Common Disputes Arising in E-commerce Transactions
With the development of information technology, e-commerce is gradually becoming a new trend in the Vietnamese economy. However, there are also potential risks alongside the rapid growth in the number of e-transactions. Some noticeable issues include the lack of protection for consumers’ rights when engaging in e-commerce transactions and the difficulties in managing customer information. These issues can lead to disputes during e-commerce transactions. Therefore, in this article, TNTP will provide knowledge about the common disputes that arise in e-commerce transactions to identify the risks involved.
1. What are Disputes in E-commerce Transactions?
According to Clause 1, Article 3 of Decree No. 52/2013/ND-CP on e-commerce, e-commerce activities in Vietnam are defined as “the conduct of part or the whole of the process of commercial activity by using electronic means connected to the Internet, mobile telecommunications networks, or other open networks.” Thus, an e-commerce transaction involves conducting part or all of the processes of transactions for profit by using electronic means connected to the Internet, mobile telecommunications networks, or open networks such as websites and applications.
Disputes arising from e-commerce transactions are conflicts, disagreements, or disputes regarding rights and obligations between individuals and organizations participating in transactions established through the aforementioned electronic means. Common e-commerce transaction disputes include disputes about issues in the process of establishing and executing e-commerce transactions, and disputes related to the protection of consumer rights, etc.
2. Common Disputes in E-commerce Transactions
● Disputes Regarding Acceptance of Online Contract or via Application: E-commerce contracts on various websites and apps are often presented in the form of notifications, requiring users to select “Agree” or “Disagree.” On some platforms, to buy products or use services, users need to select the “Agree”, “Accept”, or “Buy” button which means agree with the pre-prepared terms of service from the service provider. Is this considered as the user accepting the contract with those terms? Given the confirmation of purchase according to the pre-prepared terms and the remote nature of the transaction, consumers are often in a passive and weaker position as they do not have the right to negotiate. Therefore, disputes related to the acceptance of e-contracts frequently arise.
● Disputes Related to Electronic Signature and the Ability to Confirm the Signing Party through Electronic Signature: An electronic signature is information accompanying data in the form of text, images, videos, etc., created by electronic means to identify the signing party and confirm their approval of the content of the document. Electronic signature is used in electronic transactions and must fulfill the functions of a “traditional signature.” However, the use of electronic signatures has many risks compared to “traditional signatures” related to the security of content and the authenticity of the electronic signature. Disputes arising from electronic signatures are often related to determining the legality of the signature and the signing party in the contract.
● Disputes Regarding Contract Content: When entering into e-commerce contracts, customers often have to use model contracts drafted by the seller, which may contain many clauses favourable to the seller, and affect the rights of customers. Additionally, errors during data entry on electronic platforms can pose risks for both parties. Because speed is one of the features of e-commerce transactions, errors such as incorrect pricing, wrong items, or incorrect quantities frequently occur and may not be rectified in time. Therefore, disputes related to contract content due to server errors or the lack of caution in reviewing the terms in model contracts by users are very common.
● Disputes Regarding the Quality of Goods or Services Not Same as Agreements: When conducting e-commerce transactions, especially online shopping, disputes often arise when goods or services provided do not match the type, design, brand, technical specifications, or other requirements previously agreed upon by the parties. This is one of the most common disputes because the feature of e-commerce transactions is that it depends entirely on information provided by sellers such as the characteristics of products and services, which buyers cannot check or assess directly in advance.
● Disputes Regarding Delivery Time, Handover, and Installation of Goods: In e-commerce transactions, the delivery of goods is often handled by third parties, such as delivery service companies. Violations may arise due to delivery or handover not occurring within the stipulated time or goods being damaged, etc. Determining responsibility and applying penalties for violations in the transportation, delivery, and installation of goods can be complex.
● Disputes Related to Protecting Users’ Personal Data: When conducting e-commerce transactions, buyers are required to provide certain information such as phone number, credit card number, bank account number, address, email, etc. Disputes related to consumers’ data often arise from the leakage of this information to third parties. The data collector may use consumers’ information for online advertising purposes or sell this information to on-demand individuals or organizations, or even commit fraud using consumers’ bank account information.
The above is TNTP’s article on “Common Disputes Arising in E-commerce Transactions” TNTP hopes this article is helpful to readers.
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