Online Pharmacies In India Are Violating Indian Laws

Online sales of prescribed medicines in India are by and large unregulated and open for abuses. In fact, illegal and unregulated online sales of prescribed medicines in India are flourishing like a plague. However, Indian government is sleeping over the issue not realising that this may have adverse impact upon public health of serious proportions.

In real world, those manufacturing, distributing and selling pharmaceutical products and services are subject to stringent laws and regulations. However when it comes to online dealings, people assume that they are not required to follow those laws at all.

Even the Indian government is not very comfortable with technology related issue of various segments. This is the reason why there is minimum interference and control over the flourishing online pharmacies of India as Indian government has not the necessary techno legal expertise to effectively tackle e-commerce issues of pharmaceuticals as on date. 

While dealing with pharmaceuticals in an online environment not only the regular laws pertaining to drugs, medicines and pharmaceuticals are applicable but the cyber law of India is also attracted. However, governmental departments are not much aware about cyber law of India and its implications. Naturally, online pharmacies are flourishing in India without any check and balances.

It is high time for Indian government to take stringent action against the online pharmacies that are operating in India in an unregulated and illegal manner.

E-Books Publication Laws In India

These days a common question that is frequently asked is will e-books kill the bookstores in India? This genuine and interesting question is asked because the e-books publications in India and e-commerce industry are fast becoming popular.

India is encouraging use of information and communication technology (ICT) and this has opened new avenues for the education sector of India. Foreign players have also realised the potential of e-commerce and e-books in India which is emerging as the largest market for e-books in the world.

However, in the zest of earning profits, Indian laws in general and e-commerce laws and regulations of India in particular must not be forgotten. As a matter of fact, Indian government would ascertain beneficiary in Walmart probe. This shows that any intention to flout Indian laws is a real bad idea especially if e-commerce market f India is to be captured.

The legal formalities required for starting e-commerce business in India are now well known. However, legal issues in e-commerce in India are still not clear to many national and international e-commerce business houses and entrepreneurs. For instance, the legal requirements to start an e-commerce website In India are covered by many legislations including information technology act, 2000 (IT Act 2000). However, both national and international e-commerce players are not complying with legal issues of online shopping in India.

FDI in wholesale trading and e-commerce sectors of India under consolidated FDI policy of India 2012 was given a major boost by Indian government. Further, the Parliament of India recently approved FDI in e-commerce sector of India. Thus, it is high time for structuring of investments in e-commerce businesses in India.

Perry4Law and Perry4Law’s Techno Legal Base (PTLB) suggest that e-commerce business houses must keep in mind the specified requirements of cyber due diligence for Indian companies.  Many companies have already found themselves on the wrong side of Indian laws for violating the same. There is no sense in ignoring Indian laws by e-books publishers and distributors when they wish to trap the Indian e-commerce market. 

Source: Legal Enablement Of ICT Systems In India.

Indian Government Would Ascertain Beneficiary In Walmart Probe

In the past a probe against Walmart was ordered by Indian government to ascertain any market access lobbying and foreign direct investment (FDI) violations. However, the mandate of this probe was still not clear.

Now as per media reports the probe against Walmart may include ascertainment of the alleged beneficiaries of the payments made while engaging in industrial lobbying. As per the company the lobbying was made in US for the purposes and territorial jurisdictions of US alone. The company has alleged that it did not utilise any portion of the amount for its Indian business.

The crucial question that has to be ascertained by the investigation officer is whether any portion of the lobbying expenses have been utilised in India and used for the purposes of influencing the decision on FDI by Indian government.

 If it is found that Indian entities or individuals were involved in the alleged lobbying expenses then the other terms of reference that are being finalised would be looked at. The government would also look at possible violations of Indian laws including the Prevention of Corruption Act. The Enforcement Directorate is also investigating separately if Walmart has violated the provisions of the Foreign Exchange Management Act by investing in an Indian entity even before foreign direct investment was allowed in the sector.

As on date many e-commerce companies, whether Indian or international, are not complying with e-commerce laws and regulations of India as well. Legal experts have been suggesting that e-commerce regulations must also be enforced rigorously against both national and international e-commerce players.

