INFORMATION LAW Sabino Carbajal Flores 2018

ELECTRONIC COMMERCE

1. INTRODUCTION

E-commerce is the process of buying, selling, or exchanging goods, services, and

information through the network (Internet). It represents a wide variety of possibilities
to acquire goods or services offered by suppliers in various parts of the world.

Online shopping for goods and services can be appealing due to the
ease and convenience to carry them out. Transactions or exchange of products in the
more remote antiquity gave way to the emergence of money and air routes followed
the caravans of camels and the ancient navigation routes up to the present day,
in which the variables of space and time have practically disappeared, so any
a person of determined time and space can buy or sell products from
any other part of the world in just an instant and with a single internet connection. From
there are different types of e-commerce: according to the criteria of
the participants involved in the e-commerce transaction can be
distinguish into 3 basic categories: between B2B companies (Business to Business), between
B2C (Business to Consumer) companies and between C2C consumers
(Consumer to Consumer). Likewise, E-commerce has been evolving its
web presence and one of its greatest advances has occurred in the last decade and
we will analyze its stages of evolution and how it has been expanding up to the present.

However, there are also advantages and disadvantages when considering...

introducing a company to the Digital World, it should be taken into account that we are in
the information age and that every individual has access to information and can access it
to our products that we offer, all of this through the network.

2. DEFINITIONS

The Organization for Economic Cooperation and Development (OECD, 2014) indicates the
The following definition: 'E-commerce' refers to those transactions
commercial and financial transactions carried out through processing and transmission of
information, including text, sound, and image. Such information may be the object
principal of the transaction or a related element to it.

The European Commission in 1997 proposed the following definition: E-commerce is

the one that allows doing business electronically and is based on the
electronic treatment and data transmission, understanding texts, sounds and
video. It covers multiple and diverse activities, corresponding to the trade of goods and
services, the online release of numerical information, electronic transfers
of funds, electronic stock activities, knowledge transfer
electronics, commercial auctions, design and engineering development, markets
INFORMATION LAW Sabino Carbajal Flores 2018

online, public markets, direct sales to consumers and the provision of

after-sales services. It concerns both products (consumer goods, equipment
specialized doctor, for example) as well as services (information services,
financial services, etc.), traditional activities. (Health services,
teaching, etc.) and new activities (virtual shopping centers, for example).
(Consulting A., 2014).

Personal Definition. E-commerce is a form of trade where

the buying and selling of products and the offering of services are carried out through
electronic or digital media such as the internet and other computing media, is a
virtual market that has no borders or time limits and does not have a location
determined, because it is found in cyberspace.

3. CHARACTERISTICS

Low cost. One of the most well-known characteristics of the Web as a distribution channel.
they are the low costs of its use. Placing information on the Internet can be very cheap,
especially when compared to advertising campaigns (printing brochures and their shipment)
by email or personal contact with potential clients). However, one must take into account
calculate the delivery cost of the products. A system has not yet been developed for
distribution and logistics that allow for providing a personalized, fast, and cheap service. This
It is the job of each company, depending on the type of product and the scope it projects.
to have
Uncontrolled channel. E-commerce is a new uncontrolled channel. It is, by
so, an opportunity for new companies wanting to enter a sector where the
traditional distribution channels are controlled by a few companies. Thus, not only
all national clients (or within the companies' operating range) are reached
competitors), but also allows showing the offer to a large audience all over the
world.

Source of information. Users use the Web to acquire information, one of the
pillars of the new economy. By allowing internet users to do so from their homes
compare prices and features of products, will tend to focus less on advertising and
more on objective criteria. However, the large volume of information available to the
consumer can lead to price wars in certain sectors. This is a
advantage for manufacturers or distributors competing on price and quality, but not for
those who develop a brand or service prioritizing advertising.

Web intermediaries. The nature of the Internet, and more specifically of the Web, offers to the
consumer the possibility of accessing the product or service directly without going through
intermediaries. This situation has raised the possibility that intermediaries may reach
disappear and commercial actions are direct. However, the disappearance of the
Intermediaries will take time, as they are the ones who have direct contact with the
end customers, and currently only a small portion of customers use Web as
INFORMATION LAW Sabino Carbajal Flores 2018

commercial platform. For now, customers will continue to turn to intermediaries

traditional or interactive, because usually these represent several manufacturers, and
since customers need various options, it is more appropriate and straightforward to use the service of
the intermediaries. Only those intermediaries that do not add value with their
service and another type of virtual intermediary will emerge: the cyber mediator

Global reach. The transactions that are carried out cross territorial boundaries,
cultural and national with an effectiveness that traditional markets do not possess;
thus having a reach equivalent to almost the size of the global online population.

Information density. The amount of information is always available for the

that participate in the e-commerce market, whether customers, suppliers, and
sellers. Likewise, the information is always updated and consumers
you can find the best option in terms of prices and quality quickly,
simple and effective.

