Legal Recognition of E Commerce

The National Conference of Commissioners on Uniform State Laws (“NCCUSL”) passed the Uniform Electronic Transactions Act (“UETA”) in 1999. NCCUSL adopted UETA and recommended it to States for adoption in order to achieve uniform legislation regarding e-commerce transactions. Under UETA, an electronic signature is defined as “an electronic, sound, symbolic product or process associated or logically associated with a recording made or adopted by a person with the intention of signing the registration”. As of 6 April 2001, UETA had been adopted by 28 states and 15 states had introduced bills to adopt UETA. (Website) (UETA). Since clickwraps are likely to be applied, it is important that the site owner takes some time to set the terms of use for the site. Like software licenses and conditions for tickets, general contract law governs these provisions and different practitioners have different preferences for legalizing the terms. The United Nations Convention on the Use of Electronic Communications in International Treaties (New York, 2005) builds on existing UNCITRAL texts and is the first treaty to provide legal certainty for electronic contracting in international trade. Some jurisdictions have specific legal regulations to allow the use of certain types of electronic transferable records.

For example, Section 862 of the revised Trade Act of 2016 gives legal validity to Republic of Korea`s electronic bills of lading that meet certain requirements. UETA establishes the legal equivalence of electronic registrations and signatures with paper fonts and manually signed signatures and removes barriers to e-commerce. It has been endorsed and approved by the American Bar Association, supported by the American Council of Life Insurance and Equipment Leasing Association of America. Recent advances in information and communication technologies and the emergence of new technologies in digital trade raise new legal questions. Accordingly, UNCITRAL continues its efforts to legally permit new technologies such as artificial intelligence, data transactions, digital platforms and digital assets, including in the context of other areas of activity such as dispute resolution, security interests, insolvency and international transport of goods, as well as digital trade in general. Hrsg. by Anne Fitzgerald [et al], Going Digital 2000: Legal issues for e-commerce, software and the Internet, St. Leonards, Australia: Prospect Media, 2000, p. 200 [Return to text] Principle I: Truthful and accurate communication. Online advertisers must not engage in deceptive or deceptive practices in relation to any aspect of e-commerce, including advertising, marketing or the use of technology.

Principle II: Disclosure. Online merchants must disclose to their customers and potential customers information about the company, the goods or services that can be purchased online and the transaction itself. Principle III: Information Practices and Security. Online advertisers should adopt information practices that treat customers` personal information with care. You must publish and comply with a privacy policy based on fair information principles, take appropriate measures to ensure adequate security, and respect customer preferences regarding unsolicited e-mail. Principle IV: Customer Satisfaction. Online retailers should ensure that their customers are satisfied by honoring their representations, answering questions, and resolving customer complaints and disputes in a timely and responsive manner. Principle V: Protection of children. When online advertisers target children under the age of 13, they must take special precautions to protect them by recognizing children`s cognitive abilities in development.

Proponents of an internet sales tax argue that the current system discriminates against brick-and-mortar retailers, who must collect taxes in most states. They argue that this will drain significant revenues from state and local governments as commerce moves to the internet. See for example E-fairness.org (website) (e-fairness). Opponents oppose taxes in general or argue that imposing taxes on the Internet will stifle e-commerce. Some point out that internet companies do not use the same level of local government services as local retailers. Critics also point out that state and local tax systems are so complex that a national investigation is nearly impossible. In response, 31 states are working together to simplify sales tax. In 2020, the DTI expressed support for various bills related to e-commerce, such as House Bill 6122 or the Internet Transactions Act.

The bill aims to establish an e-commerce office that will focus on promoting the development of e-commerce in the country, as well as building trust between sellers and consumers. The bill also aims to establish ground rules for online consumer protection and more secure electronic payment gateways. Accordingly, States may decide to apply the General Electronic Business Act (LTE) also to paperless transactions, or they may decide to establish a specific legal regime for it. The first approach has the advantage of facilitating the exchange of information between the private and public sectors and promoting both technical and legal interoperability.