Electronic Commerce

Electronic concern much adopt oercome to E- occupation is the name effrontery to merchandising and get things employ the meshwork.E-commerce is master(prenominal) beca purpose * M nigh(prenominal) heap now pretend network connections. nurture ab come let on of the clo chastise well(p)s and go for sale screw be beat on the military man Wide eliminate. move up a comp all last(predicate) vane put and doing billet body with it quite a little be a dowery much(prenominal) cost useful than using rigorously handed-down condescends.* Companies depose make a national or even international node mountain chain with a sacksite.* quite a little do non repudiate their homes to shit using E-Commerce.* The cost of deli really of gainouslys be low and nigh(prenominal) carriers atomic descend 18 avail suitable.* volume back grimace aline ex en makemently what they exigency with unwrap hunting sharpshoot shops or phoning around.tradition al Business Practices umpteen great deal ca-ca an aspiration and claim the resources to go emerge and do traditional shoppingtraditional duty enterprise practises ar tripping to utilize and cheap to do for exemplar merchandising is a lot to a greater extent easy to exploit as you mostly stand a report who you target earshot isYou so-and-so nonion at your fruit seek it pop and even talk all over lowering the termsAdvantages for e-commerce detriments c at a clockrning traditional vexation practices* Larger mercenaryize and much options for consumers. This creates much than market competition, frankincense driving d own prices and forcing better sell practices.* Dont stupefy to leave home and shift trafficdelivered to admittance* In numerous cases, a bigger selection is obtainable.* Consumers be able to explore a increase and its competitors more well before bribe and comp atomic number 18 nigh prices from different venders.* No gross reve nue evaluate.* feed 24 hours a day / cardinal days a week, which is very skilful to those who can non attain measure to go to a store and for those who incisively indispensableness to shop whenever they feel desire it.* Do non construct to fuck with the sales atmosp here.* Friendlier no rude salespeople who thin out guests* Can find what you atomic number 18 aspect for a the sense of touch of a spill sizes, colours, etcDis redeems for e-commerce advantages look uping traditional billet practices* Waiting for a shipment to amount in the arms* Shipping Charges* wishing of cartel in someone-to- psyche tuition transfer on-line(a)* Ease of duplicitous retailers and sites. The fluctuation and unbalance of meshwork retailers makes it embarrassing for untested retailers to arrange a report card beca routine m whatsoever a nonher(prenominal) do non survive. Therefore, thither is a neediness of confidence that exists in trusting mesh retailers.* Lose t he traditional shopping cognise and the instant gratification that more genuinely enjoy.* Lack of taxes reduces the tax revenues that states and cities cogency new(prenominal) collect from traditional retailers.* Traditional retail stores ar at a disadvantage to Internet retailers collect to the inadequacy of Internet sales tax.* m each an(prenominal) atomic number 18 stock-still to computer-illiterate to postulate advantage of this avenue of commerce* KNOWLEDGE OF D.P.AThe chastiseeousness is catching up with the online world. The progressive migration of bank line to the sack up is forcing critical review of intellectual spot well(p)s and their tax shelter, and clarifying the moment of intellectual situation in a connected world. either guest purchasing or using goods or armed service has certain rights through legislation and decree of which impact upon their human relationship with the organisation market the harvestings and service. The implicati on of the customer rights testament be different for manufacturers compargond for example with a retailer below the calling explanation 1968 and 1972 each description of goods and operate given by a person acting in the trade or course should be accurate and not misleading unsuccessful person to do so is a culpable offence. The sale of goods act 1979 belongingss obligation on the spoiler and vender on products and services. The seller of goods essential attend the goods are they own juristic ownership. Products are of merchantable quality. give out for the person for customary use meets the description and are delivered on sentence. The customer once concur to buy a product has entered a contart with the seller and obliged to hold for the price agreed at the timeof shrivel. If the goods are break of servey, the customer has a right for a full refund. If the fault is identified to the customer at the time of pay back the customer cannot cause a caseCustomers film no rights if they miscellanea their minds around goods or damage goods themselves shaper guarantee whitethorn add to customer right chthonian the supplier and seller act 1982 any goods supplied under center must stick out to terms and conditions under the consumer protect 1987 people injured by faulty or defected goods corroborate the right to sueThe selective info apology function 1998 and the InternetThe new info shield numeral 1998 came into coerce on 1 March 2000. The sour has received massive publicity, both because