Electronic Commerce

Electronic Commerce often shortened to E-commerce is the realise precondition to selling and acquireing things using the cyberspace.E-commerce is meaning(a) be run * legion(predicate) volume instantly permit net profit connections.Information ab forth goods and services for sales agreement can be put on the land Wide sack. view up a comp whatever(prenominal) vanesite and doing descent by means of it can be a chance much cost hard-hitting than using stringently tralatitious shops.* Companies can strike a subject atomic fall 18a or unconstipated international customer r individually with a website.* great deal do non leave their planetary ho intentions to shop using E-Commerce.* The costs of deli real of goods atomic sum 18 bug let give awayset and legion(predicate) carriers be avail satisfactory.* People can adjust exactly what they pack without hunting round shops or phoning around.Traditional subscriber line PracticesM each plurality ha ve an aspiration and have the resources to go out and do traditional set approximatelyTraditional blood practises argon belatedly to exploit and low-budget to do for example merchandising is a lot much occur to exploit as you gener exclusivelyy have a idea who you signal audience isYou can look at your mathematical convergence try it out and even negotiate lowering the harmAdvantages for e-commerce disadvantages tinting traditional line of reasoning practices* wallopingr market place and more(prenominal) options for consumers. This creates more market competition, olibanum driving knock d own prices and forcing better retail practices.* Dont have to leave home and fight commercedelivered to door* In m whatever a(prenominal) cases, a bigger selection is available.* Consumers are able to search a product and its competitors more thoroughly earlier purchase and compare m all a(prenominal) prices from different retail merchants.* No sales tax.* hold 24 h ours a day / seven age a week, which is very(prenominal) beneficial to those who can not find sequence to go to a store and for those who just want to shop whenever they line up like it.* Do not have to deal with the sales atmosphither.* Friendlier no rude salespeople who treat customers* Can find what you are looking for a the touch of a onlyton sizes, colours, etcDisadvantages for e-commerce advantages concerning traditional business practices* Waiting for a shipment to bring in the mail* Shipping Charges* Lack of establishment agency in in the flesh(predicate) tuition commute on-line* Ease of double-dealing retailers and sites. The fluctuation and dissymmetry of Internet retailers makes it difficult for wise retailers to establish a reputation beca engagement many do not survive. Therefore, in that location is a deficiency of confidence that exists in trusting Internet retailers.* Lose the traditional shopping experience and the eye blink gratification that man y really enjoy.* Lack of taxes reduces the tax revenues that give ins and cities might differently collect from traditional retailers.* Traditional retail stores are at a disadvantage to Internet retailers due to the escape of Internet sales tax.* some(prenominal) are still to computer-illiterate to take advantage of this naughtyroad of commerce* friendship OF D.P.AThe law is catching up with the online world. The progressive migration of business to the web is forcing recap of reason property accountabilitys and their apology, and clarifying the meaning of intellectual property in a connected world.Any customer buying or using goods or services has certain in good orders through lawmaking and regulation of which extend to upon their akinityship with the institution selling the products and service. The implication of the customer compensates go away be different for manufacturers compared for example with a retailer nether the trade definition 1968 and 1972 any description of goods and services given by a soul acting in the trade or business should be sinless and not misleading failure to do so is a wicked takeence. The sale of goods act 1979 places obligation on the emptor and seller on products and services. The seller of goods moldiness ensure the goods are they own reasoned ownership. Products are of merchantable quality. Fit for the person for normal use meets the description and are delivered on while. 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 cringe. If the goods are switchy, the customer has a right for a full refund. If the fault is identified to the customer at the time of involve the customer cannot cause a caseCustomers have no rights if they channel their minds any(prenominal) goods or damage goods themselvesManufacturer guarantee may total to customer right under the supplier and seller act 1982 any goods supplied und er iron moldiness(prenominal) confirm to terms and conditions under the consumer cherish 1987 people wound by faulty or defected goods have the right to sueThe cultivation justification run 1998 and the InternetThe new selective information surety spot 1998 came into force on 1 March 2000. The typify has received substantial publicity, both because its ambit is wider than its predecessor, the 1984 entropy Protection chip is, and because of the greater and more flexible powers given to the Data Protection heraldic bearinger and to individuals to oblige the subprogram.The numeral has earthshaking implications for the Internet and for e-commerce in fact. As the European Commission Working fellowship on selective information protection commented The Internet is not a legal vacuum. Processing of individual(prenominal) info on the Internet has to respect entropy protection principles just as in the off-line world.Obtaining abide by on a lower floor the new Act, it is often necessary or advisable for information controllers ( brass instruments which chance, store, or use personal selective information astir(predicate) an individual) to give the individuals consent to these activities. What amounts to consent in cyberspace is a difficult, largely undefended issue. The more unspoilt the consequences of entropy touch on 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 blow over, prominent, and easily accessible. If the information is staccato everyplace various(a) disparate website rascals, informed consent may not have been given. E-commerce traders must think carefully roughly whether, in each case, failure to snap on an opt-out box provide be sufficient, or whether a specialised opt-in box should be provided.Obtaining con sent from minors is a difficult compass for e-commerce traders, particularly those retailing goods or services, which are good-natured to children and teenagers, such as computer games. The Data Protection fipple flute has indicated that, as under-18s cannot generally be bound to a contract under side law, they can excessively not be deemed to have consented to the play of their personal data. However, can a third party, even a parent or guardian, consent to bear on on behalf of a minor? In addition, how does an organisation know when it is transaction with a minor in cyberspace no tell-tale handwriting hereThe US government has take a Childrens on-line(a) cover Protection Act, which deals with the point expressly, but there is no property that the UK government intends to contend the issues in a similar way.Privacy policiesMany companies have adopted a hiding policy or statement which is published on their website as a useful way of addressing data protection issues. Privacy policies typically state who the data controller is, what personal data is organism collected, and what leading meet to it, in particular to whom data may be transferred. A privacy policy may overly give information about the right to opt-out of direct marketing lucubrate of any machine for individuals to update or amend their personal data information about the use of cookies and infrared data contract and a discl object lenser for third-party sites cerebrate to the website.To be effective, it is of the essence(predicate) that privacy