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Ontario|Internet & ComputerInternet & Computer 349 Electronic evidence This is a new topic and will be available in March.
350 E-commerce: Selling on the Internet
One of the fastest growing areas of retail sales and services is electronic commerce or e-commerce. The Internet provides a cost-effective way for companies to sell products through order forms on websites or via e-mail.
Selling goods and services on the Internet poses some risks for both business owners and customers. However, electronic commerce on the Internet can be effective and worthwhile, provided that you take the necessary steps to protect your business and to reassure your customers that it is safe to do business with you through the Internet.
The following information outlines some of the steps, which can be taken to make electronic commerce relatively safe and effective. Since the new field of Internet Law or "Cyberlaw" is changing at a fast pace, you should consult a lawyer practicing in this field before launching a new Electronic Commerce Website.
- Electronic safeguards in your website
The first step to take is to build electronic safeguards in your website. For example, your website creator can design order forms so that the computer will reject fake addresses, incorrect credit card numbers or other information which does not appear to be correct. This will make it more difficult for people to place fake orders with your business.
- Exit the order form
Another step to take is to allow a customer to exit the order form screen at any time while they are filling it out. This way, if a customer changes their mind about an order, they can easily cancel the order before it is sent to your company.
- Credit card security
Many people are concerned about credit card security on the Internet. While it is possible for someone to steal a credit card number being sent over the Internet or stored on an Internet server, it is probably no more of a security threat to use your credit card over the Internet than it is to use a credit card in any conventional transaction such as at a restaurant or gas station.
New Internet technologies have made credit card transactions much more secure. Businesses that want to accept credit card payments through their website should address their customers' concerns about using credit cards over the Internet. You can do this by providing information on your website stating what you have done to protect credit card transactions. For example, many software programs now scramble Internet messages. This is called encryption. If encrypted information is copied as it is sent from one website to another, it will not be understood. This is one way that a business can protect credit card transactions. Your website developer can implement encryption on your business website. If your website cannot support encryption technology, it is a good idea to let visitors to your website know that there may be a risk in sending confidential information to you.
- Clear contracts
Another thing you can do to protect your business in electronic commerce is to make the terms of your order form or contract very clear. The customer should know what they are buying when they agree to your terms. By being very clear and precise, you will minimize the number of orders that are returned, and you will be able to prove that you had a contract. This will help you protect your legal rights in a contract dispute.
- Know the law
In addition to making sure that your sales contract will be binding and that customers are comfortable placing an order from a website, business owners who market goods and services on the Internet must also be aware of the many laws which may affect how they can do business. These include laws regarding business registrations, consumer protection, language and labeling regulations and many others. You should familiarize yourself with the laws that apply in Ontario as well as those that apply in other provinces, states or countries where you plan on marketing or distributing your products and services.
- Export controls
Business owners who export goods, services or technology must be especially aware of special laws, which may control what they can do. Even software programs that are transmitted electronically are subject to certain restrictions imposed by export control regulations. Canadian laws may prohibit the export, without an export permit, of controlled technologies such as products that incorporate encryption, and the export of other items to certain countries listed on Canada's Area Control List or subject to embargo by the United Nations.
Before starting to offer products and services over the Internet, businesses should get professional advice from a lawyer.
For more information about how laws are applied to the Internet, refer to other sections of Legal Line©.
351 E-commerce: Buying on the Internet
Shopping on the Internet is an easy way to buy goods and services. You can use your credit card on-line and have products delivered to your door. New technologies have made it safer to use your credit card for Internet transactions. Consumers who buy goods over the Internet are protected by the same laws that protects all consumers. The most important of these laws is called the Sale of Goods Act.
- Internet shopping and the Sale of Goods Act
The Sale of Goods Act protects people who buy goods, but not people who buy services. According to the Sale of Goods Act, any product you buy must be able to be used for the purpose that people use it for ordinarily. For example, if you buy a vacuum cleaner, it must pick dirt up off of your carpet. If it does not do what it is supposed to do, you should contact the vendor and request a refund. You should be aware that in non-consumer transactions, the seller may be able to disclaim these types of implied warranties.
When you buy a product on the Internet, there are two particular issues that you should consider. First, Internet purchases of goods are usually based on pictures, and second, purchasers are often not familiar with the company they are purchasing from.
- Buying something from a picture
You should always be cautious about buying something from a picture. Computer images can be easily changed or enhanced, and when you get your product, it may not be anything like what you saw on the screen. If the item is not like the picture and you are not satisfied with the product, you should contact the vendor and request a refund.
- Know the company you are dealing with
You should also be careful about buying something from a company you are not familiar with. If they change their Internet address, it may be difficult for you to contact the company if there is a problem. If it is an international company and there is no local office, it may be difficult to contact the company or return the product if there is something wrong with it. The best way to avoid these problems is to know the company you are dealing with.
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