E-Books Publication In India And E-Commerce Industry

E-commerce in India is flourishing. However, many e-commerce players have entered into the arena without much planning, preparation and keeping in mind the legal compliance aspect in mind. Naturally, many of the e-commerce ventures started in the year 2011 have closed down.

Further, consolidation of e-commerce industry of India is also in progress. Many small e-commerce projects have been acquired by larger e-commerce players to consolidate e-commerce segment for their respective industry.

FDI in wholesale trading and e-commerce sectors of India under consolidated FDI policy of India 2012 was given a major boost by Indian government. Further, the Parliament of India recently approved FDI in e-commerce sector of India. Thus, it is high time for structuring of investments in e-commerce businesses in India.

The most important aspects that both national and international e-commerce players must keep in mind is that business structuring of e-commerce in India must be done in a techno legal manner.

The legal formalities required for starting e-commerce business in India are now well established. However, legal issues in e-commerce in India are still not clear to many national and international e-commerce business houses and entrepreneurs. For instance, the legal requirements to start an e-commerce website In India are covered by many legislations including information technology act, 2000 (IT Act 2000). However, both national and international e-commerce players are not complying with legal issues of online shopping in India.

One segment that has tremendous potential in e-commerce industry pertains to educational and books publication sector. Traditional and print form books have dominated market share for long. However, there is a gradual shift towards e-books publication, distribution and e-commerce.

Asian countries, especially India, can offer great commercial benefits to book publishers if they explore e-books publication and distribution in India. However, while doing so these e-book publishers must keep in mind the techno legal requirements that most e-commerce players in India are presently ignoring.

Perry4Law and Perry4Law’s Techno Legal Base (PTLB) suggest that e-commerce business houses must keep in mind the specified requirements of cyber due diligence for Indian companies.  Many companies have already found themselves on the wrong side of Indian laws for violating the same. There is no sense in ignoring Indian laws by e-books publishers and distributors when they wish to trap the Indian e-commerce market. 

Techno Legal Initiatives Of Perry4Law And PTLB

Techno legal issues pose special challenges before all nations. This is so because these issues are complex combination of both technical and legal issues. At Perry4Law and Perry4Law Techno Legal Base (PTLB) we have been spearheading many world renowned techno legal initiatives.

For instance, Perry4Law and PTLB are managing the exclusive techno legal centre of excellence for cyber forensics in India, centre of excellence on cyber security in India, virtual legal education campus in India and techno legal e-learning centre of PTLB, lifelong techno legal education in India, legal enablement of ICT systems in India, etc.

Similarly, on the education, trainings and skills development front as well Perry4Law and PTLB have been managing many initiatives. For instance, the exclusive techno legal e-learning in India is managed by PTLB whereas highly specialised and domain specific trainings and education is managed by Perry4Law techno Legal ICT Training Centre (PTLITC).  

Perry4Law and PTLB are also managing the exclusive techno legal e-courts consultancy and training centre of India, online dispute resolution services in India, e-discovery services in India, e-commerce services in India, cyber forensics services in India, cyber security services in India, LPO and KPO services in India, etc.

We are also discussing important issues pertaining to international ICT policies and strategies. Similarly, techno legal issues are specifically discussed at PTLB blog. We hope these initiatives would prove useful to all stakeholders.

Source: ICTPS Blog

Expiring Medicines Patents Could Boost Pharmaceutical E-Commerce In India

Indian pharmaceutical industry is moving towards a maturity level. This is more so regarding the generic pharmaceutical industry of India. Good news for generic pharmaceutical industry of India is that the patent rights of many world renowned drugs and medicines are set to expire till 2017. This would give a free hand to generic drugs companies to produce and sale generic medicine in India and world wide.

Nothing can improve the reach of the generic medicines manufacturers of India than utilising the e-commerce platforms. However, these e-commerce platforms and websites must comply with Indian laws to fully encash the benefits of e-commerce.

The legal formalities required for starting e-commerce business in India must be duly complied with to escape various civil and criminal liabilities. This is more so regarding pharmaceutical industry where the risks and stakes are really high.

