You are on page 1of 15

Monday, April 22, 2013

E-Commerce Websites In India Must Be Reulated By Indian


!o"ernment
An ineffective cyber law of India and lack of cyber law skills among the law enforcement
agencies of India is resulting in increased cyber crimes and offences through the
medium of e-commerce websites in India. Further, cyber law awareness in India is also
missing that is resulting in increased e-commerce frauds in India.
In these circumstances, e-commerce websites frauds, offences and crimes in
India have increased a lot. For instance, the e-commerce sites selling adult
merchandise in India are openly violating the laws of India. Similarly, e-commerce
websites in India are engaging in punishable soft porn publication and Indian
government is sleeping over the matter.
There are well recognised legal reuirements to start an e-commerce website in
India and the legal formalities reuired for starting e-commerce business in India. As on
date, the e-commerce websites are not following such techno legal reuirements. They
are also not following the cyber law due diligence reuirements of India and are liable
for Internet intermediary liability in India.
!-commerce websites dealing with online pharmacies, online gamming and gambling,
online selling of adult merchandise, etc are openly and continuously violating the laws of
India, including the cyber law of India. "owever, India government has yet to take action
against these offending e-commerce websites of India.
Fortunately, the Supreme #ourt of India is taking some action in this regard. $ecently,
the Supreme #ourt of India has sought response from central government over blocking
of porn website sin India. Similarly, the Supreme #ourt of India has entertained a public
interest litigation seekingregulations and guidelines for effective investigation of cyber
crimes in India.
The cyber law of India is too weak to tackle cyber criminals effectively. In fact, cyber law
of India should be repealed and an effective cyber law must be formulated as soon as
possible. The cyber criminals are becoming innovative day by day and our laws are
grossly inadeuate to deal with the same.
For instance, numerous websites, both Indian and foreign, are violating the cyber law of
India by operating illegal e-commerce websites in India. These websites are engaging in
illegal T$A%! in wildlife, promising home delivery of live animals, pri&ed animal parts
and rare medicinal plants from across nations through simple internet banking formats.
These are transnational crimes where the authorship attribution for cyber crimes is very
difficult to establish. $ealising this reality, the India's wildlife crime control bureau
()##*+ is utilising the services of cyber crime e,perts to trace such cyber criminals. A
preliminary inuiry by )##* bureau's cyber crime specialists has indicated that nearly
a thousand websites are advertising sale and delivery of live animals and animal
products protected under the )ildlife -rotection Act, ./01 of India and the global
convention on international T$A%! in endangered species (#IT!S+.
Surprisingly, most of these websites are popular shopping websites, online classifieds
and free ad posting websites, etc. They are clearly violating the cyber law and other
laws of India and Indian government is not taking any action against these websites. It
is high time to take strict penal action against such illegal e-commerce websites in India.
-osted by -T2* at ..3.4 -5 2inks to this post
!mail This *logThis6 Share to Twitter Share to Facebook Share to -interest
Wednesday, Marc# 13, 2013
$elemedicine %a&s In India
There is no second opinion about the fact that when technology is used for medical
purposes, it gives rise to medico legal and techno legal issues. #ountries around the
world have realised this fact and they have made suitable laws to tackle these medico
legal and techno legal issues.
For instance, in 7nited States, the "ealth Insurance -ortability and Accountability Act of
.//8 ("I-AA+, "!A2T" Information Technology for !conomic and #linical "ealth Act
("IT!#" Act+, etc are some of the laws that take care of medico legal and techno legal
issues of e-health and telemedicine.
9n the other hand, we have no dedicated telemedicine laws in India. Issues like online
sales of prescribed medicines in India, digital communication channels for drugs and
healthcare products in India, online sales and purchase of prescribed drugs and
medicines in India, etc are still vague and confusing.
!-health laws and regulations in India are still missing and legal enablement of e-health
in India is needed on an urgent basis. As on date e-health in India is facing legal
roadblocks. Till now we do not have any dedicated e-health laws and regulations in
India.
