E-Commerce

Rules, Regulations and Guidelines for
Selling International through
E-Commerce
Department of Accounting
Faculty of Management & Finance
University of Colombo

ii
Acknowledgement
We would like to express our greatest appreciation to all those who provided us the
possibility to complete this report. We would also extend our sincere thanks to our lecturer
Dr. S Kehelwalatenna who provided us with an excellent opportunity to sharpen our
knowledge Rules, Regulations and Guidelines for selling international through e- commerce.
Our completion of this report could not have been accomplished successfully without the
guidance given by you.
Thank you!

iii
ABSTRACT
E-commerce is the buying and selling of goods and services, or the transmitting of funds or
data, over an electronic network, primarily the internet. When considering the current trends
in the business environment E- commerce is an essential component to be included.
With the development of e-commerce, E selling has been introduced and it has been simplify
the buying and selling process. There are several methods of selling online, such as Emails,
Text messaging, social media and websites or smartphone applications.
The above mentioned methods are enriched with benefits as well as drawbacks.
In order to proceed with that in an ethical manner, there are specific rules, regulations and
guidelines should be fulfilled. Rules and regulations for conducting e-commerce apply mainly
to online retailers and other businesses that perform consumer transactions by collecting
customer data. The following online business laws provide further information about laws
and regulations related to e-commerce, such as Licenses and Permits, Age Restrictions,
Terms and Conditions, Taxes, Payment Gateways and Payment Gateways.
These Rules, Regulations and Guidelines are varying from country to country.

iv
Table of Content
Contents
1. History of E-Commerce.........................................................................................................1
2. Introduction to E-Commerce .................................................................................................1
3. E-Commerce Process.............................................................................................................2
4. E-Selling ................................................................................................................................2
4.1 Types of online selling.....................................................................................................2
4.2 Benefits of selling online..................................................................................................3
5. General steps to develop E-Commerce strategy to sell product or service............................3
6. E-Commerce Guide ...............................................................................................................5
6.1 Guidelines for build customer reliability .........................................................................5
7. Rules and regulations for e selling.........................................................................................7
8. Rules, Regulations and Guidelines for e-commerce............................................................10
8.1 E-Commerce rules, regulations and guidelines in Sri Lanka.........................................10
8.2 E-Commerce rules, regulations and guidelines in South Asia.......................................13
8.3 E-Commerce rules, regulations and guidelines in USA.................................................14
8.4 E-Commerce rules, regulations and guidelines in UK...................................................16
8.5 E-Commerce rules, regulations and guidelines in New Zealand ...................................19
9. Comparison between countries rules and regulations..........................................................21
10. Conclusion .........................................................................................................................24
11. Reference ...........................................................................................................................25

1
1. History of E-Commerce
The beginnings of e-commerce can be traced to the 1960s, when businesses started
using Electronic Data Interchange (EDI) to share business documents with other companies.
In 1979, the American National Standards Institute developed ASC X12 as a universal
standard for businesses to share documents through electronic networks. After the number of
individual users sharing electronic documents with each other grew in the 1980s, in the 1990s
the rise of “eBay” and “Amazon” revolutionized the e-commerce industry.
2. Introduction to E-Commerce
E-commerce is the buying and selling of goods and services, or the transmitting of funds
or data, over an electronic network, primarily the internet. It covers a range of different
types of businesses, from consumer based retail sites, through auction or music sites, to
business exchanges trading goods and services between corporations. It is currently one of
the most important aspects of the business world.
These business transactions occur either as,
 Business-to-Business
 Business-to-Consumer
 Consumer-to-Consumer
 Consumer-to-Business
E-commerce allows consumers to electronically exchange goods and services with no
barriers of time or distance. Electronic commerce has expanded rapidly over the past years
and is predicted to continue at this rate, or even accelerate.
Electronic transactions have been around for quite some time in the form of Electronic
Data Interchange or EDI. EDI requires each supplier and customer to set up a dedicated
data link (between them), where ecommerce provides a cost-effective method for
companies to set up multiple, ad-hoc links. Electronic commerce has also led to the
development of electronic marketplaces where suppliers and potential customers are
brought together to conduct mutually beneficial trade.
The road to creating a successful online store can be a difficult if unaware of ecommerce
principles and what ecommerce is supposed to do for your online business. Researching

2
and understanding the guidelines required to properly implement an e-business plan is a
crucial part to becoming successful with online store building.
3. E-Commerce Process
4. E-Selling
E selling means selling through e commerce using electronic network such as internet.
4.1 Types of online selling
There are many different ways of selling online including:
1. Websites or smartphone applications
2. Emails
3. Text messaging
4. Social media
5. Online auctions such as Trade Me and eBay
6. Daily deal and group buying websites.

