President Clinton's 1997 remarks highlighted the transformative potential of the Internet on business and society, comparing it to the industrial revolution.
The Internet facilitates new businesses, reduces costs, and enables global collaboration.
E-commerce was predicted to reach tens of billions of dollars by the turn of the century.
Mobile commerce has emerged with the proliferation of mobile phones, blurring the lines between devices.
In 2021, UNCTAD emphasized the growing role of the digital economy and e-commerce in achieving the Sustainable Development Goals (SDGs).
Early computer law focused on hardware and software contracts, but now e-commerce contracts dominate discussions.
Electronic Data Interchange (EDI) was initially seen as the future of electronic trade but was overtaken by the Internet.
Efforts were made to standardize EDI communication formats, coordinated by the United Nations Economic Commission for Europe.
EDI is used for online communication between existing business partners within closed economic relationships, such as suppliers and distributors.
The Internet has become a crucial business tool, with e-commerce successes spanning various services and products.
Safe payment methods have enabled cross-border transactions.
Many products and services are now distributed digitally.
The dot-com boom saw rapid expansion of physical goods sales online, but logistical issues led to a crash.
Improved logistics have revived e-commerce, with companies experimenting with drone deliveries.
The COVID-19 pandemic in 2020 spurred a surge in e-commerce due to safety concerns.
E-commerce growth was estimated to be as high as 74% during the pandemic.
Online trading is complex, involving private, commercial, and criminal law aspects.
Private and commercial law issues include intellectual property, privacy, data protection, delict, consumer protection, and defamation.
Criminal issues include fraud, identity theft, pornography, child abuse, and copyright infringement.
E-commerce is also affected by regulations on banking, insurance, gambling, and money-laundering.
Blockchain technology and cryptocurrencies like Bitcoin and Ethereum have revolutionized e-commerce.
Smart contracts have opened new avenues for e-commerce and international trade problem-solving.
Spam, or unsolicited marketing communications, is a significant problem in e-commerce.
More than half of all e-mails are estimated to be spam.
In South Africa, spam is addressed in the ECT Act, the Consumer Protection Act, and the Protection of Personal Information Act.
6.1.2 Legal uncertainty
Businesspeople felt uneasy about the legality of agreements concluded via EDI and e-commerce.
The law's slow adaptation to new challenges contributed to this unease.
UNCITRAL's Guide to Enactment of the Model Law acknowledges legal obstacles and uncertainties in paperless communication.
Key perceived legal uncertainties included:
Validity of agreements: Can contracts be validly concluded through electronic communications?
Offer and acceptance: Is a website advertisement an offer or an invitation to do business?
Automated contracts and agency: Can binding contracts be formed via electronic agents without human intervention?
Time and place of contracting: When and where does the contract come into existence?