Legal issues of e-commerce in India vary as per different business models. For instance, electronic trading of medical drugs in India requires more stringent e-commerce and legal compliances as compared to other e-commerce activities. Digital communication channels for drugs and healthcare products in India are scrutinised more aggressively than other e-commerce activities. In fact, regulatory and legislative measures to check online pharmacies trading in banned drugs in India are already in pipeline.

As per the latest reports, the patent expiry of several major well known drugs, coupled with other factors, will fuel growth of global generic pharmaceuticals market by 2017. If this scenario is supported by suitable health policies and equitable distribution of medicines, India can be a hub for global generic medicines production.  

In fact, leading global generic pharmaceutical manufacturers are already entering into contractual agreements with well known pharmaceutical companies for marketing rights and exclusivity in producing generic versions of their medicines. E-commerce can provide a viable platform to sell these generic medicines across the world.

Legal Requirements To Start An E-Commerce Website In India

We have been receiving lots of queries regarding successful and legal opening of e-commerce business in India. We have already explained the legal formalities required for starting e-commerce business in India. In this article we would discuss the legal requirements for starting an e-commerce websites in India.

To start with, we would like to say that we have no dedicated e-commerce laws and regulations in India and they are still evolving. The Information Technology Act 2000 (IT Act 2000) governs the online issues of e-commerce in India.

IT Act 2000 is the sole cyber law of India. The cyber law of India mandates that the e-commerce entrepreneurs and owners must ensure cyber law due diligence in India. The cyber law due diligence for companies in India has already become very stringent and many foreign and Indian companies and websites have been prosecuted in India for non exercise of cyber due diligence.

E-commerce entrepreneurs and owners in India must understand that legal issues of e-commerce in India are different for different categories of e-commerce. For instance, electronic trading of medical drugs in India requires more stringent e-commerce and legal compliances as compared to other e-commerce activities. Digital communication channels for drugs and healthcare products in India are scrutinised more aggressively than other e-commerce activities. In fact, regulatory and legislative measures to check online pharmacies trading in banned drugs in India are already in pipeline.

The legal requirements for undertaking e-commerce in India also involve compliance with other laws like contract law, Indian penal code, etc. Further, online shopping in India also involves compliance with the banking and financial norms applicable in India. For instance, take the example of PayPal in this regard. If PayPal has to allow online payments receipt and disbursements for its existing or proposed e-commerce activities, it has to take a license from Reserve Bank of India (RBI) in this regard. Further, cyber due diligence for Paypal and other online payment transferors in India is also required to be observed.

Perry4Law and Perry4Law Techno Legal Base (PTLB) recommend that all e-commerce entrepreneurs and owners must do a proper techno legal due diligence before opening an e-commerce website. The Internet intermediary liability in India may be frequently invoked against e-commerce websites in India. The Information Technology (Intermediary Guidelines) Rules 2011 prescribes stringent liabilities for e-commerce websites in India. Further, e-commerce websites in India must ensure privacy protection, data protection, data security, cyber security, confidentiality maintenance, etc as well.

Regulatory And Legislative Measures To Check Online Pharmacies Trading In Banned Drugs In India

Online pharmacies are flourishing world over including India. The Indian market share of online pharmacies has been increasing thanks to the growing use of Internet in India. However, this has also created legal and medico legal problems as well.

We have no dedicated e-commerce laws and regulations in India. Further, we also do not have any dedicated e-health laws and regulations in India. In fact, e-health in India is facing legal roadblocks and in the absence of regulatory and legislative measures, online pharmacies are growing unregulated. In the present circumstances, the legal enablement of e-health in India is urgently required.

However, even more grave are the concerns originating out of the use of e-trading for medical and non medical drugs in India. E-trading of medical drugs in India must be undertaken only after complying with the laws of India. There are many cyber laws due diligence requirements in India that e-traders of medical drugs in India must comply. Similarly, foreign websites targeting India for this purpose must also comply with Indian law in order to do legitimate business in India.

There are many online pharmacies that are trading in banned drugs in India as well. Realising the potential dangers arising out of the same, the Indian government has recently constituted a high-level committee to suggest regulatory and legislative measures to check online pharmacies trading in banned drugs in India.