3
4.2 Benefits of selling online
Selling online has a number of advantages over selling by traditional methods, including:
 Making savings in set-up and operational costs. You don't need to rent high street
premises, pay shop assistants or answer a lot of pre-sales queries.
 Reducing order processing costs - customer orders can automatically come straight
into your orders database from the website.
 Reaching a global audience, thereby increasing sales opportunities.
 Competing with larger businesses by being able to open 24 hours a day, seven days a
week.
 Being able to receive payment more quickly from online transactions.
 Attracting customers who would not normally have investigated your type of high
street outlet.
 Improving your offerings using the data gathered by tracking customer purchases.
 Using your online shop as a catalogue for existing customers.
5. General steps to develop E-Commerce strategy to sell product or service
Selling a product online allows you to reach a wider audience and new customer pockets,
with 41% of the world’s global internet users purchasing products online in 2014. Selling
through e commerce (Online Selling) can successfully built by using following guidelines,
I. Decide what to sell
First step is deciding which products or services to offer. This is often the most challenging
part of starting a new online business. Therefore need to understand market demand and keep
up-to-date with current trends to select their product or service.
II. Identify your target market
Researching and identifying oraganisation target market and competition will go a long way
help to decide product pricing, website design and branding, and building initial marketing
strategy. This can provide insights into showcasing product’s benefits to potential customers.

4
III. Set ecommerce platform
Picking the right ecommerce platform is just as important as the product sell. Carefully
choose a fully hosted, all-in-one solution that allows to own both the ecommerce website and
the shopping cart software.
IV. Build online store
Choose an e-commerce theme or a custom design that works with organisation brand. Set up
product categories and upload inventory with much information. Set up reliable and
appropriate shipping and payment.
V. Advertise and market web store
Next step is to start connecting to potential customers using advertising. Search Engine
Optimization (SEO) plays a big part in online marketing. Write a blog post for each major
item that you sell, or use paid advertising such as Google AdWords or Facebook pay-per-
click marketing.

5
6. E-Commerce Guide
6.1 Guidelines for build customer reliability
The Federal Trade Commission (FTC) is the primary federal agency regulating e-
commerce activities, including use of commercial emails, online advertising and consumer
privacy. FTC's E-Commerce Guide provides an overview of e-commerce rules and
regulations.
Considering guidelines for selling internationally through ecommerce, there is an objective to
build consumer confidence and ensure that consumers are secured when transaction occur
with online. Consumers’ reliability of e electronic commerce can be built by using following
guidelines,
 Use fair business, advertising and marketing practices.
Consumers should know reliable, accurate and complete information about transaction. In
electronic commerce avoid deceptive, misleading or unfair claims, omissions or practices.
The businesses provide claims about how well a product works or how quickly a product will
arrive. In addition to that proper advertising, promotion, marketing material can be identified
relevant situation.
 Provide accurate, clear and easily accessible information about the company and the
goods or services it offers.
Disclose the information which consumers need to understand whom they are dealing with
and what they are buying, as well as these businesses post the company’s name, its physical
address, including the country, and an email address or telephone number. Consumers can
use these detail if they have questions or difficulties of transaction. They also provide a clear,
complete description of the product or service being offered. That helps to reduce the number
of complaints, dissatisfied consumers after online transaction.
 Disclose full information about the terms, conditions and costs of the transaction.
Provide detailed information about itemized list of costs involved in the transaction,
designating the currency involved, as well as terms of delivery or performance, and terms,
conditions and methods of payment. These businesses also provide information about
restrictions, limitations or conditions of the purchase; instructions for proper use of the
product and any safety and health care warnings; warranties and guarantees; cancellation or
refund policies; and whether after-sale service is available. If it’s possible to carry out a

