By: Atul S.

Jaybhaye
Assistant Professor
Hidayatullah National Law University
E- Commerce meaning
 (Electronic commerce or EC) is the buying and selling of goods and
services, or the transmitting of funds or data, over an electronic
network, primarily the internet but also all other activities which are
associated with any transaction.

 It also describes the exchange of data between the financing, billing

and payment aspects of e-business transactions.
 Generally e-commerce and e-business are used interchangeably.
E- Commerce meaning
 E-commerce increases the growth of online business.
It can be categorized under:
 1- Online marketing
 2- Online advertising
 3- Online sales
 4- Product delivery
 5- Product service
 6- Online billing
 7- Online payments
History of E- Commerce
 The beginnings of e-commerce can be traced to the 1960s,
when businesses started using Electronic Data Interchange
(EDI) to send the commercial documents to other companies
like purchase order, invoices.

 Electronic Data Interchange (EDI) is the computer-to-computer

exchange of business documents in a standard electronic
format between business partners.

 Amazon.com was one of the first e-commerce sites in the US

to start selling products online and thousands of businesses
have followed since.
Features of E- Commerce
 Ubiquity
 Global Reach and Security
 Universal Standards
 Information Density
 Richness
 Interactivity
Features of E- Commerce
 Ubiquity:
 It means that the commercial transaction or activity is available at any
time from anywhere in the world. And in today’s business environment,
you should ensure that your website is mobile-friendly as consumers
continually rely on mobile devices for their internet connectivity.
 Global Reach and Security:
 E-commerce allows your company to reach consumers anywhere in the
world. Global reach is the highest number of potential consumers a
business can reach, essentially worldwide access.
 Ensure privacy with a secure e-commerce platform.
Features of E- Commerce
 Universal Standards:
 E-commerce operates on standard platforms with agreed methods and
systems. This is where you should also look at the ease of use of your e-
commerce site and ensure that you are keeping it simple in design and
content. objective is to help shoppers get to what they want faster, and
without running into the unnecessary complexity.
 Information density :
 It relates to the technological capabilities of e-commerce, in that vast
amounts of information can be stored and made accessible very cheaply
and without the need for bulky storage.
Features of E- Commerce
 Richness:
 Richness refers to the content available on the e-commerce platform and
how it used by the consumer. In order to ensure richness to your site,
provide a variety of messages and means, such as videos, text, pictures,
sound, links, SMS and more to enhance customer experience.
 Interactivity:
 Interactivity is the relationship a consumer has with the site, which is
similar to a face-to-face customer meeting in a traditional business. Part
of increasing the amount of interactivity you have with a consumer lies in
your ability to connect with them on an emotional level. This creates brand
trust and loyalty.
The process of E-commerce
The process of E-commerce
 A consumer uses Web browser to connect to
the home page of a merchant's Web site on
the Internet.
 The consumer browses the catalog of
products featured on the site and selects
items to purchase. The selected items are
placed in the electronic equivalent of a
shopping cart.
 When the consumer is ready to complete the
purchase of selected items, it provides a bill-
to and ship-to address for purchase and
The process of E-commerce
 When the credit card number is validated and
the order is completed at the Commerce
Server site, the merchant's site displays a
receipt confirming the customer's purchase.

 The Commerce Server site then forwards the

order to a Processing Network for payment
processing and fulfilment.
Advantages of E-commerce
Faster buying/selling procedure, as well as easy
to find products.
Buying/selling 24/7.
More reach to customers, there is no theoretical
geographic limitations.
 Low operational costs and better quality of
services.
No need of physical company set-ups.
Easy to start and manage a business.
 Customers can easily select products from
Disadvantages of E-commerce
Unable to examine products personally.
Not everyone is connected to the Internet.
 There is the possibility of credit card number
theft.
Jurisdiction issues in cyberspace.
It is difficult to ensure the security or privacy on
online transactions.
Lack of touch or feel of products during online
shopping is a drawback.
Models/types of E- Commerce
Models/types of E- Commerce
 B2B e-commerce is simply defined as e-commerce between companies. This is
the type of e-commerce that deals with relationships between and among
businesses.
 B2B is the portion of the internet market that effects transaction between
business operations and their partners in marketing, sales, development,
manufacturing and support.
 B2B is all about transactions between one organization and their partners. Any
transaction or information associated with development, manufacturing,
delivery, sales and support of products or services is a candidate for a business
to business system.
 It is the largest portion of the internet market place, and the fastest growing.
Laws on E- Commerce
Laws on E- Commerce
 UNCITRAL : What is it ? Why should we be aware
about it ?
 Following the United Nations Commission on
International Trade Law (UNCITRAL) Model Law on
E-Commerce, the Government of India enacted the
Information Technology Act in June 2000.
 The Act facilitates E-commerce and E-Governance in
the country. The Act also establishes a regulatory
framework and lays down punishment regimes for
different cyber crimes and offences.
Laws on E- Commerce
 UNCITRAL : What is it ? Why should we be aware
about it ?