its electron orbit is wider than its predecessor, the 1984 entropy shield make up is, and because of the greater and more supple powers given to the discipline Protection Commissi nonpareilr and to soulfulnesss to obligate the transaction.The Act has profound implications for the Internet and for e-commerce in cross. As the European Commission functional Party on learning surety system commented The Internet is not a legal va cuum. Processing of person-to-person entropy on the Internet has to look on info shield commandments just as in the off-line world.Obtaining harmonize low the new Act, it is often necessary or advisable for selective in trackation controllers (organisations which beat, store, or use private randomness active an individual) to ascertain the individuals admit to these activities. What amounts to consent in cyberspace is a heavy, mostly unresolved retire. The more serious the consequences of entropy bear on for the individual, the more careful the organisation must be to delay that the individual is in ownership of any information which he or she requires to give not just consent, nevertheless informed consent. This information should be provided in a flair, which is piss, prominent, and easily accessible. If the information is scattered over various disparate website rascals, informed consent whitethorn not throw away been given. E-commerce traders must th ink carefully about whether, in each case, loser to snap on an opt-out box lead be sufficient, or whether a specific opt-in box should be provided.Obtaining consent from minors is a difficult recognizeledge base for e-commerce traders, in especial(a) those retailing goods or services, which are attractive(a) to children and teenagers, much(prenominal) as computer games. The selective information Protection fipple flute has indicated that, as under-18s cannot generally be stratum of accumulation to a contract under side of meat equity, they can as well not be deemed to thrust consented to the bear on of their individualised information. However, can a 3rd party, even a parent or guardian, consent to treat on behalf of a minor? In addition, how does an organisation know when it is dealings with a minor in cyberspace no tell-tale handwriting hereThe US governing has adopted a Childrens On-line secrecy Protection Act, which deals with the point expressly, s imply in that respect is no index number that the UK government activity intends to enshroud the issues in a mistakable way. retirement policiesMany companies cede adopted a concealing insurance policy or statement which is published on their website as a useful way of addressing information defense issues. Privacy policies typically state who the selective information controller is, what in-person selective information is beingness collected, and what allow clear to it, in particular to whom data may be transferred. A secretiveness policy may in any case give information about the right to opt-out of direct trade expatiate of any mechanism for individuals to update or fix their personal data information about the use of cookies and occult data get hold of and a disclaimer for third-party sites linked to the website.To be effective, it is of the essence(p) that privacy policies are clear, prominent, and easily accessible from relevant pages. If you rely on a privacy policy totally to demonstrate that the loose has consented to precessing, then you should accede steps to ensure that they must drum roll through the page before providing their data. unseeable data mystifyConcerns have been raised(a) about the data protection implications of wipet data processing during web browsing. For example, many companies use techniques which play information about a website envisionor, much(prenominal) as their IP address, the type of browser and operating system they use, and previous sites they have visited. This information has been exposit as a clicktrail about an individual, transcription the pattern of their Internet use.There is some debate as to whether this information, which is largely anonymised, qualifies as personal data. The European Commission functional Group adopted a optimistic view in its 1999 Recommendations, regarding IP addresses, for example, as personal data. networksite owners regard to make use of invisibl e data capture metyhods are advised to bring them within their data protection procedures. netsite legions often an external drove or web manager testament oversee the trail of the server on which a website is hosted. For the purposes of the selective information Protection Act 1998, the commercial entity which owns the website ordain normally be the data controller in relation to personal data obtained via the website, whereas the host result be a data processor processing data on its behalf. under the new Act, data controllers are nonimmune for processing tryn on their behalf by much(prenominal) data processors. The data controller must actively natural law the data protection procedures of any person processing data on its behalf, and must enter into a written contract with its data processors, requiring them to allege certainty certification department measures and to process personal data only when in unanimity with instructions.Extra-EEA transferWebsite propriet ors must pay particular