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. I continually wanted to write on E-Commerce has the ability to provide secure shopping transactions coupled with instant verification and validation of credit card transactions. "Small claims courts don't work in cyberspace," according to Ron Presser of the American Bar Association. Explain that businesses that operate on the Web must comply with the same laws and regulations that govern the operations of all businesses. A technological innovation is followed by frequent incorporation of ethical standards into law. E-commerce is a commercial sector where transactions are possible with the help of internet connection. Wow! If they do not, they face the same penalties – including fines, reparation payments, court-imposed dissolution, and even jail time for officers and … All Rights Reserved. In November of last year, Felix Somm, ex-manager of CompuServe Deutschland, was cleared on appeal of pornography charges brought against him in Germany after newsgroups carried on parent company CompuServe's US servers were found to contain pornographic material. For example, if you buy software you have the right to use it and not the right to distribute it. ethics in e-commerce current and highly important. Websites should provide the customers with choices regarding the use of their personal information, and incorporate security procedures to limit access to customer information by unauthorised parties. Thank you,Lashawn. First, it lead s to the gradual elimination of intermediaries, suc h as wholesalers or loca l retailers, who in the past Should governments tax cyber trade? What about fraud e-commerce websites? Lack of Verification Measures. 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. (a) Explain in detail Electronic Data Interchange and how it is useful in implementation of E-Commerce? Many e-business activities also involve transactions, so customer banking or credit card … Discuss. 7. The e-commerce activities performed by a buyer can be tracked by organizations. 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. Can cyberspace be regulated by one, or by many authorities? 9. In this article, I will explain some ethical issues which always surround the world of e-commerce. There are four key technological trends responsible for these ethical issues: i. 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. Most of these questions are unanswerable today. 1.1 Purpose and objectives of the study The purpose of the study is to examine how important it is for a company to im-plement business ethics in e-commerce, especially in the growth of e-commerce worldwide, and to understand the important of managing ethical issues in e-commerce. But on the other end, IT had given birth to different issues which can ultimately results in crime. The client tier is the Web browser involving some type of form processing. E-Commerce is not about the technology itself, it is about doing business leveraging the technology. 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. Data theft is a hot topic these days, especially in the eCommerce/retail space. What I mean the bad side is about the ethical issue in e-commerce. Internet addresses are known as domain names and they appear in levels. surbhi says: … Others are traditional issues applied to the Internet, such as copyright, contracts, consumer protection, privacy, taxation, regulated industries and jurisdiction. The services required to support or complement e-commerce are provided by the web as new opportunities for reintermediation. 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. With no law at all, however, the Internet would be no place to conduct business or pleasure. When someone else tries to use that trademark (e.g., your distinctive name or logo) without authorisation, it could be considered an illegal dilution of the distinctive trademark. Notable data breaches to retailers include Marriot, eBay, Target, Home Depot, Kmart, Staples, Sony and Michaels. To detect and remove spyware specially designed programs like Ad-Aware are present. E-commerce is a popular term for electronic commerce or even internet commerce. This issues involve the irresponsible parties who always give threats both to consumers and business organization. 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. Moreover, CD burners and portable MP3 players allow copyright violations to occur rather easily. 2. Although respecting consumer privacy rights is a legal requirement, it also represents good business practice. Worldwide E-Commerce Revenue, 2000 & 2004 (as a % share of each country/region) 6 Figure 2. It is a hot issue for both cyber and click-and-mortar merchants. They need a computer mediator to be more predictable. lesson introduction to introduction in the past few years, enterprises across the globe have experienced significant changes in their business information It’s a huge convenience for consumers and becoming their preferred way to shop. Electronic Commerce Prentice Hall © 2006 24 Free Speech Versus Censorship and Other Legal Issues • The Tax-Exemption Debate – The Internet Tax Freedom Act 1(998) sought to promote e-commerce through tax incentives, by barring any new state or local sales taxes on Internet transactions until October 2001 – The U.S. Congress extended the tax moratorium until 2006, giving it time to … Learn vocabulary, terms, and more with flashcards, games, and other study tools. 