At -erry:2aw 9rganisation and -erry:2aw;s Techno 2egal *ase (-T2*+ we firmly
believe that dedicated telemedicine laws of India must be urgently formulated.
This is more so when there are many people and institutions in India that are using
Internet in an illegal manner for selling medical products and services. Illegal and
unregulated online sales of prescribed medicines in India are rampant and Indian
government has still not regulated or controlled these online sales of medicines in India,
especially in the <#$ region.
Similarly, there are some medical professional and para medical professional who are
using Internet for providing their services without following the applicable laws of India.
There are also many online pharmacies in India that are violating Indian laws, especially
the e-commerce laws and regulations of India.
It is high time for Indian government to regulated Internet related medical issues in India
before they become a big nuisance and "!A2T" ha&ard for Indian citi&ens and
residents.
'unday, (anuary 20, 2013
Is )nline !amblin And Bettin %eal In India*
As a leading techno legal I#T law firm of India, -erry:2aw is freuently approached for
numerous techno legal issues. 9ne of them pertains to e-commerce laws and
regulations in India.
$ecently many ueries have been raised about the applicable online gambling laws and
regulations in India. )e have also observed that e-commerce legal compliances in
India are not followed in true letter and spirit. This may be due to lack of knowledge
about applicable e-commerce laws but ignorance of laws is no e,cuse.
If e-commerce players do not follow the laws of the land, they may found themselves in
uncomfortable situations. For instance, cyber law due diligence, Internet intermediary
liability andcyber due diligence for Indian companies are some of the issues that have
been ignored by almost all e-commerce players of India.
#oming back to the burning issue whether online gambling and online betting is legal in
India or not= )e have already covered the legality of online gambling and betting in
India and other e-commerce compliance reuirements in India but we would briefly
cover the same once again.
The golden rule for deciding whether online gambling in India is legal or nor has to be
>udged by many factors that depends upon the facts and circumstances of each case
and upon state to state. There are many states in India where gambling is legal and few
where even online gambling and betting is legal. "owever, there are some states like
5umbai where online gambling is e,pressly prohibited and made a punishable offense.
So it depends upon the state where you wish to carry the online gambling and betting
business.
Then there is the rule of skills versus chance as laid down by the courts of India. As a
general rule, where the game involves application of skill on the part of the player and
the element of chance is minimal, the activity would be considered to be a game and
not an act of gambling. "owever, the applicability of this test of skill versus chance may
not be applicable to online or Internet games, betting and gambling as various >udicial
decisions pertaining to different sets of facts and circumstances and can be
distinguished easily in subseuent litigations.
Finally, economic and ta,ation legislations like ta, laws of India, anti 59<!?
laundering laws, etc are also involved while operating online casinos, online gambling
and betting and online gamming platforms. The provisions of these economic
legislations are very stringent in nature and can cause great detriment to the owner or
operator of the online casino, gambling and betting website.
To be on a safer side, it is better to comply with various techno legal laws of India while
opening an online gambling, gaming and betting platform rather than facing the punitive
provisions of Indian laws.
-osted by -T2* at 03:1 -5 2inks to this post
!mail This *logThis6 Share to Twitter Share to Facebook Share to -interest
E-Commerce Compliances In India
!-commerce is the latest entrepreneur bandwagon in India. Thousands of e-commerce
portals have emerged during the year 14.1. "owever, in the &est of earning profit, legal
and compliance reuirements pertaining to e-commerce have been totally ignored by
almost all the e-commerce portals.
The most vulnerable categories that have opened their online shops pertain to online
pharmacies,online gambling and gaming, electronics, etc. These e-commerce portals
are not at all complying with the respective laws of these segments.
!ven the Indian government is la, in implementing the regulatory and compliance
reuirements against these illegal online pharmacies, gambling portals and other similar
e-commerce platforms.
