Electronic Commerce Transactions Research Articles

A “Virtual” Challenge: The Potential Impact of Electronic Commerce on Local Government Revenues

Over the past twenty years many California cities have substan- tially increased their reliance on sales tax revenue. The growth of online shopping threatens to undermine this source of revenue, because taxes are not collected for many electronic commerce transactions. More importantly, cities relying heavily upon tradi- tional retail may lose revenue, depending on how the State de- cides to redistribute taxes from online sales. Alternatives evalu- ated in this article include, redistribution according to the loca- tion of the retailer, location of the consumer (a residence), and population. The potential impacts of online sales growth and rev- enue redistribution are evaluated for Bay Area cities, 15 of which are identified as highly vulnerable, rapidly growing middle class suburbs. In conclusion, the implications of policies to mitigate such impacts are explored.

A Comparative Study on Consumer Right to Privacy in E-Commerce

The number of electronic commerce (e-commerce) transactions has grown extraordinarily with widespread Internet usage. The right to privacy is particularly important in e-commerce. Recently, the privacy protection for consumer transactions has become more and more important in e-commerce. This paper aims to develop the study on the legislation of e-commerce consumer rights protection. It is a comparative study on relevant regulations of the right to privacy in European Union, the United States, and Japan. The most representative policy might be the Data Protection Directive in the EU, which not only regulates the principle for e-commerce consumer right to privacy protection, but also lays out specific criteria to be abided. The current status and existing problems in China are also analyzed and some suggestions are made to improve the legal system of right to privacy. The paper identifies directions for the future development of the privacy protection from a legal perspective.

A Comparative Study on Consumer Right to Privacy in E-Commerce

The number of electronic commerce (e-commerce) transactions has grown extraordinarily with widespread Internet usage. The right to privacy is particularly important in e-commerce. Recently, the privacy protection for consumer transactions has become more and more important in e-commerce. This paper aims to develop the study on the legislation of e-commerce consumer rights protection. It is a comparative study on relevant regulations of the right to privacy in European Union, the United States, and Japan. The most representative policy might be the Data Protection Directive in the EU, which not only regulates the principle for e-commerce consumer right to privacy protection, but also lays out specific criteria to be abided. The current status and existing problems in China are also analyzed and some suggestions are made to improve the legal system of right to privacy. The paper identifies directions for the future development of the privacy protection from a legal perspective.

Electronic Commerce and Indirect Taxation in Spain

Electronic commerce transactions are subject to an indirect consumption tax, namely, value added tax. In Spain, the key issues in this area are: (1) the place of supply of the electronic commerce transactions; (2) the application of the special regime for electronically supplied services; (3) the rates applicable to such electronically supplied services; and (4) the regulation of invoices by electronic means. This article addresses these issues in light of EU regulations and their incorporation into Spanish law.

E-commerce and legal protection for consumers: Spanish analysis

Electronic commerce is becoming increasingly common at international level and is the object of analysis by various fields and scientific disciplines. Guaranteeing the security of transactions is of fundamental importance if electronic commerce is to expand correctly. In this regard, legal protection for electronic commerce transactions is an area that is gaining in interest for scientific literature. The Spanish Information Society Services and Electronic commerce Act describes various aspects that need to be further developed in this field. This document analyses the new contractual forms arising from the “Information Society” and the legal issues associated to the latter, as well as the Spanish legal system for providing legal protection to consumers in electronic contracts. Key words: Electronic commerce, legal protection, consumers.

Consumer privacy expectations in a virtual environment: a framework for corporate risk assessment

The technological capabilities in a virtual environment enable a wealth of information concerning consumer characteristics and preferences to be gathered, combined and disseminated, with relative ease, during electronic commerce (e-commerce) transactions. Consumers continue to be concerned about the corporate use of personal information collected during the course of such transactions, despite government oversight. This paper examines the types of consumer information collected and the concerns associated with such practices. Consumer concerns give rise to the necessity for corporations to self-regulate by assessing the risks associated with information privacy practices. In response, we present a conceptual framework for the corporate risk assessment of consumer privacy expectations. This framework can be used by corporations to assess and explain their self-regulation of consumer internet privacy.