 Adopted on 30 January 1997

 It recommends inter alia that all States give favorable

consideration to the Model law when they enact or revise
their laws in view of the need for uniformity of the law
applicable to alternatives to paper-based methods of
communication and storage of information.
Laws on E- Commerce
 UNCITRAL : What is it ? Why should we be aware
about it ?
 Recognizing the necessity to give effect to the Resolution,
and

 with an objective of promoting efficient delivery of

government services by means of reliable electronic
records, the Government of India enacted the Information
Technology Act in June 2000.
The UNCITRAL model Law: background
 In many countries the existing
legislation governing communication
and storage of information were
inadequate or outdated.
 Many countries lacked in legislations
for dealing with E-commerce.
 Inadequate legislation at the national
level created obstacles to
Basic Principles of the Model Law
1. Analyze purposes and functions of paper-
based requirements (“writing”, “record”,
“signature”, “original”)
2. Consider criteria necessary to replicate
those functions and give electronic data
the same level of recognition as
information on paper.
3. Equal treatment of paper-based and
electronic transactions
Core Provisions of the UNCITRAL Model
Law
 Core Provisions of the UNCITRAL Model Law:

 Article 5 (Legal Recognition)

 Article 6 (Writing)
 Article 7 (Signature)
 Article 9 (Evidence)
Core Provisions of the UNCITRAL Model
Law
 Article 5: (Legal Recognition)
 Information shall not be denied legal effect, validity or
enforceability solely because:
 it is in the form of a data message or
 It is incorporated by reference.
 Article 6: (Writing)
 Where the law requires information to be in writing,
that requirement is met by a data message if the
information contained therein is accessible so as to be
usable for subsequent reference.
Core Provisions of the UNCITRAL Model
Law
 Article 7 (Signature)
 Legal requirement is met in relation to a data message
if a method is used to identify the signatory and to
indicate his approval of the information contained in
the data message.
 Article 9: (Evidence)

 In any legal proceedings, nothing in the rules of evidence

shall apply so as to deny the admissibility of a data message
in evidence solely because it is a data message.
Core Provisions of the UNCITRAL Model
Law
 Other Provisions of the Model Law:

 Article 11 (Use of data messages in contract formation)

 Article 12 (Non-repudiation)
 Article 13 (Attribution of data messages)
 Article 14 (Acknowledgement of receipt)
 Article 15 (Time and place of dispatch and receipt)
Common Problems In E-commerce
 Defective or wrong product delivery;
 Refusal to replace wrong product delivered;
 Refusal or delay in refunding of money transferred for
online purchase;
 Unreasonable delay in delivery of products purchased
online;
 Issues regarding guarantee and warranty of products
purchased online;
 Risky exposure of sensitive personal information
shared for online transactions;
Protection of consumers in E-Commerce
 Indian approach - Consumer Protection Act, 1986.

 The purpose of this Act is to ensure that all customers get

what they deserve or are promised. It ensures that the
consumers aren't cheated by enterprises by checking unfair
trade practices, defects in goods and deficiency in services
in India.
 It's jurisdiction extends to all services, products or
suppliers in the public or private sector including banks,
education, life and general insurance, health services,
retailers etc.
Protection of consumers in E-
Commerce
 According to Section 2(1)(d) of the Consumer
Protection Act, a 'consumer' is any person who buys or
hires any goods or services for a price.

 According to Section 2(1)(b), a 'complaint' can be filed by

I. A consumer;
II. The legal heir or representative of a consumer in case of
the consumer's death;
III. A group of consumers having the same concern;
IV. A voluntary consumer association;
V. The Central or State governments.
Protection of consumers in E-
Commerce
 The Consumer Protection Act,1986:
 The Indian Consumer Protection laws, backed by the
International guidelines are able to protect consumers in e-
commerce even in the absence of explicit laws concerning online
transactions.

 Amount of claim:
I. If the amount is less than Rs. 20 Lakh - District Consumers
Forum;
II. If the amount is more than Rs. 20 Lakh & upto Rs One crore -
Consumer Disputes Redressal Commission of the
concerned State;
III. If the amount is more than Rs. One crore - National
Consumer Disputes Redressal Commission New Delhi.
Protection of consumers in E-
Commerce
 The Consumer Protection Bill, 2018 -
 The bill proposes to replace the Consumer Protection Act 1986, and
this shall also incorporate e-commerce.
 This bill seeks to widen the ambit and modernize the law on
consumer protection due to changes in the market.
 The bill proposes prevention of engaging in business malpractices
and evading taxes, leading to a substantial loss of government
revenue.
 The bill incorporates certain stringent penalties for the offenses
committed by e-retailer.
Protection of consumers in E-
Commerce
 Many organizations are working for the protection of
the consumers. Some of them are:

 Economic Cooperation and Development, (OECD)

 International Chamber of Commerce and
 International Consumer Protection and Enforcement
Network.
OECD Guidelines for Consumer
Protection
 Economic Cooperation and Development
 E-commerce should get an equal protection, when shopping
online or when buying the same goods from a local store.
 A complete disclosure about the goods and services rendered.
The e- customers should be aware of the transaction, they have
consented to.
 complete knowledge of what they are buying and the transaction
they are dealing with.
 The confirmation process for sale should give a fair chance to the
consumer for reviewing the products that he intends to buy, in
case there is any cancellation.
 The system of payments must be secure and reliable.
International Consumer Protection and
Enforcement Network
 The ICPEAN aims to preserve and protect the
interests of the consumers all over the world.
 Consumers who participate in e-commerce should
be provided with transparent and effective consumer
protection.
 Businesses should never conceal any term or
condition that might affect the consumer’s decision
regarding the transaction
 Businesses should not restrict a consumer’s ability to
make negative reviews, dispute charges or file
complaints with government and other agencies.
 Businesses should enable the consumers to
Thank you…