This has posed serious threat to not only lives of millions but also to the socio-economic
and law and order situation n India. $egulatory bodies covering these fields must be
more vigil while keeping a tab upon illegal and unethical activities of those e-commerce
portals that are flouting the laws of India.
There are many techno legal compliance reuirements that e-commerce portals of India
must comply with. At -erry:2aw and -erry:2aw;s Techno 2egal *ase (-T2*+ we
believe that cyber law due diligence, Internet intermediary liability and cyber due
diligence for Indian companies must be kept in mind by various e-commerce websites
and players.
-resently, cyber law compliances, due diligence and techno legal compliances are not
followed by various e-commerce websites in India. There is an urgent need to scrutinise
these e-commerce portals and prosecute the guilty for violations of Indian laws.
It would amount to adoption of double standards by Indian government if it plays harsh
upon foreign companies but leaves Indian companies and e-commerce portals
untouched. 2et us hope Indian government would do the needful in this regard as soon
as possible.
-osted by -T2* at /3.@ A5 2inks to this post
!mail This *logThis6 Share to Twitter Share to Facebook Share to -interest
)nline !amblin %a&s And Reulations In India
9nline gambling in India has aroused great interest among many e-commerce
entrepreneurs of India. This is because online gambling is a very remunerative and
profit oriented business. "owever, online gambling is also a complicated business filed
as many laws and technical issues have to be resolved at the same time.
)e have a central law on gambling called the -ublic Aambling Act of .B80. Similarly,
we have many state laws on gambling that are mostly based upon the central law.
Further, almost all the state laws are regulating real world or offline gambling in India.
The e,ception in this regard can be found in the laws applicable in places like Aoa and
Sikkim.
$ecently Aoa has made its casino laws very stringent keep in mind the 59<!?
laundering, black money and ta, evasion issues in mind. Similarly, Sikkim is also in the
process of harmonising its laws with the central laws.
As far as >udiciary is concerned, the Supreme #ourt of India has made a distinction
between skills based and chance based gaming activities. 9f course, each case
depends upon its own facts and circumstances and the respective state law and we
cannot apply one decision uniformly in all cases of gambling and online gambling.
The e-commerce laws and regulations in India are still at the infancy stage. As a matter
of fact, a ma>ority of e-commerce portals and players in India are not following the laws
of the land in true letter and spirit. Surprisingly, there is a general misconception among
the e-commerce players of India that for running an e-commerce website in India they
need not to follow much law. 9n the contrary, there are well recognised legal
reuirements to start an e-commerce website in India and the legal formalities reuired
for starting e-commerce business in India.
The chief among these e-commerce players are online pharmacies, online gambling
and gaming portals, electronics e-commerce websites, etc. They fail to understand that
use of technology has brought additional legal issues that are primarily techno legal in
nature. Their continued ignorance may bring civil, criminal and FI<A<#IA2 penalties.
The recent spate of F%I crackdowns by India government proves this point.
At -erry:2aw and -erry:2aw;s Techno 2egal *ase (-T2*+ we believe that cyber law
due diligence,Internet intermediary liability and cyber due diligence for Indian
companies must be kept in mind by various e-commerce websites and players. The skill
and chance and state sub>ect legal arguments are not sufficient to comply with
complicated techno legal reuirements of India as on date. So before launching an e-
commerce portal, the concerned person or company must make it sure that techno legal
reuirements are duly complied with.
-osted by -T2* at 83.1 A5 2inks to this post
!mail This *logThis6 Share to Twitter Share to Facebook Share to -interest
Monday, +ecember 31, 2012
)nline ,#armacies In India Are -iolatin Indian %a&s
9nline sales of prescribed medicines in India are by and large unregulated and open for
abuses. In fact, illegal and unregulated online sales of prescribed medicines in India are
flourishing like a plague. "owever, Indian government is sleeping over the issue not
realising that this may have adverse impact upon public "!A2T" of serious
proportions.
In real world, those manufacturing, distributing and selling pharmaceutical products and
services are sub>ect to stringent laws and regulations. "owever when it comes to online
dealings, people assume that they are not reuired to follow those laws at all.