E-confidence: Offer and acceptance in online contracting

Online contracting, as a focal point of electronic commercial transactions, has been developing since the 1990s. Recent international legislation, namely the 2005 United Nations Convention on the Use of Electronic Communications in International Contracts (the UN Convention) is a significant legal achievement. However, the validity and effectiveness of electronic offer and acceptance is still an issue for debate. This paper aims to seek answers to how law makers may meet the challenge of regulating electronic contracting, and what future improvements that the UN Convention may need to make to boost confidence of contracting online. The paper will introduce the concept and formation of electronic contracts; analyse the current legislative environment of electronic contacting in the international organisations, EU, US and China; discuss the obstacles that electronic contracting has faced; and propose a solution to remove its legal uncertainty.

An Exploratory Study of the Impact of e‐Service Process on Online Customer Satisfaction

Although extensive academic research has examined the dynamics of interpersonal interactions between service providers and customers, much less research has investigated customer service encounters through technological interfaces such as the Web in electronic commerce transactions. Corporate websites have become an important point of contact with customers for many companies. Service has been described as one of the most important attributes for online business to influence traffic and sales. However, more research is needed to understand how Web‐based technological capabilities of services affect customer satisfaction. In this paper, we propose viewing the interface between online buyers and sellers through the lens of service management to identify possible determinants of online customer satisfaction. A company's website is considered its electronic service delivery system. We look at this electronic service delivery system from its process point of view. Our findings indicate that as the electronic service delivery system process improves, a customer's perception of the website's ease of use increases, leading to increased service value and perceived control over the process, which increases customer satisfaction. The research provides evidence that the technological capabilities embedded in the website processes are an important factor in determining service quality and ultimately online customer satisfaction.

Hungary's Electronic Signature Act: Enhancing economic development with Secure Electronic Commerce transactions

Hungary's Electronic Signature Act (ESA) became effective in 2001 and provides for legal recognition of electronic signatures (e-signatures) and electronic documents. Electronic documents and e-signatures are presumed to be admissible evidence in court and may not be challenged successfully based on the mere fact of their electronic form. An electronic document signed with an e-signature is deemed to be in compliance with a statutory requirement for a handwritten signature on a paper document. However, the ESA excludes family-related documents (e.g., marriage certificates and divorce decrees), and those documents must continue to be in paper form to have legal validity. Also, consumers are not obligated to accept the electronic form; if a consumer objects, a business firm must use paper documents. Hungarian government departments may elect to issue or accept electronic documents. Although all types of e-signatures are recognized, the digital signature enjoys most-favored status because it utilizes cryptographic methods resulting in a heightened degree of reliability and security. The ESA provides for the licensure of certification authorities (CAs). In order to get a CA license, an applicant applies to the Hungarian Communications Inspector (Authority) and must meet financial and knowledge requirements and not have a prior criminal record. The principal duties of CAs are to issue certificates to successful applicants and confirm the authenticity and integrity of e-signatures (and the electronic documents to which they are attached) to relying third parties. Before issuance of the certificate, the CA must confirm the identity of the applicant and ensure that all information received on the application is accurate. The CA is responsible for maintaining the security of all information that it receives from the applicant. For a CA to issue a ‘qualified’ certificate it must comply with higher security standards; the only type of e-signature that can meet these standards is the digital signature. When a qualified certificate is issued, the subscriber will be given the private key that will enable them to ‘sign’ electronic documents. CAs must maintain a publicly accessible repository of certificates and public keys that can be used to decrypt a subscriber's message. A CA may incur legal liability for publishing a certificate with inaccurate information or for issuing a private key that does not have an interactive relationship with its public key. The ESA provides for legal recognition of certificates issued by CAs in foreign countries if the foreign CA meets one of the five criteria.