6
transaction in more than one language, they make available all important terms and
conditions in each language.
 Ensure that consumers know they are making a commitment to buy before closing
the deal.
These businesses take steps to protect consumers which unknowingly entering into a sales
contract. Consumers have opportunity to change the order before committing to the purchase
or to cancel it entirely. They also allow consumers to keep a record of the transaction.
 Provide an easy-to-use and secure method for online payments.
Personal information should be secured from hackers, make sure that personal information is
less vulnerable.
 Protect consumer privacy during electronic commerce transactions.
In electronic commerce transactions, consumers have opportunity to refuse their personal
information shared with others or used for promotional purposes. Consumer can decide how
their personal information is used. In during the e-commerce transaction should be
determined the protection of consumer privacy.
 Address consumer complaints and difficulties.
There are appropriate policies and procedures to address consumer complaints and
difficulties quickly and fairly. In addition excessive cost or inconvenience situations should
be avoided in solving the problem of consumers.
 Adopt fair, effective and easy to understand self-regulatory policies and procedures.
The agreement encourages businesses to work with consumer representatives to develop
policies and procedures that give consumers the tools they need to make informed decisions
and to resolve complaints and to spread electronic commerce the same basic level of
protections that cover other forms of commerce. E commerce provides better policies,
procedures, regulation to effective transaction.
 Help educate consumers about electronic commerce.
To create a better electronic market place, all the parties should be knowledgeable about
electronic commerce. When consumers participate in online commerce consumer
representative to ensure that consumers understand their rights and responsibilities with
business activities.

7
7. Rules and regulations for e selling
Ecommerce transactions should be legally straightforward. You get money up front for the
sale, in return for delivery of a product as described within the timeframe specified. A
standard set of terms and conditions should cover the vast majority of transactions.
Rules and regulations for conducting e-commerce apply mainly to online retailers and other
businesses that perform consumer transactions by collecting customer data. The following
online business laws provide further information on how to comply with laws and regulations
related to e-commerce.
1. Licenses and Permits
Depending on product offer, organisation need a license to sell it. This varies based on the
country in which organization is located, so contact local licensing department.
Legal Zoom is also a great resource that can not only help with licensing, but also with some
of the other red-tape items in this section.
Selling special products to a regulated industry (e.g., medical devices or holistic health care
supplements), need to check with state to see need of licensed to provide those kinds of
products or service. But generally, the sale of digital information, clothing or handcrafted
items doesn’t require a special business license. Rather, the business licensing required for an
online retail business is not substantially different than that of a storefront business.
2. Age Restrictions
Anytime organisations launch a website, it’s essential to comply with the Children’s Online
Privacy Protection Act (COPPA).
This act includes quite a few regulations, but the one that will likely apply to site is the
inability to collect any personal information from a child under the age of 13.
If organisation planning on selling a product or service that tailors specifically to a young
audience, you’ll need to abide by COPPA regulations.
As far as age verification requirements for ecommerce stores selling age-restricted items,
should look into country’s specific codes. Sites seeing items like Tasers need to have age
verification tools before checkout in order to be legally sold, for instance.

8
Every country is different as far as their demands on how to run a business, and things get
especially tricky when it comes to age restrictions on products. Do your research and stay on
top of legislation to ensure your business is on the up-and-up.
3. Terms and Conditions
Good to have insurance to cover lost and damages to business. Online businesses don’t have
the same protection, many insurance companies don’t offer plans for online businesses and
even if they do they are known to be costly.
Having a solid terms and condition will reduce organisation personal liability should business
face any problems. In the terms and conditions, can clearly define what company is offering,
guarantees, warranties, etc.
4. Taxes
Taxes can be quite confusing for online businesses—and the proper process differs from
country to country and region to region. Even the way your business handles taxes may differ
from another business operating next door. Like people, businesses can handle the tax
process differently, but what matters is doing it accurately.
In the US, an online store without any physical presence is not required by law to collect
taxes on purchases. However, “physical presence” lies in a gray area. Each state has a
different definition for it. Whether organisations are including the tax in the overall price of
the product or filing it afterward, it’s good practice to speak with an accounting professional.
Since every business is different, it’s good to know specifically about exemptions.
5. Payment Gateways
There are many payment gateways available for ecommerce businesses,
1. PayPal powered by Braintree 3. Stripe
2. Checkout 4. Square
When organisation select vetting payment gateways, just be sure to ask if they have any
limitations around certain products, in addition to whether they are hosted or non-hosted,
include anti-fraud features, or require transaction fees, termination fees, monthly fees or setup
fees.

