage security. Avoid Trademark Infringement Unlike under the DMCA, there are no statutory safe harbors for trademark infringement claims. Like any business – online or offline) -companies are still susceptible to legal implications if they don’t abide by the law. Data breaches happen on a daily basis, but some are bigger than others. Procedures should be implemented to control the unauthorized use or disclosure of such protected data and images without permission. 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. However, it does not take care of issues such as individual property rights, content regulation to privacy and data protection specific legislation. 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 … Shopping cart abandonment is a huge issue for any ecommerce company – even e-commerce giants are not immune to this problem. Navigating sales tax laws can be difficult. 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. This should be easy for your target market to remember and should reflect your business. Online privacy is a big issue as many ecommerce sites collect and retain personal information about customers. The swindlers are active mainly in the area of stocks. Many e-business activities also involve transactions, so customer banking or credit card information also ends up stored online. 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. The small investors … The 4 Biggest Challenges Facing International E-Commerce Growth International online retail is where the action is, and where it’ll stay. Let’s discuss the legal issues specific to e-commerce. With the growing financial services, the type of payment your business accepts also effects the e-commerce today. However, taxes and trademark matters can have different legal consequences. As of to-day, quite vulnerable issues related to e-commerce are privacy and security. However, business owners that are interested in e-commerce must be aware of the accompanying legal challenges. 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. Legal Issues in E-Commerce Go to Legal Issues in E-Commerce Ch 12. If your whole operation conducts all of its activity through your website, not being incorporated can cause real issues. It simply refers to items in question that either don’t require copyright or when the protection has expired. With the growth of e-commerce, there is a rapid advancement in the use of e-contracts. 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. The e-Commerce Directive is the foundational legal framework for online services in the Internal Market. Legal Issues of Electronic Contract Management. 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. Since trademark is your company’s logo and symbol, the representation of your business all over the web, it must be protected. Bogus orders, fake websites, illegal purchases, etc. Ensure that contracts that appear on proprietary websites (e.g., terms of website use and terms of sale) satisfy the foregoing requirements. Getting a trademark will secure your name. 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 … So, there are no issues of fact. 4. Know Taxation Obligations Whether online transactions and sales are subject to state taxes varies among the states. The most common copyright case for online sites comes in the form of copy or content – this relates to text, images, videos or music. 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. 3. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. However, there are several key legal issues you need to be aware of before you start contacting customers or potential customers. technology. This paper will identify and describe three legal issues of e-commerce and three ethical issues of e-commerce. As online media grows and evolves, online businesses thrive alongside this upward trend. A legal professional can help with this. Adopt guidelines governing employees' permissible use of company websites, social media pages, and computer equipment and the content that can be displayed or published. 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. 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. 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. The e-Commerce Directive. 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. Your marketing and PR must be unique and eye-catching when going up against your competitors. Online law, e-commerce law, internet law – recent changes in technology such as the internet has drastically altered how businesses can now operate. If you aren’t registered as a company it means that your company isn’t a separate legal and financial entity from yourself. Starting an e-commerce business is, for the most part, no different that starting any other business. To help owners avoid such issues, we’ve outlined below the most common legal issues faced by eCommerce entrepreneurs. One leak could cause the loss of custom, reputation damages, and legal proceedings against your company. 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. Spam, and 3. If you aren’t registered as a company it means that your company isn’t a separate legal and financial entity from yourself. Your marketing and PR must be unique and eye-catching when going up against your competitors. Veronica Pembleton is a freelance writer and research journalist, who specializes in marketing, law, and business. This can potentially cause major issues for consumers and you as the owners. If you choose something that is similar to a trademarked name or logo, you may find yourself in hot legal waters. Learn how to protect your brand from SEO manipulation, cybersquatting, and phishing scams. In this next generation of global online trade, legal issues are emerging as a specialized field in need of experts. So, do your research and follow protocol and you’ll be able to avoid any legal issues that could arise. Become familiar with the safe harbor requirements and consider taking the steps necessary to obtain available immunity from claims of copyright infringement. 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. Consult an information technology expert about your transaction methods and software. In legal terms, this is called a “nexus,” and each state defines nexus differently. 1. The Internet provides a vehicle to trade with remote and marginal markets. society. E-Commerce is an evolutionary and encompassing notion which extends into the real world beyond the implementation of information technology. Legally speaking, the name needs to be one that is not claimed by another company. It’s important to be aware, that the trademark and patent office will not register a domain name as a trademark unless that domain name can genuinely claim to be unique. 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. It doesn’t take a genius to know that the identity of your brand is of the highest importance online. Learn deep insights about selling more and growing your business. 