A detail presentation on e-commerce in india.

1. By: Atul S. Jaybhaye
Assistant Professor
Hidayatullah National Law University

3. E- Commerce meaning
 (Electronic commerce or EC) is the buying and
selling of goods and services, or the transmitting
of funds or data, over an electronic network,
primarily the internet but also all other activities
which are associated with any transaction.
 It also describes the exchange of data between
the financing, billing and payment aspects of e-
business transactions.
 Generally e-commerce and e-business are used
interchangeably.

4. E- Commerce meaning
 E-commerce increases the growth of online business.
It can be categorized under:
 1- Online marketing
 2- Online advertising
 3- Online sales
 4- Product delivery
 5- Product service
 6- Online billing
 7- Online payments

5. History of E- Commerce
 The beginnings of e-commerce can be traced to the 1960s,
when businesses started using Electronic Data Interchange
(EDI) to send the commercial documents to other companies
like purchase order, invoices.
 Electronic Data Interchange (EDI) is the computer-to-computer
exchange of business documents in a standard electronic
format between business partners.
 Amazon.com was one of the first e-commerce sites in the US
to start selling products online and thousands of businesses
have followed since.

6. Features of E- Commerce
 Ubiquity
 Global Reach and Security
 Universal Standards
 Information Density
 Richness
 Interactivity

7. Features of E- Commerce
 Ubiquity:
It means that the commercial transaction or activity
is available at any time from anywhere in the world.
And in today’s business environment, you should
ensure that your website is mobile-friendly as
consumers continually rely on mobile devices for
their internet connectivity.
 Global Reach and Security:
E-commerce allows your company to reach
consumers anywhere in the world. Global reach is
the highest number of potential consumers a
business can reach, essentially worldwide access.

8. Features of E- Commerce
 Universal Standards:
E-commerce operates on standard platforms with
agreed methods and systems. This is where you
should also look at the ease of use of your e-
commerce site and ensure that you are keeping it
simple in design and content. objective is to help
shoppers get to what they want faster, and without
running into the unnecessary complexity.
 Information density :
It relates to the technological capabilities of e-
commerce, in that vast amounts of information can

9. Features of E- Commerce
 Richness:
Richness refers to the content available on the e-
commerce platform and how it used by the
consumer. In order to ensure richness to your site,
provide a variety of messages and means, such as
videos, text, pictures, sound, links, SMS and more to
enhance customer experience.
 Interactivity:
Interactivity is the relationship a consumer has with
the site, which is similar to a face-to-face customer
meeting in a traditional business. Part of increasing
the amount of interactivity you have with a consumer
lies in your ability to connect with them on an

10. The process of E-commerce

11. The process of E-commerce
 A consumer uses Web browser to connect to the home page of a
merchant's Web site on the Internet.
 The consumer browses the catalog of products featured on the
site and selects items to purchase. The selected items are placed in
the electronic equivalent of a shopping cart.
 When the consumer is ready to complete the purchase of selected
items, it provides a bill-to and ship-to address for purchase and
delivery.

12. The process of E-commerce
 When the credit card number is validated and the order is
completed at the Commerce Server site, the merchant's site
displays a receipt confirming the customer's purchase.
 The Commerce Server site then forwards the order to a
Processing Network for payment processing and fulfilment.

13. Advantages of E-commerce
Faster buying/selling procedure, as well as easy to find products.
Buying/selling 24/7.
More reach to customers, there is no theoretical geographic
limitations.
 Low operational costs and better quality of services.
No need of physical company set-ups.
Easy to start and manage a business.
 Customers can easily select products from different providers
without moving around physically.

14. Disadvantages of E-commerce
Unable to examine products personally.
Not everyone is connected to the Internet.
 There is the possibility of credit card number theft.
Jurisdiction issues in cyberspace.
It is difficult to ensure the security or privacy on online
transactions.
Lack of touch or feel of products during online shopping is a
drawback.

15. Models/types of E- Commerce

17. Models/types of E- Commerce
 B2B e-commerce is simply defined as e-commerce
between companies. This is the type of e-commerce that
deals with relationships between and among businesses.
 B2B is the portion of the internet market that effects
transaction between business operations and their
partners in marketing, sales, development, manufacturing
and support.
 B2B is all about transactions between one organization
and their partners. Any transaction or information
associated with development, manufacturing, delivery,
sales and support of products or services is a candidate
for a business to business system.

22. Laws on E- Commerce

23. Laws on E- Commerce
 UNCITRAL : What is it ? Why should we be aware
about it ?
 Following the United Nations Commission on
International Trade Law (UNCITRAL) Model Law on
E-Commerce, the Government of India enacted the
Information Technology Act in June 2000.
 The Act facilitates E-commerce and E-Governance in
the country. The Act also establishes a regulatory
framework and lays down punishment regimes for
different cyber crimes and offences.

24. Laws on E- Commerce
 UNCITRAL : What is it ? Why should we be aware
about it ?
 Adopted on 30 January 1997
 It recommends inter alia that all States give favorable
consideration to the Model law when they enact or revise
their laws in view of the need for uniformity of the law
applicable to alternatives to paper-based methods of
communication and storage of information.

25. Laws on E- Commerce
 UNCITRAL : What is it ? Why should we be aware
about it ?
 Recognizing the necessity to give effect to the Resolution,
and
 with an objective of promoting efficient delivery of
government services by means of reliable electronic
records, the Government of India enacted the Information
Technology Act in June 2000.

