E-commerce laws and their challenges in Pakistan

The laws are in place but need to be implemented

The regulation of e-commerce in Pakistan is still in its infancy, with government efforts to develop a framework for e-commerce activities only recently gaining momentum. The legal issues related to online transactions in Pakistan include consumer protection, dispute resolution, and intellectual property rights.

In recent years, the government has taken steps to address these legal issues by establishing the E-Commerce Policy Framework, which aims to provide a comprehensive framework for e-commerce activities in Pakistan. The framework includes provisions for consumer protection, dispute resolution, and intellectual property rights.

However, the lack of a dedicated e-commerce law, coupled with a lack of enforcement, continues to be a major challenge for the regulation of e-commerce in Pakistan. The government has also launched an e-commerce portal, which aims to provide a platform for e-commerce issues.

Online e-commerce in Pakistan is prone to various forms of fraud. This includes phishing scams where fraudsters send fake emails or messages pretending to be from legitimate e-commerce websites or banks to trick users into revealing sensitive information like passwords and credit card details. Another common fraud is the sale of counterfeit products, often at lower prices but of low quality. In addition, there are fake websites that are designed to look like legitimate e-commerce sites to trick users into entering personal and financial information or making purchases.

Payment fraud is another issue where fraudsters trick users into making payments through fake payment gateways or steal payment information during the transaction process. Shipping fraud is also prevalent where fraudsters trick users into paying for goods that are never delivered or are significantly different from what was advertised.

The regulation of e-commerce in Pakistan is still in its early stages and there are several legal issues related to online transactions that need to be addressed. Consumer protection, dispute resolution, and intellectual property rights are among the key areas that need to be addressed to foster the growth of e-commerce in Pakistan. The government has taken steps to address these issues, but more needs to be done in terms of enforcement and implementation of the laws and regulations.

To safeguard against online e-commerce frauds in Pakistan, it is advisable to only shop from reputable and trusted websites, to be cautious of suspicious emails and messages, to use secure payment methods like credit cards with fraud protection, and to keep records of all transactions.

To summarize, the legal framework in Pakistan for countering e-commerce fraud involves multiple laws and regulations. The Electronic Transactions Ordinance (ETO) of 2002 governs the use of electronic transactions in the country and provides a legal framework for e-commerce activities. It includes provisions for protecting personal data, safeguarding against hacking and unauthorized access, and preventing fraud.

Additionally, the Information Technology Act of 2000 provides a legal framework for the use of information technology in Pakistan and includes provisions for protecting electronic records, digital signatures, and intellectual property rights, as well as measures to prevent cybercrime and fraud.

The Consumer Protection Act of 2019 protects consumers against fraud and other forms of exploitation in e-commerce transactions. The Federal Investigation Agency (FIA) Cyber Crime Wing is the government agency responsible for investigating and prosecuting cybercrime, including e-commerce fraud, in Pakistan. These laws and regulations are enforced by various government agencies and individuals, and businesses need to report any incidents of e-commerce fraud and follow best practices for protection.

The e-commerce consumer court in Pakistan is a specialized forum established to address disputes between consumers and e-commerce businesses. The court was created in order to provide consumers with a more accessible and efficient mechanism for resolving disputes, particularly in the rapidly growing online shopping industry.

The court hears cases related to issues such as false advertising, product defects, delivery problems, and payment disputes. Consumers can file a complaint with the court, which is then reviewed by a judge who will make a ruling based on the evidence presented. The court has the power to order the e-commerce business to rectify the situation, compensate the consumer, or take other necessary actions to resolve the dispute. The decision of the court is binding on the parties involved and enforceable through the courts.

Overall, the e-commerce consumer court in Pakistan serves as an important tool for protecting the rights of consumers and promoting fairness and transparency in the online shopping industry. It provides a quick, cost-effective and accessible means for resolving disputes, and helps to build trust between consumers and e-commerce businesses.

The implementation of the aforementioned laws has been slow, and enforcement remains a challenge. Dispute resolution in e-commerce is another important aspect of the regulatory framework.  Intellectual property rights in e-commerce are also a concern in Pakistan. The Copyright Ordinance 1962 and the Trademarks Ordinance 2001 provide a framework for the protection of intellectual property rights in e-commerce. However, the enforcement of these laws remains a challenge.

Pakistan’s legal and regulatory framework for e-commerce is still in the process of development, and there are currently no specific laws governing the sale of goods and services over the internet. Additionally, the lack of a robust infrastructure for online payments and the limited availability of secure shipping options make it difficult for e-commerce businesses to operate in Pakistan. Furthermore, the country’s weak intellectual property laws also pose a challenge for e-commerce businesses, as they are not well-equipped to protect against intellectual property infringement.

The regulation of e-commerce in Pakistan is still in its early stages and there are several legal issues related to online transactions that need to be addressed. Consumer protection, dispute resolution, and intellectual property rights are among the key areas that need to be addressed to foster the growth of e-commerce in Pakistan. The government has taken steps to address these issues, but more needs to be done in terms of enforcement and implementation of the laws and regulations.

Adam Jabbar
Adam Jabbar
The writer is an Advocate of the High Court. He specializes in Cyber and Technology Laws, advising various local and international tech firms, government ministries, and international organizations. He can be reached at [email protected]

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