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The legal and ethical issues in the internet and e commerce

E-commerce is a place where it presents a world of opportunity for doing business, attaining global markets and buying without leaving home, just as any fresh business tool has linked issues and risks, E-commerce does have some issues too.

It is necessary to know the legal and ethical issues regarding to e-commerce to ensure a safe and secure environment for trading with customers and other businesses.


E-commerce is not about the technology itself, it is about doing business leveraging the technology. A technology innovation is shadowed by frequent combination of ethical standards into law. New forms of E-commerce that allows new business practices have many benefits but also bring several risks. Buying and selling of goods product and services by business and consumers through an electronic medium.

It is a type of business model that enables a firm or individual to conduct business over an electronic network, typically the internet. E-commerce businesses have many advantages but it also brings numerous risks. E-commerce has some advantages like entrance to a global market, open for 24hrs a day, decreases marketing costs, better customer information, lots of choices etc. Meaning of Business Ethics: Ethical rules are rules to follow in our interactions with other people and in our actions that affect other people.

They apply to everyone and are intended to achieve good results for people in general and for situations in general, not just for ourselves, and not just for one situation. Business ethics is concerned with the numerous ethical questions that managers must confront as part of their daily business decision makings.

Issues in E-commerce Ethical Issues in E-commerce: 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. It is registering, trafficking in, or using an internet domain name with the legal and ethical issues in the internet and e commerce faith aim to profit from the goodwill of the trademark belonging to someone else.

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.

The individual who spam others email is usually called spammer. 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: Section 10A of the Information Technology Act, 2000 provides the validity to e-contracts.

Dubai Vs Vedanta Aluminum Ltd. 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. 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.


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.

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. This has created a lot of confusion and uncertainty among e-commerce entrepreneurs in India. It usually had to work in correspondence with the Information Technology Act, 2000.

Legal Registration of the company: The Company has a valid name. A valid company name has two components. The first word denotes the unique name of the company.

The second word denotes the nature of the company.


While starting an e-commerce venture it is good to have a company or LLP to have limited liability protection and improve the ease of doing business. To make your e-commerce business a separate legal entity you need to obtain a tax id number form Indian Revenue Services. By doing so you e-commerce business transactions can be tracked by IRS, thereby making your business transactions straightforward.

  • Some legal issues of e-commerce are as follows;
  • 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.

Certain laws are to be taken care of by a company. A Unique Domain Name: Attain a Privacy Policy: Make a Vendors Agreement: