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purchases financial services over the Net. Keeping this in mind, the EU has come up with
a proposal for developing a regulatory framework for distance selling of financial services
Insurance Issues
Many businesses have legal expense insurance .Software
companies for example will
have their professional indemnity insurance which protects them if they are sued for
breach of contract or negligence arising from the software
they have written for the
customer. Other companies which supply goods or services over the internet will have
insurance cover against product liability risks .This might include goods that physically
harm the customer.
Security Issues
Many consumers are
put off using the internet to purchase goods and services because
of concerns that their credit card details maybe disclosed. Ensure that a secure server is
used. Where personal data is gather in the UK there is a legal duty under data protection
act 1998 principles to keep data safe and secure .If a security
breach occurs bigger
companies should speak to their public relation agencies
to determine how best to
address the matter .From a legal point of view the customer maybe entitled to a refund
and damages
Recurring payment mechanism, which the Indian SaaS businesses are lobbying for, is
still not available in India because of RBI restrictions and
the guidelines under the
Payment and Settlement Systems Act is still expected.
