Group Members: Leung Sum Yee and Kirsty Newman
Leung Sum Yee 18:47, 26 Aug 2004 (EST)
Kirsty Newman 18:49, 26 Aug 2004 (EST)
Contents |
With the emergence and development of new media technologies such as the Internet, people and businesses have increased their reliance on, and their use of these mediums as an avenue for commerce as it can be more convenient. This new avenue is referred to as e-commerce, which as has been defined as ‘the process of buying and selling or exchanging of products, services and information via computer networks including the internet’ (Turban, 2000: 4)
E-commerce has transformed business processes. Business information has become digitalized and so can now be more widely accessed in first world countries due to the availability of the internet. E-commerce can be described in terms of it being the "networking of business communities and digitalization of business information" ([[1]], 2003). In view of this definition, e-commerce can be traced back to EDI (Electronic Data Interchange) (See E-Commerce). EDI is "a set of standards used to exchange business information between computers and carry out business transactions electronically" (EDI, 2003).
E-commerce, and in particular online shopping, has become mainstream nowadays, as consumers find that it is an easy way to get what they want and need from the sellers. Also, e-commerce has already become globalized, which makes it easy for people to get together and exchange value all over the world, in turn effecting the world economy. However, the online markets still have lot of risk problems, legal uncertainty, and lack of transparency. It naturally follows that issues of the law have emerged as to how to govern Internet transactions.
E-commerce is one of the important things that is effecting the world economy. It has become mainstream in the business world. According to the "Getting IT" - The Importance of E-Commerce, “e-commerce is growing exponentially world wide and predicted to be $US 1.3 trillion annually by 2003.� For Australia in 2001 e-commerce revenue totalled $9.4 billion and in 2002 this increased to $11.3 billion (Australian Bureau of Statistics, 2003). It is effecting the world economy, and a new model of business practice and consumer access has been developed.
Due to the increase in e-commerce and its growing importance the government has felt increasing pressure to promote online services.
Globalism and new technology are also inducements of the importance of e-commerce in the business environment. E-commerce extends the market online and across the world through the growth of new technologies, namely the Internet, which results in the globalisation of businesses. Due to the relatively new role of e-commerce in the world economy that effects business relations, changes the consumer’s habit, and developes a new space for the business market, there naturally follows wide social implications and the need to maximise participation in E-Commerce all over the world.
The central issues of e-commerce and the law include the development of e-commerce, the role of consumers, and regulation of e-commerce in regards to consumer protection, as well as a general consideration of the international operation of e-commerce.
E-commerce is a new way of conducting business that takes place in the intangible world of the Internet. It has become an important economic activity across the world, since Internet technology develops rapidly. Although e-commerce does has a profound effect on global trade and commerce, governments also can have a profound effect on the growth of commerce on the Internet by facilitating it or inhibiting it in their regulations. Governments set regulations for e-commerce, and subsequently organisations’ managers worry if the regulations will be too stringent, or prematurely reduce their market potential in cyberspace. The regulations not only effect the organisations which engage in e-commerce, but also the consumers. While the government’s regulation of e-commerce may provide a safe environment for the online shopper, it may also provide a legal infrastructure governing electronic contracting, security, and integrity of electronic transactions to the consumers. Regulation of E-commerce is very important for the cyberspace market as it can facilitate or inhibit the organisations working with e-commerce, as well as being able to protect the consumers in the cyber-market.
The Government's law is very important to regulate the process of e-commerce. The law may not be able to control the electronic transaction, but it must help provide a safe place for consumers in the online-market. However, at the moment such development in the regulation of e-commerce is mainly within the ambit of the United Nations, which has been developing the foundations of online dispute resolution most particularly since the 2003 United Nations Conference on Trade Development (UNCOTD).
One broad example of how the development of e-commerce has effected the law is to be found in Australian contract law. Many transactions involve a contract being formed, which is a legally binding promise or agreement (Concise Australian Legal Dictionary, 1998: 93). A contract is only valid if it fulfills certain requirements and there are certain measures to enforce them. However, these requirements and measures were originally formulated without contemplation of the Internet as a medium for forming contracts. It is for this reason that in recent years as e-commerce has developed and become more widespread, the law has had to develop to accommodate for it. However, this has been a slow process and is as yet far from being conclusive since such development in the law is dependant on the Government’s support as well as cases emerging that need these new issues to be solved in court (Beard, 2000: 211).
New technologies are perhaps the best examples of why the law needs to keep developing. The Internet and cyberspace have created entirely new environments in which traditional principles and concepts do not apply, and are subsequently reshaped. The concept of time is one such example.
It is not in all situations that entirely new laws for electronically formed contracts will be formed. Existing contract laws may still apply or alternatively be reshaped. Of course, this process is in some circumstances challenged due to the fundamental difference between the traditional contract law framework which is paper-based, and that which it is being applied to, electronic contracts, which are a paper-less form.
Since the Internet is a global medium, ideally there needs to be uniform global regulations on electronic transactions, and although a number of international organisations are now trying to resolve issues of e-commerce and e-contracts, they have to contend with national laws.
Furthermore, for the laws of cyberspace to be at all useful they need to be enforced in order to recognise that "transactions in cyberspace can bring about actions in the real world" (Beard, 2000: 213).
Regulating e-commerce: lessons from India
Regulating E-Commerce: Formal Transactions in the Digital Age
New technology increases threats
Electronic contracting
Electronic commerce--A new factor for consumers, companies, citizens and governement
Australian Bureau of Statistics (2003) in E-commerce statistics [Online]. Available: http://www.jhemans.powerup.com.au/Internet_Statistics/ecommerce_e-commerce_statistics.htm [Accessed 25 September 2004].
Beard, D. (2000) International Virtual Contract, in Australian Business Law Review, vol. 28, p. 206-213, ISSN 10343040.
Butterworths. (1998) Concise Australian Legal Dictionary, Butterworths, 2nd ed. p. 93: Australia, ISBN 0409315680.
Turban, E., Lee, J., Kung, D., and Chung, K. (2000) Electronic Commerce: A Managerial Perspective, Prentice-Hall, Upper Saddle River: NJ.
(2003) ‘Electronic Data Interchange’ [Online]. Available: http://www.itep.ae/english/EducationCenter/InternetConcepts/e_datainterc.asp [Accessed 7 September 2004].
"Getting IT" - The Importance of E-Commerce(1999)[online]. Available: http://www.med.govt.nz/irdev/elcom/bim_ecomm.html [Accessed 17 December 1999]
(2003) ‘History of E-Commerce’ [Online]. Available: http://ecommerce.insightin.com [Accessed 9 September 2004]
Mahmood, F.(2000) “Government Regulation for E-commerce,� The DAWN Group of Newspaper, retrieved March 20, 2000, from Link
Leung Sum Yee's sub-topics
Regulation
Risk to Consumers
Consumer Protection
Online Consumer Advocacy
Globalisation
Kirsty Newman's sub-topics
Electronic Contracts
Traditional Contract Laws - Application to Electronic Contracts
Development of New National Laws
Development of Uniform Laws
Enforcement of Electronic Contracts
References
email to Leung Sum Yee
email to Kirsty Newman
Leung Sum Yee 00:45, 26 Sep 2004 (EST)
Kirsty Newman 00:27, 27 Sep 2004 (EST)
