A Fly in the Ointment; Undue Liability on E-commerce Platforms

Abstract

Trade is now largely internet-centric, meaning internet is the medium through which most commercial transactions take place in today’s (information) economy. E-commerce has not only provided a greater market, but it also has changed the way businesses operate. This is indeed a platform economy. E-commerce is considered one of the main drivers of recent economic and social developments globally. In Sri Lanka e-commerce is emerging and in its infancy. The industry is currently expected to be operating within the margin of the law and selfregulated. In the absence of a separate law for e-commerce, e-commerce platforms (ecommerce marketplaces) meaning digital storefronts that connect sellers and customers to transact online, are exposed to a higher risk of being unreasonably penalized by applying the existing laws without mitigation. On the other hand, the platform users are left in a desperate situation with no remedy for harm caused. This article explores the responses of advanced jurisdictions such as China, the EU and the USA which are giant e-commerce markets, regarding platform liability. This study concludes that facilitating a business-enabled environment with holistic and innovative strategies that are aligned with social and economic status of the country with a businessfriendly legal landscape that matches the reality of the industry is imperative.