Posted: November 9th, 2022

Laws of the internet on e-commerce

Laws of the internet on e-commerce
Write 2-3 page explaining the laws of the internet has benefit or limited E-commerce. Provide specific examples. You may use additional data sources to supplement your assessment of the case study. Use APA standards in citing your data sources.

Ecommerce is a fast emerging trend because of the increased use of online media. According to (Laudon and Traver,2016), five in ten companies have an active e-commerce presence. For the e-commerce business to reach its full potential, legal protections are applied to ensure consumer safety. However, some legal regulations applied are necessary, while others are considered burdensome. The paper presented will focus on the benefits and limitations of the laws of the internet to e-commerce.
Business insurance laws for small businesses include product liability, commercial liability, professional liability, general liability and home-based insurance. The insurance is issued depending on the type of business and location. The law requires the business to conduct a vetting process to determine the liability insurance of a product/The manufacturing companies are responsible for the liability issues. Such laws protect the business from negligence, errors and malpractice. For example, in 2018, Amazon was liable for selling a dog collar that caused permanent vision loss to a Pennsylvania woman. The dog collar was purchased from a third-party vendor. Such cases may cause the business to send thousands of dollars in defending their business. Insurance laws are beneficial to an e-commerce business to prevent lawsuits over product malfunction.
Ecommerce tax laws differ because every state and country have their tax standards and expectations. Therefore, the laws must be applied based on the target market. For example, stores located in the U.S can display their prices exclusive of tax (Aljifri et al.,2013). Stores in the Australian demographics must include tax prices. Tax policies can affect the product or business if not applied correctly. The resale certificates and sales tax exemptions are constantly changing. Thus, one needs to hire an expert to acquire insights on the tax charges and requirements, depending on its location. Such laws are burdensome due to their complexities and ever-changing nature. The tax laws extended to the shipping, thus causing extra paperwork and fees. Also, failing to abide by the tax laws can lead to serious law violations.
Data protection and privacy laws are implemented in e-commerce businesses to protect consumer’s private information. The laws apply in many countries. For example, in Europe, e-commerce websites require visitors to receive notification before the system collects their data (Aljifri et al.,2013). The California data protection Regulation requires companies to follow the procedure that protects the consumer’s personal information. Such laws are beneficial to an e-commerce store because it protects the consumer’s information from being sold to other parties. Also, such practices prevent fraud transactions. Research by (Aljifri et al.,2013) shows that incidences of online insecurity and payment fraud have skyrocketed since the outset of e-commerce. The law requires the business to apply performance management systems that can enable them to identify and fix vulnerabilities. Problems that arise from privacy violations and fraud may cause problems with the consumers and eventually, the law.
Ecommerce is a lucrative industry that is exponentially growing. According to (Laudon and Traver,2016) Shopify, e-commerce sales are expected to reach $3.9 trillion in 2021. The laws and regulations applied in this industry implement safety for the consumer. However, some laws are beneficial, while others restrict e-commerce. Insurance laws are beneficial because they protect the business in case of liability from the manufacturing company. Tax laws are restrictive to the business due to its ever-changing and varying logistics. Finally, data protection and privacy laws are beneficial because they protect the business and consumers from fraud purchasing and data theft.

References
Laudon, K. C., & Traver, C. G. (2016). E-commerce: business, technology, society.

Aljifri, H. A., Pons, A., & Collins, D., Gauer, R. (2013). Global e‐commerce: a framework for understanding and overcoming the trust barrier. Information Management & Computer Security.

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