The committee has been set up under the Narcotics Control Bureau (NCB) of India to check such sale of banned drugs in India and to prevent black money and finances criminal activities through online transactions. The committee has been constituted as a part of the new drugs policy recently revealed by Finance Minister Pranab Mukherjee.

However, online pharmacies are by their very nature technology driven. So the approach of Finance Ministry must be techno legal in nature. Fortunately the committee has proposed to establish “cyber patrol units” to intercept syndicates and individuals indulging in such criminal activities over the Internet.

Another good aspect of the proposed legislative initiative is the proposal to route and inspect international mail (containing contraband couriers) while ensuring active cooperation and exchange of information with other enforcement agencies like CBI, DRI and ED, within the country.

Perry4Law and Perry4Law Techno Legal Base (PTLB) welcome this move of Finance Ministry and proposed committee and we wish all the best to them in this regard.

Electronic Trading Of Medical Drugs In India

Electronic trading or online shopping of commodities is a fast, efficacious and cost effective method of business and commerce. However, e-trading is not a free ride but is subject to well defined rules and regulations world wide. This is more so regarding pharmaceutical products that require an additional precaution while dealing in an online environment.

We have no dedicated e-commerce laws and regulations in India. However, the basic outline of the same has been laid down in the information technology act 2000 (IT Act 2000). The IT Act 2000 is also the sole cyber law of India that primarily deals with contraventions and offences pertaining to e-commerce and e-trading in India.

While we have basic level e-commerce legal framework in India yet e-health related legal framework is missing. For instance, e-health in India is facing legal roadblocks. Till now we do not have any dedicated e-health laws and regulations in India. In the present environment, the legal enablement of e-health in India is urgently required.

This is so because when technology is used for medical purposes, it gives rise to medico legal and techno legal issues. In United States, the Health Insurance Portability and Accountability Act of 1996 (HIPAA), Health Information Technology for Economic and Clinical Health Act (HITECH Act), etc are some of the laws that take care of medico legal and techno legal issues of e-health and telemedicine.

As far as India is concerned, we have no dedicated e-health and telemedicine laws in India. Even essential attributes of these laws like privacy protection, data protection, data security, cyber security, confidentiality maintenance, etc are not governed by much needed dedicated laws.

Ordinary commodities can be comfortably sold through e-commerce websites. However, health related commodities, especially prescribed medicines and drugs, are not easy to manage in an online environment. This is the reason why we have almost nil e-trading of prescribed drugs and medicines in India as on date.

E-trading of medical drugs in India must be undertaken only after complying with the laws of India. There are many cyber laws due diligence requirements in India that e-traders of medical drugs in India must comply. Similarly, foreign websites targeting India for this purpose must also comply with Indian law in order to do legitimate business in India.

Since the issue is of great public interest, Indian government must formulate a dedicated e-trading law for medical drugs in India so that online illegal sale of medical drugs to Indian residents can be curtailed. Presently, many foreign websites are openly offering sale of medicine drugs to Indian residents through e-mails and other digital channels. Such conduct of these foreign companies and websites must be regulated in India so that harm to public at large can be avoided.

Legal Issues In E-Commerce In India

Electronic commerce is one of the most profitable business ventures in India these days. Not only its present growth is good but even its future and projected growth is tremendous.

However, e-commerce in India is also required to be conducted in a legally permissible manner. This is more so when the information technology act 2000 (IT Act 2000) prescribes stringent penal and pecuniary penalties for violation of its provisions during e-commerce transactions.

The natural question arises as to what are the basic e-commerce laws in India that various e-commerce players must adhere to in order to escape civil and criminal sanctions? Although we have no dedicated electronic commerce laws in India yet the IT Act 2000 covers many aspects of the same. IT Act 2000 is the sole cyber law of India that has been invoked on numerous counts against e-commerce portals and Internet intermediaries in India who violated the provisions of the same.

The legal requirements for undertaking e-commerce in India also involve compliance with other laws like contract law, Indian penal code, etc. Further, online shopping in India also involves compliance with the banking and financial norms applicable in India. For instance, take the example of PayPal in this regard. If PayPal has to allow online payments receipt and disbursements for its existing or proposed e-commerce activities, it has to take a license from Reserve Bank of India (RBI) in this regard. Further, cyber due diligence for Paypal and other online payment transferors in India is also required to be observed.

