E-commerce Report: Analysis of UK Business and Legal Framework

This report delves into the multifaceted world of e-commerce, specifically within the context of the UK market. It examines the legal and regulatory frameworks that govern online businesses, including licensing, copyright, and consumer protection laws. The report analyzes various aspects, such as contract formation, data protection, and the implications of the Electronic Commerce Directive (ECD). It explores the importance of compliance with regulations like the Data Protection Act and the Distance Selling Act, and the role of the eIDAS regulations in addressing issues related to e-identification and trust services. The report also assesses the responsibilities of businesses like E-bay in adhering to consumer protection standards. Through case studies and analysis, the report provides a comprehensive overview of the challenges and opportunities within the e-commerce sector in the UK, offering valuable insights for businesses operating in this dynamic environment.

E-commerce

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
UNIT TASK 1..................................................................................................................................1
a..............................................................................................................................................1
b..............................................................................................................................................1
c..............................................................................................................................................1
d..............................................................................................................................................1
UNIT TASK 2..................................................................................................................................2
1..............................................................................................................................................2
2..............................................................................................................................................3
UNIT TASK 3..................................................................................................................................3
UNIT TASK 4..................................................................................................................................4
UNIT TASK 5..................................................................................................................................5
UNIT TASK 6..................................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
E-commerce is an online transaction system in which the people can purchase or sell on
various platforms online. It can be achieved by different platforms such as on mobile phones,
desktops, internet marketing, online transaction systems etc. E-commerce is not restricted to the
buying and selling of anyone or some specific products but the technology had advanced to a
level that a huge variety of stuff is made available online and there are some engines on which
the person can sell anything as well. The report is about discussing various factors of E-
commerce, various related requirements, directives involved etc.
UNIT TASK 1
On the basis of given case situation, RockWebVision (RWV) is planning to set-up online
business in UK. Through this online business, RWV will provide European audience with classic
US audio.
a.
As per the scenario, both firm and customers need to comply with the legal aspects
regarding licensing. Considering the case of L’Oeral v ebay (2011), it can be stated that online
consent from the supplier is highly required or needed1. Hence, to earn income lawfully RWV is
required to take prior consent from content owners. If business unit such as RWV will not
comply with the legal requirements then US content owners have right to make sue for the
contractual breach.
b.
Considering the case situation, it can be depicted that RWV needs to follow rules regarding
copyright for downloading rock music. Further, the cited firm also needs to take consent from
US Rock band regarding the same.
c.
Under this, business unit needs to ensure that all the documentary and other requirement
has been fulfilled according to law.
1 The UK's E-Commerce Regulations. 2017. [Online]. Available through: < https://www.out-
law.com/page-431>.
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d.
Under this section, it can be stated that the firm might get the highest possible price through
selling ticket of concerts via auction. Hence, by complying with UK regulations regarding
auction, firm would become able to get desired outcome.2
Business structure
On the basis of cited case situation, for attaining right in relation to providing European
audience with US rock band music RWV needs to get license for the same. Terms of license is g
that RWV is allowed to sell content to only EU customers. Hence, for performing acts in a
lawful manner business entity is required to comply with the terms and conditions related to
licensing. As per the section 116 (2) of concerned Act (UK), commission has power to review
matters when conditions of license are being breached3. Further, if RWV will not meet all the
contractual terms and conditions then Commission has right to either suspend or revoke license.
Along with the revocation, commission may also impose financial penalty in front of RWV.
Hence, to minimize risk associated with the breach of licensing terms firm needs to make focuses
on taking alternative action. For instance: if RWV intends to sell US content in other countries as
well along with EU then it needs to lay emphasis on the renewal of contractual terms and
conditions pertaining to license.
2 Liang, T. P. and et.al., 2011. What drives social commerce: The role of social support
and relationship quality. International Journal of Electronic Commerce. 16(2). pp.69-90.
3 Licensing, compliance and enforcement. n.d. [Online]. Available through:
<http://www.gamblingcommission.gov.uk/pdf/licensing-compliance-and-enforcement-policy-
statement.pdf>.
2