4. LEGAL FRAMEWORK.

The Bolivian legislation that somehow regulates electronic commerce is the

following:

Commercial Code
Decree Law No. 14379 of February 25, 1977, according to Article No. 1 regulates the
legal relations arising from commercial activity.
In cases not expressly regulated, the norms of this will be applied by analogy.
Code and, failing that, the provisions of the Civil Code.

Tax Code
Article No. 1 (Scope of Application) of this law establishes the principles,
institutions, procedures and the fundamental rules that regulate the regime
legal of the Bolivian tax system and are applicable to all taxes of a character
national, departmental, municipal, and university.

Regulatory Resolution of Directory No. 0-0044-1 3 - SIN

This Normative Resolution of the Directory according to article 1 aims to
regulate tax aspects in the sale of goods through electronic commerce,
within the national territory. Its scope is to the sales operations of goods
through e-commerce carried out by individuals or
legal.

General Law on Telecommunications Information and Communication Technologies

(Law 164)
Law of August 8, 2011 according to article No 1 aims to establish the
general registry of telecommunications and information and communication technologies of
INFORMATION LAW Sabino Carbajal Flores 2018

postal service and the regulatory system, in the process of living well guaranteeing the
individual and collective human right to communication with respect to plurality
social, legal, political, and cultural economics of all Bolivians
Bolivians, the indigenous nations and peoples, rural communities and communities.
intercultural and Afro-Bolivian of the Plurinational State of Bolivia

Regulation of Law No. 164

This regulation to Law No. 164 of August 8, 2011, for development
Information and Communication Technologies, from November 13, 2013, according to
Article No 1 aims to regulate access, use, and development of the
Information and Communication Technologies - ICT, within the framework of Title IV of the Law.
No. 164, of August 8, 2011, General Telecommunications, Technologies of
Information and Communication

According to Article No. 2 of this Regulation, it will apply to individuals.

or legal entities, public or private that carry out activities or provide services
related to digital certification, electronic government, free software, email
electronic and the use of digital documents and signatures in the Plurinational State of
Bolivia.

Code of Conduct CONTROL

The National Chamber of Commerce of Bolivia (CNC). The Agency for Development of the
Information Society in Bolivia (ADSIB) has found it appropriate to promote the
development of e-commerce in Bolivia and promote ethical behavior and the
responsibility of entities providing services through electronic means,
through the development and implementation of the Code of Conduct and the Trust Seal

The purpose of the CONTROLE Code of Conduct is to establish principles and

provisions that guide the behavior of all affiliated entities. That market
through electronic means, increasing the quality of their services and their
trust.
The CONTROLE Code of Conduct is an instrument that aims to increase the
trust in online transactions and e-commerce through the
establishment of principles and provisions that grant guarantees and security to the
consumers and/or users who acquire goods and/or services in the entities
certified by the CONTROLE Trust Seal.

Copyright
Regarding Electronic Commerce, in the Copyright Law, the
National Government, on April 25, 1997, through Supreme Decree 24582,
approved the Regulation of Logical Support or Software, due to the imperative need of
define the protection regime of software and databases, as well as
regulate the relations of its exploitation in the national territory. This legal norm
It consists of IX chapters and 27 articles.
INFORMATICS LAW Sabino Carbajal Flores 2018

On the other hand, the Copyright Law in its Title XIV, Chapter I, makes a
relationship of punishable offenses and indicates that the processes resulting from them,
They will be known to the ordinary criminal judiciary.

Penal Code
On the subject of cybercrime, the amendment to the Penal Code through the Law of the 10
March 1997 establishes as crimes the alterations, modifications, and use
Improper use of computer media as stated in Chapter XI, Art. 363 - Crimes
Computer scientists

5. CRITICAL ANALYSIS - LEGAL

E-commerce is no longer something new in the world or in the region, it has been a short time
Years in Bolivia, MSN Messenger and Hi5 were two social networks with a large number of
users in our country of whom not a trace remains today and not to mention
Facebook or better yet WhatsApp which until very recently was not known or used
within our territory. Looking around, the story is very different nowadays and who
knows what the near future will bring.

So, it is not necessary to be a scientist to realize that the speed of adoption

of new technologies and the penetration of the Internet in Bolivia as well as in the rest of
the world has not been left behind. E-Commerce is no exception, and it is viable
for Bolivia as for any country on the planet that has access to a computer and
a basic Internet connection.

If e-commerce has not been adopted or massified in Bolivia, it is due to a

a variety of reasons among which we already know most: 'it is difficult to obtain a
credit card, the fees are very high, what happens if I'm scammed and they don't send me
the product or they send me something else, etc., in other words, the same arguments as always. Without
embargo, we mention some reasons why e-commerce in Bolivia
it was not widely adopted:

First of all, it is not too difficult to process a credit card, but the costs of
Maintenance and interests are very high without considering the advantages that trade brings.
electronic, these costs are minimal thanks to the savings one can achieve by
buying online (cheap electronics, plane tickets, brand clothing, etc.).