26. The UNCITRAL model Law: background
In many countries the existing legislation governing
communication and storage of information were inadequate
or outdated.
Many countries lacked in legislations for dealing with E-
commerce.
Inadequate legislation at the national level created obstacles
to international trade.

27. Basic Principles of the Model Law
1. Analyze purposes and functions of paper-based requirements
(“writing”, “record”, “signature”, “original”)
2. Consider criteria necessary to replicate those functions and give
electronic data the same level of recognition as information on
paper.
3. Equal treatment of paper-based and electronic transactions
4. Equal treatment of different techniques (EDI, e-mail, Internet,
telegram, telex, fax).

28. Core Provisions of the UNCITRAL Model
Law
 Core Provisions of the UNCITRAL Model Law:
 Article 5 (Legal Recognition)
 Article 6 (Writing)
 Article 7 (Signature)
 Article 9 (Evidence)

29. Core Provisions of the UNCITRAL Model
Law
 Article 5: (Legal Recognition)
Information shall not be denied legal effect, validity or
enforceability solely because:
it is in the form of a data message or
It is incorporated by reference.
 Article 6: (Writing)
Where the law requires information to be in writing,
that requirement is met by a data message if the
information contained therein is accessible so as to be
usable for subsequent reference.

30. Core Provisions of the UNCITRAL Model
Law
 Article 7 (Signature)
Legal requirement is met in relation to a data message
if a method is used to identify the signatory and to
indicate his approval of the information contained in
the data message.
 Article 9: (Evidence)
 In any legal proceedings, nothing in the rules of evidence
shall apply so as to deny the admissibility of a data message
in evidence solely because it is a data message.

31. Core Provisions of the UNCITRAL Model
Law
 Other Provisions of the Model Law:
 Article 11 (Use of data messages in contract formation)
 Article 12 (Non-repudiation)
 Article 13 (Attribution of data messages)
 Article 14 (Acknowledgement of receipt)
 Article 15 (Time and place of dispatch and receipt)

32. Common Problems In E-commerce
Defective or wrong product delivery;
Refusal to replace wrong product delivered;
Refusal or delay in refunding of money transferred for
online purchase;
Unreasonable delay in delivery of products purchased
online;
Issues regarding guarantee and warranty of products
purchased online;
Risky exposure of sensitive personal information
shared for online transactions;

33. Protection of consumers in E-Commerce
 Indian approach - Consumer Protection Act, 1986.
 The purpose of this Act is to ensure that all customers get
what they deserve or are promised. It ensures that the
consumers aren't cheated by enterprises by checking unfair
trade practices, defects in goods and deficiency in services
in India.
 It's jurisdiction extends to all services, products or
suppliers in the public or private sector including banks,
education, life and general insurance, health services,
retailers etc.

34. Protection of consumers in E-
Commerce
 According to Section 2(1)(d) of the Consumer
Protection Act, a 'consumer' is any person who buys or
hires any goods or services for a price.
 According to Section 2(1)(b), a 'complaint' can be filed by
I. A consumer;
II. The legal heir or representative of a consumer in case of
the consumer's death;
III. A group of consumers having the same concern;
IV. A voluntary consumer association;
V. The Central or State governments.

35. Protection of consumers in E-
Commerce
 The Consumer Protection Act,1986:
 The Indian Consumer Protection laws, backed by the
International guidelines are able to protect consumers in e-
commerce even in the absence of explicit laws concerning online
transactions.
 Amount of claim:
I. If the amount is less than Rs. 20 Lakh - District Consumers
Forum;
II. If the amount is more than Rs. 20 Lakh & upto Rs One crore -
Consumer Disputes Redressal Commission of the
concerned State;
III. If the amount is more than Rs. One crore - National
Consumer Disputes Redressal Commission New Delhi.

36. Protection of consumers in E-
Commerce
 The Consumer Protection Bill, 2018 -
 The bill proposes to replace the Consumer
Protection Act 1986, and this shall also
incorporate e-commerce.
 This bill seeks to widen the ambit and modernize
the law on consumer protection due to changes
in the market.
 The bill proposes prevention of engaging in
business malpractices and evading taxes,
leading to a substantial loss of government
revenue.
 The bill incorporates certain stringent penalties

37. Protection of consumers in E-
Commerce
 Many organizations are working for the protection of
the consumers. Some of them are:
Economic Cooperation and Development, (OECD)
International Chamber of Commerce and
International Consumer Protection and Enforcement
Network.

38. OECD Guidelines for Consumer
Protection
 Economic Cooperation and Development
 E-commerce should get an equal protection, when shopping
online or when buying the same goods from a local store.
 A complete disclosure about the goods and services rendered.
The e- customers should be aware of the transaction, they have
consented to.
 complete knowledge of what they are buying and the transaction
they are dealing with.
 The confirmation process for sale should give a fair chance to the
consumer for reviewing the products that he intends to buy, in
case there is any cancellation.
 The system of payments must be secure and reliable.

39. International Consumer Protection and
Enforcement Network
 The ICPEAN aims to preserve and protect the interests of the consumers
all over the world.
Consumers who participate in e-commerce should be provided with
transparent and effective consumer protection.
Businesses should never conceal any term or condition that might affect
the consumer’s decision regarding the transaction
Businesses should not restrict a consumer’s ability to make negative
reviews, dispute charges or file complaints with government and other
agencies.
Businesses should enable the consumers to maintain a record of such
transaction for future use as evidence or other things,

40. Thank you…