Technology and E-commerce Law

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Technology and E-commerce Law

E-commerce covers all of the internet's and the web's legal and administrative facets. Cyber Law encompasses all that is involved with, connected to, or arising from any legal issues or aspects pertaining to any action of netizens and others in cyberspace.

The Cyberlaw legal system

The legal framework of cyber law includes the legal components of all interactions occurring online. Cyberlaw, for example, encompasses e-contracts that are completed by opening a website, various economic transactions, punitive penalties for cybercrimes, etc.

It is the standard term used to define anything having to do with the Internet and the varied online culture, including social networking, e-commerce, and e-governance, among others. Due to its pervasiveness, the role of cyber law policy is crucial.

Relevant laws and regulations

Policy on Foreign Direct Investment

The Foreign Exchange Management Act of 1999, the Payment and Settlement Act of 2007, and other RBI rules on payment systems, as well as the Companies Act of 2013

Packaging and Labelling

  • The Legal Metrology Act of 2009 and the Legal Metrology (Packaged Commodity) Rules of 2011 govern sales, shipping, refunds, and returns.
  • Additionally, the appropriate ministry's or state's regulations regulations the 2000 Information Technology Act
  • motion pictures, music, and choreography;
  • Additionally, the General Data Protection Regulations (GDPR) and the Information Technology (Intermediaries Guidelines) Rules of 2011.

Objectives of the Information Technology Act of 2000

  • The Information Technology Act of 2000 was passed in response to the general recognition of the necessity for the exposition of the cyber regulatory framework.
  • In order to bring about uniformity among the nations of the world with regard to cyber regulation, UNCITRAL (United Nations Commission International Trade Law) created the model law on e-commerce in the year 1996.
  • The Information Technology Act goes into detail about data privacy. As the Internet has grown, more personal information about individuals is available online and is subject to misuse.
  • The examination of huge amounts of data is something that attests to this issue. According to big data analysis, people's searches can be utilised to influence their decisions by examining their search behaviour patterns.
  • The Act has significantly improved the resources available for cyber investigations by allowing an inspector to investigate a cybercrime. Since the modification, an inspector may now also look into a cyber offence. Previously, only a commissioner was permitted to look into cyber crimes.

E-commerce Laws FDI Policy

The Indian FDI Policy specifies two models of e-commerce laws:

  • The term "marketplace-based model of e-commerce" refers to the registration of an online store to serve as a middleman between buyers and sellers. The marketplace bills merchants a commission for the service it renders. The two largest online markets now operating in the nation are Naaptol and Shopclues.
  • Modelling an inventory: a company that does online business utilising an inventory-based business model and has a supply of goods and services it sells directly to clients. The seller is an online merchant who purchases it directly from brands and suppliers. Myntra is a prime illustration.
  • It is crucial to note that, in accordance with the Government's rules on FDI in the e-commerce sector, FDI is not permitted under the inventory-based model of e-commerce legislation but is fully permitted under the automated route under the marketplace model.
  • Additionally, according to the "Consolidated FDI Policy Circular 2015" (FDI Policy), business-to-business (B2B) e-commerce laws may allow FDI up to 100% through the automatic method. E-commerce that is business-to-consumer (B2C) is not allowed to accept FDI.
  • The Information Technology Act recognised electronic evidence in a court of law, amending the Indian Penal Code, Indian Evidence Act, Banker's Book Evidence Act, and Reserve Bank of India Act to make access to justice simpler and the Indian legal system more dynamic throughout time.
  • E-Government has greatly benefited society as a whole since resources are more easily accessible online and because it successfully eliminates the need for middlemen, which in turn lessens the necessity for corruption.
  • The government recognises the DigiLocker, where citizens may access critical necessary papers such as voter identification, PAN cards, driving licences, etc.. Another story that caused a stir was the government's request that internet service providers save data for India.
  • The introduction of e-banking has infused a pace never before seen in the banking industry. One could argue that the introduction of online banking has virtually placed the bank in the account holder's hand.

E-commerce categories

E-business and e-commerce can be broadly categorised into the following six primary types:

Business to Business (B2B)

It describes all electronic sales and purchases made between two businesses, typically between producers and wholesalers. India-mart may be the well-known website serving as a bridge between these wholesalers and producers.

