Of late, internet has emerged as the mode of quick and rapid purchase revolution making inroads in the busy life of the consumers. Be it for communication or explorations. ‘Internet’ has become the central-hub for all activities performed by an individual. A day will come when people would be calling a person as illiterate who’s unable to operate internet. Resultantly, internet growth has led to a host of new developments, such as consumers turning more and more to the internet for buying goods at an affordable pricing. Internet has truly been a catalyst in changing the basic fundamentals of doing business over the web.
E-Commerce has its roots from foreign jurisdictions. The concept has evolved in developed nations like United States. These jurisdictions have appropriate laws and adequate infrastructure to cater the needs of online stakeholders.
rnThe legal requirements for running and conducting e-commerce business in India also involve compliance with laws like Contract Act, Company Law, Indian Penal Code, etc. Further, online shopping also involves compliance with the banking and financial norms applicable in India. The most vulnerable categories that have opened their online shops pertain to online pharmacies, online gambling and gaming, electronics, etc. These e-commerce portals are not at all complying with the respective laws of these segments.
Even the Indian government is lax in implementing the regulatory and compliance requirements against these illegal online Pharmacies, gambling portals and other similar e-commerce platforms. For instance, take the example of PayPal in this regard. If PayPal has to allow online payments receipt and disbursements for its existing or proposed e-commerce activities, it has to take a license from Reserve Bank of India (RBI) in this regard. Further, cyber due diligence for Paypal and other online payment transferors in India is also required to be observed.