Laws of the Internet-E-commerce
The laws of the internet include the legislation and principles that govern how people use the internet. The laws significantly impact e-commerce because they define how businesses in the e-commerce sector interact with customers. According to Jiménez et al. (2020), the cross-border self-regulation of e-commerce is a product of the growing development of nongovernmental and transnational regulations that are relevant for an organization’s commercial relations and the protection of customers in a business environment characterized by increasing global customer acquisition. Grefen (2015) argues that the laws of the internet cover three dimensions specifying the parties that relate to networked e-commerce, such as objects, parties, and time scope. Therefore, the leading role of internet laws is to protect internet users and consumers by placing public liability on the parties using the internet and integrating public controls and assurances into the instruments used in self-regulation to satisfy people’s interests.
One of the main benefits that e-commerce gets from the laws of the internet is increased sales. The laws of the internet protect customers using e-commerce platforms from fraud and identity theft, thus encouraging them to use the platforms to purchase goods and services. The second benefit is effective online marketing. The laws of the internet include copyright regulations that enable e-commerce businesses to claim their marketing content and protect their right to profit from creative marketing campaigns. The third benefit is improving customer relations by creating a sense of safety by ensuring that laws dictating what websites should do are followed. For instance, the laws of the internet require websites to be transparent about endorsements, sponsors, and partnerships and clear about disclosures and accepting liability for freelance marketers. Observing these requirements also contributes to a company’s or business’s reputation leading to increased sales. E-commerce businesses can also protect their platforms by using trademark signs. Terms and conditions of an e-commerce platform also help develop and maintain customer relations. E-commerce businesses can use the terms and conditions section to explain their policies to customers. Therefore, customers understand what to expect from the business so that they can raise concerns when the company or business fails to meet its obligation. The policies may include a business’ pricing, shipping procedures, and payment terms.
The laws of the internet also place some limitations on e-commerce businesses by regulating data collection. For example, the laws require e-commerce businesses to issue data notices on any site that collects personal data. E-commerce platforms require personal data such as the customer’s location, address, name, and credit card information to complete sales and schedule deliveries, thus creating a need for regular data notices. The data notices should define the uses and reasons for the data collected from customers, including data that may be collected through hidden programs or cookies. Customers can accept or reject the request to allow the platforms to collect data. When customers reject the request, the e-commerce platforms cannot use and collect the customer’s data to improve the shopping experience. Potential customers may also use restrictions that prevent access to some e-commerce platforms leading to limited exposure of the platform to potential customers. PCI compliance also creates limitations for e-commerce businesses. The compliance focuses on storing, processing, and transmitting credit card data. Failure to comply may lead to fines and termination of a merchant account. Some credit card issuers also block transactions to specific e-commerce platforms when they detect a threat.
Grefen, P. (2015). Beyond E-business: Towards networked structures. Routledge.
Jiménez, D. L., Dittmar, E. C., & Portillo, J. P. (2020). Internet Regulation: Multidisciplinary Perspective. Utopía y Praxis Latinoamericana, 25(11).
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Write 1 page, Arial, 12-font, double-spaced, explaining the laws of the internet has a 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.
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