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E-Commerce Integration and   Implementation Issues Khairiyah Salleh Nur’Aina Daud Nurul Izzah Othman Noor Yahya Sulaiman  ...
IntroductionMalaysian government believes that ICT is a strategic driver to support and contributedirectly to the growth o...
Opportunities in      Implementation E-CommerceOpportunities  To gain competitive advantages over other organization.  Ope...
CISCO (CISCO CONNECTION ONLINE)  Full implementation online (24 hours a day, 7 days a week)    Increase efficiencies in or...
Issue and Challenges of Global Implementation       E-Commerce (Economic Factors)Cost Justification  High cost of implemen...
Issue and Challenges of Global Implementation       E-Commerce (Economic Factors)Issue on Internet and Telecommunication I...
Issue and Challenges of Global Implementation        E-Commerce (Technical Factors)Security Issues  Consumers are distrust...
Issue and Challenges of Global Implementation         E-Commerce (Social Factors)Privacy and Security Issues  Customer are...
Issue and Challenges of Global Implementation         E-Commerce (Social Factors)Lack of Trust Issues  Customer trust is i...
Issue and Challenges of Global Implementation         E-Commerce (Legal Factors)Protection of Intellectual Property Right ...
Issue and Challenges of Global Implementation         E-Commerce (Legal Factors)Product Sale that are restricted or illega...
Critical Success Factors for                E-Commerce ImplementationSuccess factors have been used to identify informatio...
Critical Success Factors for        E-Commerce ImplementationPolicy factors.Organization factors.Human resources managemen...
Critical Success Factors for E-Commerce Implementation            (Approach of Using an E-Business)Phase 1: Identify the b...
Critical Success Factors for E-Commerce Implementation    (Three Area That Affect the Implementation of E-Business        ...
Critical Success Factors for E-Commerce Implementation  (Three Area That Affect the Implementation of E-Business          ...
Critical Success Factors for E-Commerce Implementation    (Three Area That Affect the Implementation of E-Business        ...
Critical Success Factors for E-Commerce Implementation  (Three Area That Affect the Implementation of E-Business          ...
Food-DominosDommal Food Services Sdn Bhd
Florist-Blooming Florist Sdn Bhd
Online Shopping-Aidijuma Scarf
Entertainment-TGV
Flight Booking-AirAsia      AirAsia Bhd
Online Banking- Maybank Bhd
Key e-Commerce Players in Malaysia Blooming.com.my, a florist delivery service, has already been engaged in e- Commerce ac...
Appendix           Source from: Malaysia           Department of           Statistics
Source from:International DataCorporation (IDC)
Source from:MalaysiaDepartment ofStatistics
Source from:MalaysiaDepartmentof Statistics
Opportunities of E-Commerce in            MalaysiaOpportunities  Development of information and communication technologies...
Opportunities of E-Commerce in      Malaysia (cont…) Stability of policy and regulatory    Government is willing to develo...
E-Commerce Implementation Issues          in Malaysia  Challenges  1.   E-readiness  2.   Cyber Crime  3.   Security  4.  ...
E-readinessA country’s e-readiness is essentially a measure of its e-businessenvironment,       a collection of factors th...
Cyber CrimeCyber crimes emerge as a threat to E-Commerce incurrent scenario. The advancement of technologicalcapabilities ...
Articles on Cyber Crime in Malaysia
Articles on Cyber Crime in Malaysia
Security IssuesSecurity is one of the most addressed issues in implementing e-commerce whether it is safe to conduct on-li...
Types of AttackNon Technical                    Technical   Attack                         Attack  Deception or persuasion...
Identity TheftIdentity theft is possible with the help of digital informationtechnologies (Caeton, 2007) and by the nature...
Identity Theft in Malaysia
Virus, Worm, and Trojan HorseReferred to as malware , it is classified by how itpropagates.A virus is a piece of software ...
Denial of SeviceAn attack on a website in which attacker usesspecialized software to send a flood of data packetsto target...
