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
• using the links listed in the program descriptions to visit Web sites and Canada Business documents
• calling a Canada Business regional centre and speaking with one of the information agents

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 or B2B, business-to-customer or B2C). For more general information on E-Business and the use of the Internet, please see the document Doing Business on the Internet.

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.

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 of Web sites 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.
  • Externally—Improve communications with suppliers, customers and partners and integrate your business processes using an Extranet.
• Creating New Business Models: Sharing resource 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.

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.
• 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.
• 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.

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 name. Information on registering a domain can be found at the InterNIC and Canadian Internet Registration Authority (CIRA) 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.

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.

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. The Personal Information Protection and Electronic Documents Act 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. For an overview of the Personal Information Protection and Electronic Documents Act, see the document Protection of Personal Information - Your Responsibilities.

Compliance with the legislation is overseen by the Privacy Commissioner of Canada. The Commissioner's role includes 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 also have extensive powers to do research and public education which is vital if consumers are to learn how to protect their privacy. The Personal Information Protection and Electronic Documents Act guarantees the right to privacy for Canadians.

As of January 1, 2004, the Personal Information Protection and Electronic Documents Act covers the collection, use or disclosure of personal information in the course of all commercial activities in Canada, except in provinces which have enacted legislation that is deemed to be substantially similar to the federal law.

The guide Your Privacy Responsibilities - Guide for Businesses and Organizations to Canada's Personal Information Protection and Electronic Documents Act helps businesses understand and meet their new obligations under Part 1 of the Act.

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

Online E-security and Privacy Guide

Designed to help SMEs understand e-security and privacy risks and what they can do to manage them. Recognizing that SMEs are at different stages of e-business development, the product has been organized so that you can determine what you should be doing on the security and privacy front in relation to your level of e-business activity.

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 see the document Goods and Services Tax and Harmonized Sales Tax - GST/HST, visit the Canada Revenue Agency Web site or call them at 1-800-959-5525.

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 and Import Controls Bureau (EICB) of International Trade Canada. The EICB provides assistance to exporters in determining if export permits are required. For further information, please see the document Export Permits or visit the EICB Web site.

Consumer Protection

Marketing practices/advertising

Under the Competition Act, it is a criminal offense to engage in certain kinds of misleading advertising and deceptive marketing practices. The Competition Act defines which marketing practices are illegal in Canada. The Act is enforced by the Competition Bureau, and is applicable in an electronic environment. Consumers are now able to complain about misleading cross-border electronic commerce at econsumer.gov. The Competition Bureau participated in this Web site's launch, along with officials from 12 other countries.

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

Canadian Code of Practice for Consumer Protection in Electronic Commerce

The Canadian Code of Practice for Consumer Protection in Electronic Commerce was endorsed by federal, provincial and territorial Ministers responsible for consumer affairs in January 2004. The Code is intended to establish benchmarks for good business practices for merchants conducting commercial activities with consumers online.

The Code contains information on the following:

• Information Provision;
• Language;
• Contract Formation and Fulfilment;
• Online Privacy;
• Security of Payment and Personal Information;
• Complaint Handling and Dispute Resolution;
• Unsolicited E-mail;
• Communications with Children.

Financial Assistance

Financing for e-business - Business Development Bank of Canada

The Business Development Bank of Canada (BDC) offers possibilities of financing for e-business. Whatever your development stage - from initial feasibility study to implementing and integrating a fully transactional site - BDC's specialized financing may be the solution for your e-business needs.

Training/Information

Examples of services available, but not limited to:

ebiz.enable

This is an e-business portal designed specifically to guide commercial organizations through the issues and options encountered in implementing e-business strategies. ebiz.enable 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. The Web site offers e-business diognostic tools, research and statistics, case studies and success stories, and information on topics such as marketing and technology.

