Electronic Commerce

Question 1

Definition of E-Commerce.

Answer 1

i) Cutler
The conduct of trade and commerce within the electronic environment of the global economy.

ii) Turban
Process of buying & selling or exchanging of products, services and information via computer networks:
-Communication media is internet.
-Commercial transactions.

Question 2

Commercial Transaction?

Answer 2

Section 5, Electronic Commerce Act 2006 (Act 658)
-a single communication or multiple communications of a commercial nature, whether contractual or not, which includes any matters relating to the supply or exchange of goods or services, agency, investments, financing, banking and insurance.

Question 3

E-Commerce?

Answer 3

-Online transactions (ordering and/or settling payments) conducted purely between business partners.
-Example
1. Sale and purchase of goods.
2. Sale and purchase of services.
3. Banking services.
4. Insurances services.
5. Document exchange.

Question 4

E-Business?

Answer 4

-Entire process of conducting commerce online, whether between businesses or between business & consumer.

Question 5

Elements of E-Commerce.

Answer 5

1. Transactions are commercial.
2. Medium of transaction is electronic/digital.
3. Physical presence of parties is not necessary.
4. Transaction occurs in the public network.
5. Open system (internet/www).
6. Transcends national borders.

Question 6

Advantages?

Answer 6

-Cost savings
-Enhancing productivity
-Increasing profitability
-Easier access

Question 7

Law related.

Answer 7

1. Electronic Commerce Act 2006 (Act 658):
   -legal recognition of electronic messages in commercial transactions, the use of the electronic messages to fulfill legal requirements and to enable and facilitate commercial transactions through the use of electronic means and other matters connected therewith.
2. Consumer Protection Act 1999 (amended in 2007) (Act 599):
   the protection of consumers, the establishment of the National Consumer Advisory Council and the Tribunal for Consumer Claims, and for matters connected therewith.
3. Consumer Protection (Electronic Trade Transactions) Regulations 2012: This new act primarily affected those who:
   -Operate a website that sells or provides services online either through your own online store or blog.
   -Sell or provide services through an online marketplace such as eBay, Amazon.com, Groupon, Mudah, Lelong, Zalora, Lazada, etc.
4. Digital Signature Act 1997 (Act 562) (DSA):
   For secure online transactions by using digital signatures.
5. Personal Data Protection Act 2010 (Act 709):
   Regulate the processing of personal data in commercial transactions and to provide for matters connected therewith and incidental thereto.

Question 8

Other Law.

Answer 8

1. Direct Sales and Anti-Pyramid Scheme Act 1993 (Act 500):
   Provide for the licensing of persons carrying on direct sales business, for the regulation of direct selling, for prohibiting pyramid scheme or arrangement, chain distribution scheme or arrangement, or any similar scheme or arrangement, and for other matters connected therewith.
2. Trade Description Act 2011 (Act 730):
   the purpose of promoting good trade practices by prohibiting false trade descriptions and false or misleading statements, conduct and practices in relation to the supply of goods and services and to provide for matters connected therewith or incidental thereto.
   - Counterfeit goods.
   - Cheap sales notice.
   - Misleading advertisements.
3. Communications and Multimedia Act 1998 (Act 588) (CMA):
   converging communications and multimedia industries among which are website operators, which fall within the ambit of ‘content applications service providers’.
4. Price Control & Anti-Profiteering Act 2011 (Act 723):
   control prices of goods and charges for services and to prohibit profiteering and to provide for matters connected therewith or incidental thereto.
   - Price display.
   - Labelling by Producers/ Importers /Manufacturers /Distributors / Wholesalers.
5. Weights & Measures Act 1972 (Act 71):
   regulate weights and measures and instruments for weighing and measuring and to make provisions for matters connected therewith.
   
   • Unjust weights and measures.
6. Copyright Act 1987 (amended in 2012) (Act 332):
   to make better provisions in the law relating to copyright and for other matters connected therewith.
7. Computer Crime Act 1997 (Act 563):
   to provide for offences relating to the misuse of computers.
8. Telemedicine Act 1997 (Act 564):
   provide for the regulation and control of the practice of telemedicine; and for matters connected therewith.

Question 9

Barriers?

Answer 9

-Lack of sufficient system security, reliability, communication protocols and standards.
-Insufficient telecommunication bandwidth.
-Software development tools are still evolving and changing rapidly.
-Difficulties in integrating the internet & e-commerce software with some existing applications and databases.
-Additional cost incurred when special web server & other infra-structure are needed.
-Many unresolved legal & regulatory issues such as taxation.
-Cumbersome international customs regulations.