Legal issue and Ethical Issue - GATE PDF Download

Ethical Issues in E-commerce:-

1. Web Spoofing: – It is an electronic fraud which relates to the internet. It occurs when the attacker sets up a fake website which almost the same as the original website in order to trap consumers to give their credit card number or other personal information.

2. Cyber-Squatting: It is registering, trafficking in, or using an internet domain name with bad faith aim to profit from the goodwill of the trademark belonging to someone else.

Piracy Invasion: – It occurs when the personal details belonging to customers are exposed to the unauthorized party.

3. Online Piracy: – The online piracy can be defined as unauthorized copyright of electronic intellectual property such as: E-books, music or videos, etc. This unethical activity occurs when the internet user uses the software and hardware technology in an illegal manner to transfer the electronic intellectual property over the internet.

4. E-mail Spamming: – It is type of electronic spam where unsolicited messages are sent by emails. The individual who spam others email is usually called spammer. Many spammers broadcast their email for the purpose of trying to get people’s financial information such as: credit card or account bank numbers in order to defraud them.

Legal Issues: –

There is a chance of criminality over internet when buyers and sellers do not know each other and cannot even see each other. During the first few years of e-commerce the public witnessed many frauds committed over the internet. Some legal issues of e-commerce are as follows:-

1.E-Contract:- Electronic contracts are governed by the basic principles provided in the Indian Contract Act,1872, which mandates that a valid contract should have been entered with a  free consent and for a lawful consideration between two adults. Section 10A of the Information Technology Act, 2000 provides the validity to e-contracts.

In the case of Trimex International FZE Ltd.  Dubai Vs Vedanta Aluminum Ltd.,  the supreme court has  held that e-mails exchanges between parties regarding mutual obligations constitute a contract.

In an online environment, the possibility of minors entering into contracts increases, more so with the increasing usage of online medium among teenagers (minors here) and their preference to shop online or purchase online goods and services.

2. Copyright and Trademarks:- the copyright and trademark laws protect Intellectual property in its various forms, and cannot be used easily. It is very difficult to protect Intellectual property in E- commerce. For example, if you buy software you have a right to use it and not the right to distribute it, the distribution rights is with the copyright holder. Also, copying contents from the websites also violates copyright.

3. Domain Names:- The competition over domain names is another legal issue. Internet addresses are known as domain names. Problem arises when several companies have similar names competing over the same domain names. Security features such as authentication, non-repudiation and escrow services can protect the sellers in e-commerce. One needs to be careful while doing e-commerce activities.

4. Security:- Security over the Internet is of vital importance to promote e-commerce. Companies that have sensitive information on their websites must ensure that they have adequate security measures to safeguard their websites from any unauthorized intrusion.

A company could face security threats externally as well as internally. Externally, the company could face problem from hackers, viruses and Trojan horses and internally, the company must ensure security against its technical staff and employees.

Jurisdiction Issues:- Applicable law and choice of forum are different concepts that must both be addressed while addressing internet jurisdiction concerns. Applicable law refers to which country’s law will be applied to a particular dispute. While some contracts will specify which law governs should a dispute arise, where such a clause has not been included. It is left to the courts to determine which law should be applied.

The list of issues in e-commerce are not limited to only these points, there are also many issues related to e-commerce business.