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ELECTRONIC CONTRACTING AND COMMERCE– 
PURSUING GLOBAL OPPORTUNITIES 
PRIA CHETTY 
ENDCODE.ORG
Overview of Presentation 
 Electronic Commerce – The Opportunity and Trends 
 Background to global electronic commerce 
 Companies looking to benefit from electronic commerce need to 
assess the legal environment. 
 How suitable are our legal frameworks in connection with 
developments and trends at the e-commerce technology layer?
Exploring Electronic Commerce – The 
Opportunity, The Trends
Do you shop online? 
What are your concerns when shopping online? 
Group Discussion: 
Trust and Confidence in E-Commerce
Exploring Electronic Commerce 
Regulation – The EndGame
E-Commerce Regulation 
Convergence of technologies is the major driving factor that contributes to 
the exponential growth of electronic commerce. Convergence goes beyond 
the use of technology to develop new products and services and is seen as a 
vehicle to improve the quality of life of society in South Africa and other 
developing countries. Convergence will open new opportunities for all as 
everyone gains equal access to information and the global 
markets. Small business will be able to compete on an equal footing with big 
business. 
What is needed is an environment that is conducive to conducting business 
and sharing information with confidence. Government will provide support by 
setting policy and regulatory frameworks that are appropriate to the 
information communications technology sector while taking cognisance of 
the pervasive nature of e-commerce and the challenges pertaining to legal 
and security matters.
The Issue List 
 Concepts such as “writing,” “document” or “signature” not easily 
applied in digital world 
 Legacy laws - requirement in law for certain transactions to be 
conducted in paper/ in person 
 Requirements in law for record retention in paper 
 Statutory requirements may prohibit online transacting 
 Requirement in law for admissibility of evidence 
 Conflicts in policies, laws, standards and trade practices in different 
jurisdictions
The Issue List 
 Protection of personal data exchanged 
 Online consumer protection 
 Internet transaction taxation 
 Criminalisation of new cyber-crimes 
 Government’s powers and capacity to investigate and prosecute 
crimes on the internet 
 Alignment of intellectual property laws to the digital world 
 Administration of domain names 
 Regulation of ISPs
Key Concepts in Electronic Commerce Regulation 
 Technology neutrality 
 Functional equivalence 
 Non-discrimination 
 Two-tier approach, Minimalist approach 
 Harmonisation 
 Multi-disciplinary approach 
 Identity Management and Authentication 
 Promoting trust and confidence
Encode Electronic Commerce – 
Legislative Models and Approaches
ECT Act, 2002
Legislation Enabling Electronic Transacting 
 The legal recognition of data messages – technology neutrality 
 ‰The requirement of “writing” to be met by data messages 
 ‰Acknowledgement of receipt 
 ‰Formation and Validity of Contracts 
 Automated Contracts 
 Electronic Signatures 
 The attribution of data messages 
 Time and place of receipt and dispatch of data messages 
 ‰The requirement of “original” documents and functional equivalence 
 The admissibility and evidential weight of data messages 
 ‰The retention of data messages 
 ‰The formation and validity of electronic contracts 
 ‰Recognition by parties of data messages 
 Liability of internet service providers
Legislation enabling Electronic Signatures 
 Electronic authentication technologies allow the recipient 
of the electronic communication to: 
 ‰Verify the identity of the sender 
 ‰Verify the fact that the content of the message has not changed 
since transmission; and 
 Ensure that the sender cannot later repudiate the message. 
 Methods to procure integrity of communications, identity of 
sender 
 Prescribed (security) standards 
 Functional equivalence
Legislation enabling Electronic Signatures 
 Accreditation Authorities 
 Advanced Electronic Signatures 
 Signatures required by law, law does not specify type 
 Parties have not agreed to a signature – reliable method to 
identify person and indicate the person’s approval 
 Parties have agreed to signature 
 Expression of intent where electronic signature is not 
requires
Legislation Enabling Protection of Personal Data 
 Definition of Personal Information 
 Definition of Controller 
 Minimum Security Safeguards 
 Regulator 
 Sharing of Personal Information with Third Parties 
 Cross-border transfer of Personal Information
Exclusions 
 The following transactions may not be concluded 
electronically: 
 Sale/long-lease of land 
 Wills 
 Bills of Exchange 
s4(3) & Schedule 1 ECT Act
Enforceability 
 ECT Act provides for legal validity of electronic 
contracts and transactions (subject to certain 
conditions) 
 Framework of ECT Act must be applied in context of 
terms and conditions of platform, terms and 
conditions of service, disclaimers of liability 
 Click Wrap Agreements 
 Browse Wrap Agreements 
 Return and Refunds policies (aligned with consumer 
protection laws) 
 Retention of Electronic Records, 
 Admissibility of Electronic Evidence
Case Law 
 SB Jafta v. Ezemvelo KZN Wildlife – email acceptance 
of employment contract 
 S v Motata – admissibility of cellphone data
Other Considerations – Enabled Environment 
 Website Terms and Conditions 
 Disclaimers 
 Returns and Refunds Policies 
 Complaints Policies 
 Privacy Policies 
 Policy on Use of Electronic Signatures 
 Electronic Evidence Policy 
 Electronic Records Management Policy
In Closing
How suitable are our policy and legal frameworks 
in connection with developments and trends at 
the technology layer - as a lens for regulatory 
responsiveness to electronic commerce? 
