When it comes to online businesses, privacy is the major issue that can create problems both for the business and customers. 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. Any word, sentence, symbol or design is used as a trademark. Since were talking about infringement, one of the best ways to protect your products is to register your trademark. How disputes are resolved. The main legal and ethical issues facing e-commerce today are: user privacy, infringement of intellectual property claims, taxation, computer crime, and consumer protection (Green, Alster & Borrus, 2007). The middle tier is the Web server, often with transaction processing. Do you allow users to post content on your website? The terms of liability. E commerce is also referred to as internet business and online business are frequently interchanged, and can often be considered synonymous. 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. Buckyballs creator Craig Zucker made a fun toy he could sell to earn extra income. Selected Legal Issues Of E Commerce Law And Electronic Commerce Encryption: Selected Legal Issues Congressional Research Service 2 from the various ways the government has attempted to access data stored on a smartphone. It is the legal liability that is incurred for producing or selling a faulty product. They can vary from state to state and from country to country. This means if you have a MAP policy with your manufacturer and it indicates the MAP to be $50 per unit, you cant advertise that youre selling it for $45. Setting the Ground-Rules with your "Terms & Conditions" We can't expect such growth without any challenges. Described below are some of the common legal issues an e-commerce business faces. Give us a call today. However, matters arise regarding the rationale under which these e-contracts are tailored, initiated, implemented and enforced particularly because most of the paperwork is replaced with electronic documents. As this article has shown, data privacy and security are not always straightforward when it comes to the world of e-commerce. 47 Domestic laws are inadequate to cover all the legal requirements of e-commerce related issues. So make sure those are protected too. Laws and Liabilities Involved in Data and Privacy Issues. In addition, illegal acts are a breach of the law, while unethical acts are not necessarily illegal (Stewart, 2008). India is considered as a profitable market for these e-commerce businesses. The list below doesn't cover every legal issue relevant to e-commerce, but it goes to show that e-commerce (while still a little bit eye-glaze-y) is very juicy when it comes to legal implications. Not being prepared often leads to future legal disputes and large costs. You as a business owner should not get involved in the day-to-day operations with respect to anything that might result in infringement. E-commerce legal issues have seen a generation of new players and the merging and acquisition between several old players. There are various legal issues associated with eCommerce businesses as well. By Sylvia Dennis; January 20, 2000 12:00 AM PT; Email Article; . Legal issues are tackled in the "Legal Issues" section and include discussion of jurisdiction, recognition of electronic contracts, consumer protection, dispute resolution, and privacy. If youre an Amazon seller, your account could be suspended immediately if there are reports of infringement on someone elses patent, copyright, or trademark. Sale by unauthorized resellers harm your business for a couple of reasons: Heres a case to start us off with this legal issue. In the world of e-commerce, data is very important if you want to increase your revenue. It was a dream-come-true turned into a nightmare. by admin | Feb 5, 2021 | Prof.Shruti N Acharya | 0 comments. You will be violating the law if you disclose them without consent. The frequent improvement in the laws and rules and regulations shall make the e-commerce legal issues marketplace a pleasant experience for the consumers. E-contracting is 'the automated process of entering into contracts via the parties' computers, whether networked or through electronic messaging.'. An international business transaction can arise for an eCommerce company whenever they receive a product order and ship products to a foreign customer, or purchase goods from a foreign supplier. Outshining the vast competition. Liability suits are quite common in the e-commerce industry, but there are some things you can do to minimize your risks: Whether its intentional or not, IP infringement is a topic that brands take very seriously. Conducting business online or maintaining a website may subject businesses to unforeseen legal liabilities. That was a 4.2% increase from the first quarter of the year (2015). The rise of the Internet has impacted virtually every branch of law and is expected to revolutionize the relationship between law, government, and technology. Unauthorized