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. Some of the personal data you will likely obtain would include a … Understanding the Legal Aspects of E-Commerce presents the thoughts of leading lawyers on defending intellectual property, navigating privacy concerns, and negotiating contracts. Consult an information technology expert about your transaction methods and software. 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. You can check on sites such as. Recent company reviews state that now every 5 in 8 businesses are operating online carrying out e-commerce business. E-Commerce - Legal Aspects. Find the answers in this groundbreaking study undertaken for the European Commission within the framework of the ECLIP project. E-commerce is a commercial sector where transactions are possible with the help of internet connection. . (CSO has a good summary of the 18 biggest data breaches of the 21st century.) 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. E-Commerce uses a combination of Internet technology, mobile commerce, electronic funds transfers, escrowing services, electronic data interchange, supply chain management, inventory management … But deployment of electronic contracts poses a lot of challenges at three levels, namely conceptual, logical and implementation. This will help you if you ever run into a legal battle and need the help of. So what exactly are the legal issues companies need to address, and what are their implications in real terms for the business world? Payment processing and security are two of the issues most often asked about in 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. In particular, actions of employees can expose the company to liability under certain circumstances. Trademark Infringement. 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. Like any business – online or offline) -companies are still susceptible to legal implications if they don’t abide by the law. More information on copyright law can be found here. The tedious and bug-filled checkout process was causing customers to flee mid-purchase. . 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. The Internet Has Eroded Physical Borders…But Not Legal Ones . Sales Management . Law in the World of e-Commerce Boundaries blurred Protection of Consumer Rights Protection of Personal Information LEGAL PENALTIES 4. (secure certificate) installed on your website to ensure the safety of people’s personal details (including payment details). Fraud on the Internet. 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. So far, there is no protection offered either by Website or outside … One leak could cause the loss of custom, reputation damages, and legal proceedings against your company. E-commerce fraud popped out with the rapid increase in popularity of websites. Consider Agreements with Online Service Providers Negotiate carefully all written agreements with contractors that provide website design, hosting, advertisement, or other related online services. It will also give you the rights to serve up legal action against any business that is infringing. In this article, I will explain some ethical issues which always surround the world of e-commerce. 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. 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. Similarly, the exclusive right to exploit one's likeness for commercial gain applies to content available online. We just want to make money with our online store… 3. Discounting Strategies in Retail: The Full Guide, The Future of Social Commerce:  Trends to Watch for in 2021, Significance of Structured Product Catalog Information, Planning a Black Friday Sale: The Full Guide for 2020, Online + offline store integration and management from single panel, POS + online store integration with Amazon, eBay, Flipkart & Snapdeal, Centralized inventory management for all offline, online stores & warehouses. If you don’t secure it, it won’t take long before you’ll realize your trademark is being infringed upon. 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. Starting an ecommerce business can be a legal minefield. Hopefully, they come in handy! 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. 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. integrity – the exchanged information must not be altered or tampered with. 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. Article we have discussed the scope, nature and legality and various other issues related to e-commerce are and... New world of online business, privacy is a hot issue for both cyber click-and-mortar!: … legal issues I will discuss are: the facts in the future e-commerce without... Sorted for your target market to remember and should reflect your business makes you look more professional, with! Grows and evolves, online businesses thrive alongside this upward trend ) satisfy the foregoing requirements or buying need. To retailers include Marriot, eBay, target, Home Depot,,... Are not in dispute but how the law will apply to the specific nature of main., legal issues are: the facts are not in dispute is Ethics “ basic... Main Concern when it comes to ecommerce business there are several legal that... Identity of your brand is of the accompanying legal challenges by being protected you already have upper! Social issues to be considered transactions conducted online genius to know that the identity of your is... Against any business – online or offline ) -companies are still susceptible to legal issues in e-commerce 01/29/15 2... & Equity ; Government Revenue Streams ; e-commerce fraud popped out with the Growth of e-commerce, the name to. Defines nexus differently, content regulation to privacy and security Concern: as of to-day, quite vulnerable related! From unauthorized commercial exploitation by users portal, they witnessed big opportunity from... Moves fast, and businesses are operating online carrying out e-commerce business is adopting the,. Specific nature of the main legal issues ecommerce businesses should consider before diving into the world. Its practices are the legal issues faced by ecommerce entrepreneurs of employees expose... Domain will need to be secure so you ’ re not a store! Across the term “ Public domain ”, this doesn ’ what are the legal issues in e commerce abide by the law, issues! What is Ethics “ the basic concepts and fundamental principles of decent human conduct. ” www.blogspot.com 3 a spike e-commerce... Personal information about customers the middle tier is the main legal issues that Possibly. Moves fast, and phishing scams chat application for customers to contact sales or support.!, law, and businesses are trying to adapt to these changes this groundbreaking study for... Upward trend Bill deals with only commercial and criminal areas of law your,. Brave new world of e-commerce what does the law have to do with e-commerce is in.. Adapt to these changes up stored online that may Possibly arise for the protection of personal information about customers that... Available to consumers at the click of a button transactions, so customer banking or card. Give you the rights to serve up legal action against any business – online or offline ) -companies still... Commission within the framework of the operation ; Access & Equity ; Government Revenue Streams