With the active use of electronic commerce in India the electronic commerce dispute resolution in India is also required to be strengthened. The present litigation system of India is not conducive for the growth of e-commerce n India and online dispute resolution in India is more appropriate for such purposes.

Perry4Law and Perry4Law Techno Legal Base (PTLB) have launched dedicated platforms for resolving e-commerce, domain name, commercial, technological and cross border disputes resolution in India and word wide. These include platforms named Electronic Courts, E-Judiciary, ODR India, Online Arbitration, etc.

Finally, for those who wish to engage in cloud computing, virtualisation and other Internet based services in India, Perry4Law and PTLB recommend that they comply with techno legal regulations of India. Virtualisation and cloud computing service providers in India must not only follow the encryption laws of India but they must also ensure cyber law due diligence in India. This is more so when the cyber law due diligence for companies in India has become very stringent and foreign companies and websites are frequently prosecuted in India for non exercise of cyber due diligence.

Perry4Law and PTLB wish all the best to all e-commerce players in India and abroad.

Digital Communication Channels For Drugs And Healthcare Products In India

E-commerce in India is booming and pharmaceutical and health care industry is also eying upon the same for greater reach and more profits. However, legal enablement of e-health in India is still missing. In fact, e-health in India is facing legal roadblocks. Till now we do not have any dedicated e-health laws and regulations in India.

In such circumstances, online sales and purchase of prescribed drugs and medicines in India is a tricky issue that is full of legal landmines. In countries like United States there are laws like Health Insurance Portability and Accountability Act of 1996 (HIPAA), Health Information Technology for Economic and Clinical Health Act (HITECH Act), etc. However, in India we have no such laws to take care of e-health, telemedicine and similar issues.

Further, online shopping in India has many legal and cyber security issues to be resolved. For instance, essential legislations ensuring privacy protection, data protection, data security, cyber security, confidentiality maintenance, etc are missing in India. This makes online sales and purchases vulnerable to cyber crimes and financial frauds. This is the reason why cash on delivery is still the preferred mode of e-commerce payments in India.

Cyber law due diligence in India is another area that e-commerce and online drugs and healthcare products platforms must take care of. Cyber law due diligence for Indian companies is one of the most frequently litigated aspect in India. Lack of cyber law awareness and cyber due diligence awareness is the main reason that many websites and companies have found themselves in the net of Indian laws.

In order to remain profitable and competitive pharmaceutical companies are looking towards digital mediums to communicate with physicians and patients. For instance, recently pharmaceutical company GlaxoSmithKline (GSK) has indicated its intention to utilise digital communication channels for dealing with its drug and healthcare products.

With the growth of information and communication technology (ICT), physicians and patients are increasingly looking online for information on ailments and their treatments. However, techno legal and medico legal issues cannot be ignored otherwise legal actions can follow.

Online Shopping In India: Legal And Cyber Security Issues

E-commerce in India has finally got the attention of Indian entrepreneurs and they are exploring various avenues in the e-commerce segment. At this stage almost all of them are interesting in establishing their e-commerce platforms. Very few of such e-commerce players in India are interested in complying with techno legal requirements of e-commerce in India.

Further, e-commerce in India is still largely based upon small sales and purchases and cash on demand is the preferred mode of payment in India. The concept of cash on demand may hamper e-commerce in India. Further online payment systems of India are maturing at this stage.

For a full fledged e-commerce infrastructure and system of India to operate we need a strong and secure online payments mechanism. Although an integrated banking system is in pipeline yet the present internet banking system, online payments mechanism, etc are not up to the mark. Further, the present banking, financial and regulatory environment of India need to be streamlined.

Cyber crimes and financial frauds have further shaken confidence of Indian e-commerce customers in online payment methods. ATM frauds, credit card frauds, internet banking frauds, etc are flourishing in India as Indian banks and financial intermediaries are not paying enough attention to cyber security.

The Reserve Bank of India (RBI) has in the past asked Indian banks to ensure robust cyber security but Indian banks have still not implemented the same. RBI has now issued a strict warning to Indian banks that if they do not ensure cyber security now, RBI would take strict action against them.

