Legislation Who governs e-commerce?

E-commerce is regulated by laws and guidelines. These aim to ensure that sites operate effectively and that online trading is fair and lawful. These laws protect both the business and the consumer. All the legislation discussed in this section relates to the UK only. Data Protection Act (1998) The Data Protection Act (1998) was designed to protect sensitive data held in databases. It was originally passed in 1984, with an update in 1998 which was brought into effect in It is upheld by the Information Commissioner. Every business that stores data electronically, for example, information about customers, must register and state the data that they plan to hold.

There are eight principles in the Act The data subject is the person to whom the data refers. Under the Act, the data subject has several specific rights, including: the right to compensation for unauthorised disclosure of data the right to compensation for unauthorised inaccurate data the right to access data and apply for verification or erasure where it is inaccurate the right to compensation for unauthorised access, loss or destruction.

Activity Visit Ico.org This is the website of the Information Commissioner's Office. Find more information on each principle of the Data Protection Act and make notes: What might an e-commerce site do that would contravene the rules of the Data. Protection Act? What would happen if they did?

Computer Misuse Act (1990) The Data Protection Act was designed to protect sensitive data stored on computers, but there was no legislation to prosecute those who hacked or attacked computer systems with viruses. Toward s the end of the 1980s, with the increase o f computer use, it was becoming necessary to legislate against these serious problems. The Computer Misuse Act (1990) introduced three new offences: un authorised access t o computer programs or data un authorised access with the intent to commit further offences un authorised modification of computer material (for example prog ra ms or data). The Act makes a distinction between computer misuse and computer abuse. Computer misuse- an illegal act involving a computer. Computer abuse- a legal, but un ethical act, involving a computer.

Consumer Credit Act 1974 Customers paying by credit card are protected by the Consumer Credit Act for payments up to £25,000. So, if a payment cannot be made by the customer, the business will still receive the money from the bank and can therefore confidently send out the products purchased. The Act also guarantees a cooling-off period during which customers can change their mind about a purchase- for mail order goods the cooling-off period is 14 days. This is good for the customer, but can be disadvantageous to a company as it means that, even after a purchase has been completed, there is the possibility of the customer asking for a refund.

Trading Standards The Trading Standards Institute works with consumers and businesses to maintain fair trading. It is part of local government and ensures that legislation is enforced, such as the: Trade Descriptions Act (1968) Consumer Protection Act (1987) Price Marking Order (2004) The Trading Standards Institute also deals with issues such as counterfeit goods, the sale of alcohol and tobacco to underage persons and the exploitation of vulnerable consumers from seams and doorstep crime. E- commerce websites must clearly describe their products. This is especially important because customers can only see pictures of the products before purchasing, not the items themselves.

Freedom of Information Act (2000) This Act gives the public the 'right to know'. The public can request information about public bodies, such as the government, and legal entities, such as businesses. Copyright Legislation The Copyright, Designs and Patents Act (1988) protects all works such as music, art, writing and programming code once it is tangible, which means in a fixed form. As the Internet has grown, the question of whether websites are subject to protection under copyright has often been discussed. It is now accepted that a website becomes tangible once it is coded and saved on to storage media, especially if the source code is also printed. Websites are therefore protected by copyright.

Activity Find more information about the rights the Freedom of Information Act gives to members of the public. Make notes. Can members of the public obtain any information or are there restrictions? What information can people obtain from e-commerce businesses?

E-commerce regulations The Electronic Commerce Regulations (2002) specified several rights to ensure fair trading through e-commerce sites, including: The business should provide information about itself such as its name, its geographic location and a method of contact Communications cannot be sent unless the sender is easily identifiable and that any offer or promotion is unambiguous When an order is placed, the business must acknowledge the receipt of the order by electronic means without delay Allowing a customer to correct misplaced orders, such as typing in 100 instead of 10.