Consumer to business (B2C)

Indian consumers have access to a wide range of popular e-commerce where they may buy goods and services. In this case, the e-commerce website acts as a platform for directly selling the products' final consumers. For instance, Myntra, Amazon, and Flipkart.

C2C: Consumer to Consumer

This concept typically relies on the internet's financial system and numerous social media to function. The clearest illustration to explain e-commerce at the consumer-to-consumer level is the well-known phenomenon "OLX pe Bech de!" An international example of this type of e-commerce is eBay.

Consumer to Business (C2B) occurs when a customer exchanges goods or services for payments. An example would be a customer review or a business promotion by an influencer to his audience.

(B2A) Business to Administration

This e-commerce category relates to the goods and services that businesses provide to the government. Consider the tiny business that supports the local administrative body's IT needs.

(C2A) Consumer to Administration

All transactions in which a payment is made electronically to the government, such as taxes and doctor appointments, fall under this topic.

Pros and Cons of E-commerce law



Consumer protection: Offers shoppers online legal protections that ensure honest dealings and high-quality goods.

The complexity of compliance requirements: E-commerce companies must traverse complicated and constantly changing regulations, which can be difficult and expensive.

Data privacy: Protects customer information and controls how companies use and retain it.

Compliance burden: Due to their resources, small e-commerce companies may find it difficult to comply with regulations.

Protection of Intellectual Property:Provides legal resources for defending patents, copyrights, and trademarks in online commerce.

Cybersecurity Threats: E-commerce businesses must constantly guard against cybersecurity risks, which can result in legal repercussions.

Dispute Resolution: Offers methods for effectively settling disagreements between customers and companies.

Taxation issues: E-commerce tax laws can be complicated and have different regulations depending on the country.

Contractual Clarity: Assists in creating contracts, return policies, and terms of service that are all clear for online transactions.

Jurisdictional issues: Selecting the proper legal jurisdiction for international e-commerce can be difficult.

Global Reach: Enables e-commerce companies to access a global market, with laws establishing regulations for cross-border trade.

Continuous legal changes: To keep up with technology, e-commerce laws are always changing, necessitating corporate updates.

Competitive regulations: guard against anticompetitive behaviour and guarantee an equitable playing field for online retailers.

Barriers to entry into the market: Compliance fees and legal constraints might be obstacles for startups.

Frequently Asked Questions

Ensuring that all applicable laws and regulations, particularly those relating to intellectual property, data protection, and consumer protection, are followed by your technology or internet firm. It ensures that your e-commerce platform complies with the rules governing online payments, advertising, and sales.

E-commerce is the practice of transacting business electronically as opposed to physically. This covers all internet-based retail activities like ordering products, obtaining services, getting them delivered, facilitating payments, and managing the supply chain and services.

The Act's goal is to give legal recognition to any and all transactions conducted using electronic information exchange, alternative electronic means of communication, or e-commerce in place of the hitherto paper-based method of communication.

These services are delivered online via a network of computers. Data, money, and fund transfers are also regarded as e-commerce. There are four ways to conduct these business dealings: Customer-to-business (C2B), Customer-to-customer (C2C), business-to-business (B2B), and business-to-customer (B2C).

The Information Technology Act 2000 is the first cyber law in India. It was the first cyber law that provided the legal infrastructure for e-commerce in India. The Information Technology Act 2000 was enacted on 9th June 2000.

E-commerce, often known as electronic commerce, is the exchange of goods and services as well as the sending of money and data through an electronic network, most commonly the Internet. These business dealings can be either B2B (business-to-business), B2C (business-to-consumer), C2C (consumer-to-consumer), or C2B.

Customers can browse numerous websites to compare products quickly rather than visiting various stores. Informed purchasing is made simpler as a result. Buy anything, anywhere: Shoppers can do their shopping at home, at work, or while travelling.

Information technology also affects how organisations interact with their external environments, suppliers, and consumers. E-commerce refers to the marketing, distributing, and exchanging goods and services using electronic networks such as the internet, television, or other computer networks.

TThe primary objective of the IT Act was to give legal recognition to transactions made possible by electronic data exchange and other forms of electronic communication, sometimes known as electronic commerce (e-commerce).

The Indian Information Technology (IT) Act 2000 provides much-needed legitimacy to the services offered by Indian e-commerce platforms.

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