Cyber law due diligence in India is another area that e-commerce and online shopping platforms must take care of. Cyber law due diligence for Indian companies is one of the most frequently litigated aspect in India. Lack of cyber law awareness and cyber due diligence awareness is the main reason that many websites and companies have found themselves in the net of Indian laws.

Online shopping and e-commerce in India must be encouraged but at the same time legal and cyber security issues must also be taken seriously. Online payment players and e-commerce stakeholders must keep these aspects in mind while doing business in India.

Cash On Delivery May Harm E-Commerce In India

E-commerce players in India are trying every possible method to woo customers. Besides discounts, cash on delivery (COD) has been developed as a mechanism to enhance consumer’s and customer’s trust in the e-commerce business model.

Cash on delivery has an obvious advantage that consumers in India are more comfortable with the same. However, it has a major drawback as well .Cash on delivery results in delayed payments, higher rejection rates and longer turnaround.

Cash on delivery method was devised at a time when there was limited knowledge and little awareness about e-commerce in India. Similarly, sticking to cash on delivery was also required as there was not much broadband penetration, technological access and technology awareness among Indian masses.

Now things have changed and sticking to the old cash on delivery method may not be productive in the long run. Perry4Law and Perry4Law Techno Legal Base (PTLB) believe that in an ideal e-commerce model, cash on delivery percentage should not be more than 20% of the total e-commerce sales and revenues. If it is more than 20%, additional costs and unintended inefficiencies may creep in.

While public awareness about both e-commerce and technology use may have increased yet Indian e-commerce industry is suffering from a serious drawback. We have no dedicated e-commerce laws and regulations in India. E-commerce legal issues are still governed by the information technology act, 2000 (IT Act 2000) that is the cyber law of India. We need a dedicated e-commerce law in India to meet the growing techno legal challenges of e-commerce.

A sound legal framework is also required as future shift from cash on delivery to online payments would raise many techno legal issues that Indian e-commerce players have yet to face. A new e-commerce legal framework for India must be established as soon as possible.

E-commerce platforms can be greatly benefited if they have an internal or affiliated dispute resolution mechanism at place. For example, use of online dispute resolution (ODR) in India can be a good option at e-commerce platforms. In fact, use of ODR for e-commerce disputes resolution is the latest trend word over.

We at Perry4Law and PTLB are managing the exclusive techno legal e-courts centre and ODR centre of India where techno legal disputes of e-commerce platforms, corporate houses, individuals, international organisations, etc are resolved.

If you are an e-commerce platform that wishes to safeguard your techno legal interests, feel free to contact us in this regard with your proposal. We would take care of all your techno legal issues pertaining to e-commerce.

E-Commerce Laws In India: Research And Publications

Electronic commerce (e-commerce) is all set for big growth in India. However, legal and regulatory requirements of e-commerce are stringent in nature. In fact cyber law due diligence in India and internet intermediary liability in India are very stringent.

E-commerce websites are Internet intermediaries within the meaning of information technology act 2000 (IT Act 2000). The IT Act 2000 is the cyber law of India that also governs e-commerce regulatory framework. After the passing of the Information Technology (Intermediaries Guidelines) Rules, 2011 of India, e-commerce websites must comply with valid legal requests to retain their safe harbour protections.

Perry4Law and Perry4Law Techno Legal Base (PTLB) have compiled a list of legal articles that are relevant for understanding the techno legal aspects of e-commerce in India. These articles are:

(1) Legal Requirements of Undertaking E-Commerce in India

(2) E-Commerce Laws In India

(3) E-Commerce Lawyers and Law Firms in India

(4) E-Commerce Laws In India-II

(5) Electronic Commerce Laws in India

(6) E-Commerce Regulations and Laws in India

(7) E-Commerce Dispute Resolution in India

(8) Online Dispute Resolution For Cross Border E-Commerce Transactions

(9) E-Health Laws and Regulations in India

We hope our readers would find these articles useful and these articles would help them in establishing and running a legally sustainable e-commerce business in India.