Security Attack in Malaysia
Privacy IssuesPrivacy is the right to be left alone and the right to befree of unreasonable personal intrusion.There are a...
Ways of Gathering Information of An            Individual  Reading an individual’s blogs, or newsgroup postings.  Looking ...
Website RegistrationA study by TNS and TTRUSTe (2004) user doubt to give personalinformation to online businesses.Among th...
CookiesWebsite gather information about an individual by usingcookies.Cookies enable sites to keep track of users without ...
SpywareSpyware is defined as unwanted software programs designed tosteal information or confidential information.Spyware m...
Privacy ProtectionThere are several laws and regulations that governede-commerce activities.Some countries have enacted co...
Privacy Protection In MalaysiaIn Malaysia, the right of privacy is not as a fundamental right underthe Federal Constitutio...
Legal Remedies for Invasion of   Privacy in E-CommerceIn Malaysia, claim for remedies for cases of breach of online privac...
Legal IssuesDomain NameJurisdictionAdvertisementElectronic Payment
Domain NameDomain NameA company that commences e-commerce activities would at firsthave to get its domain name registered....
Domain NameThe Complaint must:-(i) provide the name, postal address, telephone and facsimile numbers and electronic-mail a...
Domain Name    •In Sime Darby Berhad Malaysia v. Mr. Sim e-     Darby (2002) over a domain name     ‘simedarby.com’ by res...
Domain Name   •In a local case of Petroliam Nasional Bhd & Ors v Khoo Nee Kiong (2003)    Malaysian court decided, among o...
JurisdictionIn addition to the nature of corporate structure, decisions will also have to be takenwith respect to the juri...
JurisdictionFor example, XYZ, a company in London, having its server in USA, may sellits products to customers in India or...
Jurisdiction                Existing System                     New System               Jurisdiction of dispute          ...
AdvertisementAdvertisement  Many websites advertise goods or services to customers. The traditional  laws of advertising, ...
AdvertisementAdvertisement  An advertisement may be exposed to liability under the consumer  protection laws since it may ...
AdvertisementArticle on Advertisement Issues
AdvertisementArticle on Advertisement Issues
Electronic Payment IssuesElectronic PaymentThe instrumental growth in e-commerce activities hasnecessitated the evolution ...
Electronic Paymenta. Secure Credit Card Transactions:   An e-commerce website that accepts online credit card   payments m...
Electronic Paymentb. Recognition of digital currencies:   To be effective, existing laws would need to recognise the payme...
Electronic Paymentd. Risk of Regulatory Change:   The regulatory environment for electronic payment is likely   to change ...
Electronic Paymentf. Consumer-   oriented risks:   These include risks   concerning   privacy, consumer   protection, mone...
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E-Commerce Integration and Implementation Issues

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E-Commerce Integration and Implementation Issues

  1. 1. E-Commerce Integration and Implementation Issues Khairiyah Salleh Nur’Aina Daud Nurul Izzah Othman Noor Yahya Sulaiman Date: 19 May 2012
  2. 2. IntroductionMalaysian government believes that ICT is a strategic driver to support and contributedirectly to the growth of Malaysian economy. For the purpose of deploy resources todevelop knowledge base economy and to enter the digital age with more strategic way,Malaysian government announced the plan called 8th Malaysian plan.During the Malaysian plan some of the initiatives were deployed to build vital ICTinfrastructure for public sector as well as private sector. This plan has been focused toincrease the usage of computerization and IT infrastructure in many governmental agencies.Malaysia would like to promote and facilitate the wider adoption and usage of ICT ineveryday life, such as E-Commerce, industry, education and health. The motive of this plan isto shift from a knowledge base economy to a competitive knowledge based economy.Commercial activities on the internet are rapidly increasing all over the world. E-Commercebecomes a strong and easy way of rapid business.
