Legal and Regulatory Issues in Doing Business over the Net

“Philippine E-Commerce Law”

Social and Ethical Dimension of E-Commerce

Status and Trends of E-Commerce

Future E-Commerce in the Philippines

MELJUN CORTESMELJUN CORTES

The Philippine E-Commerce Law:

Republic Act NO. 8792

-an act providing for the recognition and use of electronic commercial and non commercial transactions and documents, penalties for unlawful use thereof and for other purposes.

1. Towards the information Technology: (Part I)

-Philippine government explicitly recognizes the vital role of information and communication technology in nation building.

2. Electronic Commerce in General: Part IIa. Addressee – refers to the person who is intended by the

originator to receive the electronic data message.

b. Computer – refers to any device or apparatus which is capable of receiving, recording, transmitting, storing and processing documents.

c. Electronic Data Message- refers to any information generated, send or received.

d. Electronic signature – refers to any distinctive mark and characteristic in electronic form representing the identity of a person or entity.

e. Electronic key – refers to secret code which secures and defends sensitive information.

f. Originator – refers to the person, or whose on behalf the electronic document was generated.

g. Service provider – network access, operator or facilities offering transmission of online communication.

3. Legal Recognition of Electronic Documents (Part III)

- Electronic documents are provided the same legal protection as paper based documents.

4. Integrity of Electronic Documents (Section 9)

Presumption relating to electronic signatures: that the electronic signature is that of the person whom it correlates.

5. From File Cabinets to Electronic Files (Section 13)

-Under this law, the retention of documents in its original form is satisfied by retaining them in the form of an electronic data message or electronic document.

6. Electronic Contracts (Section 18-22)

-The law further stipulates that no contract shall be denied validity or enforceability on the sole ground that it is in the form of electronic document.

7. Towards E-Government (Section 27)-It mandates the government as well as government owned and controlled corporation the use of electronic transaction in all its processes.

8. Developing Trust (Section 31-33)-Ensure that electronic transaction are safe and that data collective electronically are kept private and confidential.

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Social and Ethical Dimensions of E-Commerce

Ethical Issues:a. Crimeb. Privacyc. Individualityd. Employmente. Healthf. Working Conditions

Ethical Responsibility of Business Professional

a. Acting with integrity

b. Increasing professional competence.

c. Setting high standards of performance

d. Accepting responsibility for your work

e. Advancing the health privacy and general welfare of the public.

Computer Crime

- Growing threat in the society by the criminal or irresponsible actions of computer individuals who are taking advantage of the widespread use and vulnerability of information system.

Example of Cybercrime:1. Unauthorized use, access, modification, destruction of

hardware, software, data or network.2. Unauthorized release of information3. Unauthorized copying of information

Hacking -obsessive use of computers or unauthorized access and use of

network computers.

Hackers Can:

1. Monitor email, web servers access or file transfer to extract passwords or steal network files.

Cyber Theft

-Many computer theft involves the theft of money.

Time and Resource Theft

-Unauthorized use of company owned computer network by employees.

Software Piracy and other piracy of intellectual property

-computer programs are valuable programs and thus are the subject of theft from computer system. Other forms of copyrighted materials such as music, video, images, articles and books.

Computer viruses

Most destructive example of computer crime is the creation of virus. They typically enter a information system through illegal or borrowed software or through network links.

Privacy Issue

The ability of information technology to store and retrieve information can have a negative effect on the right to privacy of individual.

1. Confidential messages are monitored by companies.

2. Personal information is collated to every individual everytime they visit the www.

3. Error in database can seriously hurt the credit standing of an individual or reputation.

Employment Challenges

The impact of information technology is a major ethical concern and is due related to the use of computer to achieve automation and work activities.

Challenge to individuality

-computer based system eliminate human relationship.

Health Issues:

Use of IT in the work place raises variety of health issue: Heavy use of computers results in

a. Job Stress

b. Damage arm and neck

c. Eye strain

d. Radiation and exposure