E-Business Info-Guide

The following Info-Guide is a document designed to help you navigate through the different government programs, services and regulations which deal with E-Business, and identify those of interest. Although most of the questions will be answered in the Info-Guide, the list is by no means exhaustive. The selected items provide a helpful overview of programs, services and regulations in a related area. This blended product of both federal and provincial information is developed to answer a growing demand for strategic information by business people. Municipal and other non-government information could be included, depending on the content and region. Further information on these programs, services and regulations can be obtained through any of the following:

• calling the telephone numbers listed under the program descriptions;
• visiting the Web sites listed under the program descriptions;
• calling the Canada/Saskatchewan Business Service Centre (CSBSC) at 1-800-667-4374 or 306-956-2323 in Saskatoon and speaking with one of the information agents; or
• visiting the Canada-Saskatchewan Business Service Centre Web site

The term E-Business means conducting business on the Internet, including buying and selling products and services, providing customer service and collaborating with business partners. This document focuses on buying and selling products and services on the Internet [also known as electronic business, ebiz, e-commerce, business-to-business (B2B), business-to-customer (B2C)].  For more general information on E-Business and the use of the Internet, see the document Doing Business on the Internet.

TABLE OF CONTENTS

• Common Questions
• Anatomy of an E-Commerce Site
• E-Commerce Checklist
• Regulations
• Privacy and Security
• Taxation
• Export Rules
• Consumer Protection
• Training/Information
• Business with government
• Related Sites

COMMON QUESTIONS

What is E-Business?
E-Business is any commercial activity conducted over networks linking electronic devices (mainly computers) including commercial transactions conducted by Internet, telephone and fax, electronic banking and payment systems, trade in digitized goods and services, and electronic purchasing and restocking systems.

The Internet has opened up networking to anyone with a computer and Internet access.

Businesses can now climb on board the Internet, which amounts to a free electronic highway. Once you're hooked up, you can buy, sell, and connect with the people who matter to you: your own employees (in the next office or three thousand kilometres away), your suppliers, your customers, your bank accounts, your credit information services, your sources of market information, and so on.

What is the Internet?
The Internet is a global collection of networks connecting and sharing information through a common set of protocols. It allows computers attached to networks to communicate regardless of manufacturer or brand, architecture, operating system or location.

Not only does the Internet allow open communication, but many forms of communication. Voice, data and video transmissions can be carried over one infrastructure. The Internet was initially used primarily for data transmission, but telephony - voice transmission - and video transmission are growing. Another advantage of the Internet is efficiency of data transfer.

What is the World Wide Web?
Imagine the concept of a universal information database -- data that would not only be accessible to people around the world, but information that would link easily to other pieces of information. This concept is now a reality in the form of the World Wide Web (WWW).

The WWW provides links between documents, over the Internet. The Web exists because of programs which communicate between computers connected to the Internet. Utilizing a Web Browser, anyone with a computer, modem and Internet account can search and retrieve information from millions of Web Servers around the world. Some examples of Web Browsers you may be familiar with are Netscape Navigator and Microsoft Internet Explorer.

Vocabulary of E-commerce (English-French / French-English) A number of glossaries dealing with the Internet and new technologies have been published, but few have focused on the language of e-commerce. A few terms can be found, scattered here and there, especially in the largest works. The Vocabulary of E-commerce fills this gap, as it was designed to meet the need expressed for a single publication on the terminology of e-commerce in English and French.

The Vocabulary contains 200 entries as well as many definitions and observations and it is one of the rare works entirely devoted to electronic commerce.

What is E-Business used for?
E-Business is not limited to certain types of businesses or just technology-related products and services. Companies in every field are doing business online. Networking through E-Business can be applied to any facet of a company's operations, including marketing and sales; purchasing and logistics; production; design and engineering. The most effective use of E-Business is when several of these functions are combined: information flows from sales to purchasing, to production.

E-Business can be used to:

• Communicate: E-mail and Internet Access

• Promote: Businesses are using Web pages to advise clients and potential clients about their business and its value. Web pages keep clients informed about products, services, and developments, and they provide the opportunity to answer client questions. They may also use their Web sites to solicit market research information from clients or guests who visit their site. Other uses include:

• sales -- to sell products, seven days a week, 24 hours per day throughout the globe;
• product awareness -- online marketing and advertising;
• customer service -- customer support and communication;
• economy -- to eliminate some costs of paper transactions and mailing;
• effectiveness -- due to the speed of communication;
• it offers the opportunity to work out of the home;
• to compete globally without setting up offices in other countries;
• because small companies can compete against much larger companies as no one can tell how large or young your company is based on your Internet presence;
• to find information, conduct competitive intelligence, or network with other business owners.

• Link Internally - Improve communications within your company using an Intranet.

• Link Externally - Improve communications with suppliers, customers and partners and integrate your business processes using an Extranet.

• Creating New Business Models: Sharing resources with new partners to create virtual global enterprises. The Net has the potential to act as a central nervous system coordinating the business activities of new type of corporate organisms.

Should I be on the Web?
The decision to get on the Web should not be taken lightly. There are many factors to consider:

• are your customers online or will they be?
• are there untapped markets available online?
• what are my competitors' strategies?
• are there new business or revenue opportunities?
• what are the business trends?
• what are my business strategies?
• what are my resources?

In other words, you must define your business goals and your direct and indirect competitors.

The Internet can greatly increase your market base, and this means that your marketing will need a broad appeal to please customers from various geographical areas. You must be ready to meet growing demand. You will have to consider whether or not your product line can be delivered economically and conveniently. There are some significant economic advantages to going online, such as lower rent, labour, inventory and printing costs, but keep in mind that moving your business to the Web will not fix any problems. If your brick and mortar business isn't working properly, going online will only compound the problem.

What is a typical e-commerce transaction?

• You must first develop a site that allows potential customers to find your products or services. A customer will browse through your electronic catalogue and select items to add to their shopping cart.
• Once customers have finished selecting their items, they will fill out the online order form. This usually includes entering the customer's name, address, etc.
• Order processing software will then calculate the totals, taxes and shipping information (usually based on delivery destination) - credit card number, expiry date and shipping address. This form must be secure.
• Payment processing software encrypts the order total and payment information and contacts the credit card company to verify that the card number is valid and the total amount within the cardholder's limit.
• Once authorized, a message is usually transmitted immediately to the customer and the merchant verifying the order, and the order processed.

Customers may even be able to track their orders through the shipping process, depending on the sophistication of the storefront software, and whether the merchant has his inventory and other back end systems integrated with the store.

Now that you know how a transaction happens online, you might wonder how all of this is facilitated. This can be the tricky part. Tricky does not mean impossible, but the challenges are the numerous options available and finding the right solution for your business.

The next section presents a process that will help you to develop a clearer understanding of the options that are right for you or, at least, a knowledge of the questions to ask the Internet professionals that you will be working with.

If I don't want to sell electronically, why use E-Business? What are the benefits?
You can improve customer service by providing new avenues for promotion and distribution, by responding more quickly to orders, and by offering more responsive after-sales service.

You can cut costs and save time by improving the quality of supply chain management, by integrating back-end production and logistics with front-end marketing and sales, and by letting the computer and software do most of the work in controlling inventory.

You can cut costs and save time by improving internal functions, by cutting down on meetings, by sharing information, by eliminating endless trails of paper, and by assuring that internal communications are precise and understood.

How do I hook up my computer to the Internet?
You (the user) sign a contract with an Internet Service Provider (ISP) for a dial-in or dedicated connection to the provider's equipment, which then gives you access to the Internet. The Internet Service Provider (also known as a server) delivers, in effect, the Internet dial tone. Each computer connected to the Internet is assigned an Internet Protocol (IP number), which is its address. They are analogous to telephone numbers.

When looking for an ISP to connect your business to the Internet, consider what different ISPs charge for access time, reliability (e.g. no busy signals or interruptions in connection), speed of data transmission, technical and other services they offer.

It wasn't long ago that your choice was between huge international companies or smaller local companies, or the occasional free community service. Now the telephone and cable companies have jumped into this business, and are often providing faster transmission of data than was previously offered. Ask for advice from somebody you know who is already online, and pick a company that is likely to offer you a decent deal over a long period, because it is inefficient marketing to keep changing your business e-mail addresses.

Is the Internet expensive?
At first, the costs to get on the Internet can seem intimidating, but compared with what you can accomplish in the areas of marketing and retailing on the Internet versus in the traditional commercial world, it is a very cost effective solution. Also, the potential Internet market is exponentially larger than any local market. First you will need a modem equipped computer ($1,000-$5,000) and access to the Internet through an Internet Service Provider ($30-$50 a month). These costs are estimates only, since costs can vary significantly, as computer prices continue to come down, and as new access technologies become accessible and affordable (i.e. cable access).

If you want to set up a Web site for your business, consider hiring a professional to design it for you. The costs can vary significantly whether you want a simple Web site or a very complex Web site. Once you have a site you will want to register the domain (e.g. your-business-name.com), which may cost as much as $140, depending on your choice of the .com or .ca domain extensions, for two years. Registering your domain on the Internet is like registering your company and company name. Information on registering your domain can be found on the  InterNIC and the Canadian Internet Registration Authority Web sites or from your ISP. There are also maintenance costs to consider to keep the site up to date and running smoothly, which can cost between $20 and $100 a month, depending on the scope of the site.

How can I secure my Web site and transactions on the Internet?
The type of security you will need for your Web site depends on what kind of use it will have. Once you determine use, you can identify the types of threats you will need to protect yourself against. For example, if you will be doing online sales using credit cards, you will need to protect the credit card information from being intercepted, both during the transaction and when it is stored on the server. Similarly, if you have confidential customer information, you will also want to ensure that this information is not accessible. It is useful to note, however, that in many instances, doing online credit card sales can be more secure than in a traditional environment, where much of the credit card fraud is caused by the people involved in the transaction, or by the theft of receipts.

There are a number of security options, from firewall software, to secure servers, to Secure Sockets Layer (SSL), SET and public key infrastructure. Your ISP and/or Web developer should be able to provide you with more information on these solutions, and whether they are right for your site. The most effective and efficient solution for small to mid-size companies may be to use a commerce server provider (CSP). CSPs lease their services to individual retailers for a fraction of the cost of buying a complete e-commerce solution.

What is a digital signature?
A digital signature is a convenient and secure way of signing electronic documents. Digital signatures provide a secure form of transacting electronically. It is virtually impossible to forge or copy a digital signature. When a document is digitally signed, its integrity and authenticity can be verified, as can the identity of the signer. Digital signatures are based on mathematical theory and the use of algorithms. A digital signature is a complicated concept, but its application is relatively simple and straightforward. Your software does all the work, while you (the user) simply selects the signature option in the software. Digital signatures are particularly important if you to want make the electronic transaction as binding as possible. Government legislation is currently being amended to provide for the acceptance of digital signatures (and other forms of electronic signatures) and electronic documents as evidence.

Realistically, what is your budget?
Well, you know what they say ... "you get what you pay for." This isn't always entirely true as you could certainly pay a high premium, hire someone who doesn't have your best interests at heart, and end up with an ineffective and poorly designed store. On the other hand, there are some solutions that won't break the bank and will do quite a nice job of selling your products. However, the most important thing about setting up an e-commerce site is to get all the associated costs up front. This means design charges, Web hosting fees, transaction costs, etc. We will go into this in more detail later in the document.

How technically inclined are you?
If you feel you are fairly technically inclined and have some of the basic skills and tools at your disposal, you may be able to develop the store, or parts of it yourself. With some of the browser-based solutions, i.e. IBM HomePage Creator, you can point and click and select options that will create your store. Your responsibility would be to scan images, convert them to appropriate file format (.gif, .jpg) and upload them to the Web server.

How many products do you plan to sell (now and in the future)?
As you will see later on in this document, charges for e-commerce solutions are often based on the number of items or products in your catalogue. Monthly fees are often based on these numbers and can rise rapidly if your catalogue begins to increase.

If you are planning to sell numerous items, you may wish to look at a more flexible type of solution that won't become too expensive as your business grows.

Are you looking to integrate a storefront into an existing Web site or are you starting the entire process from scratch?
You may already have a basic Web site and have decided to add a store component. If this is the case, you may want to begin by talking with your current Web host to see if it offers any e-commerce solutions. You may also have some existing database integration or technologies on your current site that need to be taken into consideration when selecting your storefront option.

Once you have considered these questions, you can get down to business. What options are available and what are the costs involved? To put it all together, let's go through the components of an e-commerce site and the options available to you.

ANATOMY OF AN E-COMMERCE SITE

Web Design/Catalogue Development
A good Web designer will be able to give you a professional looking site that is easy to navigate and expresses the culture of your company. With some of the storefront solutions that we will discuss, you may be able to create a site with little technical knowledge; yet, in many cases, it may not be appropriate for you to build your store - you may need to concentrate on the business aspect of your store and leave the technical and design issues to someone else.

When selecting a designer to develop an e-commerce site, ensure he/she has significant knowledge and experience. In most cases, you will not only be contracting the designer to actually develop your site, but to assess your needs and recommend technologies and solutions that are right for you and your business.

Cost for design specialists can range from $50/hr and up. Many designers will offer package deals for basic sites for those businesses wanting to get a presence on the Web.