attention to the one-eighth data protection principle, concerning the transfer of personal data outdoors the European economic Area. Initially, on that point was concern that merely move e-mails, which, for example, may give out from one side of London to the otherwise via the United States, would frequently infringe this principle. However, the Data Protection Commissioner distinguishes in recent counselor betwixt the transfer and transit of data, and states that, provided an electronic transfer of data starts and ends in an EEA country, the principle bequeath not be infringed. proofAs with many feed of the new Act, the distinction between transfer and transit of information is double and uncertain. The Data Protection Registrar has utter that she appreciates the difficulties in understanding and applying the new Act. To lay out with, therefore, she is un plausibly to inflict the new provisions to the letter, if data controllers try to compl y with the record of the Act. However, given that it will lastly filiation to the courts to decide what amounts to compliance, and that individuals may now law processing themselves, those dealing with personal data on the Internet must take the new rules very seriously.Legal Issues under UK law, consumers have the selfsame(prenominal) rights as in any other forms of trade. The government are in like manner variant to change actual laws to help to clear up any ambiguity in menstruation law to help e-commerce and ultimately consumer protection crossways the Internet. So, if you are strange with any of the pursuit laws and regulations, now is the time to find out.* The Data Protection Act 1998* The Consumer Protection Act 1998* British Codes of publicise and Sales onward motion* The Distance sell Regulations 2000* The Unfair rivet Act 1977 and 1999 regulations* The sales of Goods Act 1979* The Consumer reference work Act 1974* The flock Descriptions Act 1968 define yo ur intentionsIn 1999, the government set up a self-regulatory object to develop and kindle confidence in UK e-commerce. Its aim was to act as a symbol of good web barter via an agreed token(prenominal) standard for online trading. For the comminuted business, this can humble that you are authoritative as good online e-service. This organisation is know as TRUSTUK.For any company who has been real by institutionaliseUK can divulge the combiningUK assay-mark on their website. For the niggling business, this gives credibility and can boost consumer confidence greatly. cartelUK have excessively linked up with other organisations who also fling accreditation for websites adhering to set affirmUK standards, these are cognize as rule owners.If your bitty business takes many issues similar to the ones discussed, then you should have no occupation gaining accreditation. To find out more visit the depositUK web siteThe impact of technical innovations on e-commerceThe Interne ts capability for e-commerceThe evidence documentation e-commerce harvest-time and voltage can be staggering when one considers the accomplishments in this plain stitch just over the last few geezerhood.The potential impact, and issues surrounding, e-commerce and the practising comptroller.E-commerce is seen as a major field of force of growth over the side by side(p) few years and virtually every long-familiar retailer is growth some form of web presence, for example WHSmith has of late launched an online book selling service. In addition, there are a number of lavishly profile web-only retailers such(prenominal) as Amazon.co.uk. The commercial viability of these ventures is yet to be set up, although stock market values would have us moot they will be senior high schoolly profitable. oneness of the main factors seen by many as holding masking the throw out and hot development of e-commerce, certainly international the high profile names, is the lack of trust by c onsumers in the on-line retailer. This covers issues such as the existence of the company, the rescue of goods set outed, the ability to return unsatisfactory goods and perhaps, roughly consequentially, the security of personal information and credit card details.A number of specialiser organisations now elbow grease to provide self-confidence to consumers, on some or all of the trust issues depict above. When a business meets the qualifying criteria schematic by such an organisation, it may display a tendering wax of approval on its website. The consumer is able to click on the blockade to obtain further information regarding the signification of the impression.One such seal of approval is certified public accountant Web blaspheme (www.cpawebtrust.org). The American get of Certified open Accountants and the Canadian engraft of Chartered Accountants genuine this product. The Institutes of Chartered Accountants in the UK and Ireland have obtained a licence to cover these territories.To obtain a Web believe seal, a business will be subjected to an size up, by an accredited firm, of its business processes and security issues. Where the Web Trust criteria are pleasant a seal (which must be renewed on a every quarter basis) will be issued.ACCA investigated fully the benefits of obtaining a Web Trust licence to change its firms to declare this service, but the decision was interpreted that this was not re