The SAXLAW Report
Spring/Summer 1999
If a company's Internet presence can be used as a bond to build trust between clients or customers, they'll have a thriving electronic business. But how to go about achieving that is a little more complex.
The use of an ATM is an electronic transaction. But most people don't have a problem with using that technology because the banks have crafted an image of themselves as responsible, trustworthy institutions. Not so, with a lot of other businesses, at least, not yet. There's still a lot of work to be done in educating consumers to the fact that handing over a credit card number on-line doesn't have to be a risky venture. Most people fear, justifiably, that personal buying preferences or even credit card data will end up in some third party's hands, and that they'll be solicited - even harassed - to make purchases in the future. And no one wants that.
There are a number of technologies available to help secure the transmission of data from one party to another and to keep prying eyes, and hands, out. Making consumers aware of these technologies is the challenge. Success in doing so is what ultimately builds the kind of credibility and trust that promotes a healthy electronic business.
Many of the Internet search engine companies, like Yahoo and Excite (who also stand to profit from increased electronic commerce) have taken up the challenge. By creating "Safe Shopping Guarantees," they have taken the first step toward boosting their patrons' confidence in buying on-line. These guarantees place the responsibility - and even partial financial liability - for business transacted with the merchandisers on their sites, directly on their own shoulders, and , by and large, the program has worked.
An important component of ensuring trust in a electronic commerce action, is to make sure that everything involved is legally sound. Because electronic commerce transcends borders, there are many legal problems that can come up during the construction of an e-Commerce system. Issues of proper web construction, questions of jurisdiction, and tax liability have to be carefully studied before accurate financial projections can be made. Also, the law in the area is still so new. Things are constantly changing. A good navigator is an absolute necessity.
So, too, is a willing pilot.
--Full version previously seen in G.7 and Canadian Electronics.
THE SAXLAW REPORT has been prepared by Michael M. Sax with assistance from David Sax and Annalysa Cabral for information purposes only and does not constitute a legal opinion. This representation is not intended to create, and the receipt of it does not constitute a solicitor-client relationship. Readers should not act upon this information without seeking professional counsel. This information is forwarded on the basis and understanding that Michael M. Sax, Barrister & Solicitor is under no responsibility or liability whatsoever in respect thereof.