They can vary from state to state and from country to country. Also, Section 10A of the Information Technology Act, 2000 (IT Act) provides the validity of the e-contracts. Not getting trademark protected is one of the main legal issues in the field of E-Commerce. In deciding the case, the Court said that the Lanham Act, the primary trademark statute of law in the United States, was enacted for the protection of both the consumer and the registered trademark owner. The concept of personal jurisdiction is fundamental in e-commerce disputes. Described below are some of the common legal issues an e-commerce business faces. Make sure that there is a clear separation between business and personal assets. If you don't secure it, it won't take long before you'll realize your trademark is being infringed upon. In the world of e-commerce, data is very important if you want to increase your revenue. Do you allow users to post content on your website? The rise of the Internet has impacted virtually every branch of law and is expected to revolutionize the relationship between law, government, and technology. In the same year, big tech companies were questioned by Congress, and in that hearing, Jeff Bezos admitted that even he wasnt sure that Amazon had not used seller-specific data to help its own private-label business. They considered the etching out of the codes a material difference and that the unauthorized resale of a materially different product constitutes infringement. Do you have an internet-based business? 8) Legal issues. Internet businesses have a legal obligation to protect the private information of their customers. Save my name, email, and website in this browser for the next time I comment. E-commerce site development, its advertising, electronic and financial transactions may involve many legal issues which must be taken into account. Dont use your own credit card for business transactions. Many legal issues are related to e-commerce. In the era of copy-paste and Save image as, its easier to infringe on someones intellectual property unknowingly. Terms and conditions must be specific depending upon the nature of the goods & services offered and not generic. There are a number of barriers to e-commerce business in Pakistan which are either economical, technological or legal which causes slower progress If we do not abide by the rules, we can get into serious law violation problems. In January 2020, California passed the California Consumer Privacy Act (CCPA) that forces companies to provide more information to consumers about how their data are used. What Can a Seller Do to Avoid Intellectual Property Infringement? Over the past few years, global trade has expanded due to the explosive growth of electronic commerce. According to common law of business, the "" symbol . Davidoff & CIE, S.A. v. PLD International Corp. What Should You Do to Protect Your Products from Unauthorized Resellers? Hence, physical presence within a defined territory is . Online businesses should always remember to first incorporate their business, as this will offer them more protection against possible legal issues and implications. Put your money in places which are not attachable. Lancaster Group US LLC is exclusively licensed to distribute these products in the United States. They can also face legal issues for which they can get help from an experienced e-commerce lawyer. Apples iOS update allows users to disable tracking. Sales of Goods Acts include regulation about paper-based contracts. Getting and maintaining your customer base is one of the most tough-to-crack ecommerce challenges. This can provide you with a safe-harbor if your users post copyrighted material, but your site must have a DMCA policy and you must follow DMCA protocols. When buyers and sellers do not know each other and cannot even see each other (they may even be in different countries), there is a chance of fraud and other crimes over the internet. [6] However, despite the established legal framework for online . Sellers who are not careful can face hundreds of thousands worth of liability. Conducting business online or maintaining a website may subject businesses to unforeseen legal liabilities. For the development of mobile apps, E-Commerce is a highly booming sector that is facing some kind of legal issues. Since were talking about infringement, one of the best ways to protect your products is to register your trademark. The legal issues are as follows: Trademark is used to identify a corporation or a company. Every five in eight companies are operating online, conducting e-commerce business. Required fields are marked *. India is considered as a profitable market for these e-commerce businesses. And if these issues are not taken care of in time, they can lead to serious problems for your business. Your email address will not be published. It is also worth keeping an eye on your state's legislation. Save my name, email, and website in this browser for the next time I comment. Contractual Agreements. Obtaining users' consent to collect and store information (i.e., via "cookies") E-commerce businesses that market goods or services to European residents must comply with the EU General Data Protection Regulation (or GDPR). International Business Legal Issues . If the reseller obliges, then you may not want to take further action. reach@cidm.co.in. The conception of corporate governance trends' is not a goal in itself; rather is only the o A bond is an important agreement that protects a lender from losses if the borrower defaults. The major legal and ethical matters facing electronic commerce today include: user privacy, infringement of claims on intellectual property, taxation, computer crimes and consumer protection (Green, Alster & Borrus, 2007). Another common legal challenge that you may face with your online business is the considerations around contractual arrangements. Yes. Commerce where businesses sell commodities to buyers through the Internet. E-commerce legal issues have seen a generation of new players and the merging and acquisition between several old players. Whether for website development and design, hosting, scheduling, payment processing, advertising, or a host of other services, you