In view of the global economic slump, the slow rise in basic wages and the low market demand for manpower, a number of people have chosen to create online stores as a business to alleviate the downturn. A survey carried out by the Institute for the Information Industry, a non-governmental organization which was established to support the development and applications of the information industry in Taiwan, indicated that the Taiwan’s online shopping turnover market in 2013 will exceed NT$500 billion. Comparing with the bricks-and-mortar retailer or “physical” shores, the relatively low threshhold to start-up cost of an online store is one of the main reasons why the e-store has been a flourishing business in recent years.
With the prosperous horizon of the e-business, various legal issues will inevitably also arise between the e-stores and the consumers. In Taiwan, the possible laws that an operator of the e-store could fall foul of when running an e-business embrace comprise the Civil Code, the Criminal Code, the Trademark Act, the Copyright Act, the Consumer Protection Act, and the Personal Information Protection Act.

For example, Article 29 of the Personal Information Protection Act which took effect on October 1, 2012 regulates that non-governmental agencies should be liable for damages and compensation caused by illegal collection, processing and using of personal information, or other manners of infringement on the rights of a third party, unless the non-governmental agencies can prove that the damages are caused unintentionally or not negligently. According to the article, if the operator of the e-store illegally downloads or uses software or software containing a virus, causing the leaking of a consumer’s personal information either intentionally or negligently, the operator of the e-storeshould be liable for damages and compensation arising from his or her behavior.

Taking another example such as copyright infringement, if an e-store operator, who lacks awareness of anti-piracy legislation mistakenlyuploadspiratedsoftware for commercial use or inventory management purposes, or fails to recognize that the software installed is not genuine, then accordingto Article 88 of the Copyright Act, the negligence of the operator of the e-store will constitute the copyright infringement and shall bear the liability for damages.

Among the six items of legislation, the provisions listed below are the most relevant and important in the establishment and running of an e-business in Taiwan. To create an image of an honest, trustworthy e-business operator, the operator should research carefully and spend the time to become familiar with those provisions before opening an e-store. As is well known, claiming iignorance of the law is no defense. Through understanding and following the laws it is possible to limit the operators’ liabilities and cut down on questions and customer service issues.

Civil Code

● Specify to the customer the handling time. If the operator of the e-store gives a delivery timescale for the delivery of the items, he or she is legally responsible for any delay in delivery. (With reference to Article 229)
● Make sure the items sold are not defective. The operator of the e-store shall warrant that the items sold are free from any defect in quality which may destroy or impair its value, or ordinary efficacy. If a defect exists, a clear and comprehensive indication of the defect should be listed on the items before customers make offers or submit bids. (With reference to Article 354)
● The operator of the e-storeis responsible by law to get the item sold safely to the customers. Before the customers receive the items sold, the operator of the e-store must take overall responsibility for the risk of loss or damage to the items. (With reference to Article 373)
Criminal Code
● When writing feedback or giving an evaluation on the e-trade dealings, do not use negative statements to avoid committing the offense of the defamation and insult. (With reference to Article 310)
● Describe the features and condition of the item, such as brand, model number, specification, size, usage, without any exaggeration, to avoid committing the offense of fraud. (With reference to Article 339)
● The operator of the e-store shall deliver items within any time periods indicated. However, if a situation beyond the operator’s control renders the item not deliverable, the operator shall make commercially reasonable effort to notify the customers and make a refund to avoid committing the fraudulent transactions. (With reference to Article 339)
Trademark Act
● Do not sell items from unknown sources, particularly those which may be reasonably suspected as being counterfeit and pirated items. Do not use a registered trademark of others on the operator’s website to avoid misleading the source of the goods and causing the confusion of the public. (Reference to Articles 68-70)
Copyright Act
● Do not sell copyright-infringing materials or items from unknown sources.
● If the operator of the e-store uses materials (articles, graphics, pictures or data and so on) on the web site that he or she did not create, he or she must get permission from the owner. Without permission from the owner or if the operator is not sure whether or not the materials are copyrighted, do not use them as promotional materials to prevent violating the Copyright Act. (Reference to Article 3)
● The operator of the e-store cannot copy, download, share, or install multiple copies of the copyrighted software onto personal or work computers without suitable authorization for commercial or inventory management purposes, which is software piracy and is committing infringement of copyright. (Reference to Articles 87-V & 91)
● It is an infringement of copyright if an operator of the e-store without the consent of the owner of the copyright, imports the copyrighted items into Taiwan for the purpose of selling or distributing on the web site. (Reference to Article 87-IV)
Personal Information Protection Act
● An operator of the e-store shall keep the consumer’s personal information (name, birth date, ID number, etc.) confidential. Without the consent of the customer, the operator of the e-store shall not provide the customer’s personal information to a third party. (Reference to Article 19)
● If a deletion request is raised by a customer, the operator of the e-store should delete the customer’s personal information from the database immediately and report the deletion result to the customer. (Reference to Article 19)
● If a customer or a recipient refuses to receive an unsolicited e-mail from the e-business, the operator shall take an appropriate action to stop sending such unsolicited e-mails to the customer or the recipient. (Reference to Article 20)
Consumer Protection Act
● The items or services provided by the operator of the e-store shall meet and comply with the contemporary technical and professional standards of the reasonably expected safety prior to the items sold being launched into the market, or at the time of rendering services. (Reference to Article 7)
● The terms and conditions used in the standard contracts by the operator of the e-store shall be based on the principles of equality and reciprocity. If the terms and conditions violate the principle of good faith and are conspicuously unfair to consumers, they shall be null and void. (Reference to Articles 11 & 12)
● Consumers, if unwilling to purchase the items, may return the items or notify in writing the operator of the e-store to terminate the deal within 7 days from receipt of the goods for any (or no) reason and without paying any expenses or the purchase price. (Reference to Article 19)