1. E – COMMERCE AND CONSUMER RIGHTS: APPLICABILITY OF CONSUMER
PROTECTION LAWS IN ONLINE TRANSACTIONS IN UGANDA
Uganda in the recent years has been experiencing an exponential boom in e-
commerce. New e-commerce websites have sprung up almost over night and
proliferated the market. This increase, facilitated the need for consumer protection
laws in the Online sphere; in the form of the Electronic Transactions Act 2011, the
computer misuse Act & the Electronic Signatures Act, 2011.
E- Commerce though not specifically defined in Uganda’s consumer protection
legislation, is in general parlance defined as activities that relate to the purchase
and sale of goods and services over the Internet.
E- Commerce websites like Hello Food & Kaymu have revolutionized trade in
Uganda not only for the traders but the consumers as well. Online traders have
benefitted from transcendent borders for the sale of their products; the consumers
of goods and services have been provided with the luxury of convenient &
comparative shopping and also the fast, efficient & hustle free delivery of online
purchases.
The Electronic Transactions Act 2011, the Computer Misuse Act & the Electronic
Signatures Act, 2011, were thus enacted to provide a seemingly comprehensive
legal framework for e-commerce.
In Particular, The Electronic Transactions Act, 2011 essentially provides for the
use, security, facilitation and regulation of electronic communications and online
transactions.
The Act (together with the Electronic Signatures Act, 2011) also significantly
provides for the legal recognition of electronic records & signatures; which
guarantees effective enforcement of the rights of consumers, if infringed.
A point of concern, is that in the acceptance of e-contracts, there is a fundamental
derogation from the principles of a valid contract like capacity to contract, among
others. For example, because of the anonymous nature of online accounts, it is
difficult to distinguish between a person competent to contract or otherwise when
transacting online. This often results in minors, lunatics and other incompetent
people entering into contracts that would otherwise have been illegal.
Also, is the issue of freedom of contract. Online users usually enter into contracts
known as “click-wrap contracts”. Click-wrap contracts are entered into when a
consumer assents to terms and conditions provided on a website or application by
way of clicking on an "I agree" icon.

2. Usually, at the point of assent, consumers do not have the opportunity to negotiate
the terms and conditions due to their impersonal nature. Thus, there is no other
option, except, to accept the terms of the contract, if the consumer wants to
proceed with an online transaction. This may be seen as a limitation to freedom of
contract.
Another major concern is that surrounding the jurisdiction of cases in the event of
a dispute. Essentially, one of the considerations for determining jurisdiction for
purchases made online is where the contract was concluded i.e. where the cause
of action arose.
However, things may become very complicated or impractical in case of online
transactions as a consumer can access a website anywhere in the country. It is thus
difficult, when instituting legal proceedings to clearly determine territorial
jurisdiction.
E-commerce transactions are also clouded by the issue of data protection. The data
that is made available online by the consumers is open to abuse and this is one of
the major concerns that have emerged in the recent times.
Because there is no express legislation for Data protection, the terms of data
protection are dependent on the contract that the parties have entered into. The
disclosure and non-disclosure of data would thus depend on that contractual
relationship or the existence of a privacy policy.
Privacy is also a major concern in e-commerce transactions such as online
banking. Most banks in Uganda, through Bank of Uganda have tried to mitigate
the risks caused by online transactions by providing for additional
authentication/validation based on information not visible on the cards for all on-
line card not present transactions.
Some of these measures include using Chip and Pin cards in the place of Magnetic
strip cards as a fraud prevention measure. In addition, banks have introduced more
consumer friendly methods of curbing fraud and promoting online privacy such as
introducing SMS alerts for all online transactions and allowing the customer to
block his/her card also via SMS in cases of fraud.
Overall, although laws like the Electronic Transactions Act, 2011 have made major
strides in securing online transactions, future amendments if any, need to address
the pre-existing issues especially in this ever-evolving online world.
Kenneth Muhangi
Advocate
Intellectual property, Media law & international commercial Law practitioner.