Kuwait Ecommerce Law (Essay Sample)
Paper instructions:
1.What is E contracts- commerce / Formation of the E contracts / The legality of the E-contracts
2.How can law generally provide Consumer protection in E-contracts? And in Kuwait "
3.A comparative study between Kuwait electronic transaction Law and any of the GCC electronic transaction Law? Similarity / differences
4.the importance of personal data and how the Kuwaiti law protect that data
5.How the Kuwaiti law regulates the Electronic Signature
6.How the Kuwaiti law regulates Electronic payment:
E-contracts, E-commerce / Formation of the E contracts / the legality of the E-contracts
E-commerce is any form of buying and selling through the internet or computer networks with or without physical contacts. The invention of electronic technology has changed the way people communicate, do business, learn, and work. Today, consumers can shop in the comfort of their homes and can source products from sellers across the world. The change gives consumers the convenience of buying goods and delivering them to their doorsteps (Al-Mesad 2018, pp. 9). The buyers' and sellers' agreements in this arrangement are known as E-contracts. Thus, e-contracts are the agreements that buyers and sellers enter into when buying and selling on the internet or other computer networks
Formation of Electronic Contracts
Electronic email is the system where simple letters, pictures, sounds, and videos are exchanged from an author to one or several recipients via the internet or another computer network. An email is a digital version of traditional mail where the sender is enabled to send information, attack documents, and send the digital files to a recipient. Contracts formed this way resemble traditional ones. The sender of the email proposes an arrangement to the recipient. The recipient reviews the conditions and accepts them. The parties negotiate the contract terms by exchanging emails until they reach an agreement then transact. Therefore, the contract has an offer and acceptance to be valid.
KUWAIT'S E-COMMERCE LAWS
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Kuwait's E-Commerce Laws
The private sector in Kuwait is capitalizing on the broad penetration of the internet in the country to create online markets. Today, demand for online services is growing, and e-business root is taking root in the country. As a result, the government has passed the Electronic Transaction Law, 20 of 2014, and subsequent legislation and regulations to regulate the sector. The guides in the formulation of online contracts define their legality; protect personal data, among other vital provisions necessary in the industry. Thus, the digital revolution has led to new opportunities for traders to use, and the government has provided the legal framework to help the sector thrive.
E-contracts, E-commerce / Formation of the E contracts / the legality of the E-contracts
E-commerce is any form of buying and selling through the internet or computer networks with or without physical contacts. The invention of electronic technology has changed the way people communicate, do business, learn, and work. Today, consumers can shop in the comfort of their homes and can source products from sellers across the world. The change gives consumers the convenience of buying goods and delivering them to their doorsteps (Al-Mesad 2018, pp. 9). The buyers' and sellers' agreements in this arrangement are known as E-contracts. Thus, e-contracts are the agreements that buyers and sellers enter into when buying and selling on the internet or other computer networks.
E-commerce and E-contracts are similar to the conventional contracts that people enter into when buying goods and services for specific consideration. The difference is that E-contracts take place through digital platforms. These types of business opportunities are gaining traction as more regions of the world gain access to the internet. E-business is now making it easy for sellers to reach their consumers without physical encounters or the use of the middleman. The contracts that emerge through such businesses are known as E-contracts. They are formed when two or more individuals use electronic means, such as computer software or email, to strike an agreement for selling or buying a product. Electronic contracts are legally binding agreements formed wholly or partly through the internet or computer networks. The standard means of executing an electronic contract are electronic mail system (email), website trading (clickwrap), and electronic data interchange (EDI).
Formation of Electronic Contracts
Electronic email is the system where simple letters, pictures, sounds, and videos are exchanged from an author to one or several recipients via the internet or another computer network. An email is a digital version of traditional mail where the sender is enabled to send information, attack documents, and send the digital files to a recipient. Contracts formed this way resemble traditional ones. The sender of the email proposes an arrangement to the recipient. The recipient reviews the conditions and accepts them. The parties negotiate the contract terms by exchanging emails until they reach an agreement then transact. Therefore, the contract has an offer and acceptance to be valid.
Electronic contacts are also formed through website trading. It is the most common type of electronic business in which products for sale are advertised on websites, and buyers click on icons to show interest in a particular product, their preferred payment system, and delivery method. The buyer is then presented with a form that has the terms of the agreement. If they agree, they pay for the goods and advise on the mode of delivery. If they disagree with the conditions, they decline the offer. Thus, the electronic formation of contracts is similar to those formed through post or telex and valid.
Consumer protection in E-contracts in Kuwait
The rapid increase in the use of e-commerce raises concerns over consumer protection. The advancements expose consumers to unethical business practices and unfair trade. In these transactions, the consumer has no way of verifying the seller's authenticity and places them at greater risk of being conned by fraudsters. Consumers are also faced with unfair clauses, such as exemption clauses that limit the trader's liability. Therefore, government regulation needs to protect the rights of consumers.
Kuwait passed the consumer protection law (39 of 2014) in 20144 to protect consumers from the dangers of electronic contracts. The law's 37 articles seek to safeguard consumer rights and create instruments of control that can defend the rights. The law establishes a committee that makes the policies for consumer protection. It has to develop plans and programs to protect and promote consumer rights. It is to provide society with a reporting platform for violation of rights and then investigate the validity of the claims. The committee also has the responsibility of cooperating with consumer protection bodies in the region and abroad.
The law under Article 7 gives the committee the authority to take action against violators of the law. The power can access and examine documents from government and non-government bodies in the country. The regulations issued in September 2014 guide the committee on the limitations of their authority.
A comparative study between Kuwait electronic transaction Law and any GCC electronic transaction Laws? Similarity / differences
The United Arab Emirates (UAE) and Kuwait are the Gulf Cooperation Council (GCC) nations with electronic transaction laws. Their laws are similar in some aspects and different in others. The (UAE) does not have a single specific law on E-contracts, as is the case in Kuwait. However, the applicable law in the country is Civil Transaction Law that Dubai continues to improve as the society changes. The said rules share similarities in the definition of a contract. The main provisions in the two directions are that there must be an offer, acceptance, and communication of the same. The method of communication cannot invalidate a contract between two people. The laws of evidence in the two countries define the type of document admissible in a court of law as evidence.
The Kuwait ET laws have direct provisions for electronic documents and electronic signatures. However, Dubai does not have a national law capturing all aspects of electronic law. It has local regulations, such as Law number two of 2002 Concerning Electronic Transactions and Commerce, to guide people on electronic documents and signatures. It explains that a digital signature is adequate for transacting businesses if parties agree. The law of evidence was also amended in 2006 to allow digital documents and signatures to existing.
The importance of personal data and how the Kuwaiti law protects that data
Personal data is critical information about a natural person that is valuable in all spheres of life in the modern world. Today, there is a competition to collect data from people and use it in understanding consumers better. Although businesses collect the information as part of their business transactions, they can sell it to third parties. Therefore, opportunities and skills for retrieving various data types are evolving first, and companies are recruiting the best workers in these fields to help them maximize the business opportunities emerging with data mining. However, it is essential to handle private data with care lest it harms the business or the workers. It is also critical to avoid violating the rights and freedoms of individuals when processing personal data (Central bank of Kuwait (CBK)). Thus, personal data is essential for business, but it is necessary to handle it with care to avoid violating the liberties of individuals.
The Kuwaiti ET law has provisions that protect personal data. The law prohibits the government and non-governmental bodies from accessing, disclosing confidential information registered in their systems. It imposes responsibilities on organizations that collect personal data to ensure its safety. The law dictates that the organization requires the permission of the person or a court order to release the information to a third party. The court order must specify the reason for the collection
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