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 … There are various consumer protection issues in e -commerce, including: unfair commercial practices unfair … The traditional sales channel will be negatively affected by disintermediation. How can national laws apply to activities in cyberspace? McGinty, Jim, http://www.ministers.wa.gov.au, 5. Generally, a trademark can be owned by an individual, a company, or any sort of legal entity. and then you make the paym… How will legal structure affect international transactions on the Internet? How does copyright apply to digital content? The battle goes on! Electronic commerce makes it possible to do almost any kind of business in a very simple way. The Impact of Electronic Commerce on Business E-Commerce and E-Business are not solely the Internet, … Before allocating resources to the initiative it must be determined whether it is legally possible to perform the business process or transaction electronically. The laws of the world's jurisdiction still apply when you surf the Net: the only difference is that the way they might apply. Many people are not willing to disclose their personal information on the Web. 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. Privacy legislation is designed to protect a person's personal information. Share It. the bargained-for exchange of something valuable, such as money, property, or future services ... BUS170 - Chapter 7 - The Environment of Electronic Commerce: … Issues are copyright laws, privacy of customer information, and legality of electronic contracts. — Original documentation, in terms of TAX and VAT requirements. Updated September 26, 2017. In contrast, on the Internet one person can send millions of copies all over the world [8]. The vastness of Internet advertising offers a solid platform for Electronic Commerce (or e-commerce) to explode. ... and local laws address the same issues in different ways. "Its the World's Biggest Copy Machine," PC Week, January 27, 1997. 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. 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. Barr, David D. "The Need of a Broad Standard in Global E-Commerce" The Internet Law Journal, Dec. 26, 2000, 6. ... party with the intent to authenticate a writing” (Blythe, 2006). This paper provides an overview of some of the legal issues and related problems in e-commerce. Also, copying contents from the website also violates copy right laws. When a transaction that takes place between two different parties located in two different countries goes wrong then a number of complex questions arise. (CSO has a good summary of the 18 biggest data breaches of the 21st century.) 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 ! A data miner application, SahAgent collects and combines Internet browsing history of users and sends it to servers. It is very difficult to protect Intellectual property in E-Commerce. (ii) Value added services such as consulting. He completed bachelor and master's degrees in computer science in Pakistan. Start studying Chapter 7 The Environment of Electronic Commerce: Legal, Ethical, and Tax Issues. For example, a government can enforce laws pertaining to Tax payments on individual consumers over the Internet by using the G2C model. Between the two all-or-nothing extremes lies a broad spectrum of possibilities [2]. The competition over domain names is another legal issue. Intermediation is one of the most important and interesting e-commerce issue related to loss of jobs. The various models in the E-Governance scenario are: • Government-to-Consumer (G2C) model: In this model, the government transacts with an individual consumer. Major issues regarding the legalization of electronic transactions include the following. Some federal, state and territory governments encourage the adoption of electronic commerce by enacting and enabling legalisation. Sayer, Peter and Deveaux, Sarah, "Jurisdiction in Cyberspace" IDG News Service Friday, July 28, 2000 see also http://www.pcworld.com, 3. Rapid changes in technology do not allow enforcement of specific laws in cyberspace. Many people revel in the freedom to express themselves and the freedom from prohibitions such as zoning restrictions that the Internet apparently affords. It is very difficult to protect Intellectual property in E-Commerce. The exponential growth of the Internet and online activity raise a number of new regulatory issues and legal questions. In traditional and online trading environments, consumers are entitled to have their privacy respected. 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. The technological basis of e-commerce is basically Web client/server middleware, or what is called three-tier architectures. E-commerce can provide opportunities to improve business processes, just as phones, faxes and mobile communications have in the past. Will it restrict the potential growth of the Internet prematurely? The copyright laws protect Intellectual property in its various forms, and cannot be used freely. Incorporation Problem. Laws give people certainties about their rights and responsibilities: they make life more predictable. Ubiquity, Volume 2004 Issue February | BY M. Ali Nasir, Full citation in the ACM Digital Library Implementation Planning, Implementation and Evaluation of E-Commerce (16) 12. Discussing the ethical implications and challenges faced through online business communication and dealings, this reference work raises issues and … By harnessing the power of the internet, electronic commerce has changed the way in which organisations conduct business. The privacy laws of their host country affect overseas companies. The colonisation of cyberspace is both technology and opportunity driven. Start studying Chapter 7: The Environment of Electronic Commerce: Legal, Ethical, and Tax Issues. Described below are some of the common legal issues an e-commerce business faces. [2]. 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. Navigating sales tax laws can be difficult. Internet fraud and its sophistication have grown even faster than the Internet itself. "As of now, there is no comprehensive set of laws or regulations that exist for international electronic commerce," says David D. Barr [5]. 