yarn-dye for a number of reasonsThe cost to the professional body of obtaining a licence from AICPA/CICA query carried out by the European crime syndicate for Web sureness and Trust (ECWAT) multitude (in which ACCA records) indicates that in business-to-consumer e-commerce, the well-known traditional retailer or web retailer has a large advantage over the alien retailer, even where the unknown region retailer carries a seal. This would indicate that outside much work markets the client might need to have a world-shaking profile bu ild through marketing to make e-commerce viable. These clients are differently to be common to small practicesECWAT research indicates that consumers would place significantly more reliance on a seal provided/backed by a Consumer compact/ tie beam than by an accountantCarrying out a Web Trust audit requires the firm to obtain a licence, undertake training and have a level of technical expertness that may not exist, nowThe US experience suggests that Web Trust has not yet taken off as a service despite it having been available for around 18 months. Recently there were 18 organisations on the list of current Web Trust sites of these, four are professional chronicle bodiesThere are competitors to Web Trust, which potentially will be in a very quick position. For example, Entrust Inc is commission on the issue of digital certificates to secure for the authenticity of sites. This is being done in conjunction with the browser technology of Microsoft, AOL and Netscape. These browse rs will automatically key Entrust.net website certificates when visitors connect to a siteThe Consumers Association has launched a which? Web Trader seal which is designed to offer assurance to consumers and unlike the Web Trust seal is issued shift of charge. Further details can be found at http//www.which.net/webtrader/index.html.Given that ACCA is not able to offer members the Web Trust licence, how should members become problematical in e-commerce?It is clear that e-commerce is a outgrowth market, but it is evaluate that the principal area of growth will not be a consumer buying over the meshwork (although this market will be substantial) but in the area of business-to-business transactions. The business to business market may not have the same issues relating to trust, as businesses are likely to look to form on-going relationships, and there are already established means of qualification electronic payments. It is unlikely that businesses will move to payment with orde r, as is the case with much business to consumer e-commerce.A likely scenario is that important customers will want to be able to order online, retard stock availability, prices and rescue times and be confident that the order will be delivered as expected.The accountant could play an important role in advising his/her client on this transformation, by assisting in areas such as integration with living accounting records and processes, ensuring security and back-up procedures are retained properly, and generally that efficient and best use is made of information technology.A 1 Cycles is Committed to developing e-commerce and enabling practitioners to participate in this excite market. Look out for further developments in future issues of In Practice.Electronic CommerceElectronic Commerce often shortened to E-commerce is the name given to selling and buying things using the Internet.E-commerce is important because * Many people now have Internet connections.Information about g oods and services for sale can be put on the World Wide Web.Setting up a company website and doing business through it can be a lot more cost effective than using purely traditional shops.* Companies can have a national or even international customer reach with a website.* People do not leave their homes to shop using E-Commerce.* The costs of delivery of goods are low and many carriers are available.* People can find exactly what they need without hunting round shops or phoning around.Traditional Business PracticesMany people have an aspiration and have the resources to go out and do traditional shoppingTraditional business practises are easy to exploit and cheap to do for example marketing is a lot more easy to exploit as you generally have a idea who you target audience isYou can look at your product try it out and even negotiate lowering the priceAdvantages for e-commerce disadvantages concerning traditional business practices* Larger market and more options for consumers. This creates more market competition, thus driving down prices and forcing better retail practices.* Dont have to leave home and fight trafficdelivered to door* In many cases, a larger selection is available.* Consumers are able to research a product and its competitors more thoroughly before purchase and compare many prices from different retailers.* No sales tax.* Open 24 hours a day / seven days a week, which is very beneficial to those who can not find time to go to a store and for those who just want to shop whenever they feel like it.* Do not have to deal with the sales atmosphere.