Information Management Strategy Committee
Thailand August - September 2006
Module 1: Introduction
|
||
Overview |
||
|
Overview
This module provides a basis for understanding the nature and role of Electronic Commerce and the law and regulations applicable. The information disseminated will be provided on the assumption that we are in business utilising technology and require an understanding of the legal framework or are legal practitioners advising clients about the appropriate law. At the end of this module, you should be able to:
Electronic Commerce
– E-Commerce – is transacting business in an electronic form. Increasingly
this involves transactions over the internet, but also includes things
such as electronic funds transfers and EDI (Electronic Data Interchange).
|
||
|
|
||
Read Read |
||
Lawrence et al, "Internet Commerce", John Wiley and Sons, 1998, pages 210-215. |
||
To help you read actively rather than passively, do these activities as you undertake the reading task above:Electronic Commerce 1837 Samuel Morse patents electromagnetic telegraph. 1844 First telegraph cable line laid between Washington and Baltimore 1851 Second telegraph cable laid between England and France, first one laid in 1845 failed after a couple of hours. 1856 Trans-Atlantic telegraph cable laid. 14 February 1876 Alexander Graham Bell files patent for telephone and only two hours before Elisha Gray. 1877 First telephone exchange in Hartford, Connecticut 1883
First telephone exchange linking two major cities of New York and Boston
Electronic Commerce refers to all commercial transactions based on the electronic processing and transmission of data, including text sound and image. Advantages include the ease of access, anonymous browsing of products, greater choice, and the convenience of shopping from home. However, the disadvantages include the possibility of an invasion of privacy and security during an electronic transaction. Electronic commerce by its nature does not recognise borders and it raises questions regarding security of transactions, standards, protection of intellectual property, taxation, trade law, privacy and many other issues. Technology allows others to intercept, collate and use the data for direct marketing, such as to determine internet browsing patterns. When a purchase decision is made on-line the consumer is obliged to provide sensitive information, such as an address for delivery and details of payment. Additionally, users can also be the victims of ‘spamming’, the equivalent of junk mail. Security is of paramount importance in the e-commerce world. The National Bank of Australia uses the RSA system of encryption. This system public key cryptology, two keys, a public and a private key. A digital signature or certificate can be attached to electronic transmissions to authenticate the identity of the sender of the message. Australia’s privacy laws are found in the Privacy Act 1988 (Cth). Section 5 provides that the Information Privacy Principles (IPP), contained in section 14, shall be treated as law. The IPP apply to federal and ACT Government departments and agencies, but they do not apply to the private sector. In March 1997 the Prime Minister offered the services of the Privacy Commissioner to help Australian businesses to develop voluntary codes of conduct to meet privacy standards. The Commissioner issued the National Principles in February 1998. This was revised in January 1999 however there are no specific principles that deal with privacy and security in relation to e-commerce via the Internet. Consumer and privacy issues are being addressed in a number of international organisations including APEC, the United Nations and the OECD. The United Nations Commission on International Trade Law (UNCITRAL) has developed a Model Law for consumer protection in an electronic environment. Its purpose is remove legal obstacles to e-commerce and to create a more secure legal environment. The Electronic Transactions Act 1999 (Cth) based on this model. Australia's APEC discussion paper for conference held in Malaysia in 1998 states that while recognising the benefits of relying as much as possible on competitive market-based solutions, the government has a role to play, by encouraging e-commerce’s uptake, promoting confidence in its use and providing the infrastructure necessary to do business electronically where this is beyond the means of any single commercial entity. However, it cautions that the government must resist the temptation to over-regulate. (APEC Discussion Paper by Australian in Malaysia (1998) The Financial Systems Inquiry which reported to the Australian Government in March 1997 concluded that e-commerce should be subjected to regulation to ensure the safety and integrity of the payments system. A proposal has been developed for the establishment of an Australian Public Key Authentication Framework by the Australian Standards Authority. This would create a hierarchy of certification authorities that will provide digital certificates to individuals and organisations. Thus, mechanisms are in place for the Australian government to make e-commerce a more secure environment. The Internet Industry Association of Australia has produced an Internet Industry Code of Practice. One aim of the Code is to "establish confidence in and encourage the use of the internet". The Code includes a requirement for all parties subscribing to the Code to provide details on their website of their Australian Company Number, their physical office address and contact telephone number, when entering into a transaction with a user (De Zwart, M. (1998) Electronic Commerce: Promises, Potential And Proposals, UNSWLJ
The
aim of the Model Law on Electronic Commerce is to provide national legislatures
with a template of internationally acceptable rules to remove legal obstacles
and create a more secure legal environment for electronic commerce. The
Model Law is intended to facilitate the use of electronic communication
and storage of information, such as electronic data interchange and electronic
mail. It provides standards to assess the legal value of electronic messages
and legal rules for electronic commerce in specific areas such as carriage
of goods.
The UNCITRAL
Model Law has gained increasing international acceptance. It informs the
discussion of electronic commerce laws in international fora and in the
domestic consideration of such laws by many countries. The UNCITRAL Model
Law has been the basis for electronic commerce legislation in Singapore
and in the US State of Illinois and proposed legislation in Colombia. Federal
uniform law on electronic commerce is proposed in Canada and in the United
States. The US has also enacted the Government Paperwork Elimination Act
(1998 Senate Bill 2107) which adopts some elements of the Model Law.
The Model Law has informed the electronic commerce debate in Australia and it was used by the Electronic Commerce Expert Group as the basis for its report to the Australian Government on the legal issues arising from the development of electronic commerce. The Expert Group’s Report recommended that the Australian Government should enact electronic commerce framework legislation, the content of which should generally reflect the provisions of the Model Law on Electronic Commerce. In
this first topic of the course there will be a discussion session.
The goals will be twofold:
Alan DavidsonPrior to coming to the first session, please ensure that you have undertaken the reading task and reading activity. Please try to learn actively by making notes and asking yourself whether you understand the concepts. In particular, try to think of examples where you can apply the concepts we cover in the session. a.davidson@law.uq.edu.au 2006 (6) Please report discontinued links to Alan Davidson |
||