  3. 3. Opportunities in Implementation E-CommerceOpportunities To gain competitive advantages over other organization. Open up new distribution channel and increase sales. Support buy and sell product on Internet from any place to anywhere all over the world without traditional intermediaries. Example Amazon, E Bay. Process and transaction can be done rapidly at reasonable cost. Cost saving for the organization and their customer. E-Commerce appears to be generating a significant amount of new economic activities. Customer are able to choose and discriminate among alternative product and services.
  4. 4. CISCO (CISCO CONNECTION ONLINE) Full implementation online (24 hours a day, 7 days a week) Increase efficiencies in order taking. Reduced customer service calls Lower distribution cost of software upgrades.
  5. 5. Issue and Challenges of Global Implementation E-Commerce (Economic Factors)Cost Justification High cost of implementation. Mistake due to the lack of experience inflate the cost. Justification of cost not on tangibles factors. Justification of cost always based on intangibles factors such as improved the customer service, increase the value f advertisement and gain competitive advantages.Number of sellers and buyers. Number of people connected to the Internet. E-Commerce project are viable to the developed country which majority of resident have high income or salary.
  6. 6. Issue and Challenges of Global Implementation E-Commerce (Economic Factors)Issue on Internet and Telecommunication Infrastructure Digital divide between the developed world and most developing countries. Accessibility to the Internet is still expensive. Global infrastructure of the web is unevenly developed.Skill Shortage and lack of trained personal. The dynamism of the technology and emerging skill such as XML, ASP and PHP programming. Need to hire the additional foreign workers form abroad.
  7. 7. Issue and Challenges of Global Implementation E-Commerce (Technical Factors)Security Issues Consumers are distrustful about the safety of information. Incident on unsophisticated hackers can steal information easily. Many company are not pay enough intention on security. Reduce the consumer confidence.Reliability Issues. Network Infrastructure and application systems must be continuously upgraded, fine tuned and maintained regularly. Vulnerable of sites to denial of services attack. Vulnerable to the virus spread. Reduce the consumer confidence .
  8. 8. Issue and Challenges of Global Implementation E-Commerce (Social Factors)Privacy and Security Issues Customer are reluctant to buy online, reluctant to disclose the confidential data such as home address, identification number and credit card number. Companies did not give guarantees on security of information.Cultural Diversity. Ability of customization the interface for individual and group needs. Customization process is expensive. Translation of language from English into local languages.
  9. 9. Issue and Challenges of Global Implementation E-Commerce (Social Factors)Lack of Trust Issues Customer trust is important such as friends recommendation, previous experience, or through transparent legislative infrastructure. Company also need to well established the “brand identity” of company.Absence of “Touch and Feel” functions. Most of business working around on this limitation. Customer only buy a reasonable price on E-Commerce website. Customer did not buy a high price product online. Therefore, web site still in used for customer for conduct research on product and making comparison on price offered.
  10. 10. Issue and Challenges of Global Implementation E-Commerce (Legal Factors)Protection of Intellectual Property Right Issues Digital media are compact, easily stored, easily to being replication, transmission and alteration. Internet was designed to be open and transmit information freely around the world. Different country have different attitudes towards intellectual property rights. New laws should be design and inadequate action should be impose to protect the original copyrighted contribution.Taxation Issues. Collecting the Internet sales taxes are rather complicated. Different country or nation have different tax structure.
  11. 11. Issue and Challenges of Global Implementation E-Commerce (Legal Factors)Product Sale that are restricted or illegal by another country Companies should more careful and fully obey the rules and laws of other country. Example such as selling the wine, weapons, restricted chemical items or online gambling.Legal Validity of the Electronic Transaction. Traditional business are based on face to face meeting, paper documentation and “wet signature” as verifier. Electronic documents must be customize and should have the same legal validity standard as written signature.
  12. 12. Critical Success Factors for E-Commerce ImplementationSuccess factors have been used to identify information needs, to list and describeelements critical to program and system success, and to help define and focusmanagement’s responsibilities and efforts.Griffin and Kenneth [8] write “Success factors are the limited number of areas inwhich results, if they are satisfactory, will ensure successful competitiveperformance for the organization. They are the few key areas where things must goright for the business to flourish. If results in these areas are not adequate, theorganization’s efforts for the period will be less than desired.”According to Rockart [16], “the success factors are areas of activity that shouldreceive constant and careful attention from management. The current status ofperformance in each area should be continually measured, and that informationshould be made available.”
