E-COMMERCE IN ONLINE TRANSACTION: LEGAL CONSIDERATION
Understanding E-Commerce and online transactions
In this digital era, development due to e-commerce has had a significant impact on people’s lives. E-commerce has also positively impacted many businesses, changing how businesses operate. It has been repeatedly said that the company has reached a global level due to e-commerce platforms; thus, it is also called global e-commerce. This heavily implies a positive effect and will reach trillions of dollars shortly. While ecommerce businesses are growing rapidly, the businesses also require a legal partner by their side.
Candour legal is one of the best corporate law firms in Ahmedabad to avail every legal remedy. Our specialized team of corporate lawyers provide the best corporate legal consultancy and legal advice regarding the consumer laws after carefully understanding their needs.
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In today’s world, efficiently executing business imbibes some risks, from consumer protection to protecting data privacy. Legal considerations are a priority for any business to ensure its smooth functioning. Businesses are acknowledged due to their behaviour towards consumers, and it is also said that consumers prefer businesses that protect their rights. An organization must adhere to all legal frameworks and thoroughly comprehend hacker tactics to reduce risk, further satisfying the requirements that underpin most businesses.
Electronic commerce, or e-commerce, is the term used to describe buying and selling goods over the Internet, also known as online business. It is a global online platform for conducting business. The main participants in e-commerce include stakeholders and other business-related parties, such as merchants, consumers, online platforms, payment processors, sellers, buyers, and governments.
Legal compliances of e-commerce businesses
E-commerce businesses have to pass through many legal requirements. There are many acts developed in India, and the global development in e-commerce is vast. Recently, the development of e-commerce has categorized many of the evolving reforms into amendments to act. Several acts are constituted with time for protection and development in e-commerce. For example, the Consumer Protection Act protects the rights of a consumer in online and offline business. Data privacy laws are made to protect the data of consumers from data breaches; the right to Information law helps in providing information to the consumer for the understanding and knowing the actual reality and face of a business; this act also encourages people to exercise the right given under the constitution this is the best example of the right under a democratic country.
In cases of misleading advertisements, under section 21(5) of the Consumer Protection Act, 2019 the central consumer protection authority can impose fines of up to 10 lacks and imprisonment for up to 2 years for committing the offence 1st time; eventually, it increases if the person becomes a repeat offender. Further, if sales, storage, or distribution of contaminated products have been observed, then firstly, the license of the manufacturer would be suspended, and various punishments would be imposed under section 90 (3) of the Consumer Protection Act, 2019.
According to Section 2 (43), spurious goods are those falsely claimed to be authentic or fake products, inferior quality goods, and goods that infringe the trademark or copyright of legal owners. The punishment imposed would be up to 3 lakhs and imprisonment, and in case death is caused by using the product, life imprisonment can be imposed.
Consumer Protection Laws for E-commerce transaction
Consumer protection laws have a significant impact on the e-commerce sector. Consumer protection laws are made to protect the rights of individuals and customers in this advanced digital era. These laws are made to restrict the exploitation of consumers in their day-to-day lives. Further data privacy laws have also recently been developed to protect an individual’s data. In today’s time, e-commerce has expanded the field, which leads to the exploitation of personal data and the exploitation of a consumer; laws are developed to protect them.
In conclusion, consumer rights and interests in e-commerce transactions must be protected by consumer protection legislation. These rules support the development of trust, justice, and accountability in the digital marketplace by guaranteeing clear and accurate information, safeguarding consumer privacy, offering recourse for complaints, outlawing unfair conduct, and enforcing compliance. To protect themselves legally and foster a good rapport with their clients, e-commerce companies must be aware of and abide by these rules.
Customers have the right to complete details about the amount, calibre, strength, purity, cost, and standards of products and services. They ought to be protected from goods and services that endanger their lives or property and from unfair or constrictive business practices. They also have the right to a broad selection of goods and services at reasonable costs and should be able to take complaints to the appropriate channels.
E-commerce Litigation: Recent developments
In recent times, e-commerce-related litigation has increased mainly because of the legal actions for cyber-attacks and data breaches affecting e-commerce businesses’ cybersecurity incidents and data breaches including unfair pricing practices by companies trying to rip off unsuspecting consumers for their hard-earned money and deceiving advertisements on television that have absolutely nothing to do with the product being advertised. Cyber-attacks are the deliberate use of malicious code that is unauthorized on a computer system; laws broken on e-commerce companies are the reason for investigations, including punishment actions by authorized organs for e-commerce companies.
The e-commerce rules for consumer protection have been improved, focusing more on data privacy due to the alarming increase in data privacy-related transactions. Transparency is maintained so that the consumer can access accurate pricing and detailed descriptions of the products they consume; a proper channel for resolving consumer-related complaints has been implemented with the help of online dispute platforms.
The Supreme Court of India rendered a landmark decision in the Shreya Singhal v. Union of India case when it declared Section 66A of the Information Technology Act, 2000, unconstitutional. This choice was prompted by the 2012 arrest of two Mumbai girls for posting political content on Facebook. Shreya Singhal, the petitioner, contested the validity of Sections 66A, 69A, and 79 of the IT Act because they violated Article 19(1)(a) of the Constitution, which guarantees the fundamental right to freedom of speech and expression. The Court determined that Section 66A discriminated against communication techniques in violation of Article 14 and was ambiguous, overbroad, and devoid of adequate definitions, giving authorities arbitrary power.
The ruling stressed the necessity to balance free expression and other fundamental rights under Article 21, such as privacy, even if Sections 69A and 79 were constitutionally acceptable with some restrictions. Since Section 66A cannot be abused to censor online speech, the decision is a significant victory for online freedom of expression. However, the case also brought attention to the difficulties in controlling online scams that violate people’s right to privacy, casting doubt on how fundamental rights are balanced in the digital sphere. The Shreya Singhal case was a turning point in Indian legal history, highlighting how crucial it is to protect constitutional rights in the rapidly changing fields of technology and internet communication.
Conclusion
Businesses need to follow the rules and laws when they use the e-commerce platform; not following these rules leads to an adverse effect on a business as there is an increase in different scams and cyber-attacks, and the companies have to suffer for acts they are unaware of. If we look at the development of the e-commerce sector, it is developing day by day while developing risk, and development is the wheels of a bicycle. Both work together as when there is more development, it leads to a significant amount of risk as well, and provisions have to be formulated to safeguard the consumers, for which the businesses have to comply with the laws and for the development of the industry, they have to be updated with amendments with the laws. In today’s time, the risk can be mitigated with the proper compliance of rules and regulations. The loss for E-Commerce businesses is too vast, and understanding them will be a holistic approach towards legal updates of e-commerce.
Candour legal has solved numerous cases pertaining to consumer laws and ecommerce transactions. Whether you’re looking for corporate consultancy services or consumer court lawyers in Ahmedabad, our adept team will serve you to your satisfaction. Contact us @ +91-7228888745 to get the best legal solutions to your ecommerce problems.