E-commerce laws in India are still scatters and uncertain. On top of it we have very few e-commerce law firms in India that are providing e-commerce related legal services. Even public awareness about legal issues of e-commerce is missing in India.
Some are violating Indian laws out of sheer ignorance while other are actively violating Indian laws while engaging in e-commerce activities. Recently it was declared that Indian government would ascertain beneficiary in Walmart probe to ascertain possible violation of Indian laws.
However, what is most surprising is the fact that almost all e-commerce players believe that starting of an e-commerce business in India does not require any legal compliance. The truth is that there are many legal requirements to start an e-commerce website in India. If e-commerce portals fail to comply with these legal requirements they can be prosecuted as well.
Besides there are many legal formalities required for starting e-commerce business in India. Since technology is an essential part of any e-commerce business, cyber law due diligence in India is also required to be followed by e-commerce portals. Various cyber due diligence for Indian companies have been provided by the cyber law of India that are stringent in nature.
Business structuring of e-commerce in India must be undertaken in a techno legal manner and legal issues of online shopping in India must be integral part of the same. In the ultimate analysis Indian e-commerce, FDI regulations and cyber due diligence are interrelated and the same must be taken very seriously.
Source: Techno Legal Thoughts.