9
6. PCI Compliance
Any business that processes, stores or passes on credit card information must comply with the
Payment Card Industry Data Security Standard (PCI DSS). PCI ensures that businesses are
operating in a secure manner that prevents sensitive payment data from being stolen or
misused.
When consumers see that company is not compliant with PCI, they will contact the payment
brands (Visa, MasterCard, etc.). The payment companies are then responsible for dealing
with the violation. If a security breach or loss of data had taken place, then the business will
face a much higher fine and repercussion.
PCI was designed for large enterprise companies, but that doesn’t mean small-to-medium-
sized businesses (companies that process approximately 20,000 credit card transaction a year)
are ignored. In fact, SMBs are often targeted, because the majority of SMBs don’t have an IT
team. Still they are responsible for ensuring their customers’ payments are being processed
through a secure network and is stored in a protected database.
7. Shipping
E-Commerce business depends on ability to fulfill shipment and must recognize the
regulations set for certain items such as aerosols, food, beverages, perfumes, alcohol, etc.
Depending on shipment provider, they may permit the product to be shipped if proper
paperwork is filed or if fees are paid.
8. Holding Inventory
Not every e-commerce business has a big warehouse to hold their inventory. Regardless of
the infrastructure, the inventory needs to be held somewhere. Holding inventory and running
a business from home is a case-by-case basis that is dependent on product and location. If
organisation are keeping it in a zone that prohibits warehousing or business operation in
general, it’s good to know before you end up with boxes and boxes of merchandise and a
fine.

10
8. Rules, Regulations and Guidelines for e-commerce
8.1 E-Commerce rules, regulations and guidelines in Sri Lanka
Sri Lanka had to formulate new laws to address issues that would rise as a result of the use of
IT in business and society.
UNCITRAL (United Nations Commission on International Trade Law) model laws have
been taken as a guide lines in formulating IT related laws in many countries including Sri
Lanka.
1. Evidence (Special Provisions) Act No 14 of 1995
2. Electronic Transactions Act No 19 of 2006
3. Computer Crimes Act No 24 of 2007
4. Payment Devices Frauds Act No 30 of 2006
5. Intellectual Property Act No 36 of 2003
1. Evidence (Special Provisions) Act No 14 of 1995
• It was decided in Benwell vs. Republic of Sri Lanka (1978-79) SLR Vol 2 p 194 that
under law of Sri Lanka that computer evidence is not admissible under sec 34 of
Evidence Ordinance.
• Until Evidence (Special Provisions) Act No 14 of 1995 the status did not change.
Under sec 3 of the Act computer evidence are acceptable.
• Sec 6-9 of the Act provides the procedure to produce computer evidence.
• Act also defines computer “any device the functions of which includes the storing and
processing of information”
• Sec 5 (1) further says that “In any proceeding where direct oral evidence of a fact
would be admissible any information contained in any statement produced by a
computer shall be admissible as evidence…..
2. Electronic Transactions Act No 19 of 2006
• Main intention of the Act is to facilitate domestic and international electronic
commerce by eliminating legal barriers and establishing legal certainty.

11
• To encourage use of reliable forms of electronic commerce
• To facilitate electronic documents with government and to promote efficient delivery
of government services
• To promote public confidence in authenticity and reliability of data messages and
electronic communications
• It also provides legal background and modalities to engage in electronic forms of
contracting, including the recognition of an offer and acceptance in electronic form.
• Under the Act an email is deemed have been dispatched when it enters a designated
information system outside of one’s control. It is deemed to have received by the
other when it enters his designated system ( postal rule applies)
• However, one may stipulate a condition that the acceptance will happen only when he
acknowledges the receipt of the email.
• It also talks about Electronic Signatures in digital formats. Digital Encrypted
signatures to verify the authenticity.
• However, Last wills, Contract of sale or conveyances of immovable property or any
interest in such property, Power of Attorney are expressly excluded from Electronic
transactions.
3. Computer Crimes Act No 24 of 2007
• Our penal code is older than 125 years. By then the computers were not dreamt of and
therefore covering something called computer based crimes was not an issue. As a
result the provisions therein could not interpret elements of a computer based crimes
as they were unique to the conventionally described crimes.
• E.g. On cases of theft it has to be proved that there was a removal of movable tangible
property. Therefore, student removing the examination paper before the exam and
photocopying and keeping the exam paper on the same place later was not considered
to have committed theft ( Oxford Vs. Moss 1968 – 68 Crm Appl Reports 183)
• Further in a case in Sri Lanka Nagaiah Vs. Jayasekera ( 28 NLR 467) the accused was
charged with theft of electricity and was acquitted for the reason that it did not come

