IT Laws Related to E-Commerce

7/30/2019 IT Laws Related to E-Commerce

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ByVignesh R. Gaikwad

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Introduction Cyber Law in India

IT laws regarding E-commerce

Popular Cyber law Cases Awareness to Cyber Laws


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In Simple way we can say that cyber crime is unlawfulacts wherein the computer is either a tool or a target orboth.

Cyber crimes can involve criminal activities that aretraditional in nature, such as theft, fraud, forgery,

defamation and mischief, all of which are subject to theIndian Penal Code. The abuse of computers has alsogiven birth to a gamut of new age crimes that areaddressed by the Information Technology Act, 2000.

Categorize Cyber Crimes in two ways:

i. Computer as a Target e.g. Hacking ,DoS attack etcii. Computer as a weapon e.g Credit card frauds etc

And various other technical aspects


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The Information Technology Act, 2000

The Information Technology (Amendments)

Act ,2008

Why Cyber Law in India? Due to the anonymous nature of the Internet, it is

possible to engage into a variety of criminal activitieswith impunity and people with intelligence, have beengrossly misusing this aspect of the Internet to

perpetuate criminal activities in cyberspace. Hence theneed for Cyber laws in India.


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Subject to the provisions of this section any subscribermay authenticate an electronic record by affixing hisdigital signature.

The authentication of the electronic record shall beeffected by the use of asymmetric crypto system andhash function which envelop and transform the initialelectronic record into another electronic record.

Any person by the use of a public key of the subscriber

can verify the electronic record. The private key and the public key are unique to the

subscriber and constitute a functioning key pair.


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Where any law provides that information or any othermatter shall be authenticated by affixing the signature orany document shall be signed or bear the signature of anyperson (then, notwithstanding anything contained in suchlaw, such requirement shall be deemed to have been

satisfied, if such information or matter is authenticated bymeans of digital signature affixed in such manner as maybe prescribed by the Central Government).

Explanation.For the purposes of this section, "signed",with its grammaticalvariations and cognate expressions,shall, with reference to a person, mean affixing of his handwritten signature or any mark on any document and theexpression "signature" shall be construed accordingly.


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If, by application of a security procedure agreed to bythe parties concerned, it can be verified that a digitalsignature, at the time it was affixed, was

(a) unique to the subscriber affixing it;

(b) capable of identifying such subscriber;

(c) created in a manner or using a means under theexclusive control of the subscriber and is linked to theelectronic record to which it relates in such a mannerthat if the electronic record was altered the digitalsignature would be invalidated, then such digitalsignature shall be deemed to be a secure digitalsignature.


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(1) Subject to such conditions and restrictions as may bespecified by regulations, the Controller may with the previousapproval of the Central Government, and by notification in theOfficial Gazette, recognise any foreign Certifying Authority asa Certifying Authority for the purposes of this Act.

(2) Where any Certifying Authority is recognised under sub-section (1), the Digital Signature Certificate issued by suchCertifying Authority shall be valid for the purposes of thisAct.

(3) The Controller may, if he is satisfied that any CertifyingAuthority has contravened any of the conditions and

restrictions subject to which it was granted recognition undersubsection (1) he may, for reasons to be recorded in writing,by notification in the Official Gazette, revoke suchrecognition.


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(1) Subject to the provisions of sub-section (2), the CertifyingAuthority which has issued a Digital Signature Certificate maysuspend such Digital Signature Certificate,(a) on receipt of

(i) the subscriber listed in toe Digital Signature Certificate; or

(ii) any person duly authorised to act on behalf of thatsubscriber,(b) if it is of opinion that the Digital Signature Certificate should besuspended in public interest

(2) A Digital Signature Certificate shall not be suspended for a periodexceeding fifteen days unless the subscriber has been given anopportunity of being heard in the matter.

(3) On suspension of a Digital Signature Certificate under this section,the Certifying Authority shall communicate the same to thesubscriber.


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Where any Digital Signature Certificate, the publickey of which corresponds to the private key of thatsubscriber which is to be listed in the Digital

Signature Certificate has been accepted by asubscriber, then, the subscriber shall generate thekey pair by applying the security procedure.


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While adjudging the quantum of compensation underthis Chapter, the adjudicating officer shall have due

regard to the following factors, namely:

(a) the amount of gain of unfair advantage, whereverquantifiable, made as a result of the default;

(b) the amount of loss caused to any person as a resultof the default;

(c) the repetitive nature of the default


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For the removal of doubts, it is hereby declared that noperson providing any service as a network service providershall be liable under this Act, rules or regulations madethere under for any third party information or data madeavailable by him if he proves that the offence orcontravention was committed without his knowledge orthat he had exercised all due diligence to prevent thecommission of such offence or contravention.

Explanation.For the purposes of this section, (a) "network service provider" means an intermediary;(b) "third party information" means any information

dealt with by a network serviceprovider in his capacity asan intermediary.


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Rourkela police busted a racket involvingan online fraud worth Rs 12.5 lakh. The modusoperandi of the accused was to hack into the eBay India

website and make purchases in the names of creditcardholders.

MUMBAI: The alleged mastermind behind a Rs 400

million SMS fraud that duped at least 50,000 people hasbeen arrested along with an associate more than twomonths after the scam was unearthed.


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Fraudsters of cyberspace have reared its ugly head,the first of its kind this year, by launching a

phishing attack on the website of Ahmedabad-based UTI Bank, a leading private bank promotedby India' s largest financial institution, Unit Trust of

India (UTI).


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Transacting on the Internet has wide legal implications as italters the conventional methods of doing business. To buildenduring relationships with your online customers the legalissues of e-transactions need to be addressed from theonset.

The basics of Internet Security Basic information on Indian Cyber Law Impact of technology aided crime Indian IT Act on covering the legal aspects of all Online

Activities Types of Internet policies required for an Organization. Minimum hardware and software, security measures required in

an organization to protect data


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Documents

IT Laws Related to E-Commerce