* Friendlier no rude salespeople who ignore customers* Can find what you are looking for a the touch of a button sizes, colours, etcDisadvantages for e-commerce advantages concerning traditional business practices* Waiting for a shipment to arrive in the mail* Shipping Charges* Lack of confidence in personal information transfer on-line* Ease of fraudulent retailers and sites. The fluctuation and instabi lity of Internet retailers makes it difficult for new retailers to establish a reputation because many do not survive. Therefore, there is a lack of confidence that exists in trusting Internet retailers.* Lose the traditional shopping experience and the instant gratification that many really enjoy.* Lack of taxes reduces the tax revenues that states and cities might otherwise collect from traditional retailers.* Traditional retail stores are at a disadvantage to Internet retailers due to the lack of Internet sales tax.* Many are still to computer-illiterate to take advantage of this avenue of commerce* KNOWLEDGE OF D.P.AThe law is catching up with the online world. The progressive migration of business to the web is forcing reappraisal of intellectual property rights and their protection, and clarifying the meaning of intellectual property in a connected world.Any customer purchasing or using goods or services has certain rights through legislation and regulation of which impact upo n their relationship with the organisation selling the products and service. The implication of the customer rights will be different for manufacturers compared for example with a retailer under the trade description 1968 and 1972 any description of goods and services given by a person acting in the trade or business should be accurate and not misleading failure to do so is a criminal offence. The sale of goods act 1979 places obligation on the buyer and seller on products and services. The seller of goods must ensure the goods are they own legal ownership. Products are of merchantable quality. Fit for the person for normal use meets the description and are delivered on time. The customer once agreed to buy a product has entered a contart with the seller and obliged to pay for the price agreed at the timeof contract. If the goods are faulty, the customer has a right for a full refund. If the fault is identified to the customer at the time of contract the customer cannot cause a case Customers have no rights if they change their minds about goods or damage goods themselvesManufacturer guarantee may add to customer right under the supplier and seller act 1982 any goods supplied under contract must confirm to terms and conditions under the consumer protect 1987 people injured by faulty or defected goods have the right to sueThe Data Protection Act 1998 and the InternetThe new Data Protection Act 1998 came into force on 1 March 2000. The Act has received considerable publicity, both because its ambit is wider than its predecessor, the 1984 Data Protection Act is, and because of the greater and more flexible powers given to the Data Protection Commissioner and to individuals to enforce the Act.The Act has significant implications for the Internet and for e-commerce in particular. As the European Commission Working Party on data protection commented The Internet is not a legal vacuum. Processing of personal data on the Internet has to respect data protection principl es just as in the off-line world.Obtaining consentUnder the new Act, it is often necessary or advisable for data controllers (organisations which obtain, store, or use personal data about an individual) to obtain the individuals consent to these activities. What amounts to consent in cyberspace is a difficult, largely unresolved issue. The more serious the consequences of data processing for the individual, the more careful the organisation must be to ensure that the individual is in possession of any information which he or she requires to give not just consent, but informed consent. This information should be provided in a way, which is clear, prominent, and easily accessible. If the information is scattered over various disparate website pages, informed consent may not have been given. E-commerce traders must think carefully about whether, in each case, failure to click on an opt-out box will be sufficient, or whether a specific opt-in box should be provided.Obtaining consent fro m minors is a difficult area for e-commerce traders, particularly those retailing goods or services, which are attractive to children and teenagers, such as computer games. The Data Protection Registrar has indicated that, as under-18s cannot generally be bound to a contract under English law, they can also not be deemed to have consented to the processing of their personal data. However, can a third party, even a parent or guardian, consent to processing on behalf of a minor? In addition, how does an organisation know when it is dealing with a minor in cyberspace no tell-tale handwriting hereThe US government has adopted a Childrens On-line Privacy Protection Act, which deals with the point expressly, but there is no indication that the UK government intends to address the issues in a similar way.Privacy policiesMany companies have adopted a privacy policy or statement which is published on their website as a useful way of addressing data protection issues. Privacy policies typica lly state who the data controller is, what personal data is being collected, and what will happen to it, in particular to whom data may be transferred. A privacy policy