E-Commerce Due Diligence In India Is Neglected By Investors And Financial Institutions

E-Commerce Due Diligence In India Is Neglected By Investors And Financial InstitutionsAny law abiding e-commerce business activity is compulsorily required to comply with numerous legal provisions of not only the place where it is operating but also the potential markets that such venture is exploring. With the conflict of laws in cyberspace, the legal compliance requirements regarding e-commerce ventures have become really cumbersome.

E-commerce stakeholders like healthcare technology, online pharmacies, ayurvedic companies, e-health, m-health, telemedicine, websites developers and owners, mobile application developers, online poker websites, online gaming websites, online lottery websites, online gaming and online gambling websites, e-gaming websites, payment gateways and POS terminal services, mobile payment makers, etc are required to comply with numerous techno legal compliances.

However, as on date most all of the e-commerce stakeholders of India are not complying with the techno legal requirements as prescribed by various laws of India.  The issues of privacy rights, data protection (PDF), cyber security, data security, cyber security breach reporting, biometric collection compliances, etc are still ignored by Indian e-commerce businesses.

In particular, e-commerce due diligence in India (PDF) is grossly neglected by Indian e-commerce businesses. What is most surprising is the fact that even venture capitalists and private equity makers are also investing without ensuring that these e-commerce ventures are complying with techno legal requirements of Indian laws. Perry4Law believes that cyber law due diligence is an absolute must for foreign investors in e-commerce and technology ventures of India. Similarly, online payment platforms, financial institutions, banks, etc are also required to comply with techno legal laws of India.

Effective, speedier and economical dispute resolution is also an essential component of successful and effective e-commerce platform. Online dispute resolution (ODR) must be suitably integrated into the e-commerce dispute resolution structure of all e-commerce websites. The European Union is very particular in this regard and it is encouraging its member countries to use alternative dispute resolution (ADR) and ODR for resolving consumer and e-commerce disputes. The U.K. government has even started consultation on use of ADR to help U.K. consumers resolve complaints and disputes.

In nutshell, e-commerce websites and their investors/financers must absolutely ensure that their ventures are in strict compliance with the cyber law, cyber security norms, data protection requirements, privacy protection requirements, cyber crime protection, financial and e-commerce frauds protection, encryption laws, cloud computing compliances, etc. Collectively these techno legal compliances would constitute the regulatory regime for various e-commerce businesses of India.

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  1. Pingback: Illegal Online Pharmacies Are On Hit List Of Google And Federal Authorities Of US | Exclusive Techno Legal Centre Of Excellence For Cyber Crimes Investigation In India

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