Cyber Consumer Law

and
Unfair Trading Practices
KELOMPOK 1
Sarah Aghnia 1810611216
 Infrastructure of the Electronic
Marketplace
The infrastructure of the electronic marketplace is used to support electronic commerce transactions and
includes telecommunication networks, hardware, software and users involved in electronic commerce as
well as the interrelations existent between all these elements. The infrastructure of the electronic
marketplace is viewed from two perspectives: as electronic commerce and as a B2C commercial
relationship. Through this twofold perspective, the chapter shows that the architecture for cyber consumer
law depends on the infrastructure of the electronic marketplace and its legal taxonomy. It is argued that the
legal taxonomy of the electronic marketplace infrastructure leads to a reconsideration of the way in which
consumer protection rules are applicable in cyberspace. Identifying the architecture for the cyber consumer
law taken as a starting point, the infrastructure of the electronic marketplace is aimed to set up a basis for
an overview of the current rationales for cyber consumer law
 Basis for Understanding the Electronic Marketplace

Since 1970, the traditional marketplace has experienced rapid changes: ‘from mass production for a homogeneous
market to specialized products and services competing for segmented/targeted consumer and business markets;
from brand loyalty, long product cycles to discriminating consumers shopping for quality, service and the best value
for money from product development followed by market-testing to survey and other research to roll out innovations
tailored to the preferences expressed by consumers; from arm’s length transactions, involving distinct roles and
competing claims of producers and consumers to blurring of traditional distinctions between buyers and sellers, and
increasing reliance on feedback from consumers; from focus on physical and financial capital to focus on
information, innovation and human resources – the high performance workplace corresponding to the demanding,
well informed consumer.’ On the background of these challenges not totally assimilated by the classical consumer law, the
electronic marketplace is based on a new market that generates new transactions, involves new technological tools and services
and brings a new layer of sophistication which requires consumers to deal with unexpected electronic market failures.
 Electronic Marketplace as Electronic commerce

The electronic marketplace includes: players (market agents such as suppliers, marketers, electronic agents, brokers
and consumers); products (goods and services); processes (supply, production, marketing, competition, distribution
etc.). In general terms, electronic marketplace refers to electronic commerce. The electronic commerce includes all
aspects of commercial transactions involving both consumers and businesses, based upon the electronic processing
and transmission of data including text, sound and visual images. The best-known use of ‘electronic commerce’.
However, electronic commerce encompasses a much broader field of activities. It covers activities such as banking
and insurance services, ranging from account inquiries to loan transactions completed entirely on-line; information
services for education or entertainment, whether for payment or free of charge; ordering tangible products such as
computers or flowers for delivery locally or overseas; dealing with after sales service inquiries; twenty-four hour
shopping; advertising; travel bookings; inventory control, ordering, invoicing and account management.4 Electronic
commerce also concerns digital products such as: software, movies, music, books, and information services such as
banking, insurance, consulting, etc
 Electronic Marketplace as B2C
Commercial Relationship

Understanding the functioning of the electronic marketplace requires the consideration of the economic and legal aspects
of the B2C commercial relationship. B2C electronic markets could be defined as Internet-based electronic markets
designed to allow online business-to-consumers communications and transactions. Another functional definition describes
B2C as encompassing all ecommerce activities that address a final, individual consumer. However, electronic commerce
includes a multitude of other business dimensions such as business-to-business (B2B), business-to-government (B2G)
and consumer-toconsumer aspects (C2C). B2C relevant actors include suppliers, distributors, commerce services
providers, infrastructure providers and customers.

From a regulatory perspective, there are some essential distinctions between B2C and B2B. For example, whilst in the
area of B2B relationship, regulatory issues tend to be more straightforward and less political, the B2C relationship is more
sensitive as it often involves conflicting regulations such as privacy, jurisdiction, commercial communications etc.32 These
distinctions are often translated in a variable risk allocation which corresponds to a different type of protective legislation
 CONCLUSIONS