likely have contracts in place to govern your relationships with these providers. In the daily running of their business, it is. Keep your site backed up regularly so you dont have to start from scratch when your data is stolen. (Note: Amazon has a special set of rules for its. Described below are some of the common legal issues an e-commerce business faces. If e-commerce businesses lead to exposure and advantages for businesses online, then it certainly has given rise to some legal issues too that can be avoided by keeping in mind the rules and laws framed by Australian Government. But this time, it was their own technical issues that caused the disclosure of customer information. This might mark an end to your e-business. E-Commerce is understood to mean the production, distribution, marketing, sale or delivery of goods and services by electronic means. Hence, it is crucial for an online business portal consider such possibility and provides a form on the website stating that the individual with whom it is trading or entering into the e-contract has attained the age of majority. Talk to a lawyer to make sure youre not committing IP infringement. The law does not require the presence of defects or inconsistency in the good quality; neither any reason for return has to be mentioned. In the midst of this legal confusion, India is one of the few countries across the globe that has enacted an E-Commerce legislation. Legal Issues Faced By E-Commerce Businesses, Study in Regional language & Problems Faced by Students In Higher Education, The Importance of Copyrights, Patents and Trademarks in Business, Is Education 4.0 the Future Learning in the Digital Revolution. A discussion of legal issues in documenting e-commerce transactions begins with basic questions, such as what constitutes adequate . Five out of eight businesses operate online and are operating e-commerce businesses. The middle tier is the Web server, often with transaction processing. In recent years, more and more states and localities are requiring e-commerce platforms collect sales-tax for delivery of goods and services. Create your own images for your listings and advertisements. Learning Legal Legal Issues Pertaining to E-Commerce. . Contents Product Liabilities Intellectual Property Infringement Data Breach and Privacy Issues Unauthorized Resellers Selling Your Products MAP Policy Compliance ADA Trolling Conclusion Product Liabilities If youre a reseller, make sure youre doing business with a legitimate supplier or manufacturer. One method has been to attempt to compel a user to either provide his password or decrypt the data contained in a device . www.legal-issues-in-ecommerce.ae Anita Siassios a.siassios@tamimi.com June 2013 With the GCC region tipped as being the world's fastest-growing market for e-commerce, it is easy to understand how many traditional "bricks and mortar" stores are establishing an online presence alongside the ever-increasing number of online outlets. Buckyballs creator Craig Zucker made a fun toy he could sell to earn extra income. Any word, sentence, symbol or design is used as a trademark. If, for example, a product you are reselling advertises something on the label, Hilfer Law says it is unlikely that the retailer will be liable. So make sure those are protected too. Section 10A of the Information Technology Act, 2000 ( "IT Act . A key concern is to identify all laws governing transactions made on an e-commerce platform. This next legal issue is also connected to resellers. Both the Indian Contract Act and the IT Act must be read in conjunction to understand the legal validity of e-contracts. Let's take a look at some of the most common legal issues e-commerce sellers face and the things you can do to avoid them. 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. Most electronic payment systems know the identity of the buyer. 1. A more detailed definition of e-commerce is, The use of electronic communications and digital information processing technology in business transactions to create, transform, and redefine relationships for value creation between or among organizations, and between organizations and individuals.. PDFs are more convenient for reading, but they are not readable by many assistive devices. If youre a reseller, avoid making material differences to the product (more on this later). Potential issues for e-commerce players would be price fixing or tacit collusion or anti-competitive discrimination or refusal of access to third parties. Even if you facilitate the purchase and delivery of products or services entirely online, you are still running a business with all of the legal advantages and pitfalls that entails. The Information Technology (Reasonable security practices and procedures and sensitive personal data or information) Rules, 2011 and the Section 43A of the IT Act together provide a structure and guidelines for the protection of data in India. If these issues are not taken care of in time, they can lead to serious problems for a business. Invest in small business cyber insurance. E-commerce has revolutionized the business world by providing a wide range of cost effective opportunities for conducting business In different global markets from the convenience of homes and offices. The contracts often have specific clauses to deal with such privacy concerns and they bind all employees, agents, and subcontractors. Without incorporation, the business has no shelter. When it comes to online businesses, privacy is the major issue that can create problems both for the business and customers. The technological basis of e-commerce is basically Web client/server middleware, or what is called three-tier architectures. In fact, this was its main argument in the case of Bolger v. Amazon when it was sued for a defective laptop replacement battery that exploded and burned one of its customers. hence, the paper succeeded in identifying some of the issues and challenges facing the smooth operation of e-commerce in nigeria which include: the general attitudes of our legislatures and. While publishing content for your e-commerce website, using content of any other company can be a severe legal problem. 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