Page 128 - DCAP306_DCAP511_E-COMMERCE_AND_E-BUSINESS

Unit 10: Legal Issues - II

In India, Information Technology Act, 2000 deals with the issues pertaining to the Internet. This act
attempts to change the outdated laws and give ways to deal with cybercrimes. Such laws will help
people to perform purchase transactions through credit cards over the Internet without the fear of
misuse. This Act offers the legal framework so that the information is not deprived of legal effect,
enforceability or validity solely on the ground that it is in the form of electronic records.

Information Technology Act is based on the United Nations Commission on
International Trade Law (UNCITRAL) Model Law on Electronic Commerce, 1996.

This Act empowers government departments to accept creating, filing, and retention of official
documents in digital format. The Act also proposes a legal framework for authentication and origin of
electronic records or communications done through digital signature.
Information Technology Act, 2000 from the perspective of e-commerce in India has the following
provisions:

1. E-mail will be a valid and legal form of communication in India, which can be produced and
approved in the court of law.
2. Companies will be able to carry out electronic commerce by using the legal infrastructure given by
the Act.

3. Digital signatures have legal validity and sanction in the Act.
4. Government can issue notification on the Web, which heralds e-governance.
5. Corporate companies have permission to be in the business of Certifying Authorities for issuing
Digital Signatures Certificates.
6. Companies can file any form, document or apply with any authority, office, body or agency
owned or controlled by the appropriate government in electronic form by means of electronic
form as prescribed by the appropriate government.
7. Companies have statutory remedy in case anyone breaks into computer systems or networks and
causes damages or copies data.

Did you know? Information Technology Act, 2000 came into force on 17 th October, 2000.

According to Information Technology Act, "computer" means any magnetic, electronic,
optical or any high-speed data processing system or device that does logical, memory
and arithmetic functions by manipulating magnetic, electronic or optical impulses. It
includes all the input, output, storage, processing, computer software, or communication
facilities, and this is connected or related to the computer in a computer system or
network.

Browse for the latest company case on the Information Technology Act. List out the
various rules that have been used to safeguard a company’s interest at a time of conflict
with another entity.

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