Welcome to our podcast session of Techbreaks where you enjoy your sip of tea and we bring the tech content across the globe just for you.
We have an eminent guest with us Mr Abhishek M.R. who is an advocate at Karnataka High Court, Bengaluru and also a founding partner at Lawsmith & Co. He also carries the experience of working with Holla Associates.
We will be discussing one of the most burning topics of the hour : IT laws and its Impact.
We are witnessing several e-commerce startups coming under the radar of IT. How are IT laws relevant for e-commerce businesses?
● IT Act was enacted in the year 2000, to recognize electronic transactions and records so as to ensure a safe and regulated electronic world after witnessing a spike in e-commerce businesses. It was enacted during a time when there was no framework for regulating transactions initiated over internet.
● IT Act was the answer to all cyber crimes which went undetected and not prosecuted in the course of several ecommerce transactions.
● This is an act to provide legal recognition for transactions carried out by means of electronic data interchange and other means of electronic communication, commonly referred to as ecommerce, to facilitate electronic filing of documents with govt agencies and further to amend IPC, IEA and Bankers Book Evidence Act and RBI Act.
● IT Act seeks to secure electronic records by recommending reasonable safety standards to ensure secure electronic data and sensitive personal information of users.
● The major part of IT laws also emphasise on intermediary guidelines and monitoring the structure of data collection and processing.
● IT laws also make it feasible for ecommerce to sign documents digitally and electronically to bind the parties to an electronic contract which is covered by the principles laid down by the Indian Contract Act 1872.
Is there any difference between digital signature and electronic signature?
Yes, there’s a vast difference between the two. IT Act plays a major role in defining the said words.
IT Act 2000 enunciates that a digital signature is primarily composed of a private key and a public key using hash and algorithmic functions. It is more secured compared to the electronic signature. Digital signatures can be issued by way of certificates from certifying authorities who are authorised by the authorities under IT Ministry to empower them to issue digital certificates. Digital signatures will ensure greater encryption of the electronic record.
Electronic signatures on the other hand are of various kinds. It can be a mere “clickwrap”, tick the box, using the actual signature on an electronic document etc. These signatures are more prone to manipulations and tampering. However, IT Act also recognises electronic signatures as a means of authentication of electronic records.
What are the IT compliances for companies with online market presence?
1. Compliance under the Information Technology Act 2000
2. Information Technology (Intermediary guidelines) Rules,2021
3. Information Technology (Procedure and safeguard for monitoring and collecting traffic data or information) Rules 2009
4. Information Technology (Reasonable security practices and procedures and sensitive personal data or information) Rules 2009
We have many more amazing episodes lined up for you. So, stay tuned and stay safe!