!ven the Indian government is not very comfortable with technology related issue of
various segments. This is the reason why there is minimum interference and control
over the flourishing online pharmacies of India as Indian government has not the
necessary techno legal e,pertise to effectively tackle e-commerce issues of
pharmaceuticals as on date.
)hile dealing with pharmaceuticals in an online environment not only the regular laws
pertaining to drugs, medicines and pharmaceuticals are applicable but the cyber law of
India is also attracted. "owever, governmental departments are not much aware about
cyber law of India and its implications. <aturally, online pharmacies are flourishing in
India without any check and balances.
It is high time for Indian government to take stringent action against the online
pharmacies that are operating in India in an unregulated and illegal manner.
-osted by -T2* at B3./ -5 2inks to this post
!mail This *logThis6 Share to Twitter Share to Facebook Share to -interest
Wednesday, +ecember 2., 2012
E-Boo/s ,ublication %a&s In India
These days a common uestion that is freuently asked is will e-books kill the
bookstores in India= This genuine and interesting uestion is asked because the e-
books publications in India and e-commerce industry are fast becoming popular.
India is encouraging use of information and communication technology (I#T+ and this
has opened new avenues for the education sector of India. Foreign players have also
realised the potential of e-commerce and e-books in India which is emerging as the
largest 5A$C!T for e-books in the world.
"owever, in the &est of earning profits, Indian laws in general and e-commerce laws and
regulations of India in particular must not be forgotten. As a matter of fact, Indian
government would ascertain beneficiary in )almart probe. This shows that any intention
to flout Indian laws is a real bad idea especially if e-commerce 5A$C!T f India is to
be captured.
The legal formalities reuired for starting e-commerce business in India are now well
known. "owever, legal issues in e-commerce in India are still not clear to many national
and international e-commerce business houses and entrepreneurs. For instance,
the legal reuirements to start an e-commerce website In India are covered by many
legislations including information technology act, 1444 (IT Act 1444+. "owever, both
national and international e-commerce players are not complying with legal issues of
online shopping in India.
F%I in wholesale trading and e-commerce sectors of India under consolidated F%I
policy of India 14.1 was given a ma>or boost by Indian government. Further, the
-arliament of India recentlyapproved F%I in e-commerce sector of India. Thus, it is high
time for structuring of investments in e-commerce businesses in India.
-erry:2aw and -erry:2aw;s Techno 2egal *ase (-T2*+ suggest that e-commerce
business houses must keep in mind the specified reuirements of cyber due diligence
for Indian companies. 5any companies have already found themselves on the wrong
side of Indian laws for violating the same. There is no sense in ignoring Indian laws by
e-books publishers and distributors when they wish to trap the Indian e-commerce
market.
Source3 2egal !nablement 9f I#T Systems In India.
-osted by -T2* at 03:1 A5 2inks to this post
!mail This *logThis6 Share to Twitter Share to Facebook Share to -interest
'aturday, +ecember 22, 2012
Indian Aovernment )ould Ascertain *eneficiary In )almart -robe
In the past a probe against )almart was ordered by Indian government to ascertain
any 5A$C!T access lobbying and foreign direct investment (F%I+ violations. "owever,
the mandate of this probe was still not clear.
<ow as per media reports the probe against )almart may include ascertainment of the
alleged beneficiaries of the payments made while engaging in industrial lobbying. As per
the company the lobbying was made in 7S for the purposes and territorial >urisdictions
of 7S alone. The company has alleged that it did not utilise any portion of the amount
for its Indian business.
The crucial uestion that has to be ascertained by the investigation officer is whether
any portion of the lobbying e,penses have been utilised in India and used for the
purposes of influencing the decision on F%I by Indian government.
If it is found that Indian entities or individuals were involved in the alleged lobbying
e,penses then the other terms of reference that are being finalised would be looked at.
