Egal Issues Affecting E-Commerce - A Review of the Indian Information Technology Act 2000

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Legal Issues Affecting E-Commerce: A Review of the Indian Information Technology Act, 2000 Subhajit Basu & Richard Jones  (Liverpool John Moores University)  1. Introduction The impact of e-commerce over the global economy is well documented. Europe and the United States are the main beneficiaries, with countries such as India and China with their huge pools of technologically skilled manpower, also hoping to benefit. Business-to-Business (B2B) e-commerce is a fact; the bigger players are driving their associates into this model. Governments and inter- government agencies are working hard to facilitate the expansion of such transactions, through the clarification of the legal issues and the liberalization of ISP industry. However business-to-consumer (B2C) is a more difficult to facilitate. Consumer resistance to the removal of what is a social experience is proving harder to break than anticipated. In this paper our focus will be on India, a rural economy where e-commerce is set deal with the problem in today's Indian producer/consumer chain, that is the middlemen (powerful distributors), who make most of the money, while the poor producer gets a pittance. E-commerce has the potential to change this scenario dramatically and it is beyond question that there is a need for a coherent yet flexible legal network to felicitate the e-entrepreneurs spirit and the confidence of consumers. The  Information and Technology Act 2000 is India's attempt to formulate such legal network. It is our view that the Act is too prescriptive. The attempt to relate to particular forms of technology and to foresee all possible options has created an over complex set of provisions that will hinder rather than encourage the development of e-commerce. 2. What is E-Commerce? Electronic commerce (or e-commerce) encompasses all business conducted by means of computer networks. It reflects a paradigm shift driven by two primary factors: A wide range of converging technological developments and The emergence of the so-called " knowledge economy". Recent advances in telecommunications and computer technologies have moved computer networks to the centre of the international economic infrastructure, everyone with a computer and connected to the Internet has become a potential player and a potential market for the e-entrepreneur. These technological developments have gone hand in hand with a trend, predominantly in the developed world, towards a post-industrial knowledge economy. This new paradigm, which is already having a significant impact on the way in which people lead their lives, is difficult to define but is characterised by - 17th BILETA Annual Conference April 5th - 6th, 2002.  Free University, Amsterdam. Page 1 of 20 Legal Issues Affecting E-Commerce: A Review of the Indian Information Technology... 31/03/2005 http://www.bileta.ac.uk/02papers/basu.html

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