Just like a physical retail outlet, your store will need products to select, a shopping cart, check out, etc. Although you could hire a programmer to build you these components from scratch, there are a number of software solutions on the market that have these components pre-developed.

Template Service or Storefront Software?
Template service is an online browser based template like Yahoo Store or IBM's Home Page Creator service. This type of service provides a relatively inexpensive solution for small businesses that want an effective store, but don't require full control over every aspect of the site's merchandising and technical capabilities. It is most appropriate for small stores that don't have a large number of items for sale.

Merchants can create a simple store by selecting options and filling in items such as product description, company information, etc. You would also need to upload graphic files and logos that will be displayed on your electronic store.

• Template Advantages

- easy to use;
- all tasks handled from within your Web Browser (i.e. Netscape, Explorer);
- relatively fast set-up;
- no need to install any software on your computer;
- little technical knowledge required;
- no need to find a Web Hosting Company or ISP as the store is hosted on the template service providers site.

• Template Disadvantages:

- limited flexibility in store design and layout;
- your store looks very much like other stores developed with the template service;
- costs usually increase as additional catalogue items are added.

Examples of Canadian Template Services:

• DXshop
• NetNation Communication Inc  

Template Service Fees
The fee usually consists of a basic monthly charge plus additional fees. The additional fees depend on the number of transactions your store requires or the number of items your store carries.

IBM HomePage Creator, as an example, ranges from $45-$300/month which does not include the costs associated with real-time credit card authorization. The template service will usually set you up with a third party payment processing company for this service.

If you are interested in a template solution, take a look at the seller's Web site; they often provide demos or allow you to create a "test store" prior to signing up.

Storefront software is a tool that you or your developer can use to create your store. These range from very simple and inexpensive packages to more complex and scalable packages that are much more expensive. Again, the package that is right for you depends on the options you need.

Storefront software, which is often referred to as off-line software, varies in terms of sophistication and features. Some software is very simple and straightforward, others have enhanced features and options, i.e., product options, inventory integration and administrative options.

• Advantages of Storefront Software:

- usually more powerful and more flexible than template services;
- more control over the layout and organization of your store;
- work with many Web hosts (confirm with your ISP);
- relatively few restrictions for enhancing or changing a store.

• Disadvantages of Storefront Software:

- may be more complicated to use than templates;
- must be installed on your computer;
- you have to work off-line with the software and upload to the server;
- may assume or require technical or programming knowledge.

Examples of Storefront Software:

• Actinic Software
• ecBuilder by Multiactive Software Software 

Storefront Software Fees
Fees for storefront software range from about $450 to $1,500 CDN with more complex packages priced even higher. The site developer would be required to load this software on his/her computer and would have to upload the completed files to a compatible server (Microsoft IIS, etc.). Use of this software is often limited to people with some technical knowledge as even viewing the completed files in most cases requires the use of a server.

The examples shown above are Canadian solutions which are still fairly difficult to come by. Many of the solutions are produced by American companies which can make it difficult to get technical support or integrate payment processing solutions.

Also, the storefront package is just that... the store. Merchants will still have to pay fees to a Web host for their server space, set-up a merchant account and a payment processing service, and in most cases, a developer to actually create the store within the software framework.

Many storefront solutions offer merchants the ability to download their software for a trial period. This is highly recommended before you purchase.

Internet Service Provider (ISP)/Web Host
An ISP provides you a connection to the Internet and a Web host provides space on their server for your Web or e-commerce site. These companies are often one and the same and can provide both services. Customers are usually charged monthly fees based on factors such as site storage space, bandwidth, etc.

Web hosts are starting to offer e-commerce solutions bundled with their monthly storage charges, where they might include a storefront development package, and maybe even Web development. Once again, this usually doesn't include the merchant account or payment processing fees.

Domain Name
A domain name is your Internet address. It is what people use to find you on the World Wide Web. An example of a domain would be www.your company.com or www.yourcompany.ca.

To obtain a .com domain name, there is a registration fee (approximately $100 CDN). This registration applies for two years after which an annual renewal fee of approximately $50 CDN will be charged.

If you want to check if your desired domain name is in use and should you wish to look into the rules for domain name registration, check out the Canadian Internet Registration Authority Web site.

Merchant Account
A merchant account is an account that you set up for your store in order to accept credit cards as a form of payment. You must have a merchant account activated for each type of credit card you accept, i.e. Visa, MasterCard, etc. The merchant bank coordinates the transfer of funds between the payment processor, your bank and the cardholder's bank.