The government would also look at possible violations of Indian laws including the
-revention of #orruption Act. The !nforcement %irectorate is also investigating
separately if )almart has violated the provisions of the Foreign !,change 5anagement
Act by I<D!STI<A in an Indian entity even before foreign direct investment was
allowed in the sector.
As on date many e-commerce companies, whether Indian or international, are not
complying withe-commerce laws and regulations of India as well. 2egal e,perts have
been suggesting that e-commerce regulations must also be enforced rigorously against
both national and international e-commerce players.
-osted by -T2* at E3:E A5 2inks to this post
!mail This *logThis6 Share to Twitter Share to Facebook Share to -interest
Wednesday, +ecember 10, 2012
E-Boo/s ,ublication In India And E-Commerce Industry
!-commerce in India is flourishing. "owever, many e-commerce players have entered
into the arena without much planning, preparation and keeping in mind the legal
compliance aspect in mind. <aturally, many of the e-commerce ventures started in the
year 14.. have closed down.
Further, consolidation of e-commerce industry of India is also in progress. 5any small e-
commerce pro>ects have been acuired by larger e-commerce players to consolidate e-
commerce segment for their respective industry.
F%I in wholesale trading and e-commerce sectors of India under consolidated F%I
policy of India 14.1 was given a ma>or boost by Indian government. Further, the
-arliament of India recentlyapproved F%I in e-commerce sector of India. Thus, it is high
time for structuring of investments in e-commerce businesses in India.
The most important aspects that both national and international e-commerce players
must keep in mind is that business structuring of e-commerce in India must be done in a
techno legal manner.
The legal formalities reuired for starting e-commerce business in India are now well
established. "owever, legal issues in e-commerce in India are still not clear to many
national and international e-commerce business houses and entrepreneurs. For
instance, the legal reuirements to start an e-commerce website In India are covered by
many legislations including information technology act, 1444 (IT Act 1444+. "owever,
both national and international e-commerce players are not complying with legal issues
of online shopping in India.
9ne segment that has tremendous potential in e-commerce industry pertains to
educational and books publication sector. Traditional and print form books have
dominated 5A$C!T share for long. "owever, there is a gradual shift towards e-books
publication, distribution and e-commerce.
Asian countries, especially India, can offer great commercial benefits to book publishers
if they e,plore e-books publication and distribution in India. "owever, while doing so
these e-book publishers must keep in mind the techno legal reuirements that most e-
commerce players in India are presently ignoring.
-erry:2aw and -erry:2aw;s Techno 2egal *ase (-T2*+ suggest that e-commerce
business houses must keep in mind the specified reuirements of cyber due diligence
for Indian companies. 5any companies have already found themselves on the wrong
side of Indian laws for violating the same. There is no sense in ignoring Indian laws by
Monday, )ctober 1, 2012
$ec#no %eal Initiati"es )2 ,erry3%a& And ,$%B
Techno legal issues pose special challenges before all nations. This is so because
these issues are comple, combination of both technical and legal issues.
At -erry:2aw and -erry:2aw Techno 2egal *ase (-T2*+ we have been spearheading
many world renowned techno legal initiatives.
For instance, -erry:2aw and -T2* are managing the e,clusive techno legal centre of
e,cellence for cyber forensics in India, centre of e,cellence on cyber security in
India, virtual legal education campus in India and techno legal e-learning centre of
-T2*, lifelong techno legal education in India, legal enablement of I#T systems in India,
etc.
Similarly, on the education, trainings and skills development front as well -erry:2aw
and -T2* have been managing many initiatives. For instance, the e,clusive techno
legal e-learning in India is managed by -T2* whereas highly specialised and domain
specific trainings and education is managed by -erry:2aw techno 2egal I#T Training
#entre (-T2IT#+.
-erry:2aw and -T2* are also managing the e,clusive techno legal e-courts
consultancy and training centre of India, online dispute resolution services in India, e-
discovery services in India, e-commerce services in India, cyber forensics services in
India, cyber security services in India, 2-9 and C-9 services in India, etc.