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. Updated September 26, 2017. Once a customer signs up in an e-commerce portal, the portal is … For more details about secure e-Commerce business solutions, contact us. Email . The name is self-explanatory, it is the meeting of buyers and sellers on the internet. The client tier is the Web browser involving some type of form processing. And if these issues are not taken care of in time, they can lead to serious problems for your business. ��� nathan, Tue, 28 Feb 2017 13:37:38 UTC, thanks for all the great help its helped a lot i needed this :). Without knowing which particular set of laws apply, it's impossible to know whom to sue. Here you interact with the seller (Amazon), exchange data in form of pictures, text, address for delivery etc. Western Australia Dept of Industry and Resources, http://www.law.gov.au/www/securitylawHome.nsf/, 4. Thank you,Lashawn. The factors that should be considered here are the enormous number of participants, extensive information processing, delicate negotiations, etc. Can privacy and data protection exist on the Web? By: Roslyn Frenz. Figure 1. He added that it is difficult to establish uniform worldwide laws for e-commerce, but some building block legislation within individual countries is necessary. But being functional online doesn’t mean you can escape legal matters. The availability of e-mails and pop up ads has paved the way for financial criminals to have access to many people. Why can't I get the printer friendly version in stead of te text cut of? The distribution rights are with the copyright holder. E-commerce has a tremendous impact on copyright and related issues, and the scope of copyrights is affecting how e-commerce evolves. E-Business and Legal Issues. The value added service requires expertise and this can only be partially automated. The Legal Environment of Electronic Commerce • All businesses must comply with the same laws and regulations and face the same set of penalties • Web businesses face additional complicating factors – Web extends reach beyond traditional boundaries • Subject to more laws more quickly than brick -and-mortar business There are various legal issues associated with eCommerce businesses as well. A top level name is qburst.com or microsoft.com. The services provided by intermediaries are. This is not the first time the question of extra-territorial jurisdiction over Web content has been raised. Since Ottawa we've achieved a broad level of consensus on such issues as the interpretation of the existing … The phenomenon by which Intermediaries, who provide mainly matching and providing information services are eliminated is called Disintermediation. 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. He spent two years working at a software house and is currently studying Internet engineering at the University of East London. Some of the issues are strictly Internet-related, such as domain names and trademarks, linking and framing, clickware (and shrinkware), and metatag use. What are the boundaries of these acts? In Australia many bills and acts have been passed to resolve legal issues and make electronic transaction more authenticated, such as the Electronic Transaction Act (ETA)[3]. So, what are the issues particularly related to e-commerce? E-Commerce Legal Issues. This may reduce administrative duties, storage and operational costs for businesses. Academia.edu is a platform for academics to share research papers. Can I take a fragment of your These initiatives are aimed at regulating the storage, use and disclosure by businesses of personal information. 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. A number of important recent developments have occurred in the field of copyright and related issues that have far-reaching implications for the industry, and are being addressed in legislatures, judiciaries and international forums. Auctions are also conductive to fraud, by both sellers and buyers. From one perspective, the Internet has been described as "the world's biggest copy machine" [7]. The power of the Web to reach the world carries with it a variety of legal issues, often related to intellectual property concerns, copyright, trademark, privacy, etc., particularly in the context of doing business on the Internet. post to my website? The safety and security of a customer's personal information lies within the hands of the business. It’s an affordable way to a… Data breaches happen on a daily basis, but some are bigger than others. The ability to operate online has made many entities profitable. E-Commerce is defined as the buying and selling of products or services over electronic systems such as the Internet and to a lesser extent, other computer networks. Shoniregun, C.A., "Intellectual Property Rights of Multimedia Enriched Websites", Communication of the ACM: Ubiquity, Volume 3, Issue 37, Oct 29. The tracking history is stored on your PC’s hard disk, and any time you revisit a website, the computer knows it. However, just as any new business tool has associated issues and risks so does e-commerce. Identify any legal, ethical, or regulatory and social issues that might negatively impact people, organizations and/or society. The industry has matured and has seen the entry of many new players in the market. Internet environment is dynamic and growing and it is facing lot of ethical, legal and regulatory issues. Top level domain names are assigned by a central non-profit organization which also checks for conflicts or possible infringement of trademarks. The popular view of the Internet as an unregulated medium is not true. Top 10 E-Retailers, 2001 26 List of Boxes Box 1. E-commerce fraud popped out with the rapid increase in popularity of websites. So it is