The state of e-commerce laws in India: a review of Information Technology Act

Purpose - The purpose of this paper is to critically examine the Indian IT Act 2000 and IT (Amendment) Act 2008 in the light of e-commerce perspective to identify the present status of e-commerce laws in India. Design/methodology/approach - The paper presents a critical reflection on the current e-commerce laws in India. The paper is based on the Indian IT Act 2000 and IT (Amendment) Act 2008. The paper presents critical content analysis of various provisions of IT Act in e-commerce prespective. The paper also highlights legal issues arising from e-commerce. Findings - There are many important issues which are critical for the success of e-commerce that have not been covered or properly addressed by IT Act. The paper reveals that the present IT Act is weak on various fronts and in the absence of sound legal framework e-commerce cannot create a success story in India. Indian Government must appreciate that for safe and secure business environment on cyberspace, a sound legal framework is needed. This paper suggests that there is strong need to introduce separate laws for e-commerce in India. Practical implications - The paper identified various loopholes/problems/weakness of existing e-commerce laws in India. These issues should be addressed by Goverment of India to protect the interests of Indian software industries, BPO sector and other stakeholders. Originality/value - The issue identified in the paper is somewhat new, timely and interesting, taking into consideration its importance to economic development in emerging economies such as India.