The final purpose of designing an architecture for cyber consumer law is to demonstrate the need for a regulatory framework
which copes with an electronic marketplace that brings a new layer of sophistication requiring consumers to deal with new forms
of electronic market failures. The infrastructure of the electronic marketplace presents new features which distinguishes it in
comparison with traditional marketplace. The infrastructure of the electronic marketplace composed of players (market agents
such as suppliers, marketers, electronic agents, brokers, and consumers); products (goods and services); processes (supply,
production, marketing, competition, distribution etc.) requires a legal taxonomy that classifies electronic commerce into
identifiable categories. This legal taxonomy may lead to a reconsideration of the way in which consumer protection rules are
applicable in the electronic marketplace. It is shown that a narrow interpretation of electronic commerce might be a key inhibitor
for the consumer protection in the electronic marketplace. Otherwise, the architecture of the cyber consumer law has as a
starting point the examination of the manner in which we envisage the electronic marketplace infrastructure. Designing a well-
structured legal taxonomy for the electronic market infrastructure is essential for fostering consumer confidence in cyberspace
and for contributing to a harmonised design, form, and structure for the architecture of the cyber consumer law.
 Assumption of a Perfect
Electronic Marketplace
By definition, a ‘perfect market’ rejects any need of governmental regulatory intervention. There are many other ways
to express the ‘conventional wisdom’ on the existence of a perfect electronic marketplace. For example, some
commentators suggest that the Internet is a nearly ‘perfect market’ ‘because information is instantaneous and buyers
can compare the offerings of sellers worldwide. The result is fierce price competition, dwindling product
differentiation, and vanishing brand loyalty.’ By definition, a ‘perfect market’ rejects any need of governmental
regulatory intervention. There are many other ways to express the ‘conventional wisdom’ on the existence of a
perfect electronic marketplace. For example, some commentators suggest that the Internet is a nearly ‘perfect
market’ ‘because information is instantaneous and buyers can compare the offerings of sellers worldwide. The result
is fierce price competition, dwindling product differentiation, and vanishing brand loyalty. According to some
companies, government regulation is not the solution to ensure cyber consumer protection. On the contrary, they
consider that ‘governments should resist the urge to regulate electronic commerce and should encourage
participants in the global electronic marketplace to adopt best practices and provide consumer education.
 Virtual Organisation of Company
The virtual organisation of companies consists in the ability of technology to create a major ‘selling point’ to anyone, from an
individual to a multinational corporation, with a product to market. Through the ability to reach millions of Internet users simply
by establishing a web site, it is quite feasible for companies to have no physical presence with respect to the consumer, or to have a
server located outside the jurisdiction of the consumer’s country. For traders, the electronic market provides companies with the
capacity of conducting business activities in a jurisdiction with no physical location or participation in the economic life in any
jurisdiction anywhere. For consumers, the virtual organisation of companies creates difficulties for consumers who are confronted
with the recognition of the website, with web pages being modified permanently. Often recognising the website of a business
several days later may be difficult when web traders frequently renovate their virtual shop-fronts, form and change new alliances,
and occasionally cease their online activities.
 Electronic records
Approaching the issue of electronic records requires taking into consideration the peculiarities of electronic
transaction. The different stages of the consumer information process are missing in an electronic transaction.
Despite the requirement for a written acknowledgement or receipt, a consumer would not receive any confirmation
of the service recipient or he will receive it only after a certain delay. In certain cases, the confirmation of the service
recipient and electronic record are very important. For example, a consumer who is visiting a travel agency’s
website, to book a ‘last minute’ special offer for a weekend abroad, will need to receive an electronic receipt of his
flight booking at least a day before his date of departure. If the consumer would like to sue the travel agency, he
would need proof of the existence of the special offer, its terms and conditions. Even if the consumer prints out a
copy containing information about the special offer and a copy indicating the service request, he would probably
need to prove that his request was received by the travel agency and that the request was made when the special
offer was already available on the website. The peculiarity of electronic transactions reinforces the unpredictability
surrounding electronic records.
“
Annual Review September 3, 20XX  10
Timeline
Q1. Q1. Q3. Q4.
Jul - Sep Oct - Dec Jan - Mar Apr - Jun

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Annual Review September 3, 20XX  11

Goals for Q2
Business priorities Added priorities Employee opportunities

 Increase customer satisfaction  Decrease the number of  Interns begin

by 2% rotations by at least 2
 Indoor rec leagues
 Maintain growth  Ensure the cost of
 Chess tournaments
development stays below
budget  Big Game watching party
 Food drive

Annual Review September 3, 20XX  12

Thank you
Thanks to your commitment and strong work ethic,
we know next year will be even better than the last.

We look forward to working together.

Contoso
sales@[Link]

Annual Review September 3, 20XX  13