)e are also discussing important issues pertaining to international I#T policies and
strategies. Similarly, techno legal issues are specifically discussed at -T2* blog. )e
hope these initiatives would prove useful to all stakeholders.
Source3 I#T-S *log
-osted by -T2* at 03E: A5 2inks to this post
!mail This *logThis6 Share to Twitter Share to Facebook Share to -interest
'unday, (uly 1, 2012
E4pirin Medicines ,atents Could Boost ,#armaceutical E-Commerce
In India
Indian pharmaceutical industry is moving towards a maturity level. This is more so
regarding the generic pharmaceutical industry of India. Aood news for generic
pharmaceutical industry of India is that the patent rights of many world renowned drugs
and medicines are set to e,pire till 14.0. This would give a free hand to generic drugs
companies to produce and sale generic medicine in India and world wide.
<othing can improve the reach of the generic medicines manufacturers of India than
utilising the e-commerce platforms. "owever, these e-commerce platforms and
websites must comply withIndian laws to fully encash the benefits of e-commerce.
The legal formalities reuired for starting e-commerce business in India must be duly
complied with to escape various civil and criminal liabilities. This is more so regarding
pharmaceutical industry where the risks and stakes are really high.
2egal issues of e-commerce in India vary as per different business models. For
instance, electronic trading of medical drugs in India reuires more stringent e-
commerce and legal compliances as compared to other e-commerce activities. %igital
communication channels for drugs and healthcare products in India are scrutinised
more aggressively than other e-commerce activities. In fact,regulatory and legislative
measures to check online pharmacies trading in banned drugs in Indiaare already in
pipeline.
As per the latest reports, the patent e,piry of several ma>or well known drugs, coupled
with other factors, will fuel growth of global generic pharmaceuticals market by 14.0. If
this scenario is supported by suitable "!A2T" policies and euitable distribution of
medicines, India can be a hub for global generic medicines production.
In fact, leading global generic pharmaceutical manufacturers are already entering into
contractual agreements with well known pharmaceutical companies for marketing rights
and e,clusivity in producing generic versions of their medicines. !-commerce can
provide a viable platform to sell these generic medicines across the world.
-osted by -T2* at 83.8 A5 2inks to this post
!mail This *logThis6 Share to Twitter Share to Facebook Share to -interest
$uesday, April 10, 2012
%eal Re5uirements $o 'tart An E-Commerce Website In India
)e have been receiving lots of ueries regarding successful and legal opening of e-
commerce business in India. )e have already e,plained the legal formalities reuired
for starting e-commerce business in India. In this article we would discuss the legal
reuirements for starting an e-commerce websites in India.
To start with, we would like to say that we have no dedicated e-commerce laws and
regulations in India and they are still evolving. The Information Technology Act 1444 (IT
Act 1444+ governs the online issues of e-commerce in India.
IT Act 1444 is the sole cyber law of India. The cyber law of India mandates that the e-
commerce entrepreneurs and owners must ensure cyber law due diligence in India.
The cyber law due diligence for companies in India has already become very stringent
and many foreign and Indian companies and websites have been prosecuted in India
for non !F!$#IS! of cyber due diligence.
!-commerce entrepreneurs and owners in India must understand that legal issues of e-
commerce in India are different for different categories of e-commerce. For
instance, electronic trading of medical drugs in India reuires more stringent e-
commerce and legal compliances as compared to other e-commerce activities. %igital
communication channels for drugs and healthcare products in India are scrutinised
more aggressively than other e-commerce activities. In fact, regulatory and legislative
measures to check online pharmacies trading in banned drugs in India are already in
pipeline.
The legal reuirements for undertaking e-commerce in India also involve compliance
with other laws like contract law, Indian penal code, etc. Further, online shopping in
India also involves compliance with the banking and FI<A<#IA2 norms applicable in
India. For instance, take the e,ample of -ay-al in this regard. If -ay-al has to allow
online payments receipt and disbursements for its e,isting or proposed e-commerce
activities, it has to take a license from $eserve *ank of India ($*I+ in this regard.
