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Laws and Guidelines Regulating E-Commerce

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E-commerce is electronic commerce which can be defined as any type of commercial or business transaction which involve the transfer of funds and information across the internet. With the advancement of information technology, online trade and commerce have become easy and convenient for the organization. The businesses from various domains such as consumer based retail sites, music sites or goods trading companies had joined the virtual world in order to increase the availability and scope of their business. The customers are given freedom to buy products and services from anywhere and anytime.

Different points of view on electronic commerce

  • Communication point of view: Data transfer, service/product or fund transfer by electronic means.
  • Commercial procedure point of view: The use of innovations in the mechanization of commercial exchanges and workflow.
  • Service point of view: Reduce costs in the meantime, such as an increase in the speed and quality of service provision.
  • Online point of view: Buy and move articles and data online.

E-Commerce business activities are categorized in order to three sub-categories such as:

  • Business to Consumer(B2U): These sort of businesses website is similar to the traditional commerce in which the seller and buyer are involved. This e-marketplace is for the business to sell their product and services directly to customers. For example, Amazon, Snapdeal, Flipkart etc.
  • Business to Business(B2B): In these sort of business website, both buyer and seller are business who either want bulk products or services from the seller. For example, Alibaba, OLX etc.
  • Customer to Customer(C2C): The customer to customer is e market place in which consumer can sell products and services to a consumer via a third-party business facilitator. For example, eBay, Google AdWords etc.

Benefits of e-commerce

  • Global reach: The organization reach will be increased up to all over the globe with e-commerce. There is no such geographical area restriction after the business grows on the web platform.
  • Increased availability: One of the most significant benefits of an e-commerce website is that organization and business reach to customers has been increased to 24*7 hours and for 365 days.
  • Economy: For deployment of the e-commerce presence, business need not establish physical stores or infrastructure but organization only need to build well-designed which can attract users. Therefore, an e-commerce website is much more economical and reasonable

Disadvantage of e-commerce

  • The poor implementation of e-commerce will lead the business to face security and privacy issues which will possess a negative effect on the customers.
  • The change software and devices, raise compatibility issues in the e-commerce website which raise higher maintenance.
  • The e-commerce website requires large sets of database and information which make difficult to integrate information.
  • The customers can not feel or touch the products online which is a drawback.
  • The users might not trust the site due to it being an unknown faceless seller. Therefore, it brings hurdles in the development of an e-commerce

E-commerce rules and regulations


There are various other names which are used for Anti-Spam Laws, but all are designed to protect customers from spontaneous exhibition material. Online organizations have the ability to collect data from buyers in order to prepare their customized and personalized shopping experiences. Once this control is established, organizations cannot legally send unsolicited and spam e-mail to people without their prior approval. The customer should be provided with a clear method of unsubscribing, whenever they want. Moreover, the subject and header of the promotional should not be misleading.   

Privacy policy

Simplicity and transparency provide organization to build trust worth roadmap in order to gain higher brand value. Therefore, it is necessary to have an unambiguous and open security strategy. Online organizations approach the buyer's data: name and surname, address, e-mail address, payment information, etc. should be stored in a secure location. Moreover, organizations should have a valid reason in order to store the information related to the customers. 

PCI Compliance

Any company that processes, stores or transmits credit card information must accept the data security standard for payment cards (PCI DSS). PCI ensures that organizations operate in a protected manner, which prevents theft or abuse of confidential installation information. When customers see that their organization does not agree with PCI, they will contact the company's brands (Visa, MasterCard, etc.). Payment organizations are responsible for managing the infringement. In the event of a break in the security or loss of information, the company will have to face a higher fine and reputation loss.

Collecting Taxation

Taxation can be very confusing to online organizations, and the right procedure contrasts from one country to another and from one location to another in the district. In fact, even the way the company handles expenses may vary depending on the company that operates next. Like individuals, organizations can approach the assessment procedure unexpectedly, but it is important to do so accurately. In the USA, the Tax Control Law does not require online store without physical proximity collect fees for purchases. However, "physical closeness" is a cloudy place in the accounting professional requirements. Each country has an alternative definition for the taxation collection, overall product price.


Mao, M., Lu, J., Han, J., & Zhang, G. (2019). Multiobjective e-commerce recommendations based on hypergraph ranking. Information Sciences, 471, 269-287. doi: 10.1016/j.ins.2018.07.029

Oliveira, T., Alhinho, M., Rita, P., & Dhillon, G. (2017). Modeling and testing consumer trust dimensions in e-commerce. Computers In Human Behavior, 71, 153-164. doi: 10.1016/j.chb.2017.01.050

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