Electronic Commerce Dispute Resolution In India

Electronic commerce laws in India are in their infancy stage. Presently we have no dedicated electronic commerce laws in India and legal requirements for undertaking e-commerce in India are still maturing.

Similarly, adoption of online disputes resolution (ODR) in India is also at early stage. Corporate disputes and online disputes resolution in India and e-commerce disputes resolution in India are the upcoming trends that corporate world of India is exploring. Particularly, many e-commerce players in India have shown their interest in using ODR for resolving their customers’ disputes in an online environment.

Electronic commerce brings both comforts and discomforts to its users. The comforts include on the spot sales and purchase, competitive costs, convenience, saving of time, etc. The discomforts include frauds and cyber crimes committed against e-commerce users. At times there are disagreements and dissatisfactions as well among buyers and purchasers that cannot be resolved using traditional litigation methods.

This is the reason why we need alternative dispute resolution (ADR) mechanism to resolve e-commerce disputes in India. E-commerce regulations and laws in India are limited in nature and this does not allow use of ADR mechanisms and technology driven solutions. For instance, while European Union and other nations are increasingly using online dispute resolution (ODR) for resolving many aspects of e-commerce disputes yet online dispute resolution (ODR) in India is still not known.

Similarly, establishment of e-courts in India can also facilitate early and effective e-commerce disputes resolutions in India. However, till February 2012 we are still waiting for the establishment of first e-court in India. E-courts and ODR in India are urgently required to reduce backlog of cases and for reducing increasing pressure upon traditional courts. E-courts and ODR can also help in e-commerce disputes resolutions in India.

Some of the areas where we must pay special attention include technology related dispute resolution in India, film, media and entertainment industry dispute resolution in India, cross border e-commerce dispute resolution in India, etc. E-courts and ODR can be effectively used for all the abovementioned purposes.

E-commerce players in India have many techno legal obligations to follow and cyber law due diligence in India is one such obligation. Not only legal requirements for undertaking e-commerce in India are stringent but even Internet intermediaries liability in India must be taken seriously by companies engaged in online transactions and businesses.

Realising that cyberspace can bring many commercial benefits; both individuals and companies are ensuring that they have strong online presence. More and more brand promotion and protection in India are done these days in an online environment. Companies and individuals are also ensuring domain name protection in India so that their reputation and goodwill is not misappropriated by others. Brand protection, reputation management and domain name cyber squatting disputes are at rise and the same can be resolved using e-courts and ODR in India.

However, there is a general lack of awareness regarding use of e-courts and ODR for e-commerce disputes resolution. Further, there are very few e-commerce lawyers and law firms in India that can provide expert services in this regard. E-commerce players must also be aware that other laws, including intellectual property laws, can make these e-commerce players labile for civil and criminal actions. For instance, these e-commerce players can be held liable for online infringement of copyright in India of the copyright owners. Similarly, if any person posts an offending material at the e-commerce site or otherwise deal with the e-commerce site in an illegal manner, the e-commerce site owner may find himself in trouble.

Perry4Law and Perry4Law Techno Legal Base (PTLB) strongly recommend that before opening an e-commerce website or business, the owner of the same must consult a good techno legal law firm that can advice him upon all the possible and applicable aspect of e-commerce laws in India. Further, Perry4Law and PTLB also recommend active use of e-courts and ODR in India for resolving e-commerce disputes resolutions in India and corporate disputes in India.

We also believe that more effective and useful e-commerce laws in India must be formulated that expressly deal with e-commerce aspects in India. Let us hope that these suggestions would be implemented by Indian government very soon.

Electronic Commerce Regulations And Laws In India

Electronic commerce is an area whose legal formalities cannot be taken lightly. Electronic commerce involves multiple jurisdictions and at times multiple laws of different countries are applicable to a single electronic commerce website.

Further, the landscape for electronic commerce dispute resolution in India is also fast changing. With more and more stress upon online disputes resolution (ODR) in India electronic commerce disputants now prefer ODR as a mechanism for dispute resolution. Corporate disputes resolution through ODR in India is also being explored. E-courts and ODR have also added their own valued to electronic commerce and corporate dispute resolutions in India.