Further, cyber due diligence for -aypal and other online payment transferors in India is
also reuired to be observed.
-erry:2aw and -erry:2aw Techno 2egal *ase (-T2*+ recommend that all e-commerce
entrepreneurs and owners must do a proper techno legal due diligence before opening
an e-commerce website. The Internet intermediary liability in India may be freuently
invoked against e-commerce websites in India. The Information Technology
(Intermediary Auidelines+ $ules 14..prescribes stringent liabilities for e-commerce
websites in India. Further, e-commerce websites in India must ensure privacy
protection, data protection, data security, cyber security, confidentiality maintenance, etc
as well.
-osted by -T2* at E3E: A5 2inks to this post
!mail This *logThis6 Share to Twitter Share to Facebook Share to -interest
'aturday, Marc# 31, 2012
Reulatory And %eislati"e Measures $o C#ec/ )nline ,#armacies
$radin In Banned +rus In India
9nline pharmacies are flourishing world over including India. The Indian 5A$C!T
share of online pharmacies has been increasing thanks to the growing use of Internet in
India. "owever, this has also created legal and medico legal problems as well.
)e have no dedicated e-commerce laws and regulations in India. Further, we also do
not have any dedicated e-health laws and regulations in India. In fact, e-health in India
is facing legal roadblocksand in the absence of regulatory and legislative measures,
online pharmacies are growing unregulated. In the present circumstances, the legal
enablement of e-health in India is urgently reuired.
"owever, even more grave are the concerns originating out of the use of e-trading for
medical and non medical drugs in India. !-trading of medical drugs in India must be
undertaken only after complying with the laws of India. There are many cyber laws due
diligence reuirements in Indiathat e-traders of medical drugs in India must comply.
Similarly, foreign websites targeting India for this purpose must also comply with Indian
law in order to do legitimate business in India.
There are many online pharmacies that are T$A%I<A in banned drugs in India as
well. $ealising the potential dangers arising out of the same, the Indian government has
recently constituted a high-level committee to suggest regulatory and legislative
measures to check online pharmacies trading in banned drugs in India.
The committee has been set up under the <arcotics #ontrol *ureau (<#*+ of India to
check such sale of banned drugs in India and to prevent black 59<!? and finances
criminal activities through online transactions. The committee has been constituted as a
part of the new drugs policy recently revealed by Finance 5inister -ranab 5ukher>ee.
"owever, online pharmacies are by their very nature technology driven. So the
approach of Finance 5inistry must be techno legal in nature. Fortunately the committee
has proposed to establish Gcyber patrol unitsH to intercept syndicates and individuals
indulging in such criminal activities over the Internet.
Another good aspect of the proposed legislative initiative is the proposal to route and
inspect international mail (containing contraband couriers+ while ensuring active
cooperation and e,change of information with other enforcement agencies like #*I, %$I
and !%, within the country.
6riday, Marc# 30, 2012
Electronic $radin )2 Medical +rus In India
!lectronic trading or online shopping of commodities is a fast, efficacious and cost
effective method of business and commerce. "owever, e-T$A%I<A is not a free ride
but is sub>ect to well defined rules and regulations world wide. This is more so regarding
pharmaceutical products that reuire an additional precaution while dealing in an online
environment.
)e have no dedicated e-commerce laws and regulations in India. "owever, the basic
outline of the same has been laid down in the information technology act 1444 (IT Act
1444+. The IT Act 1444 is also the sole cyber law of India that primarily deals with
contraventions and offences pertaining to e-commerce and e-trading in India.
)hile we have basic level e-commerce legal framework in India yet e-health related
legal framework is missing. For instance, e-health in India is facing legal roadblocks. Till
now we do not have any dedicated e-health laws and regulations in India. In the present
environment, the legal enablement of e-health in India is urgently reuired.
