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E business sme workshop E business sme workshop Presentation Transcript

  • E-Business Law in Malaysia SME Workshop – IIUM/SME Corp Dr. Sonny Zulhuda Ahmad Ibrahim Kulliyyah of Laws International Islamic University Malaysia
  • Outline• What is e-Business?• Why e-Business?• Web-based Business• Consumer Issues• Identity Theft• What Law Says• Setting up Your e-Business2012 (c) Sonny Zulhuda 2
  • What is E-Business?• Electronic Business: Business/Commerce + Electronic Processing• Electronic processing: use, storage, transmission or representation of electronic data, including text, sounds and visual images. 2012 (c) Sonny Zulhuda 3
  • What is E-Business?• E-Business is not about a new type of business, but a new method of business• So e-business is a new option for business people and enterprises to trade, market, sell and offer their old or existing products and services, e.g.: – Selling books online – Selling phones online• With this new method, new products and services also emerge with the growth of innovation and technologies, e.g.: – Web design service – Selling ring tones for mobile phones 2012 (c) Sonny Zulhuda 4
  • „Business relationship‟Include matters arising from all relationships of a commercialnature, whether contractual or not. EXPLOITATION JOINT VENTURE DISTRIBUTION AGREEMENT OR & OTHERS AGREEMENT CONCESSION COMMERCIAL INSURANCE REPRESENTATION OR AGENCY COMMERCIAL RELATIONSHIP INVESTMENT, FINANCING, CONSTRUCTION FACTORING, BANKING OF WORKS LEASING 2012 (c) Sonny Zulhuda 5
  • Why E-Business?  Worldwide access and greater choice  Enhanced competitiveness and quality of service  Customization and personalized products  Elimination of intermediaries  Greater efficiency and lower costs  New business opportunities and new products and services 2012 (c) Sonny Zulhuda 6
  • Facts and Figures 2012 (c) Sonny Zulhuda 7
  • 2012 (c) Sonny Zulhuda 8
  • Shapes of E-Commerce E-GOVERNMENT Government Individuals Business E-BUSINESSE-EVERYTHING E-CORPORATIONS 2012 (c) Sonny Zulhuda 9
  • Consumer Concerns • Concern over the Product/service: lack of information, safety, originality, legality, halal, etc. • Insecure payment methods • Loss of personal privacy – Risk of misuse of personal information, e.g. use of Cookies; opt-in or opt-out • Cyber crimes: Computer fraud, hacking, virus, phishing, etc. • Sharing of Liability  to avoid BLAME GAME! 2012 (c) Sonny Zulhuda 10
  • Types of E-Commerce Websites • Informational • Interactive • Transactional 2012 (c) Sonny Zulhuda 11
  • Consumers-friendlyCommercial Websites• Information about business; e.g. information on the company including its legal name, its principal geographic address, a telephone number, an e-mail address for questions related to sales and service, credentials, etc.• Information about goods and services, e.g. specifications, terms of use, sample pictures, etc.• Information about transactions, e.g. costs, currency, payment process, delivery terms, warranties, confirmation process.• Effective communication, e.g. language, timing, records maintenance.(Guidelines by the OECD) 2012 (c) Sonny Zulhuda 12
  • Some Practices of E-Business• Online employment agency services – E.g. www.jobstreet.com• Online bookshops – E.g. www.amazon.com• Online auctions – E.g. www.lelong.com.my, www.e-bay.com• Online banking – E.g. www.maybank2u.com.my• Online travel services – E.g. www.airasia.com 2012 (c) Sonny Zulhuda 13
  • Online Employment Services 2012 (c) Sonny Zulhuda 14
  • Online Bookshops 2012 (c) Sonny Zulhuda 15
  • Online Auction 2012 (c) Sonny Zulhuda 16
  • Online Banking 2012 (c) Sonny Zulhuda 17
  • Online Travel Services 2012 (c) Sonny Zulhuda 18
  • Identity Theft
  • What is Identity Theft?• “Identity” – Ie. personal credentials (name, IC#, Passport#, address, contact#, medical records, financial records, credit worthiness, designation, brand name…)• “Theft”? – It seeks to include any form of misappropriation/abuse, not specifically a stealing. – Thus may include fraud, trespass, impersonation, etc. 2012 (c) Sonny Zulhuda 20
  • Incidents of ID Theft• In the US, nearly 10 million Americans fell victim of ID theft each year;• In 2003, FTC reported that ID theft alone costs nearly US$48 billion as annual costs for the businesses and an additional 5 bil per year for consumers;• In the UK, the ICO has reported over 277 breaches of significant volume since the His Majesty Revenue & Customs (HMRC) breach in November 2007;• MyCert of Malaysia reported in 2008 that Internet-related fraud dominates the security incidents attack.Zulhuda 2012 (c) Sonny 21