Each merchant account is given a classification. In the case of e-commerce, you will be classified as having a "card not present" or "mail order/telephone order" merchant account. The merchant account number(s) obtained from your banking institution will need to be provided to your payment processor. This will allow them to integrate with your store and provide real-time payment processing services.

If you are unable to obtain a merchant account from a financial institution, you may wish to contact an internet payment service such as Internet Secure.  Internet Secure guarantees merchant status for most online stores; however, their set up and transaction fees are usually significantly higher than a merchant account obtained from a bank.

Merchant Security Deposits
To ensure that they have significant funds available to cover potential charge backs, some financial institutions require substantial security deposits before they will issue you merchant status.

A charge back is a request from the cardholder or card issuer to reverse a purchase that was made on your online store.

It is extremely important that you discuss your merchant account options and all possible fees with your financial institution prior to developing your electronic store.

Payment Processors/Payment Gateways
These are companies which authorize and instantly approve credit card orders that are made on your online store. This allows shoppers with valid credit cards to complete purchases and prevents those with invalid cards from completing a purchase.

Another example of a Canadian payment processor is:

• E-xact Transactions 

Payment Processor Fees
Fees vary from company to company, but typically consist of:

• a one time set-up fee;
• a monthly fee; and
• a per transaction fee.

Often payment processors work with the financial institutions, so their fees are integrated with the merchant account set up. When you contact these organizations, inquire if they bill direct or through your selected banking institutions.

E-COMMERCE CHECKLIST

• Develop an e-commerce business plan
• Web designer/E-commerce developer
• Storefront solution (template or storefront software)
• Merchant account(s)
• Payment processor
• ISP to host your store
• Obtain a domain name
• Digital certificate

REGULATIONS

In general, all existing laws that apply to traditional commerce apply equally in an electronic environment (for example, laws governing business incorporation, business name registration, taxation, consumer protection, deceptive advertising, importing/exporting, product safety, product standards, criminal code, inter-provincial trade treaties, intellectual property and liability, etc.). Companies must comply with the law of any jurisdiction where it is deemed to be "carrying on business."

PRIVACY AND SECURITY

Is the information I put on this system safe? Can people steal my confidential company information or gain access to my credit card if I use it over the Internet?
Some businesses are waiting to go online until a secure electronic environment is assured. Solutions to privacy and security exist today. Software can be used to encrypt transactions and block unwanted messages. Your ISP and/or Web developer should be able to provide you with information on various software packages, based on your security needs.

Security
A standard Web site usually doesn't require a high level of security; however, an e-commerce site is quite different. Typically, when customers are shopping on your site, they are in a non secured environment until they "Click to Pay." This is usually the point when they are directed to a secure server with all of the necessary security features. Once users begin the payment process, they start to give private information such as name, address and, of course, credit card information. This is where the latest encryption technology is activated.

With the use of SSL (Secure Socket Layer) or SET (Secure Electronic Transaction) technology and a digital certificate, the users credit card number and private information is encrypted and sent to the payment processor for verification.

Two of the largest certificate authorities on the Internet are:

• VeriSign 
• Thawte

Information on security issues and encryption technology can often be obtained from your ISP or Web host.

Key Definitions

SSL (Secure Sockets Layer)
Most sites use SSL browser level standard, which was developed by Netscape Communications Corp. SSL is bundled with current Netscape and Explorer browser versions. SSL encrypts and deciphers all messages travelling to and from the server; however, a merchant won't know for sure that the card has not been stolen. For a higher level of assurance, you must turn to the SET standard.

SET (Secure Electronic Transaction) and Digital Certificate
SET verifies identities as well as encrypting the credit card information. It does this by introducing a third-party "digital certificate" that makes sure no customer or store can pretend to be someone else.

Credit card owners use an "electronic wallet" that sits on their computer hard drive as a browser plug in. Merchants also get a coded certificate provided by their bank, verifying that they are a legitimate business. The certificates generate digital codes called public-private key pair that decipher the credit card number and change with every transaction.

ISP (Internet Service Provider)
An ISP gives you your actual connection to the Internet. Many ISP's offer Web hosting services as well.

Web Host
The hosting service provides a certain amount of storage capacity for your site on their server. Your host can also keep track of how many people are coming to your site and how they have found it (referring sites). They usually charge a set-up fee and monthly space rental charges.

Will my private information be at risk?
You can install software to help protect the privacy of your business and your clients. In addition, the federal government is acting to protect personal information. Bill C-6 establishes principles governing the collection, use and disclosure of personal information. In particular, it provides that business must obtain the consent of consumers to use their personal information and gives consumers access to their personal information and to simple and effective redress procedures.