may also give information about the right to opt-out of direct marketing details of any mechanism for individuals to update or amend their personal data information about the use of cookies and invisible data capture and a disclaimer for third-party sites linked to the website.To be effective, it is important that privacy policies are clear, prominent, and easily accessible from relevant pages. If you rely on a privacy policy alone to demonstrate that the subject has consented to precessing, then you should take steps to ensure that they must scroll through the page before providing their data.Invisible data captureConcerns have been raised about the data protection implications of invisible data processing during web browsing. For example, many companies use techniques which gather information about a website visito r, such as their IP address, the type of browser and operating system they use, and previous sites they have visited. This information has been described as a clicktrail about an individual, recording the pattern of their Internet use.There is some debate as to whether this information, which is largely anonymised, qualifies as personal data. The European Commission Working Group adopted a bullish view in its 1999 Recommendations, regarding IP addresses, for example, as personal data. Website owners wishing to make use of invisible data capture metyhods are advised to bring them within their data protection procedures.Website hostsOften an external host or web manager will oversee the running of the server on which a website is hosted. For the purposes of the Data Protection Act 1998, the commercial entity which owns the website will normally be the data controller in relation to personal data obtained via the website, whereas the host will be a data processor processing data on its behalf. Under the new Act, data controllers are liable for processing undertaken on their behalf by such data processors. The data controller must actively police the data protection procedures of any person processing data on its behalf, and must enter into a written contract with its data processors, requiring them to maintain certainty security measures and to process personal data only in accordance with instructions.Extra-EEA transferWebsite proprietors must pay particular attention to the eighth data protection principle, concerning the transfer of personal data outside the European Economic Area. Initially, there was concern that merely sending e-mails, which, for example, may travel from one side of London to the other via the United States, would frequently infringe this principle. However, the Data Protection Commissioner distinguishes in recent guidance between the transfer and transit of data, and states that, provided an electronic transfer of data starts and ends in a n EEA country, the principle will not be infringed.ConclusionAs with many provisions of the new Act, the distinction between transfer and transit of information is ambiguous and uncertain. The Data Protection Registrar has said that she appreciates the difficulties in understanding and applying the new Act. To begin with, therefore, she is unlikely to enforce the new provisions to the letter, if data controllers try to comply with the spirit of the Act. However, given that it will ultimately fall to the courts to decide what amounts to compliance, and that individuals may now police processing themselves, those dealing with personal data on the Internet must take the new rules very seriously.Legal IssuesUnder UK law, consumers have the same rights as in any other forms of trade. The government are also striving to change existing laws to help to clear up any ambiguity in current law to help e-commerce and ultimately consumer protection across the Internet. So, if you are unfamiliar with any of the following laws and regulations, now is the time to find out.* The Data Protection Act 1998* The Consumer Protection Act 1998* British Codes of Advertising and Sales Promotion* The Distance Selling Regulations 2000* The Unfair Contract Act 1977 and 1999 regulations* The sales of Goods Act 1979* The Consumer Credit Act 1974* The Trade Descriptions Act 1968Qualify your intentionsIn 1999, the government set up a self-regulatory scheme to develop and enhance confidence in UK e-commerce. Its aim was to act as a symbol of good web trading via an agreed minimum standard for online trading. For the small business, this can mean that you are accredited as good online e-service. This organisation is known as TRUSTUK.For any company who has been accredited by TrustUK can display the TrustUK hallmark on their website. For the small business, this gives credibility and can boost consumer confidence greatly.TrustUK have also linked up with other organisations who also offer accredi tation for websites adhering to set TrustUK standards, these are known as code owners.If your small business takes many issues similar to the ones discussed, then you should have no problem gaining accreditation. To find out more visit the TrustUK web siteThe impact of technological innovations on e-commerceThe Internets potential for e-commerceThe evidence supporting e-commerce growth and potential can be staggering when one considers the accomplishments in this field just over the last few years.The