12
under the interpretation of theft under Sec 366 of Penal code as electricity was not a
tangible product. As a result Electricity Act has to be brought into deal with such
matters.
• Even to prove criminal trespass under penal code (sec 427) one has to prove physical
entry.
• The computer term “ access” which is used to denote entry will not really come under
“physical entry”
• Therefore, new interpretations to words, new offences have to be covered by new
law,( rather than amending the Penal Code) hence Computer Crime Act No 24 of
2007 is enacted.
• Part I of the Act deals with offences relating to cyber crimes
Unauthorized access, Computer hacking, unauthorized modifications, using
computers to commit crimes against national security, national economy, public
order, offences as to obtaining information unlawfully, illegal interception of data,
using illegal devices etc. unauthorized disclosure of information, conspiracy to
commit computer related offences etc. are described in the Act.
4. Payment Devices Frauds Act No 30 of 2006
• This Act is mainly deal with the legal background to create a safer environment to pay
through credit cards/ debit cards and other devices of electronic payments
• It has provisions to make certain activities illegal and punishable under law
• e.g. Unlawful possession of equipment that could fabricate or change or alter credit
cards/debit cards or any other device
• Implanting foreign objects or recording devices into swiping machines of credit cards
to capture data and information etc.
• Making multiple entries on transactions or bogus or fraudulent entries by merchants
and many other offences are described in the act.

13
• Further it also provide provisions to penalize credit Card holders who make
transactions who tries to make a fraud on the issuing banks and other financial
institutions.
5. Intellectual Property Act No 36 of 2003
• The law relating to copy rights, patent rights and trademarks are described in the
above ACT.
• The computer software, technologies etc. are also covered under the above Act.(IPA)
• Within the scope of literary, scientific and artistic works computer programs are also
covered under sec 6(1) of the IPA.
8.2 E-Commerce rules, regulations and guidelines in South Asia
Today e commerce takes a leading position in business world. As a result most of the
country’s businesses are tend to go along with this trend. South Asian countries also now
convert their businesses to e-platform. But the governments in South Asia impose several
rules against e commerce in order to restrict the unwanted thing to the country. Following are
some rules adopted by south Asian countries.
 The Nagaland Prohibition of Gambling and Promotion and Regulation of Online
Games of Skill Bill, 2015
 Cyber law, e-commerce law, foreign exchange management and export and import
regulations.
 Secure Electronic records and secure digital signatures Legal recognition of digital
signatures.
Where any lay provides that information or any other matter shall be authenticated by
affixing the signature or any document shall be signed or bear the signature of any person,
then, aside anything contained in such law, such requirement shall be considered to have
been satisfied if such information or matter is genuine by means of digital signature
attached in such manner as may be prescribed by the Central Government. For the
purposes of this section, "signed", with its grammatical variations and related expressions,

14
with reference to a person, means attaching of his hand written signature or any mark on
any document and the expression "signature" shall be construed accordingly.
 Secure digital signature
If, by application of a security procedure agreed to by the parties concerned, it can be
verified that a digital signature, at the time it was affixed, was
A. Unique to the subscriber affixing it
B. Capable of identifying such subscriber
C. created in a manner or using a means under the exclusive control of the
subscriber and is linked to the electronic record to which related in such a
manner that if the electronic record was altered the digital signature would be
invalidated, then such digital signature shall be considered to be a secure
digital signature. Law for Certifying Authorities.
 Certifying Authority to follow certain procedures.
Every Certifying Authority shall
A. Make use of hardware, software, and procedures that the secure from
interruption and misuse
B. Provide a reasonable level of reliability in its services which are rationally
suited to the performance of intended functions
C. Follow to security procedures to ensure that the privacy and isolation of the
digital signatures are assured
D. Observe such other standards as may be specified by regulations.
8.3 E-Commerce rules, regulations and guidelines in USA
The United States and 28 other countries, working together as members of the Organization
for Economic Cooperation and Development, have signed on to new guidelines to ensure the
protection of selling internationally through E – commerce. There are several organizations
and Acts for ensure the stability of the e commerce activities in USA.