Privacy-Preserving Transactions Protocol Using Mobile Agents with Mutual Authentication

This article introduces a new transaction protocol using mobile agents in electronic commerce. The authors first propose a new model for transactions in electronic commerce, mutual authenticated transactions using mobile agents. They then design a new protocol by this model. Furthermore, the authors analyse the new protocol in terms of authentication, construction, and privacy. The aim of the protocol is to guarantee that the customer is committed to the server, and the server is committed to the customer. At the same time, the privacy of the customer is protected.

Exclusions and related trust relationships in multi-party fair exchange protocols

Some electronic commerce transactions are inherently performed between more than two parties. In this context, it is thus important to determine whether the underlying fair exchange protocols allowing the secure implementation of such transactions enable participants to exclude other entities from a protocol execution. This is an important point that has not been sufficiently addressed when analysing such kind of protocols, and that may be crucial for the successful accomplishment of multi-party electronic transactions. In this paper we define the properties related to exchange protocols and exclusions, study exclusion scenarios on two well-known multi-party fair exchange protocols and point out the implications that exclusions may have on the trust relationships between participants, and, more generally, on electronic commerce. Two new protocols more robust than existing multi-party fair exchange protocols are therefore proposed.

An Exploratory Study of the Impact of e-Service Process on Online Customer Satisfaction

Although extensive academic research has examined the dynamics of interpersonal interactions between service providers and customers, much less research has investigated customer service encounters through technological interfaces such as the Web in electronic commerce transactions. Corporate websites have become an important point of contact with customers for many companies. Service has been described as one of the most important attributes for online business to influence traffic and sales. However, more research is needed to understand how web-based technological capabilities of the services affect customer evaluations of service value and how to determine the technological capabilities embedded in the e-service for customer satisfaction. In this paper, we propose viewing the interface between online buyers and sellers through the lens of service management in order to identify and explain possible determinants of online customer satisfaction. A company's website is considered its electronic Service Delivery System (eSDS). We look at this eSDS from its process point of view and examine how an eSDS affects customer satisfaction. Our findings indicate that as the eSDS process improves, a customer's perception of the website's ease of use increases, leading to increased service value and perceived control over the process, which increases customer satisfaction. The research provides evidence that the technological capabilities embedded in the website processes are an important factor in determining service quality and ultimately online customer satisfaction.

Fault tolerant Web Services

Zwass suggested that middleware and message service is one of the five fundamental technologies used to realize Electronic Commerce (EC). The Simple Object Access Protocol (SOAP) is recognized as a more promising middleware for EC applications among other leading candidates such as CORBA. Many recent polls reveal however that security and reliability issues are major concerns that discourage people from engaging in EC transactions. We notice that the fault-tolerance issue is somewhat neglected in the current standard, i.e., SOAP 1.2. We therefore propose a fault tolerant Web Services called fault tolerant SOAP or FT-SOAP through which Web Services can be built with higher resilience to failure. FT-SOAP is based on our previous experience with an object fault tolerant service (OFS) and OMG’s fault tolerant CORBA (FT-CORBA). There are many architectural differences between SOAP and CORBA. One of the major contributions of this work is to discuss the impact of these architectural differences on FT-SOAP design. Our experience shows that Web Services built on a SOAP framework enjoy higher flexibility compared to those built on CORBA. We also point out the limitations of the current feature sets of SOAP 1.2, e.g. the application of the intermediary. In addition, we examine two implementation approaches; namely, one based on the SOAP 1.2’s intermediary, and the other on Axis handler. We conclude that the intermediary approach is infeasible due to the backward compatibility issue. We believe our experience is valuable not only to the fault-tolerance community, but also to other communities as well, in particular, to those who are familiar with the CORBA platform.

A Fuzzy Logic-Based Approach for Supporting Decision-Making Process in B2C Electronic Commerce Transaction

The purpose of this article is to present an application of fuzzy logic to human reasoning about electronic commerce (e-commerce) transactions. This article uncovers some of the hidden relationships between critical factors such as security, familiarity, design, and competitiveness. We analyze the effect of these factors on human decision process and how they affect the Business-to-Consumer (B2C) outcome when they are used collectively. This research provides a toolset for B2C vendors to access and evaluate a user’s transaction decision process and also an assisted reasoning tool for the online user.

