CHAPTER ONE

GENERAL INTRODUCTION

This chapter provides an introductory overview of the study. It specifically dwells on the background to the study, the statement of the research problem, the research questions, the objectives of the study, the research methodology, the justification for the study, the significance of the study and the scope of the study. The chapter also examines the various theories upon which the work is based on, and defines all relevant terms of the dissertation. It ends with a summary of the other chapters.

• BACKGROUND TO THE STUDY

As once opined by Nyamaka Daudi^[1]

Human history, in a sense, is a story of technology. From flint stones to that of genetic clones. The tribulations and triumph of such a journey, which will continue in future has one constant aspect at its core; the laws governing them. The cyber revolution holds the promise of quickly reaching the masses as opposed to earlier technologies which had a trickledown effect. Such a promise can only be realized with an appropriate legal regime based on the socio-economic matrix…

With the advent of information and communication technology, along with the rise of the Internet, changes have begun to occur at an accelerated pace. The internet has played a significant role in transforming the world into a global village. This technological surge has reshaped the structure of marketplaces today, and the changes it brings may be even more dramatic in the future than those we have witnessed in recent years.^[2] Certainly, like many other positive effects of these new technologies, there is a significant boost to economic activity as well.

Before the advent of the internet, consumers rarely purchased products and services from distant countries; instead, they typically shopped at local or national establishments. However, electronic business conducted over the Internet and other computer networks is experiencing explosive growth. The Internet serves as a global medium that transcends all borders, and once a website is launched, it is accessible worldwide from the outset. Similarly, transactions, as well as commercial and promotional materials on websites, become global in reach.^[3]

The development of electronic business presents significant employment opportunities, particularly in small and medium-sized enterprises. In the future, it is expected to stimulate economic growth and investment in innovation, while also enhancing the competitiveness of various industries, provided that everyone has access to the Internet.^[4] Electronic commerce is helping to break down trade barriers, open markets, and revolutionize spending habits. It offers businesses substantial efficiency gains and provides consumers with greater choice, improved service, and lower prices. Business-to-consumer e-commerce is driving a new trend toward a more consumer-oriented service culture, which is a hallmark of the emerging economy. To compete effectively in the global electronic marketplace, companies will need to prioritize the consumer experience.^[5] 

Due to the nature of the Internet, consumer confidence has been shaken. Doubts arise regarding how disputes will be resolved, which in turn affects the growth of electronic commerce. As a result, even in cases where it may be unwarranted, consumer mistrust often leads individuals to transact offline, even when an overseas business offers the same product or service at a lower price. Therefore, the future growth of e-commerce hinges on instilling greater confidence in consumers and businesses. This, in turn, requires accessible avenues for justice and predictable outcomes for disputes that arise in the online environment.^[6]

The first instance of electronic commerce occurred in 1886 when a telegraph operator managed to acquire a shipment of watches that had been refused by a local jeweler.[7] Using the telegraph, he sold all the watches to fellow operators and railroad employees. Within a few months, he earned enough money to quit his job and start his own store. The young man’s name was Richard Sears, and his company later became known as Sears, Roebuck.^[8] Following this, many economic transactions began to take place electronically. However, it was the invention of the Internet that truly transformed the landscape of e-commerce. Among the two most commercially significant Internet applications, software for electronic mail was developed in 1972, while the World Wide Web was integrated into the system in 1995.^[9] 

With the development of electronic mail and the insertion of the World Wide Web, in mid 1990s, commercial transactions on the Internet started growing substantially.^[10] By 1996, Internet traffic, including e-commerce, was doubling every 100 days.[11] By mid-1997, the U.S. Department of Commerce reported that just over 4 million people were using e-commerce; by the end of  1997, that figure had grown to over 10 million users[12]. The rate of e-commerce growth continues so rapidly that projections often are outdated as fast as they are published. One 1998 industry estimate projected that U.S. retail transactions would reach $7 billion by 2000 a figure now widely accepted as having been reached in the year the report came out.^[13]

