In the Bulletin

From the Chairman

From the Director

Legco Report

Letters
To the Chamber

Cover Story
E-commerce Coming of Age

Special Feature
Banking on the Power of 'e'

Business
Egypt Striving to Become IT Hub

WTO Watch
Chamber Welcomes PNTR Vote 

iPerkin
Growth Hits 12.5% in First Half

Q&A
Esquel Group Chairman Marjorie Yang

Programmes
Mission to Xiamen

SME Week

Cashing in on Your Green Initiatives 

Businesses Must Back SAR's Asian Games Bid

e-Chamber
Doing Business Anywhere

Dodging the Pitfalls of E-commerce

Member Profile
Sam Seng Winery

ARCHIVES
2000 Issues
1999 Issues

the bulletin

Dodging the Pitfalls of e-commerce

Law firm discusses misuse of personal data and lack of
awareness of legally binding e-contracts on the Internet

The Internet has created unprecedented potential for the misuse of personal data and databanks are making fortunes from businesses that are queuing up to use such information to sell their products to millions of consumers worldwide.

Angus Forsyth (left), senior partner, Stevenson, Wong & Lai, explained at the Chamber's Sept. 12 roundtable luncheon that while there is applicable legislation in Hong Kong to provide some protection, on the whole, many of the regulations here and abroad are e-pseudo laws or self-regulation when it comes to privacy of personal data on the Internet.

Even when there are laws, Net users must take the responsibility of protecting their own privacy interests, he said.

Personal data is a valuable resource and companies use it to market their products to us often in the form of unsolicited e-mail, or SPAM. Control of SPAM is on a voluntary basis, and the Hong Kong Internet Service Providers Association (HKISPA) in February this year set up the Code of Practice on Anti-Spam, he said.

Hong Kong's Personal Data (Privacy) Ordinance (PDPO), which came into effect in 1996, does try to regulate the protection of an individual's data.

But, "The PDPO is not a privacy protection ordinance. There is no dedicated law in Hong Kong for that. The PDPO is a personal data privacy ordinance, no more, no less," he said.

The details of the ordinance are spelled out in great detail, and while it does carry criminal liability and penalties, they are often still ignored, he said. (Full details of the ordinance can be found at http://www.pco.org.hk/ord/index.html)

"Hong Kong does not yet have a substantial body of reported personal data privacy case law and very limited significant civil case law upon the Internet and personal Data Privacy," he said. "The future legal development of this very exciting and extremely new goldmine cum minefield of commercial exploitation will be littered with massive injuries and massive profits -- all of which will find reflection in the courts."

The Electronic Transactions Ordinance (ETO)
Yvonne Chia (right), associate, Stevenson, Wong & Lai, also speaking at the luncheon, said companies must be aware of the consequences of entering into an electronic contract on the Internet.

The ETO gives electronic records and signatures the same legal status as their paper counterparts, with the exception of wills, powers of attorney, oaths, affidavits and a few other documents.

By legally binding a company to the terms of an online contract, companies must make sure they have the last say in whether or not they enter into a contract, she said.

She cited a case when a large U.K. retailer mistakenly listed the price of a television set on its Web site as 2.99 pounds, instead of 299 pounds. In theory, the buyer could sue the company if it didn't sell the set for the advertised price.

"By making sure you have the last say allows you to filter out any error that might be present in the transaction," she said.

Other pitfalls could involve local laws. Most people here are aware that Internet gambling is illegal in Hong Kong and so do not indulge, but the sale of alcohol in Saudi Arabia, for example, is a criminal offence. If you sell a bottle of scotch to someone there, you may be liable to prosecution.

Ms Chia suggests using a "shopping cart" system for visitors to put goods that they wish to buy in their cart, which they can then pay for or reject at the "check out." Here, you have the chance to say whether or not you will sell those goods to the client.

But even before that happens, you should present clients with an agreement stating that they are about to enter into a legally binding contract. After clicking the agree button they can then choose to click on the "place your order" button.

These may seem like common-sense measures, but as she points out, common sense is not that common.