Legal and regulatory compliances are sine quo non
for the performance of any business in a legal manner. In the present
times, these legal compliances have become very technical and
cumbersome. This is more so when e-commerce business sis involved.
E-commerce business involves information and
communication technology (ICT) for its conduct and operation. ICT
introduces additional challenges like
conflict
of laws in cyberspace for various e-commerce stakeholders
and law enforcement agencies.
Cyber
security challenges are also faced while doing e-commerce
business.
E-commerce business is flourishing at a great speed
in India. Most of the e-commerce entrepreneurs are concentrating upon
commercial aspects with an eye upon profit motive. In this race they
are ignoring techno legal requirements that may affect their rights
in the long run.
For instance,
e-commerce
laws in India are spread across multiple legal frameworks
and they are seldom followed by Indian e-commerce stakeholders. Even
foreign e-commerce players and portals are required to be
registered
in India and comply with Indian laws.
Similarly, e-commerce players are required to comply
with cyber law and
cyber
security regulatory compliances in India. A dedicated law
for
cyber
security breaches disclosures is also in pipeline that
would impose stringent obligations upon e-commerce players operating
in India. Companies that would fail to comply with the
cyber
law due diligence requirements in India may be punished
according to Indian laws.
The
cyber
security challenges for Indian companies are very
difficult to manage in the absence of proper planning and management.
Directors of Indian companies and e-commerce websites
can
be held liable for improper cyber security dealings in
India.
Thus, cyber security regulatory compliances issues
of e-commerce businesses in India cannot be ignored by various
stakeholders except at the risk of litigations and heavy monetary
compensations.