This is so because when technology is used for medical purposes, it gives rise to
medico legal and techno legal issues. In 7nited States, the "ealth Insurance -ortability
and Accountability Act of .//8 ("I-AA+, "!A2T" Information Technology for !conomic
and #linical "ealth Act ("IT!#" Act+, etc are some of the laws that take care of medico
legal and techno legal issues of e-health and telemedicine.
As far as India is concerned, we have no dedicated e-health and telemedicine laws in
India. !ven essential attributes of these laws like privacy protection, data protection,
data security, cyber security, confidentiality maintenance, etc are not governed by much
needed dedicated laws.
9rdinary commodities can be comfortably sold through e-commerce websites.
"owever, "!A2T" related commodities, especially prescribed medicines and drugs,
are not easy to manage in an online environment. This is the reason why we have
almost nil e-trading of prescribed drugs and medicines in India as on date.
!-trading of medical drugs in India must be undertaken only after complying with the
laws of India. There are many cyber laws due diligence reuirements in India that e-
traders of medical drugs in India must comply. Similarly, foreign websites targeting
India for this purpose must also comply with Indian law in order to do legitimate
business in India.
Since the issue is of great public interest, Indian government must formulate a
dedicated e-trading law for medical drugs in India so that online illegal sale of medical
drugs to Indian residents can be curtailed. -resently, many foreign websites are openly
offering sale of medicine drugs to Indian residents through e-mails and other digital
channels. Such conduct of these foreign companies and websites must be regulated in
India so that harm to public at large can be avoided.
$#ursday, Marc# 20, 2012
%eal Issues In E-Commerce In India
!lectronic commerce is one of the most profitable business ventures in India these days. <ot
only its present growth is good but even its future and pro>ected growth is tremendous.
"owever, e-commerce in India is also reuired to be conducted in a legally permissible manner.
This is more so when the information technology act 1444 (IT Act 1444+ prescribes stringent
penal and pecuniary penalties for violation of its provisions during e-commerce transactions.
The natural uestion arises as to what are the basic e-commerce laws in India that various e-
commerce players must adhere to in order to escape civil and criminal sanctions= Although we
have no dedicated electronic commerce laws in India yet the IT Act 1444 covers many aspects
of the same. IT Act 1444 is the sole cyber law of India that has been invoked on numerous
counts against e-commerce portals and Internet intermediaries in India who violated the
provisions of the same.
The legal reuirements for undertaking e-commerce in India also involve compliance with other
laws like contract law, Indian penal code, etc. Further, online shopping in India also involves
compliance with the banking and FI<A<#IA2 norms applicable in India. For instance, take the
e,ample of -ay-al in this regard. If -ay-al has to allow online payments receipt and
disbursements for its e,isting or proposed e-commerce activities, it has to take a license from
$eserve *ank of India ($*I+ in this regard. Further, cyber due diligence for -aypal and other
online payment transferors in India is also reuired to be observed.
)ith the active use of electronic commerce in India the electronic commerce dispute resolution
in India is also reuired to be strengthened. The present litigation system of India is not
conducive for the growth of e-commerce n India and online dispute resolution in India is more
appropriate for such purposes.
-erry:2aw and -erry:2aw Techno 2egal *ase (-T2*+ have launched dedicated platforms for
resolving e-commerce, domain name, commercial, technological and cross border disputes
resolution in India and word wide. These include platforms named !lectronic #ourts, !-
Iudiciary,9%$ India, 9nline Arbitration, etc.
Finally, for those who wish to engage in cloud computing, virtualisation and other Internet based
services in India, -erry:2aw and -T2* recommend that they comply with techno legal
regulations of India. Dirtualisation and cloud computing service providers in India must not only
follow theencryption laws of India but they must also ensure cyber law due diligence in India.
This is more so when the cyber law due diligence for companies in India has become very
stringent and foreign companies and websites are freuently prosecuted in India for
non !F!$#IS! of cyber due diligence.