  • Top 5 ways youth‟s identities are stolen Qwest Communications Teen Council Program1. Posting their real name, address, date of birth and school on social networking sites;2. Talking with strangers through their social networking page -- and in some cases meeting in person3. Divulging social security numbers (like IC No.) on online job applications4. Unable to recognize "phishing" emails5. Storing personal information like their social security number and passwords in cell phones 2012 (c) Sonny Zulhuda 22
  • Essential#1Be moderate in your Social Networking 2012 (c) Sonny Zulhuda 23
  • Do‟s dan Don‟ts of SocialNetworking • Be Moderate • Define your „friends‟ • Make use of privacy setting tools • Think twice or thrice before posting • Mind the existing rules: legal and ethical • Social networking or Social not- working? 2012 (c) Sonny Zulhuda 24
  • Essential#2Beware of PHISHING e-mails 2012 (c) Sonny Zulhuda 25
  • Phishing  Fishing • Phishing identities can go through phone, sms, video or e-mails. • Phishing e-mails commonly involve the lure, the hook and the catch – The lure: a phisher who emails a large number of users with a message that appears to be from some legitimate institution. – The hook: a website that mimics the appearance of a legitimate target institution. – The catch: the making use of the collected information for fraud, forgery or theft. 2012 (c) Sonny Zulhuda 26
  • Some “Social Engineering” Methods• Winning a prize, lottery, gift, year-end bonus, etc.;• Business opportunities, investment, joint capital venture;• Romantic engagement, date, social relationship;• Security alert, password change, non-active online account;• Administrative works, database upgrading, status update;• Emergency nature, lost and found, criminal victims;• Personal problems, health, sex drugs, etc. 2012 (c) Sonny Zulhuda 27
  • The Legal Framework 2012 (c) Sonny Zulhuda 28
  • LEGAL FRAMEWORK FOR E-BUSINESS• E-Commerce Act • Computer 2006 Crimes Act 1997• Evidence Act • Penal Code 1950 • Comm & Multimedia Act 1998 Admissibility & Criminalisation of Enforceability of E- Abuse transaction Data Privacy & Consumer Security Protection• Personal Data • Consumer Protection Act Protection Act 2010 1999 • Sale of Goods 2012 (c) Sonny Zulhuda Act 1957 29
  • E-commerce is based on Contract Online banking Online book purchase Online movie ticketing Based on What type of Online marketing contract law contract?? Online flight booking Online investment Online auction 2012 (c) Sonny Zulhuda 30
  • E-transaction Law in Malaysia• In 2006, Malaysian parliament passed the Electronic Commerce Act (ECA) 2006 that: – Provides for legal recognition of electronic messages in commercial transactions – Provides for the use of e-messages to fulfill legal requirements – Enables and facilitates commercial transactions through the use of electronic means• This law adopted international guidelines by the UNCITRAL (a commission under the UN) 2012 (c) Sonny Zulhuda 31
  • Legal issues addressed bythe ECA 2006• The admissibility of electronic message• The legality of paperless document• The requirement of signature• The originality of document• Formation of e-contract: Offer and Acceptance 2012 (c) Sonny Zulhuda 32
  • Formation and validity of contracts• In e-contract, an offer and the acceptance of an offer may be expressed by means of data messages. 2012 (c) Sonny Zulhuda 33
  • Non-applicability of ECA 2006 • Power of Attorney • The creation of wills and codicils • The creation of trusts • Negotiable instruments 2012 (c) Sonny Zulhuda 34
  • How to start your own e-Business?• Set up a website: – Social networking page – Free blog – Paid blog – Full website/portal• Consider: – Your need? – Practicality& Affordability – Risks – Control – Regulation 2012 (c) Sonny Zulhuda 35
  • Following up…• Introduce yourself• Introduce your products/services• Explain your terms and conditions• Introduce your business process – Queries – Purchasing order – Transaction & payment – Delivery – After-sales? 2012 (c) Sonny Zulhuda 36
  • Exercise: Terms and Conditions of e-Business• Visit the selected e-commerce website and assess their compliance to the legal rules and best practices that you know, in terms of: a) Identity of the vendor and the products b) Privacy and security c) Consumer protection 2012 (c) Sonny Zulhuda 37
  • Exercise: Terms and Conditions of e-Business• Choose from the following web: – www.mudah.my – www.lelong.com.my – www.myeg.com.my – www.airasia.com 2012 (c) Sonny Zulhuda 38
  • THE END2012 (c) Sonny Zulhuda 39