However, with the development and innovation of communication technologies, especially the Internet technology, the position of the smaller businesses has changed. Smaller businesses can now, through the Internet, promote their businesses globally in a cost effective manner and compete with the multi-national companies for a share of the overseas market as well as the local market.

Although the Internet has made global business promotion within the reach of many smaller businesses, nevertheless, these businesses do not share the benefit of having their own in-house lawyer, like the MNCs, advising them on most if not all of the possible legal issues arising from their Internet business promotion. This is very important because unlike other traditional communication technologies, the issues arising from doing business on the Internet is not always obvious or clear cut.

An example such hazy issues is online selling. In an English case, the price of a television was listed as £9.99 instead of £99.99. As a result the company received large amount of orders through the website. Naturally, any company caught in that position would not want to be bound by such orders. In order to avoid such problems, a term could be included to the effect that there will not be a binding contract until the company confirms the order by the online buyer.

Another example is online publication. It is very common to hear of defamation actions by a local against a local newspaper publisher, however, it is not as common to come across a defamation action against an online publisher in another country because the requirement of where a publication took place is unclear. Hence which court has the jurisdiction to adjudicate the case? In a recent Australian case, a publisher of business and financial new and information published an article in the US about a Mr. G. The electronic version of the article was later uploaded to a server located in New Jersey and was put on web. The article could be accessed by any Internet users including those from Australia. Having learnt of the article, Mr. G sued Dow Jones in the Victoria State Court in Australia. The key issue was whether the Victorian court had jurisdiction over the case. Where was the defamatory article published for the purpose of defamation law?

The publisher argued that it was in the US that the publication occurred where the article was actually uploaded to the server or where it was ready for download on the website. The court rejected those arguments and held that the physical location of the website and server were irrelevant in relation to the publication issue, the uploading to the server did not constitute publication. It was well-established principle that there was no publication until the defamatory materials were heard, read, communicated or comprehended to another person. Each downloading of the article in different territories constituted a separate publication and separate tort subject to the local law. After this ruling, there is lesser room for the irresponsible publishers to escape liability by pleading on the new Internet technology.

Accordingly, when you need to publish any materials online, whether it is for promotion of your business or advertising, do ensure that those materials contain only facts and avoid any subjective statements. If unavoidable, the commentator should be cited when a subjective statement or personal opinion needs to be published. Also, in case when it is uncertain whether any copyright exists in the materials, a disclaimer should be included, disclaiming any rights in those such materials.

The above are only 2 interesting examples over many issues arising from ecommerce. All in all, when doing business over the Internet, it is prudent to pay a little extra attention, for example:-

1. Data Privacy
   It is an imminent that registration is almost always required when purchasing goods or services via the Internet. In Hong Kong, personal data is governed by the Personal Data (Privacy) Ordinance and businesses should well verse themselves of Schedule 1 of the Ordinance. Basically, businesses should only collect as much information as is necessary for the transaction to proceed. Customers should be made aware of personal data collection, how those data are to be used, how to make corrections and who have access to those data collected.
   
   
2. Who and where is your customer?
   It is important that the identity of your customer is verified. A contract made with a person who is not of legal age will not be binding. Furthermore, the location of where your customer is located important for it is necessary for the business to assess the risk and the laws they will have to comply with.
   
   
3. Accurate goods / services details
   In addition to the having the merchandise correctly priced, it is also important that corresponding photos (if any) are correct. Furthermore, customers should be given an opportunity to review and amend the items they have selected before they confirm their orders.
   
   
4. Terms and Conditions of order
   Validity period of offer, reasonable terms of delivery, geographical limitations and choice of law in the event of dispute are also terms of importance for they limit the liability of the transaction.

Running a business is not an easy task and running a business on the Internet no less easier. Accordingly, businesses should, unless they are absolutely definite, consult their legal advisers about risk minimization in doing businesses on the Internet by having suitable terms and conditions.