유비쿼터스 환경을 위한 다중 사용자 기반의 안전하고 효율적인 무선 네트워크 관리 기법 제안

Ubiquitous computing, a new type of network environment has been generating much interest recently and has been actively studied. In ubiquitous computing, the sensor network which consists of low electric power ad-hoc network-based sensors and sensor nodes, is particularly the most important factor The sensor network serves as the mediator between ubiquitous computing and the actual environment. Related studies are focused on network . management through lightweight hardware using RFID. However, to apply these to actual environment, more practical scenarios as well as more secured studies equipped with secures and efficiency features are needed. Therefore, this study aims to build a wireless network based on PTD for multi users, which provides the largest utility in individual networks, and propose an appropriate management method. The proposed method is designed to enhance security and efficiency related to various services required in wireless networks, based on the reliable peripheral devices for users or pm. using pm, which has been applied to electronic commerce transactions in existing papers, this study also proposed an appropriate management method that is suitable for a dynamic environment and setting a temporary group to provide various services.

The Problems of Identifying the Essential Business-to-Business E-Commerce Environment Components

Electronic commerce is treated as one of the most efficientinstruments for business processes optimization,based on more effective control of information flows. Ecommerceinfrastructure is that part of the total economicinfrastructure that is needed to support e-commerce processesand to conduct electronic commerce transactions. Itincludes investment in computers, routers and other computerhardware; satellite, wire and optical communicationsand network channels; system and applicationssoftware. It also includes expenditure for support services,such as web site development and hosting, consulting,electronic payment and certification services as wellas human capital, such as programmers. In essence, ecommerceis the secure trading of goods, information orservices. Contrary to popular opinion, an e-commercesolution is not simply a single component, rather a collectionof individual parts that together allow informationexchange to take place across the electronic networks.The rapidity of e-commerce integration to economyshows that in the nearest future e-commerce will becomethe necessity for any and all business forms. E-commerceevolution is related to rapid perfection of informationtechnologies, their growing possibilities of adoption invarious areas and the cost of use decrease. The spread ofe-commerce in various economy sectors is related to themodern business characteristics: huge and constantlygrowing competition, decreasing variety of competitiveadvantages, durable treatment of profit, as the result ofcost reduction. As electronic commerce develops, it couldhave profound impacts on individual sectors of the economyas well as on macroeconomic performance and economicpolicies. Electronic commerce growth could havesignificant effects on the structure and functioning ofeconomies at the firm, and industry level as well. Thesechanges are likely to have influence on prices as well asthe composition of trade, labour markets and taxationrevenues. E-commerce integration to business processesis considered as realistic possibility to strengthen thecompany’s position in the market, so in near future it isvery believable for e-commerce to become the necessity(market entrance barrier) in some industry sectors, wheree-commerce models can generate considerable cost economy.In that case it can be concluded, that any companyin a small and medium-sized business sector must evaluatepossible benefits from e-commerce adoption in businessprocesses. Traditional competitive advantages likemodern technologies, low cost level or suitable geographicallocation become less significant because ofglobalization process. But before making decisions of ecommerceadoption in the company, it is important todefine and assess the main aspects of e-commerce environment.The paper aims to analyze the problems ofbusiness-to-business e-commerce environment assessmentand to identify the essential elements of this environment.

International Income Taxation of Cross-Border Electronic Commerce Transactions - A United States-German-New Zealand Case Study

With the growth of electronic commerce tax authorities were faced with the challenge of applying traditional tax principles, which have been developed in times where business comprised the delivery of physical goods and services were provided in face-to-face transactions, to cross-border transactions carried out over the Internet. This article outlines the main issues income characterisation and permanent establishments in the international taxation of cross-border transactions in an electronic commerce environment. It analyses the tax consequences in detail along the lines of a case study considering the United States, Germany, and New Zealand. Moreover, the article deals with the current discussion on the attribution of profits between a head office and its permanent establishment of a business involved in electronic commerce. In the final chapter the work describes tax planning strategies and opportunities that are available to an electronic commerce business to further minimise the tax burden.