15
 Federal trade commission
The FTC is the primary federal agency regulating e- commerce activities, including use of
commercial e- mails, online advertising and consumer privacy. FTC’s e- commerce guide
provides an overview of e commerce rules and regulations.
 Electronic commerce law subcommittee
The subcommittee on electronic commerce recommends and develops policies,
principles, and practices for Business to Business, Business to Customer electronic
commerce activities. The subcommittee has three working groups who have actively
engaged in projects.
 The consumer protection working group
 The working group on transferability of electronic assets
 Electronic contracting practices working group
 Advertising and Marketing on the internet
Many of same rules those apply for other form of advertising apply to electronic
marketing. The federal trade commission (FTC) has prepared guide to protect business
and consumers. It helps to maintain the credibility of internet as advertising medium.
 Anti-cybersquatting consumer protection Act
This was intended to prevent “cybersquatting”, bad faith, abusive registration and use of
the distinctive trademarks of other as internet dominant names with the intent to profit
from the goodwill associated with those trademarks.
 Children’s online privacy protection Act (COPPA)
The primary goal of this Act is to give parents control over what information is collected
from their children online and how such information may be used.
 Electronic signatures in global and national commerce Act
This Act established to ensure the validity of electronic signature for interstate and
international commerce.

16
 Online business law
This law includes rules and regulation for conducting e-commerce those apply to online
retailer and other business.
 “CAN- SPAM” Act
The USA Government has made this act for offence the “spam” and it gives opportunity
for shop owner to collect and use his customer’s E-mail addresses.
 E-Businesses that adhere to the guidelines in USA
- Use fair business, advertising and marketing practices.
- Provide accurate, clear and easily accessible information about the company and the
goods or services it offers.
- Disclose full information about the terms, conditions and costs of the transaction.
- Ensure that consumers know they are making a commitment to buy before closing the
deal.
- Provide an easy-to-use and secure method for online payments.
- Protect consumer privacy during electronic commerce transactions.
- Address consumer complaints and difficulties.
- Adopt fair, effective and easy to understand self-regulatory policies and procedures.
- Help educate consumers about electronic commerce.
8.4 E-Commerce rules, regulations and guidelines in UK
In the UK there are four important acts, directives and laws that business must comply with if
business is selling goods or services online. These are:
1. The Electronic Commerce (EC Directives) Regulations 2002
2. The Data Protection Act 1998
3. The Distance Selling Act 2000
4. ICO Cookie Law

17
1. The Electronic Commerce (EC Directives) Regulations 2002
The Electronic Commerce Directives came into force on the 21st
August 2002 and lays
out the ground rules associated with commercial communication with the customer and
the contact information company must provide. It established legal rules that online
retailers and service providers must comply with when dealing with consumers in the 27
member countries of the European Union (EU). The Directives states that the term
“Commercial Communication” indicates a communication, in any form, designed to
promote, directly or indirectly, the goods, services or image of any person practicing a
commercial, industrial or craft activity or exercising a regulated profession.
Retailers/service providers must provide the following information to consumers when
conducting business via electronic way:
- Clearly display website’s “Terms and Conditions”.
- Provide clear information on a product price, tax and the cost of delivery.
- Acknowledge all orders.
- Refer to professional or trade schemes if applicable
- Display business name, company registration number, VAT number, geographical
address (a PO Box is not allowed) and other direct contact information such as
email address and telephone number.
- Define clearly any marketing offers and the conditions of these offers.
- Clearly identify any emails to customers which are of a commercial nature.
- Always identify the sender of any electronic communication.
2. Data Protection Act 1998
The Data Protection Act is a set of rules that govern how the business deals with personal
details of its customers. Whether the business is collecting data for marketing purposes or
storing address details of people who have placed an order online, the business register
and comply. The first step is to register business and this can be done at
http://ico.org.uk. There is a small amount of administration fee and once the business is
registered it must continue to obey to the act. If the business is not registered and is
breach of the Act, this will certainly have legal ramifications for owners and the business.
The act applies to a business of any size.

