PPT explains the need of governance in e-commerce

1. Governance in e-Commerce:
Dr. Khyati Vora
Asst. Prof.
K. P. B. Hinduja College

2. What is Governance?
Rules /
Regulations
/ Laws
Ethics / Code
of Conduct
Framework
Guidelines
Code of Conduct

3. Why do we need Governance in E-Commerce ?
• Lack of policy framework.
• Unfair and risky e-commerce practices.
• Risks to consumers, children and families.
• Risks to competition, small businesses, new players.
• Risks by rogue businesses or international companies.
• Risks related to misleading advertisement, wrong
marketing, unclear tax laws, unregulated messages and
lack of responsibility on beneficiary.
• Product E-Commerce – Marketplaces – Only commissions.
No accountability.
• Service E-Commerce – Uber/ Airbnb – Only profits – No
accountability.

4. Risks to consumers, children and
families
• Unregulated, uncensored & popular
Indian TV serials on Youtube.
• Unregulated video advertising
messages, in-content advertising,
false marketing.
• No age rating. No restrictions. No
rules.
• Need to formulate Content &
Advertising Rules for Social Media.

5. Risks to competition, small businesses, new
players
• Small businesses open brick-n-
mortar business operating under
local Municipal, State and Central
laws.
• Internet businesses operate from
unidentified locations, engage in
unfair trade and destroy small local
businesses, kill innovation.

6. Risks by rogue businesses, international
companies
• Identity theft.
• Benami/ Unlisted/Off shore
companies by rogue
businesses & international
companies.
• Libel, Defamation, Misleading
reviews on top sites, Negative
marketing.

7. Risks related to misleading advertisement, wrong
marketing, unclear tax laws, unregulated messages and
lack of responsibility on beneficiary
• Misleading Advertisement –
Rampant advertisement on social
media.
• Wrong Marketing – Illegal,
unethical marketing practices.
• Unclear Tax Laws – Evasion of
service tax, octroi, VAT.

8. Product Marketplace Model
• Product E-Commerce –
Marketplaces – Only
commissions. No
accountability.
• Flipkart, Amazon allows
trades/ manufacturers to
sell. Unclear, unaccountable
regulation.

9. Service Sharing Marketplace Model
• Uber – Share rides. Get commission.
Clear Rules missing.
• Airbnb – Share rooms. Get
commission.
• OYO / Goibbio / Tripadvisor conform
booking but guarantee of security and
quality

10. What should be the scope of governance in e-
commerce ???
Authentication of the Company / firms
Offers /Warranties / Guarantees
Dealings / Agreement /Documentations/orders
Payment Policy
Consumers personal Information
Testimonials and Endorsement

11. Who are the Parties in Governance ???
Seller- Company / Firm
Buyer – Consumer or
Company / Firm
Bankers / Insurance
Company
Children Consumers
Uneducated or illiterate
consumers
Advertising Agency
Shipping or transporting
company
Warehousing Company

12. Framework available for e-commerce in India
•IT laws / cybercrime / e - security
•E- retail laws and regulations in India
•Well no specific code of conduct for ecommerce
Lets see what is other countries doing about
this ? ? ?

13. International Ideas
• Federal Trade Commission – USA – Updated
Guidelines.
• ABA - Electronic Commerce Law Subcommittee
• Children's Online Privacy Protection Act (COPPA)

14. Governance of E-Commerce in USA
The Federal Trade Commission Act Of United States Of
America. allows the FTC to act in the interest of all
consumers to prevent deceptive and unfair acts or
practices. In interpreting Section 5 of the Act, the
Commission has determined that a representation,
omission or practice is deceptive if it is likely to:
● mislead consumers and
● affect consumers behavior or decisions about the
product or service.
In addition, an act or practice is unfair if the injury it
causes, or is likely to cause, is:
● substantial
● not outweighed by other benefits and
● not reasonably avoidable

15. FTC looks in ……
• Advertising agencies or website designers
• Disclaimers and disclosures
• Demonstrations must show how the product will
perform under normal use.
• Refunds must be made to dissatisfied consumers if you
promised to make them.
• Advertising directed to children raises special issues.
• Workshops for Consumers and business group on
protecting consumers privacy online
• Industry Specific Laws for e-commerce
• Testimonials and endorsements must reflect the typical
experiences of consumers, unless the ad clearly and
conspicuously states otherwise.
• Warranty and Guarantee

16. For More details visit
 http://www.internetlibrary.com/publications/anticybsquattSamson9-
05_art.cfm
 https://www.ftc.gov/tips-advice/business-center/privacy-and-
security/children%27s-privacy
 https://www.ftc.gov/tips-advice/business-center/guidance/advertising-
marketing-internet-rules-road
 https://www.ftc.gov/tips-advice/business-center/guidance/marketing-your-
mobile-app-get-it-right-start

17. Any Questions ?

18. Thank You