UNIT TASK 2
1.
By reviewing the website of Waitrose, it has assessed that supplier intends to do contract
with the customer only when related material is available for which order is placed. Along with
this, when customer complies with all the terms and conditions regarding amount, geographical
area as well as other information then seller is ready to create a contract with the customers.
Along with this, supplier intends to do contract where all the technical steps related to the
contract development are followed:
 Website of Waitrose entails that firstly customer place order by pressing checkout button
throughout the process.
 Thereafter, supplier sends e-mail to the customer regarding order acknowledgement
when all the below mentioned aspects are fulfilled such as availability, payment
authorisation etc.
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 Contract formation between Waitrose and customers as well as order acceptance is on
dispatching of products ordered4.
There are several aspects which are considered by the supplier namely, Waitrose at the
time of contract creation such as:
 Availability of product: Moreover, when product goes out of stock then supplier would
not be in position to deliver the products or services for which order placed by customers.
 Authorisation of payment: Consideration is the main element of lawful contract so
contract made by Waitrose on the consent from the side of customer. (case of Chappell v
Nestle)5
 Error related to price or product description is not identified: The rationale behind
focusing on such aspect is that contract takes place when all the aspects are clear to both
the concerned parties.
 Customer meets all the eligibility criteria mentioned in section of terms and conditions:
With the motive to offer satisfactory services to the customers business unit sets some
terms and condition. Hence, by complying with the same both businesses unit and
company can enter into a legal contract.
Hence, on the assurance of all the above depicted aspects Waitrose suppliers form contract
with the potential customers. Moreover, for the development of legal relationship there must be
offer, acceptance, consideration and intention regarding the creation of legal bindings. Thus,
suppliers intend to do contract with the customers only when essential requirements are fulfilled.
4 Terms and Conditions. 2017. [Online]. Available through:
<http://www.waitrose.com/content/waitrose/en/corporate_information_home/
corporate_information/legal_notices/terms_and_conditions.html >.
5 CHAPPELL AND COMPANY LIMITED and others v THE NESTLE COMPANY LIMITED
and others
4

2.
As per my opinion, in the context of online selling, aspects in relation to creation of contract
would be decided by the court. Moreover, in online selling, Waitrose is also obliged to comply
with the aspects of contractual terms and conditions. Hence, as per UK laws and legislation in
online selling as well as transaction there must be an invitation to treat, offer, acceptance and
legal consideration. Website of Waitrose clearly presents that it highlights several offers which
are considered as an invitation to treat. On the basis of such aspect, potential customer places
order and on the acceptance of same by Waitrose, dealer turns it into a contract. In the case of an
invitation to treat, seller has right to decline offer which is made by the potential customer6.
Thus, when both the parties such as buyer and seller accept terms and conditions, then it may
result into contract. According to my views, courts also got involved when other party makes
default pertaining to the compliance with the terms, conditions and policies and make sue for the
same.
UNIT TASK 3
Issues:
By doing assessment, it has been found that now, level of commercial transactions has
increased significantly at both national and international level. However, there are some issues
which are highly associated with the aspect of e-commerce such as an absence of tangible tracks,
privacy aspects etc7. Along with this, from research it has been assessed that in the context of
trust services, privacy is the major concern because there are some means or ways to collect
information via digital tools. Further, transaction security is another major aspect that is closely
associated with the aspect of e-identification and trust services8. Hence, high level of security
6 Turban, E. and et.al., 2017. Electronic Commerce 2018: A Managerial and Social
Networks Perspective. Springer.
7 e-Identification and Trust Services. 2017. [Online]. Available through:
<http://www.netlaw.bg/en/a/e-signature-law >.
8 The EU's proposed new e-identification regime. 2017. [Online]. Available through:
<https://www.out-law.com/topics/tmt--sourcing/e-commerce/the-eus-proposed-new-e-
identification-regime/ >.
5