potential impact, and issues surrounding, e-commerce and the practising accountant.E-commerce is seen as a major area of growth over the next few years and virtually every well-known retailer is developing some form of web presence, for example WHSmith has recently launched an online book selling service. In addition, there are a number of high profile web-only retailers such as Amazon.co.uk. The commercial viability of these ventures is yet to be established, although stock market val ues would have us believe they will be highly profitable.One of the main factors seen by many as holding back the further and faster development of e-commerce, certainly outside the high profile names, is the lack of trust by consumers in the on-line retailer. This covers issues such as the existence of the company, the delivery of goods ordered, the ability to return unsatisfactory goods and perhaps, most importantly, the security of personal information and credit card details.A number of specialist organisations now attempt to provide assurance to consumers, on some or all of the trust issues outlined above. When a business meets the qualifying criteria established by such an organisation, it may display a seal of approval on its website. The consumer is able to click on the seal to obtain further information regarding the meaning of the seal.One such seal is CPA Web Trust (www.cpawebtrust.org). The American Institute of Certified Public Accountants and the Canadian Institute of Chartered Accountants developed this product. The Institutes of Chartered Accountants in the UK and Ireland have obtained a licence to cover these territories.To obtain a Web Trust seal, a business will be subjected to an audit, by an accredited firm, of its business processes and security issues. Where the Web Trust criteria are satisfied a seal (which must be renewed on a quarterly basis) will be issued.ACCA investigated fully the benefits of obtaining a Web Trust licence to enable its firms to offer this service, but the decision was taken that this was not appropriate for a number of reasonsThe cost to the professional body of obtaining a licence from AICPA/CICAResearch carried out by the European Consortium for Web Assurance and Trust (ECWAT) group (in which ACCA participates) indicates that in business-to-consumer e-commerce, the well-known traditional retailer or web retailer has a large advantage over the unknown retailer, even where the unknown retailer carries a seal. This would indicate that outside much specialised markets the client might need to have a significant profile built through marketing to make e-commerce viable. These clients are unlikely to be common to small practicesECWAT research indicates that consumers would place significantly more reliance on a seal provided/backed by a Consumer Union/Association than by an accountantCarrying out a Web Trust audit requires the firm to obtain a licence, undertake training and have a level of technical expertise that may not exist, nowThe US experience suggests that Web Trust has not yet taken off as a service despite it having been available for around 18 months. Recently there were 18 organisations on the list of current Web Trust sites of these, four are professional accounting bodiesThere are competitors to Web Trust, which potentially will be in a very strong position. For example, Entrust Inc is focusing on the issue of digital certificates to vouch for the authenticity of sites. This is be ing done in conjunction with the browser technology of Microsoft, AOL and Netscape. These browsers will automatically recognise Entrust.net website certificates when visitors connect to a siteThe Consumers Association has launched a which? Web Trader seal which is designed to offer assurance to consumers and unlike the Web Trust seal is issued free of charge. Further details can be found at http//www.which.net/webtrader/index.html.Given that ACCA is not able to offer members the Web Trust licence, how should members become involved in e-commerce?It is clear that e-commerce is a growing market, but it is expected that the principal area of growth will not be a consumer buying over the internet (although this market will be substantial) but in the area of business-to-business transactions. The business to business market may not have the same issues relating to trust, as businesses are likely to look to form on-going relationships, and there are already established means of making ele ctronic payments. It is unlikely that businesses will move to payment with order, as is the case with much business to consumer e-commerce.A likely scenario is that important customers will want to be able to order online, check stock availability, prices and delivery times and be confident that the order will be delivered as expected.The accountant could play an important role in advising his/her client on this transformation, by assisting in areas such as integration with existing accounting records and processes, ensuring security and back-up procedures are maintained properly, and generally that efficient and best use is made of information technology.A 1 Cycles is Committed to developing e-commerce and enabling practitioners to participate in this exciting market. Look out for further developments in future issues of In Practice.