  13. 13. Critical Success Factors for E-Commerce ImplementationPolicy factors.Organization factors.Human resources management factors.Business factors.Customer relationship management factors.Technology factors.Security factors.Environment factors.
  14. 14. Critical Success Factors for E-Commerce Implementation (Approach of Using an E-Business)Phase 1: Identify the business opportunity. Identify the kinds of technology and business partnersPhase 2: Select the technology infrastructure. A tool that can enable web applications would require network bandwidth, computer security, and applications to make electronic business a reality.Phase 3: Implement the electronic business solution. This phase involves complex technology and organization issues. It is important to make sure that a solution is tightly integrated with other systems and operations. The implementation also needs to have the partners, customers, suppliers, and employees built into it.
  15. 15. Critical Success Factors for E-Commerce Implementation (Three Area That Affect the Implementation of E-Business by Newton S, 1999)1. Business Trends • Enterprise Collaboration • Customer Relationship Management (CRM) • Identifying Return on Investment2. Organization Trends • Specialization • Skill Management • Process Visibility • The Learning Organization3. Technological Trends • Managing Security and Standards. Enterprise Integration • Technology Convergence
  16. 16. Critical Success Factors for E-Commerce Implementation (Three Area That Affect the Implementation of E-Business by Carton S, 2000)Carton [3] claims that to make business-to-consumer electronic commerce successful, special attention must be paid to privacy and loyalty of customer; the organization should ensure the following:• Build Trust - to build customer loyalty, an organization must first build trust. The organization should be open, honest, clear, and concise in terms of letting the customer know what it will do or will not do.• Provide Added Value - The organization should provide added value, which actually makes the customer’s life more interesting.• Give Customers a Choice - The organizations should make sure that the customers are given enough choices and are allowed to make decisions themselves.
  17. 17. Critical Success Factors for E-Commerce Implementation (Three Area That Affect the Implementation of E-Business by Newton) Transaction Software -The transaction and payment software must perform correct calculations, especially with respect to taxes and shipping costs. Site Maintenance - The organizations should have enough trained programmers to maintain the web site. Security - Details regarding personal information and data regarding electronic money transactions must be highly secure.
  18. 18. Critical Success Factors for E-Commerce Implementation (Three Area That Affect the Implementation of E-Business by Newton)Chan and Swatman [5] studied the key factors involved inimplementation of business-to-business electronic commerce in BHP(Broken Hill Proprietary Company Limited) Steel and present severalfactors influencing its implementation.1. Internal Factors  Commitment  Trading Partner Participation  Pro-active Approach  Business Value  Training and Educational Program2. External Factors  Rapid Changes in Technology.  Complexity and Compatibility of Technology and Process
  19. 19. Food-DominosDommal Food Services Sdn Bhd
  20. 20. Florist-Blooming Florist Sdn Bhd
  21. 21. Online Shopping-Aidijuma Scarf
  22. 22. Entertainment-TGV
  23. 23. Flight Booking-AirAsia AirAsia Bhd
  24. 24. Online Banking- Maybank Bhd
  25. 25. Key e-Commerce Players in Malaysia Blooming.com.my, a florist delivery service, has already been engaged in e- Commerce activities since they first reached Malaysian shores in the mid 1990’s for example. MPH, a popular Malaysian bookstore, has also been doing great on the e- Commerce front since 2004. Lelong.com.my, a Malaysian homegrown e-Bay, was established in 1999 and for the first five years did not charge any fees for its services, instead relying on its own investments and advertisement sales to stay afloat. AirAsia, one of the most successful Malaysian e-Commerce examples
  26. 26. Appendix Source from: Malaysia Department of Statistics
  27. 27. Source from:International DataCorporation (IDC)
  28. 28. Source from:MalaysiaDepartment ofStatistics
  29. 29. Source from:MalaysiaDepartmentof Statistics
  30. 30. Opportunities of E-Commerce in MalaysiaOpportunities Development of information and communication technologies New technologies are providing easy and fast online transactions which are enhancing consumers to go online and take the advantages of E-Commerce. Geographical position The business are no longer in local but also in global areas. Foreign investment It helps in promoting business and introduces new technologies which are effecting on the growth of E-Commerce. Malaysia is enjoying fruitful foreign investment in the region.
