Legal Issues In E-Commerce In India

Legal Issues In E-Commerce In IndiaElectronic commerce is one of the most profitable business ventures in India these days. Not only its present growth is good but even its future and projected growth is tremendous.However, e-commerce in India is also required to be conducted in a legally permissible manner. This is more so when the information technology act 2000 (IT Act 2000) prescribes stringent penal and pecuniary penalties for violation of its provisions during e-commerce transactions.

The natural question arises as to what are the basic e-commerce laws in India that various e-commerce players must adhere to in order to escape civil and criminal sanctions? Although we have no dedicated electronic commerce laws in India yet the IT Act 2000 covers many aspects of the same. IT Act 2000 is the sole cyber law of India that has been invoked on numerous counts against e-commerce portals and Internet intermediaries in India who violated the provisions of the same.

The legal requirements for undertaking e-commerce in India also involve compliance with other laws like contract law, Indian penal code, etc. Further, online shopping in India also involves compliance with the banking and financial norms applicable in India. For instance, take the example of PayPal in this regard. If PayPal has to allow online payments receipt and disbursements for its existing or proposed e-commerce activities, it has to take a license from Reserve Bank of India (RBI) in this regard. Further, cyber due diligence for Paypal and other online payment transferors in India is also required to be observed.

With the active use of electronic commerce in India the electronic commerce dispute resolution in India is also required to be strengthened. The present litigation system of India is not conducive for the growth of e-commerce n India and online dispute resolution in India is more appropriate for such purposes.

Perry4Law and Perry4Law Techno Legal Base (PTLB) have launched dedicated platforms for resolving e-commerce, domain name, commercial, technological and cross border disputes resolution in India and word wide. These include platforms named Electronic Courts, E-Judiciary, ODR India, Online Arbitration, etc.

Finally, for those who wish to engage in cloud computing, virtualisation and other Internet based services in India, Perry4Law and PTLB recommend that they comply with techno legal regulations of India. Virtualisation and cloud computing service providers in India must not only follow the encryption laws of India but they must also ensure cyber law due diligence in India. This is more so when the cyber law due diligence for companies in India has become very stringent and foreign companies and websites are frequently prosecuted in India for non exercise of cyber due diligence.

Perry4Law and PTLB wish all the best to all e-commerce players in India and abroad.