Compliance with the legislation will be overseen by the Privacy Commissioner of Canada. The Commissioner's role will include receiving complaints concerning contravention of the principles, carrying out investigations and audits, and dispute resolution. Unresolved disputes regarding certain matters can be taken to the Federal Court for final resolution. The Commissioner will also have extensive powers to do research and public education which is vital if consumers are to learn how to protect their privacy. Bill C-6 will guarantee the right to privacy for Canadians.

Your Privacy Responsibilities - Guide for Businesses and Organizations to Canada's Personal Information Protection and Electronic Documents Act. This guide helps businesses understand and meet their new obligations under Part 1 of the Act. It may be accessed electronically via the Internet on the PIPEDA Guide for Businesses and Organizations Web site.

Note: Copies of the guide may be obtained from:
The Privacy Commissioner of Canada
112 Kent Street
Ottawa ON K1A 1H3
Telephone: 613-995-8210
Toll-free: 1-800-282-1376

TAXATION

Do I need to collect GST/HST and PST if I sell things over the Internet to persons outside of my province or in another country?
In general, all existing tax rules apply equally in an electronic environment, and no new taxes have been created specifically for electronic commerce. For specific tax-related questions, please call the Canada Revenue Agency at 1-800-959-5525, see the document Goods and Services Tax and Harmonized Sales Tax - GST/HST or visit the Conducting business on the Internet Web site.

The Goods and Services Tax (GST) is a multi-stage tax that applies to most transactions throughout the production and marketing process. Under the Goods and Services Tax (GST), most goods and services sold or provided in Canada are taxable at a rate of 6%.

The Harmonized Sales Tax (HST) applies to GST-taxable goods and services delivered in Newfoundland and Labrador, Nova Scotia and New Brunswick. The HST rate is 14 %.

The Provincial Sales Tax (PST) is a tax based on the retail price of certain goods and services. Businesses that sell taxable goods or provide a taxable service are responsible for collecting tax and remitting it on a regular basis. For information on PST, contact the ministry responsible for finance, revenue or taxation in each province in which you will be doing business.

Quebec Sales Tax (QST) and the GST
The QST applies to taxable goods and services delivered in Quebec. Ministère du Revenu administers the QST and the GST in Quebec. For more information, contact the: ministère du Revenu, Montréal 514-873-4692, Québec City: 418-659-4692 or 1-800-567-4692 .

EXPORT RULES

Do I need an export license if I sell things over the Internet?
The application of export rules is the same in the electronic world. If you currently need an export permit to sell your product overseas, you will need one to sell it over the Internet to people in foreign countries.

The issuance of Export Permits is administered by the Export Controls Division of International Trade Canada (ITCan). The Division provides assistance to exporters in determining if export permits are required. It also publishes brochures and Notices to Exporters.

For further information, please call 613-996-2387 - Ottawa, toll-free 1-800-267-8376 see the document Export Permits or visit the Export and Import Controls Web site.

CONSUMER PROTECTION

Marketing practices/advertising
The Competition Act contains provisions prohibiting false or misleading representations and deceptive marketing practices in promoting the supply or use of a product or any business interest. All representations, in any form whatever, that are false or misleading in a material respect are prohibited. If a representation could influence a consumer to buy the product or service advertised, it is material.

For further information, please call 1-800-348-5358, see the document Competition Act - Misleading Advertising and Deceptive Marketing Practices or visit the Competition Bureau Web site.

Consumer Protection for Electronic Commerce - A Canadian Framework
Prepared by the Working Group on Electronic Commerce and Consumers

The Principles are intended to provide guidance to business, consumers and governments as they adapt to the use of online transactions. The principles were drafted by a working group of representatives from Canadian businesses, consumer associations and governments, recognizing that a sound framework for consumer protection will promote consumer confidence and facilitate the acceptance and growth of electronic commerce. The working group has agreed to review the principles regularly to ensure their continued relevance in the rapidly changing electronic marketplace.

The Principles call for:

• clear disclosure of a business's identity, the goods and services it offers, and the terms and conditions of sale;
• a transparent transaction confirmation process;
• payment security;
• protection of personal data;
• restriction of unsolicited commercial e-mail (spam);
• a fair balance of liability in the event of transaction problems;
• timely and affordable means of complaint handling and redress;
• effective consumer education.

They are consistent with the core protections available in consumer law governing traditional forms of commerce.