pertaining to electronic transaction is ensured through the means of electronic identification and
trust services.
Contribution of EIDAS (The Electronic Commerce (EC Directive) Regulations) in
addressing issues related to e-identification and trust services
From evaluation, it has been assessed that eIDAS facilitates secure as well as seamless
transactions between businesses, citizens and public authorities. Rules and regulations of eIDAS,
lays emphasis on the creation of European internal market for trust services such as e-signature,
e-seals, time stamps and website authentication etc9. Hence, by focusing on such aspects,
business unit can work across the border with the same legal status as traditional paper process
possesses. Along with this, as per eIDAS regulation, people and businesses can use their own
eIDAS to access public services in European countries where it is available. Hence, by taking
into account all the above depicted aspects, it can be presented that EIDAS regulations have
addressed issues raised by e-identification and trust to a great extent.
UNIT TASK 4
As per Electronic Communication Directive (ECD), section 7 of the Act, company needs to
ensure that all the promotional offers related to discount, premium, gifts etc. are easily
accessible. Further, there is a need to ensure that conditions related to the participation in games
as well as promotional aspects are easily accessible. Along with this, section 9 of ECD Act
presents that it is the accountability of the firm to provide information to the concerned party
about the technical steps that need to be followed for making contract. Further, section 6 of EC
Directive or regulation (2002) presents that service provider need to give information about the
name, address, terms and policies10. Hence, by visiting the site of Tesco, it has been assessed that
such firm complies with ‘The Electronic Commerce (EC Directive) Regulations 2002 to a great
extent. By visiting the site of Tesco, it has been identified that online advertisements which are
made by Tesco can easily be accessible by the customers. In addition to this, Tesco gives highly
9 Trust services and eID. 2017. [Online]. Available through: <https://ec.europa.eu/digital-single-
market/en/trust-services-and-eid>.
10 The Electronic Commerce (EC Directive) Regulations (2002). 2017. [Online]. Available
through: <http://www.legislation.gov.uk/uksi/2002/2013/pdfs/uksi_20022013_en.pdf.>
6

appropriate information in the advertisements regarding food products, clothes etc. Referring the
case of Google France SARL, Google Inc v Louis Vuitton Malletier SA and others (2010) it can
be depicted that information supplied by the advertiser must be true11. For instance: Website of
Tesco presents advertisement regarding gym kit, food swaps, savings etc. Hence, Tesco
mentions that all such online communication is accurate and related products are available on all
the stores. Further, website of Tesco also contains detail regarding the terms and conditions as
well as process to do transaction. Thus, referring the presented aspects, it can be depicted that
Tesco complies with EC Directive or regulations in a prominent way.
UNIT TASK 5
On the basis of cited case situation, E-bay (Californian based E-commerce company) will
sell or offer product and services to UK customers. In this regard, to attain success and meet
requirements regarding consumer protection, firm needs to follow the rules as well as regulations
of EU Directive (2002), Data Protection Act (1998), The Distance Selling Act (2000) & ICO
Cookie law. Thus, for meeting expectation of customers, E-Bay needs to acknowledge all the
orders, must clearly display terms and conditions as well as information pertaining to price, tax
and delivery cost12. Business unit also needs to include information about geographical and other
contact information such as e-mail address, telephone number etc. Further, according to Data
Protection Act (1988), E-bay needs to register itself on http://ico.org.uk. For protecting the
address details of customers who have placed order online, such E-commerce firm needs to
comply with the aspects of Data Protection Act (1998). In accordance with Data Protection Act
(1998) for securing personal information of the customers, E-bay will make use of data
encryption software. This in turn restricts the accessibility of undesirable people on data set to a
great extent.
Besides this, from the perspective of consumer protection personal data will be held by the
company like e-bay in a secured way. Further, there also must be an arrangement regarding
11 The UK's E-Commerce Regulations. 2017. [Online]. Available through: < https://www.out-
law.com/page-431>.
12 E-Commerce legal requirements. 2017. [Online]. Available through:
<http://www.onlineretailing.co.uk/e-commerce-legal-requirements/>.
7

