Category Archives: E-Commerce Laws In India

Cyber Due Diligence For Paypal And Online Payment Transferors In India

Online payment management in India has become a very lucrative business. The main reason for the same is the recent growth of e-commerce in India. Further, although cash on delivery is the premier mode of payment in India for e-commerce transactions yet a gradual shift to cashless and online payments is happening in India.

For instance, Internet banking guidelines in India by Reserve Bank of India (RBI) have been issued more than a decade ago. Similarly, an integrated banking system of India is in pipeline. Thus, the banking, financial and regulatory environment in India is changing and it is moving towards Internet banking, online payments and e-banking.

However, online shopping in India has certain legal and cyber security issues to be taken care of. For instance, cyber law due diligence in India is an area that e-commerce and online payment players must take care of. Cyber law due diligence for Indian companies is one of the most frequently litigated aspect in India. Lack of cyber law awareness and cyber due diligence awareness is the main reason that many websites and companies have been recently prosecuted in India.

Recently it has been reported that PayPal is planning to expand its domestic presence in Asia, where it has up to now been used mainly for international payments. PayPal is particularly eyeing upon markets of India and China that have huge potentials. PayPal has already applied for a license to work domestically in China and it also plans to do so in India with an eye toward entering Indian market next year. PayPal may also explore and establish mobile-payment system that is in great demand these days.

Even healthcare and pharmaceutical companies are exploring use of e-commerce for increasing their customers and profits. Many pharmaceutical companies are exploring digital communication channels for drugs and healthcare products in India.

E-commerce stakeholders, including online payment players, are required to comply with techno legal requirements in order to do their business legally and effectively. Further, we need dedicated e-commerce laws in India that can cover various techno legal and due diligence aspects. Till clear cut liabilities and rights are demarcated, it is advisable to stay on the side of legal compliance.

E-Commerce Regulations And Laws In India

Electronic commerce is an area whose legal formalities cannot be taken lightly. Electronic commerce involves multiple jurisdictions and at times multiple laws of different countries are applicable to a single electronic commerce website.

Further, the landscape for electronic commerce dispute resolution in India is also fast changing. With more and more stress upon online disputes resolution (ODR) in India electronic commerce disputants now prefer ODR as a mechanism for dispute resolution. Corporate disputes resolution through ODR in India is also being explored. E-courts and ODR have also added their own valued to electronic commerce and corporate dispute resolutions in India.

Electronic commerce in India is witnessing a good growth due to progressive policies and liberal foreign direct investments (FDIs). E-commerce uses information and communication technology (ICT) to operate. Although many technological aspects are also taken care of by an e-commerce platform, yet establishment and running of an e-commerce website is the most important requirement.

Internet is boundary less and a website hosted in a particular country can be accessed from any part of the world. Further, there may be cases where a websites located in a particular country may attract legal jurisdictions of multiple countries. Thus, compliance with the laws of the principal country as well as those countries where such e-commerce websites targets audience and customers is of prime importance.

There have been instances where e-commerce websites located in India failed to observe cyber law due diligence in India and e-commerce regulations and laws in India. Criminal trials and criminal liabilities have been imposed by Indian legal system upon such websites. The bazee.com case and the criminal and civil trials against companies like Google, Yahoo, Facebook, Microsoft, etc are few examples of the same. Such cases against e-commerce websites and foreign companies would further increase and e-commerce players must appoint nodal officers in India to comply with Indian laws.

Thus, not only legal requirements for undertaking e-commerce in India are stringent but even Internet intermediaries liability in India must be taken seriously by companies engaged in online transactions and businesses. We have no dedicated e-commerce laws in India but the information technology act 2000 (IT Act 2000) covers basic level e-commerce legal framework in India. The IT Act 2000 also prescribes cyber due diligence for foreign websites in India.

E-commerce due diligence in India is a much needed requirement that all e-commerce players, whether Indians or foreign, must undertake as soon as possible. Non observation of local and foreign laws can tarnish the image and brand of a company that cannot be regained again. It is better to err on the side of precaution rather than caught on the wrong side of the law.