  31. 31. Opportunities of E-Commerce in Malaysia (cont…) Stability of policy and regulatory Government is willing to develop and introduce E-Commerce with new technologies. There is continuity in policies, strategies implementation and strategies formulation which are enhancing the effectiveness of online trading. Government created institutions that help industries and people to adopt E- Commerce These organizations have also announced some plan and strategies to improve E-Commerce in Malaysia. Government bodies have announced and built ministry of multimedia and communication for the improvement of information and communication technologies, information technology infrastructure to create knowledge based economy. Government has built an organization for small businesses which called Small and Medium Industries Development Corporation (SMIDEC).
  32. 32. E-Commerce Implementation Issues in Malaysia Challenges 1. E-readiness 2. Cyber Crime 3. Security 4. Privacy 5. Legal issues
  33. 33. E-readinessA country’s e-readiness is essentially a measure of its e-businessenvironment, a collection of factors that indicate how amenablemarket is to Internet-based opportunities. E-readiness is notsimply a matter of the number of computer servers, websites and mobilephones in the country, but also things such as its citizen’s ability to utilisetechnology skilfully, the transparency of its business and legal systems, and theextent to which governments encourage the use of digital technologies.Malaysia ranked 34th among 70 countries (Economist Intelligence Unit).The lacks of understanding about new technologies are affecting E-Commerce.The awareness and knowledge about information and communicationtechnologies are still in the formative phases. Some new technologies are stillnew for buyers. As a result buyers are still reluctant to implement thesetechnologies.
  34. 34. Cyber CrimeCyber crimes emerge as a threat to E-Commerce incurrent scenario. The advancement of technologicalcapabilities and its usage for crimes like hackinginformation of credit cards and other importantinformation became a major threat for onlinebusinesses. The hacker could hack the credit carddetails and users hindered to give this kind ofinformation.
  35. 35. Articles on Cyber Crime in Malaysia
  36. 36. Articles on Cyber Crime in Malaysia
  37. 37. Security IssuesSecurity is one of the most addressed issues in implementing e-commerce whether it is safe to conduct on-line transactionsAs business move towards adapting on-line trading, issues of on-line transaction security become more important.The major threats to business are information losses, theft ofdata, infection with a computer virus, and manipulation of theirinternal systems or software applications.Based on survey on Malaysian companies’ interest in e-business,70 % believed that security was the most important barrier toecommerce development.
  38. 38. Types of AttackNon Technical Technical Attack Attack Deception or persuasion to An attack perpetrated trick people into revealing using software and system sensitive information knowledge Social engineering is a type of non technical attack that Denial of service attack, uses some trick users into Malicious Code: Viruses, revealing sensitive Worms, and Trojan Horse information
  39. 39. Identity TheftIdentity theft is possible with the help of digital informationtechnologies (Caeton, 2007) and by the nature of modern paymentsystems.Identity theft involves acquiring enough data about anotherindividual to counterfeit this link, enabling the thief to acquiregoods while attributing the charge to another person’s account(Anderson et al, 2008).In addition, identity theft is the taking of a victim’s identity to obtaincredit or credit cards from banks and retailers, steal money from thevictim’s existing accounts, apply for loans, establish accounts withutility companies, rent an apartment, file bankruptcy, or obtain ajob using the victim’s name (identity theft, 2010). In short, identitytheft occurs when someone appropriates your personal informationwithout your knowledge to establish a parallel identity.