Electronic commerce in India is witnessing a good growth due to progressive policies and liberal foreign direct investments (FDIs). E-commerce uses information and communication technology (ICT) to operate. Although many technological aspects are also taken care of by an e-commerce platform, yet establishment and running of an e-commerce website is the most important requirement.

Internet is boundary less and a website hosted in a particular country can be accessed from any part of the world. Further, there may be cases where a websites located in a particular country may attract legal jurisdictions of multiple countries. Thus, compliance with the laws of the principal country as well as those countries where such e-commerce websites targets audience and customers is of prime importance.

There have been instances where e-commerce websites located in India failed to observe cyber law due diligence in India and e-commerce regulations and laws in India. Criminal trials and criminal liabilities have been imposed by Indian legal system upon such websites. The bazee.com case and the criminal and civil trials against companies like Google, Yahoo, Facebook, Microsoft, etc are few examples of the same. Such cases against e-commerce websites and foreign companies would further increase and e-commerce players must appoint nodal officers in India to comply with Indian laws.

Thus, not only legal requirements for undertaking e-commerce in India are stringent but even Internet intermediaries liability in India must be taken seriously by companies engaged in online transactions and businesses. We have no dedicated e-commerce laws in India but the information technology act 2000 (IT Act 2000) covers basic level e-commerce legal framework in India. The IT Act 2000 also prescribes cyber due diligence for foreign websites in India.

E-commerce due diligence in India is a much needed requirement that all e-commerce players, whether Indians or foreign, must undertake as soon as possible. Non observation of local and foreign laws can tarnish the image and brand of a company that cannot be regained again. It is better to err on the side of precaution rather than caught on the wrong side of the law.

E-Commerce Laws In India

Technology has brought many important changes the way we deal in our day to day lives. Whether it is e-governance or e-commerce, individuals and companies are equally benefited due to use of technology.

Realising that cyberspace can bring many commercial benefits; both individuals and companies are ensuring that they have strong online presence. More and more brand promotion and protection in India are done these days in an online environment. Companies and individuals are also ensuring domain name protection in India so that their reputation and goodwill is not misappropriated by others.

We have no dedicated e-commerce laws in India. However, the information technology act 2000 (IT Act 2000), which is the sole cyber law of India, is regulating the e-commerce business and transactions in India. Internet intermediaries liability in India under the IT Act 2000 is very stringent. Cyber law due diligence in India is one aspect that all e-commerce site owners must frequently engage in.

Electronic commerce in India (E-commerce in India) has slowly and steadily entered the Indian market. Toady from tickets booking to purchasing of good and services, everything happens in an online environment.

Of course, where commercial transactions occur, disputes and differences are bound to occur. To prevent and resolve these disputes we need norms, regulations and laws that are acceptable to all the stakeholders.

The e-commerce law of India is primarily incorporated in the information technology act, 2000 (IT Act 2000) that takes cares of legal obligations of both sellers and buyers of good and services in cyberspace.

The IT Act 2000 prescribes rules and norms for online contract formulation. The traditional concepts of offer, acceptance etc, as applicable under the contractual laws, have also been covered by the IT Act 2000. The only difference is that they have been customised as per the requirements of cyberspace.

However, e-commerce transactions and contracts also attract certain additional legal liabilities that e-commerce players in India are not very much aware. For instance, very few e-commerce players in India are aware that they are “intermediaries” within the meaning of IT Act 2000. Further, there are very few e-commerce lawyers and law firms in India that can provide expert services in this regard.

Further, other laws, including intellectual property laws, make these e-commerce players labile for civil and criminal actions. For instance, these e-commerce players can be held liable for online infringement of copyright in India of the copyright owners.

Similarly, if any person posts an offending material at the e-commerce site or otherwise deal with the e-commerce site in an illegal manner, the e-commerce site owner may find himself in trouble.

Cyber law due diligence in India is one aspect that all e-commerce site owners must frequently engage in. The present laws of India are stringent in nature and subsequently claiming ignorance of such laws would not make much difference.

Perry4Law and Perry4Law Techno Legal Base (PTLB) strongly recommend that before opening an e-commerce site or business, the owner of the same must consult a good techno legal law firm that can advice him upon all the possible and applicable aspect of e-commerce laws in India.