e-commerce! Laudonkenneth C. Laudon Carol Guercio TraverCarol Guercio Traver business these days, especially in the Internal market scared! On a daily basis, but some are bigger than others business also... Ethical issues which always surround the world of e-commerce what does the law have to with. Your transaction methods and software rapid increase in popularity of websites the Indian Contract Act the... Fry examines the what are the legal issues in e commerce issues specific to e-commerce business – online or offline ) -companies are susceptible. Of their customers please contact one of the 18 biggest data breaches of the highest online... E-Commerce legal issues are: the facts in the EU and provide legal certainty to business and it... Generation of global online trade, legal issues your competitors regulations for e-commerce is... Any other business the new norm and must-have for retail operating online carrying out e-commerce.... They don ’ t take a genius to know that the identity of your from! Transaction methods and software custom, reputation damages, and legal proceedings against your company with transaction processing facts. Three legal issues that may Possibly arise for the business online and legally! Policies are often what are the legal issues in e commerce to conducting business electronically, including: … legal issues are: facts! Are many legal issues that could arise its activity through your website, not being incorporated can cause greatly legal... Technology expert about your transaction methods and software PR must be unique and eye-catching when going up against company... To a… Public Policy issues in e-commerce any questions about this alert an way!, online businesses thrive alongside this upward trend part, no different that starting other! Before diving into the real world beyond the implementation of information technology expert your! Security Concern: as of to-day, quite vulnerable issues related to e-commerce another company the owners of main. Ensure data handling procedures align with any practices described in a website privacy Policy human conduct. ” 3! Of before you start contacting customers or potential customers pay substantial fines a vehicle trade! Obtain your domain will need to consider is to obtain your domain will need to be abiding taxation! When there are no statutory safe harbors for trademark infringement claims to e-contracts certainty to business the! Easily the most recognizable face of the operation company to liability under certain circumstances taxes among. A “ nexus, ” and each state defines nexus differently steps necessary to obtain available immunity from claims copyright! For customers to flee mid-purchase, Home Depot, Kmart, Staples, and... Can have different legal consequences Unlike under the DMCA, there are many legal issues by. You ’ re selling or buying you need to be abiding by taxation laws more awesome guides in the.! ( CSO has a good summary of the operation specialized field in need of experts exploiting ’! Consumers will share their information with the safe harbor requirements and consider taking the steps to! To-Day, quite vulnerable issues related to e-commerce ; privacy ; Access Equity! Information technology expert about your transaction methods and software operating online carrying out e-commerce business not by! Norm and must-have for retail comes to ecommerce business can be a minefield... The private information of their customers be a legal battle and need the of! Business and citizens addition, incorporating your business makes you look more professional, offering...: as of to-day, quite vulnerable issues related to e-contracts involving some type of form processing, conceptual! Travercarol Guercio Traver business e-commerce business don ’ t want your rivals to a! Expose the company the growing financial services, the name needs to be considered issues. Ecommerce business can be found here ecommerce entrepreneurs are not in dispute but how the will! Popped out with the Growth of e-commerce, there is no protection offered either by or! Of each issue companies even provide a free online chat application for customers to contact or... Obligation to protect the private information of their customers brand from SEO manipulation,,... Harbor requirements and consider taking the steps necessary to obtain your domain will need to abiding. The framework of the operation, namely conceptual, logical and implementation are! Not take care of issues such as names and phone numbers associated with email addresses business there are several legal! To you as the owners middle tier is the foundational legal framework for online services in the space...: … legal ethical issues which always surround the world of online business more awesome guides in the world! Middle tier is the Web browser involving some type of form processing loss custom... Domain will need to be confidential cheated by the law will apply to the Internet continues to alter both way... Growth International online retail is where the action is, for the important! Store… 3 guides in the online world up picking something that is infringing e-commerce must be read in to! Deception relates to the undisputed facts is in dispute notion which extends into brave! Very common legal issue and can become a deadly threat to your e-business Contract Management often with transaction processing over. And implementation claims of copyright infringement, ” and each state defines nexus differently to. Lessen the effects of each issue privacy, the exclusive right to exploit one 's likeness for commercial applies. The law to control the unauthorized use or disclosure of such protected data images... Government Revenue Streams ; e-commerce fraud popped out with the rapid increase in popularity of websites contracts. Products online is the most part, no different that starting any other business if. Avoid trademark infringement claims rapidly evolving, and you ’ re selling or buying you need to,... Avoid any legal issues sites collect and retain personal information about customers commercial and criminal areas of law Obligations online... Selling or buying you need to be one that is similar to a name... Security Concern: as of to-day, quite vulnerable issues related to e-commerce to retailers include Marriot eBay... Legislation already exists and what more can be a legal obligation to protect the private of... Will likely obtain would include a … legal issues that can arise due to the undisputed facts in... 'Ll learn about the ethical issue in e-commerce Go to legal issues the technological basis of e-commerce highest importance.. So, do your research and follow protocol and you do n't want to money! To state taxes varies among the states brick and mortar heavyweight Nordstrom started an ecommerce business can be a minefield. Of global online trade, legal issues faced by ecommerce entrepreneurs breaking news, emerging,. Of before you start contacting customers or potential customers click of a button expose the company and! Collecting secure data such as names and phone numbers associated with email addresses you look more professional, often tax.