18
- Only record data of a person what is relevant to the needs of the business.
- All personal data must be held in a secure way and provided or removed upon
request from the individual.
- Terms and conditions on website must reveal what the business do with personal
data and the business must not then deviate from this.
- Data collected must not be taken out of the EU (even digitally via email) without
permission from the individuals involved.
- Ensure that the company’s terms and conditions specify whether data could be
used by third party organizations outside the EU and provide direction on how
people can remove their data.
Importantly the business must register under the Data Protection Act if the business
collects personal data including customers, employees or future customers. This act is
aimed at consumer protection and is not applicable to transactions of a “Business to
Business” nature.
3. The Distance Selling Act 2000
- Provide clear and brief information about products before purchase.
- Show clearly postage and packing costs.
- Indicate whether VAT is included on the prices shown.
- All goods (excluding perishable and digital downloads) are subject to a 14 day
returns period whereby a customer can cancel or return their order.
- Every order online must be followed by written communication (normally an
email).
- Terms and conditions must specify that a customer has a right to return goods for
a full refund, other than return postage costs.
4. ICO Cookie Law
This law relates to certain types of information collected, which are stored on the person’s
device (Smartphone /Computer) in the form of a cookie-in essence a small text file.

19
Other than these four important acts there are many updated rules, regulations and guidelines
related to E-Commerce. Some of common rules are as follow,
 Consumer contract Regulations
The Consumer contracts Regulations 20013 apply to consumer contracts made from 13 June
2014 and has combined the Law on Distance and Doorstep Selling. The regulations apply to
items bought online, at a distance, or away from a trader’s premises.
 Computer Misuse Act 1990
An act makes provision for securing computer material against unauthorized access or
modification; and for connected purposes. This act makes certain activities illegal such as
hacking into other people’s systems, misusing software, or helping a person to gain access to
protected files of someone else’s computer.
 Trading Standards
Trading Standards is a very important act as it’s very strict within the UK as there are local
authority departments that review companies and products to see if they meet the Trading
Standards, this is to make sure that no products sold to consumers are confident and they test
the product to see if they are safe for customers to use.
There are lot of rules, regulations and guidelines for selling internationally through e
commerce in UK. E Commerce Regulations establish legal rules that online retailers and
service providers must comply with when dealing with consumers in the European Union
(EU). If a retailer or service provider fails to provide information required by the directives,
its contract with the consumer may be void and it may be in breach of fellow government
retail law.
8.5 E-Commerce rules, regulations and guidelines in New Zealand
The internet has changed the way consumers purchase goods and services, letting them buy
anything from groceries to a flight to Vanuatu at the click of a button. The internet has also

20
given sellers new opportunities to widen their reach by having an online shop to complement
their bricks and mortar retail presence, or to do away with bricks and mortar retail altogether.
But the internet is not a “free for all” where anything goes. The Fair Trading Act applies to
all traders who advertise or sell to New Zealand consumers online, even if the trader is based
outside of New Zealand.
Traders who sell online must also make it clear that they are in trade, so that consumers know
they are protected under the Fair Trading Act and the Consumer Guarantees Act.
 Fair Trading Act
Under the Fair Trading Act traders selling goods online must:
- make it clear to potential buyers that they are in trade (see above)
- ensure any representations they make about the goods or service are accurate and
do not mislead or deceive consumers
- not mislead consumers about their rights and obligations
- avoid engaging in unfair sales practices, such as bait advertising or pyramid
selling
- have a reasonable basis for any claims they make about their products or services,
whether the claims are expressed or implied – you can read more in
our Unsubstantiated Representations fact sheet
- Comply with the product safety and consumer information standards where
relevant, and not sell any goods prohibited by an unsafe goods notice.
 Consumer Guarantees Act
The Consumer Guarantees Act applies to goods and services that are ordinarily purchased
from a trader for personal, domestic and household use.
Under the Consumer Guarantees Act, goods must match their description, have no
undisclosed defects, and be fit for their normal purpose, safe, durable, of reasonable quality,
and acceptable in look and finish.

21
The Commerce Commission does not enforce the Consumer Guarantees Act. However, any
trader who makes misleading representations about the rights that consumers have under the
Consumer Guarantees Act (or under any other law) may breach the Fair Trading Act, which
the Commission does enforce.
 Product safety and consumer information standards
There are currently six product safety standards,
- Baby walkers
- Children's nightwear
- Children's toys
- Household cots
- Cigarette lighters
- Pedal bicycles
There are currently five consumer information standards,
- Care labelling
- Clothing and footwear country of origin labelling
- Fibre content labelling
- Used motor vehicles
- Water efficiency labelling scheme
9. Comparison between countries rules and regulations
If you selling internationally then, you need to fallow all rules and regulations and guidelines
in various countries. This can differ from their rules and regulations from one country to
another.
 United states have well established platform for e commerce. Also there is well
regulated e commerce law. E commerce has its origin in foreign jurisdictions
especially in developed nations such as us. In us e commerce regulations require that
all commercial web sites make the information directly and permanently. In there's e
commerce regulations also require that all prices must be clear and unambiguous. We
have minimum restrictions than other countries like India, Germany.
 Then the Indian E Commerce in a totally different class. It has all the advantages of
profit making. But there is not regulated by any dedicated e commerce law compared
to other countries like USA, Europe.