removal of information on the request of individual13. As given scenario presents that E-bay is
planning to sell or offer products to the customers residing in UK. Thus, firm needs to follow
Distance Selling Act (2000) and must provide precise information about postage, packing, VAT,
return or cancellation policy. Hence, in the terms of business E-bay needs to mention that
customer can return goods within the period of 14 days excluding perishable and digital
downloads. Further, case of Bundesverband v Deutsche Internet Versicherung (2008) entails that
for responding customers promptly business unit such as e-bay needs to lay emphasis on using
other methods of communication beyond postal and e-mail address14. On the basis of such Act,
all the online orders must be followed through the means of written communication such as mail.
Terms of E-bay must contain information regarding the right of customers regarding full refund
except return postage cost.
UNIT TASK 6
Cited case situation entails that e-adult, UK business is involved in selling pornographic
images or videos through the online means. Case summary presents that it either supplies image
through giving downloading option or in the form of hard copy which is delivered via mail. In
UK and many other countries, activities related to supplying and selling of porn material is
considered as legal. However, there are several other jurisdictions that assume or consider supply
of pornographic images or videos as criminal offence. From assessment, it has been identified
that in the present times activities in relation to cyber crimes, blackmailing and emotional
harassment are increased significantly. As per the jurisdiction, judiciary authority has right or an
official power to take legal decisions against the criminal offences.
13 E-Commerce & Consumer Protection. 2017. [Online]. Available through:
<https://static1.squarespace.com/static/570665c1d51cd45f7c8f1812/t/
5824c6c529687fea800e2653/1478805193275/E-
Commerce+and+Consumer+Protection.pdf>.
14 The UK's E-Commerce Regulations. 2017. [Online]. Available through: < https://www.out-
law.com/page-431>.
8

 Technical: Through undertaking IT and Privacy Act, e-adults can restrict the access or
supplying aspect of porn images to children15. Hence, by restricting the access of children
who are below the age of 18 years, e-adults can avoid the criminal offence.
 Legal: As per the laws and legislation, activities like child pornography are prohibited to
a great extent. Hence, e-adult should make security arrangements by taking into account
all the laws and legislation associated with the same.
 Operational: At operational level, by establishing software for blocking pornography
firm can reduce the level of criminal offence16. This in turn restricts others to aid porn
images and games on sites.
Referring the case of Twentieth Century Fox Film Corp v British Telecommunications
plc (2011), it can be mentioned that by blocking the access of children pornography through the
automated means criminal offences can be restricted. Hence, by taking above depicted actions e-
adults can restrict the criminal offences associated with the supply of pornographic images.
CONCLUSION
It can be concluded from the report that e-commerce has made many advancements in the
daily life of a person because it allows purchasing and selling products in an easy and simple
way. Also, there are different platforms that can make the life of a person easier as people are
very engaged in their responsibilities these days, so E-commerce provides a sort of comfort to
them and also provides a wide range of variety. There are various directives of it which every
online retailer has to follow in order to run the business smoothly with capability of gaining
higher productivity.
15 IT Act 2000 – Penalties, Offences With Case Studies. 2017. [Online]. Available through: <
https://www.out-law.com/page-431>.
16 The UK's E-Commerce Regulations. 2017. [Online]. Available through: < https://www.out-
law.com/page-431>. (ibid)
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REFERENCES
Books and Journals
Liang, T. P. and et.al., 2011. What drives social commerce: The role of social support and
relationship quality. International Journal of Electronic Commerce. 16(2). pp.69-90.
Turban, E. and et.al., 2017. Electronic Commerce 2018: A Managerial and Social Networks
Perspective. Springer.
Online
E-Commerce & Consumer Protection. 2017. [Online]. Available through:
<https://static1.squarespace.com/static/570665c1d51cd45f7c8f1812/t/
5824c6c529687fea800e2653/1478805193275/E-
Commerce+and+Consumer+Protection.pdf>.
E-Commerce legal requirements. 2017. [Online]. Available through:
<http://www.onlineretailing.co.uk/e-commerce-legal-requirements/>.
e-Identification and Trust Services. 2017. [Online]. Available through:
<http://www.netlaw.bg/en/a/e-signature-law >.
Terms and Conditions. 2017. [Online]. Available through:
<http://www.waitrose.com/content/waitrose/en/corporate_information_home/
corporate_information/legal_notices/terms_and_conditions.html >.
The Electronic Commerce (EC Directive) Regulations (2002). 2017. [Online]. Available
through: <>http://www.legislation.gov.uk/uksi/2002/2013/pdfs/uksi_20022013_en.pdf.
The EU's proposed new e-identification regime. 2017. [Online]. Available through:
<https://www.out-law.com/topics/tmt--sourcing/e-commerce/the-eus-proposed-new-e-
identification-regime/ >.
The UK's E-Commerce Regulations. 2017. [Online]. Available through: < https://www.out-
law.com/page-431>.
10