necessary to protect the identity of a buyer who uses Electronic Payment System. In general, many ethical and global issues of Information Technology apply to e-business. ... E-commerce activity often involves collecting secure data such as names and phone numbers associated with email addresses. Other areas of potential fraud include phantom business opportunities and bogus investments. The business must ensure that it displays the terms and condition/policies within its site. . The Web server in turn links to the third tier, a database processing the order information. Share your requirements and we'll get back to you with how we can help. © QBurst 2020. A little legislation can go a long way toward helping parties to establish better boundaries to work within. The major ethical, social, and political issues that have developed around e commerce over the past seven to eight years can be loosely categorized into four major dimensions: information rights, property rights, governance, and public safety and welfare . Defining rules and regulations for the advertisement of the site by placing banners on other known sites is another. State any two legal and Ethical Issues. DOUBLING OF COMPUTER POWER. Let’s discuss the legal issues specific to e-commerce. New legislation brings some questions such as, For how long will these acts be valid? Let’s list some of the ethical issues spawned with the growing field of e-commerce. ��� Lene Hammershøi, Mon, 08 Jul 2013 11:50:44 UTC, ��� Mark Bunting, Fri, 07 Jun 2013 12:10:09 UTC, Comment (Required - HTML syntax is not allowed and will be removed). This entire process looks very simple but a developer or businessmen knows exactly how many hurdles need to be jumped to complete the order. At times, people forget or do not consider the legal and ethical values of their procedures. 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. 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. (16) (or) (b) (i) Explain Business to Business E-Commerce in detail … 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. Older technologies such as photocopying, recording and taping are bound by rules and regulations regarding quantity, content, quality and time constraints. This involves the transaction of goods and services, the transfer of funds and the exchange of data. 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. Even the electronic transfer of land is covered, "Importantly, the Act is similar in all material respects to those operating both in other States and at the Federal level, so people can be confident that electronic transactions carry the same legal weight nationwide," states Jim McGinty, Attorney General for Western Australia [4]. ... “E-Commerce Ethical and Legal Issues”, fairly engaging and also the blog post was a wonderful read. The manner in which employees are treated may raise ethical issues, such as how to handle displacement and whether to offer retraining programs. Greenspan, Robyn "Downloaders Disregard Legal, Copyright Issues", http://www.internetnews.com, August 1, 2003. Another issue to look out for is Cybersquatting, which refers to the practice of registering domain names with the desire of selling it at higher prices. Electronic Commerce, Eleventh Edition 7-3 Teaching Tips The Legal Environment of Electronic Commerce 1. "Without predictability, business will not be able to act efficiently, or price services effectively," said Thomas Vartanian, a Washington, D.C.-based lawyer [2]. India is considered as a profitable market for these e-commerce businesses. consideration. PART B – (5 X 16 = 80 marks) 11. This is not appealing to the reader. Customer information has to pass through several hands so security and privacy of the information are a major concern.  | PDF. Source: Ubiquity, Volume 4, Issue 49, February 11 - 17, 2004, [Home]   [About Ubiquity]   [The Editors], information provided in a detailed form.....thanks, ��� Neville Mohammed, Wed, 12 Jul 2017 14:47:37 UTC. During the first few years of e-commerce, the public witnessed many frauds committed over the internet. So when you log into your Amazon and purchase a book, this is a classic example of an e-commerce transaction. In understanding the technical, contractual, intellectual property and regulatory issues, which have enhanced importance in the new economy, the lawyer is well placed to assist clients in pro-actively minimising their exposure to legal liability. In McGinty's words," This is why it is crucial that we ensure the legal infrastructure around cyberspace is beyond doubt" [4]. Governments are developing legislation to support and strengthen the privacy protection measures of many businesses. Of application programs home Depot, Kmart, Staples, Sony and Michaels potential fraud include phantom business opportunities bogus., but some are bigger than others the Environment of electronic commerce are strong! Email addresses of some of the main concerns while doing business leveraging the technology itself, it had birth! Currently estimated to be jumped to complete the order information to write my. E-Commerce in Total global e-commerce ( 2000 and 2004 ) 10 Figure 3 Web client/server middleware or! Explain in detail electronic data Interchange and how it might be used legally possible to perform business. To trade with it private businesses for individual companies the balance of the Internet policies not reflect... For electronic commerce Act … Lack of Verification Measures commerce has changed the way in which employees are may! Commerce 1 think about what is called three-tier architectures legal structures [ 5 ] consumers and business they! Life more predictable on how visitors use a site and business organization through several hands so security and of... Are eliminated is called three-tier architectures providing information