Secondly, the fear of making transactions over the Internet considered by some the
The main reason for not adopting e-commerce is a fear among most of the
people, since today it is not safe to make purchases, sales, or general transactions for
Internet.
INFORMATION LAW Sabino Carbajal Flores 2018

Low penetration (access) of the Internet, Bolivia has approximately 11 million.

of inhabitants, and it is estimated that less than 50% have regular access to the Internet. Without going
too far away (since there is no point of comparison with countries like the United States or
China where hundreds of millions of people are connected) let's analyze our
neighbors in Brazil and we will realize the abysmal difference in population and therefore
of Internet users (helped by a good connection, low prices, and favorable laws)
which results in an attractive formula of supply and demand, which is why Brazil is the
leader in e-commerce within our continent. Chile, Argentina, Colombia and
Venezuela is not far away. In comparison to Bolivia, there are not many people who
they require products and/or services online, in other words, demand is low. It is
That's why there aren't many startups or businesses on the Internet that compete for
satisfy a low demand and even for some, nonexistent, and as a result the
e-commerce is lagging behind.

Culture, Another aspect of equal importance for which e-commerce does not work
In Bolivia, it is the conservative culture of our society, in which (with the exception of the
younger people prefer to do business in the way that is most known and secure
they know. On the demand side, imagine a gentleman or lady of approximately
40-50 years old who is used to visiting the commercial area of their city (for example,
the Huyustus, Max Paredes, etc. in La Paz), and you will realize that it is very unlikely that
that person starts doing their shopping online. On the supply side, many
people think that creating a virtual store or a business on the Internet is easy and
guarantees quick wealth (thanks to movies like The Social Network and others from Hollywood). Without
embargo, the reality is that creating a website, online store, application, and others is
extremely difficult and requires full dedication and more than anything else,
hard work.

Education, the lack of knowledge and training in technology-related topics regarding

e-commerce in Bolivia means that as long as there is no education in the
universities and other educational institutions, there will not be the necessary knowledge to
adopt new ways of doing business such as e-commerce.

Non-existence of specific legal framework (regulation), technological advancements

computer science and digital communication, the emergence of the Internet has generated a result in the
In recent years, e-commerce has become a borderless international economy.
a digital business for consumers, entrepreneurs, and administrative employees
public platform for buying and selling products and services remotely.

To carry out an electronic business brings advantages such as: cost reduction
operational in commercial transactions, no mediation is required, none
waste time, because the automation of information and connected computers
between themselves, allows both large and small businesses to operate 24 hours a day.
day and the 365 days of the year.
INFORMATION LAW Sabino Carbajal Flores 2018

That in reality, e-commerce is not just a way to offer products and

services, but it is also a channel for creating new businesses, to offer
goods and services thus generating important resources through digital means for the
particulars as for the nations.

The problem is that electronic businesses in the vast majority of countries do not
they are legally regulated, just like ours, there is a large gap in our
legal norms (only the Commercial Code, Civil Code, and others are available)
previously mentioned legal provisions related to Electronic Commerce
In Bolivia). We do not have a specific Law on Electronic Commerce regarding Signatures.
Digital and Data Messages in Bolivia.

When a person engages in an electronic business, the remote parties are exposed to
the following risks: That the buyer or seller is a hacker, or on the other hand that the
merchandise does not meet your expectations and you have no way to complain, that the server of
Websites that receive payment whether it's pirated or the payment method is fraudulent, are some
risks that arise in such a way that no one would dare to undertake a
electronic transaction.

One of the alternative solutions is to have a specific regulation law in Bolivia.

about E-Commerce, create Security Entities for the implementation of the
electronic contracts as Certification Entity, or Electronic Notaries that must
extend digital certificates on contracts. Advances on Digital Signatures
in data messages; our digital society must have a technology
updated information technology for commercial operations, likewise make a great
study on payment methods, that is, electronic money to prevent fraud
since cash is becoming more expensive each time, both in terms of handling and
transport and credit cards must have more security.

Regarding legal matters, the information society must have a Commercial Code.
International Uniform to facilitate distance trade without jurisdictional limits.

Finally, as a conclusion; our country has been strengthening in recent years.

gradual way with cutting-edge technologies, but there is still a long way to go with the advancement
The expansion of fiber optics nationwide is a step towards the great development of the
telecommunications so that we can have Internet in all places to access a
digitalized society would be a great achievement, but we have a long way to go, in a way
immediate is to formulate a Law on Electronic Commerce for Bolivia with all its
mediate characteristics, so that electronic operations are secure throughout their
environment, and people feel confident to make purchases from their home or office
not wasting timely time, in this way our country would soon be entering into
a rhythm of integration into international markets and having an arrangement
legal insurance.
INFORMATIONAL LAW Sabino Carbajal Flores 2018

BIBLIOGRAPHY
BENEFITS OF ELECTRONIC COMMERCE BY ROXANA SILVA MURILLO–UCB
The provided text is a URL and does not contain translatable text.
Types of Electronic Commerce
Integration, A. L. (2011). Situation of E-commerce in Bolivia.
Commercial Code - Decree Law No. 14379 of February 25, 1977
General Law on Telecommunications Information and Communication Technologies (Law
164)
Bolivian Tax Code - Law No. 2492 of August 2, 2003
Wikipedia. (2018). Internet.
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