  40. 40. Identity Theft in Malaysia
  41. 41. Virus, Worm, and Trojan HorseReferred to as malware , it is classified by how itpropagates.A virus is a piece of software code that inserts itself into ahost, including operating system. In order to propagate, itsrequires its host program be run to activate it.Worm is a software program that runs independently,consuming resources of its host and able to propagate acomplete working version itself.Trojan horse is a program that appears to have usefulfunction but it contains a hidden function that presents asecurity risk.
  42. 42. Denial of SeviceAn attack on a website in which attacker usesspecialized software to send a flood of data packetsto target computer with the aim of overloading itsresources.
  43. 43. Security Attack in Malaysia
  44. 44. Privacy IssuesPrivacy is the right to be left alone and the right to befree of unreasonable personal intrusion.There are a number of opportunities to collectinformation about individuals
  45. 45. Ways of Gathering Information of An Individual Reading an individual’s blogs, or newsgroup postings. Looking up in an individual’s name and identity in internet. Reading an individual’s email, IM or text massages. Monitoring and conducting observation on employees. Wiretapping wire-line and wireless communication lines. Complete registration form online. Record individual’s action using cookies as they navigate the website. Using spy ware, keystroke loggers, and similar methods.
  46. 46. Website RegistrationA study by TNS and TTRUSTe (2004) user doubt to give personalinformation to online businesses.Among the 1068 participants, 71% dislike registering at websitesthey visit, 15 % refuse to register at all while 43% do not trustcompanies not to share their personal information.All B2C, marketing Websites and social network ask visitor to fillup registration form (ex: win a prize or some of item exchange).The site may use it to improve customer service or sometimesthey may sell the information to other company.
  47. 47. CookiesWebsite gather information about an individual by usingcookies.Cookies enable sites to keep track of users without havingconstantly ask the user to identify themselves.Originally, cookies were designed to help with personalizationand market research. However cookies can invade an individual’sprivacy.Cookies enable user’s information such as preferences, interestsand surfing patterns to be collected.User can disable the cookies, but the problem is that the userwill have to keep reentering information or may be blocked fromviewing certain pages.
  48. 48. SpywareSpyware is defined as unwanted software programs designed tosteal information or confidential information.Spyware may enter the user’s computer as a virus or a result ofthe user’s clicking an option in deceptive pop up window.Spyware tracks user’s web surfing habit and scan computer harddrives for sensitive files and send the result to hackers andspammers.Therefore, spyware is a violation of computer’s user privacy.For example: Keystroke Logger run in the background of theuser’s computer and record every keystroke that user makes.Hacker can steal the user’s password, account number, etc
  49. 49. Privacy ProtectionThere are several laws and regulations that governede-commerce activities.Some countries have enacted comprehensive laws one-commerce while some others are still in the processof enacting laws.Some e-commerce laws were developed andreviewed in order to keep up with the changes intechnology.
  50. 50. Privacy Protection In MalaysiaIn Malaysia, the right of privacy is not as a fundamental right underthe Federal Constitution.However, with the development of e-commerce a new law waspassed in January 2010 which is known as a Personal DataProtection Act 2010 (PDPA). This Act seeks to regulate the processing of personal data ofindividuals who involved in commercial transactions by data users.It also protect to the individual’s personal data and safeguardingthe interests of the individual.This Act defines the meaning of ‘personal data’ and ‘sensitivepersonal data’.It also outlines the data protection principles and the exemptions,right of data subject including right to access personal data, tocorrect it, to prevent its processing for unlawful purposes and whatamount to criminal offences under the Act. (Mohamed, 2011)
  51. 51. Legal Remedies for Invasion of Privacy in E-CommerceIn Malaysia, claim for remedies for cases of breach of online privacy areforwarded to Financial Mediation Bureau (FMB) .This FMB is an alternative to courts or arbitration which in charge ofsettling disputes between individuals or corporations and the financialservices providers who are under the supervision of Bank NegaraMalaysia or ‘National bank’ and a member of the bureau.It was reported that the FMB is handling 3000 cases in October 2011since there are increasing numbThe protection on violation of personal privacy in Malaysia is limited toinformational privacy only. (Mohamed, 2011)
  52. 52. Legal IssuesDomain NameJurisdictionAdvertisementElectronic Payment
  53. 53. Domain NameDomain NameA company that commences e-commerce activities would at firsthave to get its domain name registered. While registering domainnames, if the company chooses a domain name that is similar tosome domain name or some existing trademark of a third party, thecompany could be held liable for cybersquatting.Since registration of domain names is simple and inexpensive,cybersquatters often register hundreds of such famous names astheir domain names such as www.sony.net andwww.petronas.net.In Malaysia, cybersquatting issue is addressed by .my DOMAINREGISTRY’s Sensitive Name Dispute Resolution Policy (SNDRP) andthe complaints must be made according to the rule given by .myDomain Registry.