Released with the Principles are tips for consumers on how to shop safely on the Internet and a guide for merchants on applying the Principles to their business practices . All three documents are available on Industry Canada's Canada's Office of Consumer Affairs Web site.

Consumers are now able to complain about misleading cross-border electronic commerce following the launch, in New York, through E-consumer. The Competition Bureau participated in this Web site's launch, along with officials from 12 other countries.

TRAINING/INFORMATION

 Student Connections : see the document Student Connections

• Industry Canada's Student Connections (SC) provides Canadian small and medium enterprises (SMEs) with short, practical e-commerce and Internet training sessions. SC services are delivered by highly qualified post secondary students employed to provide Canadian businesses with customized training on how they can use today's technologies to their business advantage.
• E-Commerce First Step provides businesses with information on how to efficiently integrate e-commerce into their daily business activities. From planning, promoting, and evaluating a Web site to incorporating electronic payment processes into online activities, SMEs can learn the elements of a successful and marketable e-presence. (Note: see the document E-Commerce First Step).

Electronic Commerce Institute (Quebec organization): Board of Trade of Metropolitan Montreal  

• The Electronic Commerce Institute promotes, fosters and improves the use of electronic document interchange (EDI) and electronic commerce technologies within businesses.

Retailing on Internet: A Guide: Retail Trade

• Retailing on the Internet: A Guide is a site with the analytical tool to determine whether your business and the Internet are compatible. It is addressing the issue of Internet opportunities in a comprehensive way that will help Canadian retailers to better understand the development and evolution of online retailing and electronic commerce.

Task Force on E-Commerce, Industry Canada:  Digital Economy in Canada Web site 

• The Task Force site will keep you up to date on the latest issues facing businesses using electronic commerce and on the Government of Canada policies.

ebiz.enable Web site, or see the document ebiz.enable

• ebiz.enable is an e-business portal designed specifically to guide businesses through the issues and options encountered in implementing e-business strategies. It is a comprehensive online resource that allows you to explore the questions, answers and solutions relevant to your company and its success in the global online environment.

SourceCAN Web site, or see the document SourceCAN

• SourceCAN's mandate is to facilitate trade and empower Canadian companies, with an emphasis on SMEs, to compete in the domestic and global trading environment.
• SourceCAN enables Canadian companies to find business opportunities electronically, in Canada and in the international marketplace.
• It matches Canadian companies and their products and services with thousands of business opportunities posted daily, by both domestic and foreign corporations and governments.

BUSINESS WITH GOVERNMENT

Supplier Registration Information  

• The Supplier Registration Information (SRI) is a database of potential suppliers to the Government of Canada. Federal government departments use the information provided by suppliers to identify sources of supply for the goods and services they buy. By registering in the SRI, the suppliers make their company's name and supply capabilities widely available to federal government buyers. See the document  Supplier Registration Information (SRI).

Registering as a Supplier

• Public Works and Government Services Canada (PWGSC) maintains lists of private sector vendors of goods and services used to select suppliers. These lists are still used by PWGSC regional offices for purchases under $25,000 under the area-buy policy.
  See the document Registering as a Supplier.

MERX - Electronic Tendering Service

• MERX^TM is an online service that advertises government contracting opportunities to potential bidders.
  See the document MERX: Electronic Tendering Service.

Bidding Process    

• Federal government departments and agencies have a number of ways to find sources of supply for requirements they handle directly. They can:

RELATED SITES

Conseil de la coopération de la Saskatchewan (CCS)
Provides a comprehensive guide for people interested in developing an online business. The guide progresses through 5 modules - The Basics, Planning, Developing, Marketing and Evaluating. Along the way, you will have the opportunity to test your progress through a series of interactive quizzes.

Community Access Program
The Community Access Program (CAP) provides Canadians with affordable public access to the Internet and the skills to use it effectively. CAP has worked with community-based partners to establish a network of 6,800 public Internet access sites in rural and urban communities across Canada. See the document Community Access Program.

Consumers and Electronic Commerce:  The Digital Economy in Canada - Electronic Commerce Branch of Industry Canada 
Office of Consumer Affairs discussion papers, links to other Strategis electronic commerce documents such as case studies.

E-commerce in the Service Industry
Practical information on e-commerce in service industries, including associated benefits, company and industry profiles, statistics, and examples of utilizing e-commerce.

Building Trust in the Digital Economy: Authentication - Electronic Commerce Branch of Industry Canada
Discusses the use of cryptographic technologies to establish user's identity.

Canadian Internet Registration Authority
The CIRA is a not for profit Canadian corporation that has the mandate to set policy for and operate the .ca domain.