Cyber Laws In India

Cyber laws in India are very much required especially to manage the culpable dealings of big corporate houses. IT frauds and cyber crimes in Indian companies are increasing at a great speed. Currently there is no cyber due diligence for Indian companies that has been mandatorily provided by the Indian Companies Act, 1956.The Information Technology Act, 2000 (IT Act 2000) is the sole cyber law of

Electronic Commerce Laws In India

Technology has brought many important changes the way we deal in our day to day lives. Whether it is e-governance or e-commerce, individuals and companies are equally benefited due to use of technology.

Realising that cyberspace can bring many commercial benefits; both individuals and companies are ensuring that they have strong online presence. More and more brand promotion and protection in India are done these days in an online environment. Companies and individuals are also ensuring domain name protection in India so that their reputation and goodwill is not misappropriated by others.

We have no dedicated e-commerce laws in India. However, the information technology act 2000 (IT Act 2000), which is the sole cyber law of India, is regulating the e-commerce business and transactions in India. Internet intermediaries liability in India under the IT Act 2000 is very stringent. Cyber law due diligence in India is one aspect that all e-commerce site owners must frequently engage in.

Electronic commerce in India (E-commerce in India) has slowly and steadily entered the Indian market. Toady from tickets booking to purchasing of good and services, everything happens in an online environment.

Of course, where commercial transactions occur, disputes and differences are bound to occur. To prevent and resolve these disputes we need norms, regulations and laws that are acceptable to all the stakeholders.

The e-commerce law of India is primarily incorporated in the information technology act, 2000 (IT Act 2000) that takes cares of legal obligations of both sellers and buyers of good and services in cyberspace.

The IT Act 2000 prescribes rules and norms for online contract formulation. The traditional concepts of offer, acceptance etc, as applicable under the contractual laws, have also been covered by the IT Act 2000. The only difference is that they have been customised as per the requirements of cyberspace.

However, e-commerce transactions and contracts also attract certain additional legal liabilities that e-commerce players in India are not very much aware. For instance, very few e-commerce players in India are aware that they are “intermediaries” within the meaning of IT Act 2000. Further, there are very few e-commerce lawyers and law firms in India that can provide expert services in this regard.

Further, other laws, including intellectual property laws, make these e-commerce players labile for civil and criminal actions. For instance, these e-commerce players can be held liable for online infringement of copyright in India of the copyright owners.

Similarly, if any person posts an offending material at the e-commerce site or otherwise deal with the e-commerce site in an illegal manner, the e-commerce site owner may find himself in trouble.

Cyber law due diligence in India is one aspect that all e-commerce site owners must frequently engage in. The present laws of India are stringent in nature and subsequently claiming ignorance of such laws would not make much difference.

Perry4Law and Perry4Law Techno Legal Base (PTLB) strongly recommend that before opening an e-commerce site or business, the owner of the same must consult a good techno legal law firm that can advice him upon all the possible and applicable aspect of e-commerce laws in India.

E-Commerce Laws In India

Technology has brought many important changes the way we deal in our day to day lives. Whether it is e-governance or e-commerce, individuals and companies are equally benefited due to use of technology.Realising that cyberspace can bring many commercial benefits; both individuals and companies are ensuring that they have strong online presence. More and more brand promotion and protection in

Social Media Laws In India

Social media laws in India are in limelight these days. Social media websites are very popular among technology savvy as well as ordinary Netizens. More and more Netizens are joining social platforms to share their opinions, views, data and details. However, social networking laws in India are not adequate and properly drafted.Social media includes social networking sites, blogs, forums, wikis,

E-Commerce Laws In India

Information and communication technology (ICT) has changed the way we make our commercial transactions. Even payments for such online dealings and transactions can be made through an online mode. One such commercial use of ICT is electronic commerce.Electronic commerce in India (E-commerce in India) has slowly and steadily entered the Indian market. Toady from tickets booking to purchasing of