New Basics: 12 Principles for Fair Commerce in Mass-Market Software and Other Digital Products

This paper gives an overview of the principles project of Americans for Fair Electronic Commerce Transactions (AFFECT), the coalition of business, and library customers of mass-market software products. AFFECT has successfully blocked passage of the Uniform Computer Information Transactions Act (UCITA) since two quick enactments in 2000, before the opposition effectively organized. The law of mass-market digital products is in need of clarification to protect both the interest and the public interest in sound information policy that fosters innovation and competition. Unfortunately, UCITA is poorly drafted and not an improvement over the existing patchwork of common law, Article 2 of the Uniform Commercial Code, and federal intellectual property law. UCITA is slanted toward mass-market producers and against the interests of consumers and the public more generally. AFFECT has now moved beyond opposition to a bad statute and is engaged in a positive search for better alternatives. As a first step, it has produced a statement of principles. These principles can be used as a basis for specific reform efforts, including drafting a model license and writing a more modest and targeted model statute than UCITA. They also can be used by protection officials and consumers' counsel to choose cases to litigate and by advocates to identify bad practices to bring to the attention of the media and the consuming public. The principles have been written to be accessible to the general public as well as lawyers and policymakers. Many end-users of mass-market digital products are alarmed by unfair terms and practices. They are looking for ways to effect change. The principles identify what is wrong in current practices as they envision better ones. This paper, in addition to tracing the origins of the principles in the struggle against UCITA and discussing their possible uses, explains their underlying theory. The principles draw upon familiar ideas from the law of contracts, commercial transactions, protection and intellectual property law. They also adapt these ideas to the digital world. Some key concepts are good advance disclosure (easy on the Internet) to maximize shopping for the best terms, meaningful assent, and substantive limits on terms that are unfair or contrary to public policy, particularly information policy. The principles also reflect the insight that the category consumer should include all customers who purchase mass-market products with non-negotiated terms. The minority of customers who read and shop over terms introduce only weak competition in non-salient terms in the mass-market. This is why substantive limits are also needed. In mass-market transactions, general standards such as unconscionability - requiring expensive and time-consuming case-by-case litigation - are not an effective way to deal with identified problems that could be quickly solved by specific rules. The principles address such common issues in the world of digital products as transfer and use rights, disclosure of product defects, and security of systems and data.

Electronic Contracts and the Harmonization of Contract Laws in Europe - An Action Required, A Mission Impossible?

The use of information technologies allows parties to enter into contracts in a manner that provides speed, ease, on a mass scale and with a cross?border range with which traditional means of contracting cannot easily compare. It also impacts several traditional concepts of contract law and the legal criteria based thereon. The focus of this paper is on the formation of contracts by electronic means. The ongoing discussion has resulted in establishing in the Member States certain legal rules aimed at answering the questions raised by the procedure of contract formation by electronic means. It is argued that, in order to promote electronic commerce in Europe and to eliminate the lack of predictability connected with electronic transactions, the harmonization of such rules at the European level could be the appropriate means. It is submitted that harmonizing the law concerning the formation of electronic contracts should not be made in isolation of the efforts aimed at the harmonization of contract law in general such as the Principles of European Contract Law. Therefore, the article further reflects on the applicability, for the purpose of electronic commerce transactions, of the provisions of the Principles of European Contract Law dealing with contract formation.

A fuzzy logic-based system for assessing the level of business-to-consumer (B2C) trust in electronic commerce

The purpose of this paper is to present an application of fuzzy logic to human reasoning about electronic commerce (e-commerce) transactions. This paper uncovers some of the hidden relationships between critical factors such as security, familiarity, design, and competitiveness. We analyze the effect of these factors on human decision process and how they affect the Business-to-Consumer (B2C) outcome when they are used collectively. This research provides a toolset for B2C vendors to access and evaluate a user's transaction decision process, and also an assisted reasoning tool for the online user.