SourceCAN

SourceCAN was developed by the federal government as a resource meant to educate, prepare and place Canadian businesses within the global marketplace. SourceCAN is a Collaborative Partnership Arrangement between Industry Canada, and the Canadian Commercial Corporation. This comprehensive portal web site matches Canadian products and services with thousands of business opportunities posted daily by both domestic and foreign corporations and governments. Through national and international tender feeding systems, Canadian companies can source bids, follow new business leads and post opportunities, all within a secure online trading environment. Members can also put together a booth in the Virtual Trade Show, pursue strategic partnerships, or browse through the e-commerce business tools—all free of charge.

BDC Consulting Group

Become an effective e-business with the support of an experienced BDC advisor. Evaluate e-business relevancy, readiness, potential, and implementation strategies. Re-align your production, supply chain, processes, and customer relations with Internet technology. The following e-business diagnostic tools are available:

• E-business Relevancy Diagnostic—Diagnostic to help you measure the relevancy of e-business for your firm.
• E-business Readiness Diagnostic—Diagnostic to help you measure the your firm's readiness regarding e-business planning and implementation.

Student Connections

Industry Canada's Student Connections (SC) provides Canadian small and medium entreprises 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.

• Student Connections will introduce Canadian businesses to the power of the Internet as a business tool.
• The E-Commerce First Step Program will help businesses determine what steps need to be taken to implement e-commerce into their business activities

Canadian e-Business Initiative

The Canadian e-Business Initiative (CeBI) is a voluntary, private sector-led partnership that aims to further Canada's e-business success by focusing on productivity, leadership and innovation in small and medium enterprises.

E-Business Service Centres

Three members of the Canada Business network are involved in partnerships that have established e-business service centres. These centres have a special focus on e-business and provide SMEs with services and resources, such as information guides and seminars. The centres are:

• Alberta E-Future Centre
• eBusiness Connection (British Columbia)
• Manitoba E-Future Centre

Retail Trade—Electronic Business

A site to help Canadian retailers better understand the development and evolution on online retailing and electronic commerce.

Online Small Business Workshop

The Online Small Business Workshop (OSBW) is a Web-based workshop designed to provide you with techniques for developing your business idea, starting a new venture and improving your existing small business. It is organized into six sessions, including one on the basics of setting up an E-business.

Business with government

The government is moving towards delivering more of its programs and services electronically. Examples of such programs are:

Trade-marks

Trade-mark registration gives you exclusive rights to words, symbols and designs, or combinations of these, that distinguish your wares or services from those of someone else. Trade-marks can be registered electronically with the Canadian Intellectual Property Office (CIPO).

Federal Business Incorporation

You may now send key documents to the Director via electronic forms provided through the Corporations Canada's Electronic Filing Centre Web site. (Note: see the document Online Federal Incorporation ).

MERX

MERX is an online service that advertises government contracting opportunities to potential bidders.

Supplier Registration Information (SRI)

SRI is an electronic directory for federal government buyers who may use it to identify potential suppliers for purchases not subject to any of the trade agreements (for which they use MERX). SRI gives firms a Procurement Business Number (PBN) which they will use in procurement related dealings with the federal government.

Related Sites

Examples of services available free of charge, but not limited to:

Community Access Program

This program provides support for public computer access to the Information Highway via the Internet at the local community level. The overall objective is to provide all Canadians with affordable, convenient access to the global knowledge-based economy and the opportunity to use its technologies.

Electronic Authentication

Discusses the use of cryptographic technologies to establish user's identity.

Digital Economy and Information Society - Organisation for Economic Co-operation and Development

A site providing documentation and background information on electronic commerce initiative in the OECD countries.

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 Technology Suppliers

Section of Industry Canada's Canadian Company Capabilities Web site that lists suppliers of electronic commerce technology.

Statistics Canada - Internet Statistics

Statistics tables covering topics such as Internet usage, household Internet users characteristics, and electronic commerce.

Additional Information

For other resources available, please contact your local Canada Business service centre.

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

• E-Commerce - Exploring Your Options
• Doing Business on the Internet

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.