  54. 54. Domain NameThe Complaint must:-(i) provide the name, postal address, telephone and facsimile numbers and electronic-mail address of the Complainant and/or its authorised representative(s) in a separate document;(ii) provide the name of the Registrant and any other relevant information (including the Registrants postal address, telephone and facsimile numbers and electronic-mail address), which will be able to assist the Provider in sending the Complaint to the Registrant; and(iii) specify the Domain Name which is complained of;(iv) state the grounds on which it is made, specifically, as to why the Domain Name should be considered as being a Sensitive Name or otherwise falling within any one or more of the categories detailed in Paragraph 5 of the SNDRP;(v) identify any legal proceedings which involve the Domain Name that may have been commenced or terminated by the Complainant; and(vi) end the Complaint with the statement and the signature of the Complainant:-
  55. 55. Domain Name •In Sime Darby Berhad Malaysia v. Mr. Sim e- Darby (2002) over a domain name ‘simedarby.com’ by respondent in Canada, the matter went to WIPO Arbitration and Mediation Center, which heard in accordance with the Policy and Rules of the Uniform Domain Name Dispute Resolution Policy (UDRP). •The decision of Panel was to transfer the impugned domain name to the complainant, because, among other things, the domain name registered by the Respondent is identical or confusingly similar to the “Sime Darby” trade mark in which the Complainant has rights.
  56. 56. Domain Name •In a local case of Petroliam Nasional Bhd & Ors v Khoo Nee Kiong (2003) Malaysian court decided, among other things, that cyber squatting may be regarded as ‘passing off’. The first plaintiff in that case was a well-known national petroleum corporation. The second plaintiff was one of the marketing arms of the first plaintiff and the third plaintiff was in the business of processing and transmitting natural gas and it conducted its gas business under the trade name ‘Petronas Gas’. The defendant was an individual carrying out trading operations as a registered sole proprietor under the trade/business name ‘Araneum Consulting Services’ and was in no way associated with the plaintiffs. •It was held that by registering the said domain names which contained the word ‘Petronas’, there was a serious issue to be tried in that the defendant was making a false representation to persons who may have consulted the register that the registrant, ‘Araneum Consulting Services’ was connected or associated with the name registered and thus the owner of the goodwill in the name ‘Petronas’. •The court maintained that by registering the said domain names, the defendant had eroded the exclusive goodwill in the name ‘Petronas’ which had cause damage to the plaintiffs.
  57. 57. JurisdictionIn addition to the nature of corporate structure, decisions will also have to be takenwith respect to the jurisdiction in which the corporate structure should be situated, asit will determine the extent of any liability that may arise against the website.According to the traditional rules of private international law, the jurisdiction of anation only extends to individuals who are within the country or to the transactionsand events that occur within the natural borders of the nation.However, in e-commerce transactions, if a business derives customers from aparticular country as a result of their website, it may be required to defend anylitigation that may result in that country.As a result, any content placed on a website should be reviewed for compliance withthe laws of any jurisdiction where an organisation wishes to market, promote or sellits products or services as it may run the risk of being sued in any jurisdiction wherethe goods are bought or where the services are availed of.