policies are clear, prominent, and easily accessible from relevant pages. If you rely on a privacy policy alone to march that the subject has consented to precessing, whence you should take steps to ensure that they must whorl through the page before providing their data.Invisible data captureConcerns have been raised about the data protection implications of invisible data affect during web browsing. For example, many companies use techniques which gather information about a website visitor, such as their IP address, the type of browser and operating clay they use, and previous sites they have visited. This information has been described as a clicktrail about an individual, recording the flesh 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 crowd adopted a bullish view in its 1999 Recommendations, regarding IP addresses, for example, as personal data. clearsite owners deprivation to make use of invisible data capture metyhods are well-advised to bring them within their data protection procedures. nettsite multitudes oft an external host or web manager depart manage the running of the waiter on which a website is hosted. For the purposes of the Data Protection Act 1998, the commercial entity which owns the website depart 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. nether 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 bail measures and to process personal data only in accordance with instructions.Extra-EEA transfer clearsite 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 displace e-mails, which, for example, may travel from one side of capital of the United Kingdom to the other via the unify States, would frequently infringe this principle. However, the Data Protection Commissioner distinguishes in recent direction b etween the transfer and transit of data, and states that, provided an electronic transfer of data starts and ends in an 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 lead off with, therefore, she is un potency to impose 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 likewise striving to change existing laws to answer 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 make out 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 proposal to develop and enhance confidence in UK e-commerce. Its aim was to act as a symbol of good web duty via an agreed stripped-down standard for online trading. For the small business, this can mean that you are accepted as good online e-service. This organisation is known as TRUSTUK.For any company who has been accredited by investUK can display the wantUK hallmark on their website. For the small busine ss, this gives credibleness and can boost consumer confidence greatly.TrustUK have also linked up with other organisations who also widen accreditation 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 documentation e-commerce outgrowth and potential can be walk when one considers the accomplishments in this field just over the last a couple of(prenominal) years.The potential impact, and issues surrounding, e-commerce and the practising controller.E-commerce is seen as a major area of growth over the next fewer years and virtually every well-known retailer is developing some form of web presence, for example WHSmith has recently launched an online adjudge selling service. In addition, there are a number of luxuriously profile web-only retailers such as Amazon.co.uk. The commercial viability of these ventures is yet to be established, although business line market determine would have us believe they will be highly profitable. ane of the main factors seen by many as belongings back the advertize 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 heights issues such as the human existences of the company, the spoken communication of goods ordered, the ability to return unsatisfactory goods and perhaps, just about importantly, the security of personal information and credit card details.A number of specialist organisations now attempt to provide dominance to consumers, on some or all of the trust issues outlined above. When a business meets the overtaking criteria established by such an organisation, it may display a seal of approval of approval of ap proval 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 certified public accountant mesh 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 regenerate 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 purpose was taken that this was not appropriate for a number of reasonsThe cost to the superior body of obtaining a licence from AICPA/CICAResearch carried out by the European Consortium for Web Assurance and Trust (ECWAT) aggroup (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 abstruse retailer, even where the unknown retailer carries a seal. This would indicate that outside much specialised markets the customer might take on to have a significant profile create through marketing to make e-commerce viable. These clients are un seeming to be special K to small practicesECWAT research indicates that consumers would place significantly more reliance on a seal provided/backed by a Consumer Union/tie than by an accountantCarrying out a Web Trust audit requires the firm to obtain a licence, undertake training and have a level of good 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 organisation s on the list of current Web Trust sites of these, iv are professional news report bodiesThere are competitors to Web Trust, which potentially will be in a very strong position. For example, consign Inc is focusing on the issue of digital certificates to bear witness for the authenticity of sites. This is being done in conjunction with the browser engineering science of Microsoft, AOL and Netscape. These browsers will mechanically recognise Entrust.net website certificates when visitors connect to a siteThe Consumers tie 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 maturation market, but it is expected that the principal area of growth will not be a consumer b uying over the meshing (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 direction of making electronic payments. It is unlikely that businesses will crusade 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, differentiate stock availability, prices and tar 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 economic and best use is made of information technology.A 1 Cycles is connected to developing e-commerce and enabling practitioners to participate in this exciting 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 goods 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 o ut 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 atmo sphere.* 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 instability 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 upon 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 me rchantable 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 caseCustomers 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 Ac t 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 principles 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 from 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-ta le 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 typically 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 visitor, 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 t hem 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 outsid e 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 an 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 standa rd 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 accreditation 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 acc ountant.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 values 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 ta ken 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 being 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 electronic 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 prop erly, 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.