BRAINWAVE                                                     

Exchange of goods and services between individual and groups has been in existence since time immemorial. Time changed and a wide range of tools and methods were used for performing the business. E-commerce is the latest device to this area. In this system the exchange of goods and services is performed with the help of electronic devices and internet. In traditional mode the products need to be transferred from one place to another using various channel from production houses to consumers.

In such context it can be said that e-commerce is a process of purchase and delivery of goods and services and payments through telephone lines, internet connection or with the help of other similar means.

 There are three parties involved in e-commerce- Business(B),Consumer(C)and the Government(G), these factor makes five models in e-commerce deals- Business to Business(B2B);Business to Consumers(B2C);Consumer to Consumer(C2C);Business to Government(B2G);Consumer to Government(C2G).

 E-Commerce in India

In recent year e-commerce has gained a vital position in the economic scenario of India and companies are now ready to cope with the globalization and liberalization policies. In Indian scenario the biggest obstacle to this mode is that there is still a very few number of people using internet but if we see the rate of increase of internet users in India it shows a positive sign. It shows that e-commerce in India has immense opportunity.  Past two years have shown a significant rise in the number of companies engaged with e-commerce business.

 The total value of e-commerce activities within India crossed Rs570 crore during 2004-05, according to a research conducted by Internet & Online Association of India, (IOAI) a non-profit industry organization. The report estimates growth in excess of 300 per cent during the next couple of years and says Rs. 2, 300-crore worth of e-business will be conducted within the country by the year 2006-07.(source: domain.b-com)

 Legal status-

E-commerce is a growing sector, people are unaware about the processing and dealing and this unawareness generates some issues .Issues such as e-patents, e-advertisings, e-marketing, e-trademarks and e-litigation. Old set of rules and regulations were not competent enough to cope with these problems.

The mounting pressure drove government to take some legislative measures. In May 2000 Govt. of India passed IT Act 2000 .The Information Technology Act 2000 passed by Indian Government was the second one in south Asia after Singapore.

This Act aims to provide the legal infrastructure for e-commerce in India. The Information Technology Act, 2000 also aims to provide the legal framework so that legal sanctity is according to all electronic records and other activities carried out by electronic means. The Act states that unless otherwise individual or group are agreed, an acceptance of contract may be expressed by electronic means of communication and the same shall have legal validity and enforceability as it is for normal contract.

1. To provide legal recognition to e-documents and define the time and place of exchange so that it can be admitted as a proof and as evidence in the court.
2. To define the procedure for digital signature and to give legal acceptance to it
3. Define category of  cyber crimes and suggested penalties and punishment for those crimes
4. To set up the required mechanisms for non-delayed justice in cyber crimes.
5. To protect common interest of the individual.

by Manish Srivasatav, MBA, IIITA.