Resellers Selling Your Products, E179: Trademark Protection and the Importance of Being Amazon Brand Registered, Amazon Continues to Cut Costs After Its First Prime Early Access Sale, How to Start Your Ecommerce Business in 7 Steps, How to Earn as an Amazon Influencer [2022 Guide], https://www.barrysookman.com/2021/01/04/top-legal-developments-in-e-commerce-privacy-and-intellectual-property/. When a product turns out to be dangerous, putting the blame on the manufacturer is an obvious move to make. Yes. What Can a Seller Do to Avoid Intellectual Property Infringement? Therefore, if you do not abide by the rules, you can get into serious law violation problems. Whether selling a good or service, your business needs terms in place to govern the relationship between the e-commerce site and website users and/or customers. adopted by the EU and aimed at regulating e-commerce issues is the Directive 2000/31/EC of the European Parliament and of the Council of June 8, 2000 on certain legal aspects . All trade and commerce are operated in a physical world and in terms of tangible goods. In the midst of this legal confusion, India is one of the few countries across the globe that has enacted an E-Commerce legislation. 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. Not getting your trademark protected is one of the main legal issues in the field of e-commerce. Legal Issues Involved in an E-Contract by Bhanu Srivastava and Balendu Bhushan. This was done in order to hide the identity of the vendors who sold the fragrance to PLD. This information can help you improve your business and better meet the needs of your customers. This principle is challenged in e-commerce on account of the nature of the internet which allows parties to trade in a virtual environment. Product Liabilities Product liability is the legal liability that you incur for making or selling defective products. Since trademark is your company's logo and symbol, the representation of your business all over the web, it must be protected. Legal difficulty: Till now all cross-border commercial transactions have to cross the customs barrier or the postal barrier. or office. E-commerce websites are designed and sometimes operated by other parties specializing in the field. Its the retailers responsibility to make sure that what theyre selling is not dangerous or defective. 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.. In recent years, more and more states and localities are requiring e-commerce platforms collect sales-tax for delivery of goods and services. However, when children started swallowing the magnetic balls, he was facing a product liability suit that had haunted him for two years. E-Contracts Both the Indian Contract Act and the IT Act must be read in conjunction to understand the legal validity of e-contracts. But not all e-commerce sellers are private labelers. So how can you protect yourself from being personally liable in infringement claims? This might mark an end to your e-business. Legal Issues Faced by E-commerce Business in Singapore Content Team 3 minutes read 29 May 2022 Last Updated on 29 Jul 2022 Numbers don't lie: Singapore is a thriving e-commerce hub with a compound annual growth rate that's expected to surpass US$10 billion in 2025. Ecommerce firms must continue by specific laws and regulations just like any other business. Abstract The E-commerce sector in India has grown at a remarkable pace of 34% Compounded Annual Growth Rate (CAGR) since 2009 and is estimated to grow at a CAGR of 63% to reach ~USD 8.5 billion. We will write a custom Case Study on E-Commerce Strategies, Ethical and Legal Issues specifically for you for only $16.05 $11/page 808 certified writers online Learn More Revenue models refer to strategies established by organizations to explain their intentions and business practices that would earn them income. If the reseller obliges, then you may not want to take further action. LEGAL ISSUES. [4] E-contracts are treated the same as offline contracts [5] according to the Article 9 of the E-Commerce Directive 2000. The swindlers are active mainly in the area of stocks. It is required of the Company to take all reasonable precautions to prevent any corruption, damage, loss or destruction of the private information and/ or data, even upon the termination of the contract between the parties. Therefore, it is necessary to protect the identity of a buyer who uses an . Make sure your website is hosted on a secure platform. I Transform your Business. Its also advisable to get insurance. What Should You Do to Prevent Privacy and Data Breach Liabilities? A difference in the packaging will be considered trademark infringement as well. Not getting trademark protected is one of the main legal issues in the field of E-Commerce. If you don't secure it, it won't take long before you'll realize your trademark is being infringed upon.
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