22
 In India, the penetration of e-commerce is low compared to U.S. market or France
market. But it is growing an unprecedented rate.
 UAE's transactions need to be regulated. There is a need to bring in specific laws to
govern e-commerce transaction taking place in the UAE, especially given the volumes
being shipped into this country from online vendor abroad.
 In China's international commodity selling still lacks of comprehensive body of
legislation at present. But it's better than other Asian countries.
 Consumer Protection regulations is very important for international selling through e-
commerce. These regulations also differ from one country to another.
 Consumer protection in European e-commerce is mainly regulated in contract law.
 In consumer Protection, first glance to China and European system appear to differ
substantially.
 Next main guideline is e-commerce approaches. It is mainly discuss about electronic
signatures.
 Minimalist approach - U.S., UK, Australia
 Prescription approach - Germany, Italy, Argentina
 Two tier approach - European Union, Singapore, Pakistan
 If someone is going to sell internationally, he or she must know about rules of
prohibited goods.
 Certain fish, seeds, vegetable, chemicals, historical artifacts are prohibited to sell
international in Mexico.
 In Japan, strictly forbid heroin, firearms and precursor material for chemical weapons.
 Then the European Union is trying hard to standardize European laws in order to
facilitate cross border e-commerce, but many countries still have their own e-
commerce laws. Germany has stricter e-commerce rules than other European
countries.
 When selling internationally there are different VAT rules. There rules also apply to
business selling through e commerce. It's important to note UK VAT charges. It's
different than other countries.
 When considering regional patterns, the incidence of consumer protection legislation
in Africa is particularly low. Only 18 of the 54 African countries have adopted such
laws. The coverage is higher in Latin America with 16 out of the 20 countries in the
region having relevant legislation in place comparatively.

23
 In U.S., there is specific electronic commerce law subcommittee for international
trading. This subcommittee is actively engaging projects directly. There are three
working groups; consumer protection, transferability of electronic assets, electronic
contracting practices. In U.S. there is a more flexible platform for international selling
through e commerce compared to other countries.
 When comparing rules and regulations among different countries we can see both
pros and cons as stated above. So it's better to have a regulatory framework which
minimizes cons and maximized pros within countries.

24
10. Conclusion
In the world many companies are doing business through e commerce. It facilitates people to
access the rest of the world and do their business. It also has made possible to low the costs of
cross-border transactions. As computer technology progresses, the amount of Internet
consumers also grows. Advance technology makes work faster and safer. Some online
businesses handle thousands of people every day.
However, doing business online comes with additional legal and financial considerations,
particularly in the areas of privacy, security, copyright, and taxation.
Rules regulations and guidelines for conducting e-businesses apply mainly to online retailers
and other businesses that perform consumer transactions by collecting customer data. That
helps to create global attention to consumer protection, which allows the creation of a
transparent, predictable legal and self-regulation for E-businesses. Such protective rules,
regulations and guidelines are essential to strengthen consumer confidence trust and the
establishment of a more equitable relationship between businesses and consumers in
commercial transactions. This will be beneficial for businesses, consumers and society in
general.
According to the our report we are mentioned about Sri Lanka, South Asia, USA, UK, New
Zealand rules and regulations regarding to online business and how those rules and
regulations are differed from one to another. In our report we also provide e selling rules and
regulation comparison between world different countries.
Finally we can conclude that there are some general and country specific rules, regulations
and guidelines for e commerce within the world.

25
11. Reference
 http://www.comcom.govt.nz/fair-trading/fair-trading-act-fact-sheets/buying-and-selling-
online/
 https://ecommerceguide.com/guides/ecommerce-legals/
 http://www.spoedelaw.com/resources/ftcs-e-commerce-guide
 https://www.parliament.lk/business-of-parliament/acts-bills
 https://www.hg.org/ecommerce-law.html
 https://www.out-law.com/page-431

E-Commerce

More Related Content

What's hot

Similar to E-Commerce

Recently uploaded

E-Commerce