orshipùpay taxes, keep books and follow discrimination laws in their hiring practices, among other requirements. There are, however, certain unique aspects of e-business that result in additional legal responsibilities being placed on companies that operate in this market.
For example, e-commerce companies may well transact business on a global level. Once, this was reserved only for the largest organizations that could build an infrastructure that supported international trade. The Internet makes it possible to reach customers around the world. This means that companies must be aware of local laws and regulations regarding what canùand cannotùbe sold to consumers in particular countries. In addition, privacy issues are not only ethical but also legal issues, and companies must confront these, as well. Marketing to minors is covered by both domestic and international laws, as is the marketing of pornography (Michael, 2004).
Legal issues also arise from the way that companies process their payments, including the currency in which they receive payments and the way in which currency translation is handled. Companies can be held liable if they do not adequately address terms of service on their Web sites, or if their Web sites are deemed misleading to consumers. In this way, the legal issues associated with e-commerce encompass many of the same financial, marketing, and consumer issues that have confronted traditional businesses in recent years (Michael, 2004).
Privacy is one of the main concerns of companies and consumers who conduct business on the Internet. Most online retailers provide some type of privacy statement. Many statements are long, and appear in small print, and many appear to be similar in their wording and particulars. However, many companies, including eBay, also provide short versions of their statements which they encourage consumers to read. Privacy statements are as much a marketing tool as the...