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

Abstract

Trade is now largely internet-centric, meaning the internet is the medium through which most commercial transactions occur in today’s (information) economy. As e-commerce uptake has accelerated globally, it has opened new possibilities for buyers and sellers alike, helping them integrate into a global marketplace and promoting innovations across different business lines. Ecommerce is considered one of the main drivers of recent economic and social developments. In Sri Lanka, e-commerce is emerging and in its infancy. The industry is expected to operate within the margin of the law and be self-regulated. In the absence of a separate law for e-commerce, ecommerce platforms (e-commerce 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. However, there are many developments globally around e-commerce and platform liability. Therefore, this article explores the responses of advanced jurisdictions such as China, the EU, and the USA regarding platform liability. This concludes that facilitating a business-enabled environment with holistic and innovative strategies that are aligned with the social and economic status of the country with a business-friendly legal landscape that matches the reality of the industry is imperative.