  58. 58. JurisdictionFor example, XYZ, a company in London, having its server in USA, may sellits products to customers in India or other countries. In such a situation, ifyou receive defective goods or if you regret having made the purchase, thequestion would arise as to which jurisdiction can you sue the company orclaim damages or withdrawal respectively. The company, on the other hand,might find itself confronted with foreign laws, which he may not be awareof.For example, the US courts have in numerous cases have held a company inX stateliable in Y state on the basis that the website could be accessed in Y state.
  59. 59. Jurisdiction Existing System New System Jurisdiction of dispute Jurisdiction of dispute Malaysian Court Local or foreign court? Choice of law Choice of lawMALAYSIA Malaysian Law foreign or local? LEGAL SYSTEM Evidence Evidence Act electronic document REFJA (Reciprocal REFJA is not enforceable in Enforcements of foreign some major trading partners Judgement Act) The nature of E-Commerce causes existing laws not able to cover the resolution process especially in cross border issues
  60. 60. AdvertisementAdvertisement Many websites advertise goods or services to customers. The traditional laws of advertising, which apply to ordinary sales, are enacted in the interest of all consumers to prevent deceptive and unfair acts or practices. These laws would also be applicable to advertising or marketing on the Internet. The websites may be subject to any liability that may arise due to false designations, origin, misleading description of fact that are likely to cause confusion or misrepresent the nature, characteristics, quality or geographic origin of the goods or services that are offered for sale in an advertisement. In addition to advertising laws, depending on the kind of business, the websites would also have to comply with the laws of applicable to such a business.
  61. 61. AdvertisementAdvertisement An advertisement may be exposed to liability under the consumer protection laws since it may be subject to different interpretations by the consumer in different jurisdictions. Certain websites simply display advertisements or banners of other companies. In such a case, would the owner of the website be subject to liability for misleading or fraudulent advertisements that are displayed on its website? The website should contain appropriate disclaimers disclaiming any such liability. Most countries have stringent laws with respect to spamming. Website owners must ensure that they use legal methods of advertisements and that the method used does not amount to spamming.
  62. 62. AdvertisementArticle on Advertisement Issues
  63. 63. AdvertisementArticle on Advertisement Issues
  64. 64. Electronic Payment IssuesElectronic PaymentThe instrumental growth in e-commerce activities hasnecessitated the evolution of electronic payment mechanisms.In addition to normal currencies, e-financial instruments / digitalcurrencies such as cyber cash and e-cash can be used for thepurchase of current as well as capital assets over the Internetand for carrying on other commercial activities.Before regulating the use of such financial instruments, it wouldbe essential to identify the issues that these instruments pose.
  65. 65. Electronic Paymenta. Secure Credit Card Transactions: An e-commerce website that accepts online credit card payments must ensure that it has adequate security measures to safeguard confidential customer data that is provided on the site. In the event that credit card numbers are leaked on the Internet, the website could be held liable for damages caused to the consumers.
  66. 66. Electronic Paymentb. Recognition of digital currencies: To be effective, existing laws would need to recognise the payment of digital currencies, as enforceable consideration against obligations undertaken by the other parties. Further, the extent to which these digital currencies are “valid tender” would also need to be examined.c. Determining the relevant jurisdiction: This would mean determining the relevant law that parties will be governed by in respect of electronic transactions (whether by the contract, or in its absence, by general principles of law). This may create problems, especially when the laws in Country A, where the company is registered permit electronic payment contracts, whereas the laws in Country B, where the consumer is located, do not regulate electronic payment contracts.
  67. 67. Electronic Paymentd. Risk of Regulatory Change: The regulatory environment for electronic payment is likely to change with technological innovations in modes of payment. Therefore, any form of legislation made in this regard should be technologically neutral.e. Transaction risks: These include the liability for security failures in the system of transaction and the relevant standard of care for system security.
  68. 68. Electronic Paymentf. Consumer- oriented risks: These include risks concerning privacy, consumer protection, money laundering, tax avoidance, online fraud and crime.
  69. 69. Thank You

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