E-commerce Guide  
Offers a broad range of articles and links.

Electronic Commerce and the European Union - European Commission
A large site with an introductory section on electronic commerce, an issues section and information on the G7 E-Commerce initiative.

Organisation for Economic Co-operation and Development  
A site providing documentation and background information on electronic commerce initiative in the OECD countries.

Protecting Yourself When Buying Online, US Federal Trade Commission
A basic overview of the potential hazards and how to avoid them.

ECnow
ECnow.com is a high-end electronic commerce consulting firm helping companies satisfy customers through electronic commerce & electronic communication.

Canadian Bankers Association
Accepting payment by credit card usually requires a business bank (merchant) account with financial institutions that deal with each specific card. See your financial institution or the Canadian Bankers Association Web site for information on electronic commerce.

Electronic Commerce Branch of Industry Canada -  Digital Economy in Canada 
This site is the virtual focal point for information on Canada's Electronic Commerce Strategy, outlining the various initiatives which are helping make Canada a world leader in the adoption and use of electronic commerce.

Canadian Electronic Commerce Technology Suppliers Information and Communications Technologies
Suppliers are entering the e-commerce market as established firms migrating their expertise to the Internet platform or as new start-ups bringing innovative talent together to exploit the market opportunity.

SES Research
SES is a full-service market research firm, drawing on a wide range of disciplines including marketing, research, management consulting and business administration.

ZDNet
This site includes a comprehensive Internet and e-commerce related search engine as well as Business Shopping links.

Forrester
Even without a subscription to their research material, this site has a reference library, highlights from their reports and other e-commerce related information.

IBM
This site has a small business section, with resource information to help small businesses with understanding what it takes to successfully set up shop on the Internet, as well as lots of other links to e-commerce related information.

e-Business Service Centre - E-Future Centre
The e-Business Service Centre is an extension of and located directly across from the Canada/Manitoba Business Service Centre (C/MBSC). The e-Business Service Centre provides useful information in their FAQ and Products sections.

E-consumer
This site offers information about consumer protection laws and activities in participating countries.

Additional Information

Clients can consult Internet-business publications and guides, such as "Cyberlaw Canada" or "Small Business Guide to Doing Big Business on the Internet " from the Self-Counsel Press, "Canadian Internet Advantage" from Prentice Hall Canada or "Selling Online - How to Become a Successful E-Commerce Merchant in Canada" by Jim Carroll and Rick Broadhead http://www.rickbroadhead.com, published by CDG Books Canada Inc. 

For other resources available, please contact the Canada - Saskatchewan Business Service Centre.

For detailed information on setting-up your Web site, contact your Web developer or your Internet Service Provider.

Note: see the document E-Commerce - Exploring Your Options.

*Note: "electronic commerce" may also be spelled "e-commerce, e-business".

Links to other Info-Guides:

Aboriginal Info-Guide

Business Start-up Info-Guide

Employment and Training Info-Guide

Exporting Info-Guide

Importing Info-Guide

Taxation Info-Guide

For further information regarding starting a business, contact the

Canada-Saskatchewan Business Service Centre
#2 - 345 3rd Avenue South
Saskatoon, Saskatchewan
S7K 1M6
Phone: 306-956-2323
Toll-Free: 1-800-667-4374
E-mail: saskatchewan@cbsc.ic.gc.ca
Web site: http://www.cbsc.org/sask

THE INDIVIDUAL/BUSINESS/CORPORATION/PARTNERSHIP (HEREINAFTER REFERRED TO AS THE CLIENT) ACKNOWLEDGES AND UNDERSTANDS THAT THE CANADA-SASKATCHEWAN BUSINESS SERVICE CENTRE DOES NOT WARRANT OR REPRESENT THE ACCURACY, SUITABILITY OR APPLICABILITY OF THIS INFORMATION AND ASSUMES NO RESPONSIBILITY OR LIABILITY FOR THE USE THEREOF BY THE CLIENT AND ANY THIRD PARTIES AND THAT THE INTERPRETATION, USE AND APPLICATION OF SUCH INFORMATION SHALL BE THE CLIENT'S SOLE RESPONSIBILITY.

• Canada-Saskatchewan Business Service Centre

DISCLAIMER
Information contained in this document is of a general nature only and is not intended to constitute advice for any specific fact situation. Users concerned about the reliability of the information should consult directly with the source, or seek legal counsel.

Links Policy
Some of the hypertext links lead to non-federal government sites which are not subject to the Official Languages Act and the material is available in one language only.