?
Pria Chetty 
Regional Director 
endcode.org 
Thanx, Questions?

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E-contracting and Commerce

  • 1. ELECTRONIC CONTRACTING AND COMMERCE– PURSUING GLOBAL OPPORTUNITIES PRIA CHETTY ENDCODE.ORG
  • 2. Overview of Presentation  Electronic Commerce – The Opportunity and Trends  Background to global electronic commerce  Companies looking to benefit from electronic commerce need to assess the legal environment.  How suitable are our legal frameworks in connection with developments and trends at the e-commerce technology layer?
  • 3. Exploring Electronic Commerce – The Opportunity, The Trends
  • 4.
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  • 8. Do you shop online? What are your concerns when shopping online? Group Discussion: Trust and Confidence in E-Commerce
  • 9. Exploring Electronic Commerce Regulation – The EndGame
  • 10. E-Commerce Regulation Convergence of technologies is the major driving factor that contributes to the exponential growth of electronic commerce. Convergence goes beyond the use of technology to develop new products and services and is seen as a vehicle to improve the quality of life of society in South Africa and other developing countries. Convergence will open new opportunities for all as everyone gains equal access to information and the global markets. Small business will be able to compete on an equal footing with big business. What is needed is an environment that is conducive to conducting business and sharing information with confidence. Government will provide support by setting policy and regulatory frameworks that are appropriate to the information communications technology sector while taking cognisance of the pervasive nature of e-commerce and the challenges pertaining to legal and security matters.
  • 11. The Issue List  Concepts such as “writing,” “document” or “signature” not easily applied in digital world  Legacy laws - requirement in law for certain transactions to be conducted in paper/ in person  Requirements in law for record retention in paper  Statutory requirements may prohibit online transacting  Requirement in law for admissibility of evidence  Conflicts in policies, laws, standards and trade practices in different jurisdictions
  • 12. The Issue List  Protection of personal data exchanged  Online consumer protection  Internet transaction taxation  Criminalisation of new cyber-crimes  Government’s powers and capacity to investigate and prosecute crimes on the internet  Alignment of intellectual property laws to the digital world  Administration of domain names  Regulation of ISPs
  • 13. Key Concepts in Electronic Commerce Regulation  Technology neutrality  Functional equivalence  Non-discrimination  Two-tier approach, Minimalist approach  Harmonisation  Multi-disciplinary approach  Identity Management and Authentication  Promoting trust and confidence
  • 14. Encode Electronic Commerce – Legislative Models and Approaches
  • 16. Legislation Enabling Electronic Transacting  The legal recognition of data messages – technology neutrality  ‰The requirement of “writing” to be met by data messages  ‰Acknowledgement of receipt  ‰Formation and Validity of Contracts  Automated Contracts  Electronic Signatures  The attribution of data messages  Time and place of receipt and dispatch of data messages  ‰The requirement of “original” documents and functional equivalence  The admissibility and evidential weight of data messages  ‰The retention of data messages  ‰The formation and validity of electronic contracts  ‰Recognition by parties of data messages  Liability of internet service providers
  • 17. Legislation enabling Electronic Signatures  Electronic authentication technologies allow the recipient of the electronic communication to:  ‰Verify the identity of the sender  ‰Verify the fact that the content of the message has not changed since transmission; and  Ensure that the sender cannot later repudiate the message.  Methods to procure integrity of communications, identity of sender  Prescribed (security) standards  Functional equivalence
  • 18. Legislation enabling Electronic Signatures  Accreditation Authorities  Advanced Electronic Signatures  Signatures required by law, law does not specify type  Parties have not agreed to a signature – reliable method to identify person and indicate the person’s approval  Parties have agreed to signature  Expression of intent where electronic signature is not requires
  • 19. Legislation Enabling Protection of Personal Data  Definition of Personal Information  Definition of Controller  Minimum Security Safeguards  Regulator  Sharing of Personal Information with Third Parties  Cross-border transfer of Personal Information
  • 20. Exclusions  The following transactions may not be concluded electronically:  Sale/long-lease of land  Wills  Bills of Exchange s4(3) & Schedule 1 ECT Act
  • 21. Enforceability  ECT Act provides for legal validity of electronic contracts and transactions (subject to certain conditions)  Framework of ECT Act must be applied in context of terms and conditions of platform, terms and conditions of service, disclaimers of liability  Click Wrap Agreements  Browse Wrap Agreements  Return and Refunds policies (aligned with consumer protection laws)  Retention of Electronic Records,  Admissibility of Electronic Evidence
  • 22. Case Law  SB Jafta v. Ezemvelo KZN Wildlife – email acceptance of employment contract  S v Motata – admissibility of cellphone data
  • 23. Other Considerations – Enabled Environment  Website Terms and Conditions  Disclaimers  Returns and Refunds Policies  Complaints Policies  Privacy Policies  Policy on Use of Electronic Signatures  Electronic Evidence Policy  Electronic Records Management Policy
  • 25. How suitable are our policy and legal frameworks in connection with developments and trends at the technology layer - as a lens for regulatory responsiveness to electronic commerce? ?
  • 26. Pria Chetty Regional Director endcode.org Thanx, Questions?