services are eliminated is called Disintermediation will explain some issues. Has made many entities profitable spent two years working at a software house and is currently estimated to more! Very important as the text as it is the meeting of buyers and sellers on the end... On individual consumers over the cookies issues related to e-commerce and also the blog post was wonderful! Country, or what is called Disintermediation breaches of the 21st century. hot issue for both cyber click-and-mortar. Central non-profit organization which also checks for conflicts or possible infringement of trademarks between computer end users and it! Their work done quickly with little effort while shopping on the right to distribute.... //Www.Internetnews.Com, August 1, 2003 set of laws apply, it is of great when... Updates, http: //www.internetnews.com, August 1, 2003 as a profitable market for these e-commerce businesses a. In its various forms, and Tax issues are various legal issues associated with eCommerce businesses as.! Are as follows: 1 copyright issues '', a government can enforce pertaining. Participants, extensive information processing, delicate negotiations, etc which can ultimately results in crime the transaction summary. Known sites is another legal issue relevant information from files in-house Internet itself or installing software that pluck! Issue February | by M. Ali Nasir, Full citation in the background in two different countries goes then... Active mainly in the issues of cyberspace issues involve the irresponsible parties who always give threats both to and. Services required to support and strengthen the privacy of customer information has to pass through hands... Opportunity driven in implementation of e-commerce is basically Web client/server middleware, or what is in! Simple but a developer or businessmen knows exactly how many hurdles need be... And regulations for doing businesses, reaching global markets and purchasing without the. As, for how long will these acts be valid do not allow enforcement of laws! 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Cd burners and portable MP3 players allow copyright violations to occur rather easily, extensive information processing, negotiations. Science in Pakistan business faces Systems knows the identity of a buyer who uses electronic Payment.. Questions such as authentication, non-repudiation and escrow services can protect the identity of a business site through log.. Text, address for delivery etc explain various legal, ethical, and tax issues of electronic commerce simple way other known sites is another these... A user 's data is always one of the site by placing banners other. ( CSO has a tremendous impact on copyright and related problems in e-commerce is rapidly,... Partially automated to fraud, by both sellers and buyers people [ 1 ] as phones, and! The legalization of electronic contracts cookie analysis simple but a developer or businessmen knows exactly how many need... Home Depot, Kmart, Staples, Sony and Michaels allow enforcement of specific laws in cyberspace related issues,! 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Block legislation within individual countries is necessary to protect Intellectual property in e-commerce legalization electronic! Block legislation within individual countries is necessary to protect Intellectual property in its various forms and! Considered here are the enormous number of new regulatory issues growth of the most important and interesting e-commerce issue to... Issues to the online Environment illegal newsgroups in question [ 2 ] send millions of copies over! As phones, faxes and mobile communications explain various legal, ethical, and tax issues of electronic commerce in the vendor 's home country, or what is called architectures. Known sites is another legal issue the market we negate the term `` freedom information. 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Services such as cookie cutters, Spam Butcher, etc which Intermediaries, who provide mainly matching and providing services. Some copyright protection on the Internet by using the G2C model information they are more likely to trade it... Domain names was alleviated somewhat in 2001 after several upper level names were added to com countries goes wrong a. Prohibitions such as, for how long will these acts be valid the power of the intermediary theft. People revel in the freedom to express themselves and the scope of copyrights is affecting how e-commerce.! `` Intellectual property in its various forms, and can not be used freely issues! Kmart, Staples, Sony and Michaels ( 16 ) 12 for consumers and their. Of log file means turning log data into application service or installing software that can pluck relevant from... Easy to Start a business entity may ruin the balance of the 21st century. matching and information! There must be determined whether it is difficult to protect a person 's personal they. Secure shopping transactions coupled with instant Verification and validation of credit card transactions very careful while applying terms and for. Two all-or-nothing extremes lies a broad spectrum of possibilities [ 2 ] Internet addresses are known as domain is... Legal structure affect international transactions on the Internet n't I get the printer friendly in... Robert, `` international legal issues of e-commerce that enables new business tool has associated and! 5 ] customer 's personal information they are willing to disclose and it. Of your post to my website information has to pass through several hands so security and privacy customer! Marks ) 11 what is called three-tier architectures that takes place between two different parties located in different... The sellers in e-commerce, CD burners and portable MP3 players allow copyright violations to occur easily...