In 1995, Pierre Omidyar decided to utilize the web pages included with his $30-a-month Internet service[14]. His goal was to enhance online classifieds for selling personal items. With some of coding, he developed a simple auction mechanism that relieved sellers from having to choose among multiple interested buyers. The code handled the process, and since the space on the web server was part of his account, the entire venture costed him nothing; the service was offered for free. That same year, he announced his free service on the National Center for Supercomputing Applications’ “What’s New” web page, which was then a hub of online activity. By the end of 1995, his web page had gained significant attention.[15]

His Internet Service Provider was not pleased with this arrangement, as his page was consuming a significant amount of CPU cycles. Consequently, they raised Omidyar’s monthly fee from $30 to $250. In response, he began charging sellers a small fee for items sold, which relied on the honesty of the sellers. The checks started coming in volume. In the first month, he covered the $250 bill for his Internet service. After that, revenue growth became exponential: in the second month, it reached $1,000; in the third month, $2,000; in the fourth month, $5,000; and so on. When his ISP informed him that the traffic his page was generating was too much for their servers, he installed his own server at the ISP’s premises.

By mid-1996, Omidyar left his daytime job and founded eBay. By the fall of 1996, eBay’s revenues had reached $400,000 per month, while its expenses were $200,000. In 1997, the venture capital firm Benchmark invested $6.7 million in eBay, valuing the company at $20 million. In September 1998, following its first day of public trading, eBay’s market capitalization soared to $2 billion. Three months later, the stock had gained more than 1,300 percent in value. By June 1999, the company was valued at over $21 billion. During the fourth quarter of December 2001, revenue jumped 64% to $219.4 million, with net income at 8%. Furthermore, eBay appeared to be in strong operational shape and was expected to grow by 52% annually over the next five years.^[16]

• STATEMENT OF THE PROBLEM

The growth of e-business in Cameroon has raised concerns regarding the effectiveness of regulations meant to govern online transactions. As more businesses transition to digital platforms, the existing laws fail to provide comprehensive protections for both consumers and businesses, resulting in an environment fraught with challenges. In addition, most Cameroonians are not knowledgeable in the area of cyber criminality. It is easier for most culprits to venture and get away without being caught as was the case of The People of Cameroon v. Tamukum Fonjiyang Ferdinand and Song Charles Waindim[17]  where the Buea Court of First Instance held the accused were not guilty of cybercrime and were consequently acquitted. Even though technology provides tremendous opportunities for the business sector, the challenges accompanying these opportunities cannot be ignored.

1.3 RESEARCH QUESTIONS

The problems identified in this research have led to the following research questions:

1.3.1 Main Research Question:

To what extent are the measures for the regulation of E-business effective in Cameroon?

• Specific Research Questions:

• What is the nature and concept of E-business transactions?
• What are the legal and institutional frameworks governing E-business in Cameroon?
• How effective are the measures for e-business regulation in Cameroon?
• What recommendations can be made to improve on the e-business sector in Cameroon?

1.4 RESEARCH OBJECTIVES

1.4.1 Main Research Objective:

• To critically evaluate the effectiveness of existing measures on E-Business in Cameroon.

Specific Research Objectives:

• To examine the nature and concept of E-business transactions
• To assess the legal and institutional frameworks regulating E- business in Cameroon.
• To analyze the effectiveness of laws regulating E- business in Cameroon.
• To propose recommendations aimed at improving E-business in Cameroon

[1] Nyamaka D. Mwita, Electronic Contracts in Tanzania: An Appraisal of the Legal Framework, LLM Dissertation, St. Augustine University of Tanzania, 2011p. 1

[2] Winn, Jane K. “Islamic Law, Globalization, and Emerging Electronic Commerce Technologies.” Strengthening Relations with Arab and Islamic Countries through International Law: E-Commerce, Shidler Center for Law, Commerce & Technology, University of Washington School of Law,2002, p1.

[3] Jurisdiction and applicable law in electronic commerce Electronic Commerce Project (ECP)’s Ad hoc Task Force, 6 June 2001

[4] Directive 2000/31/Ec Of The European Parliament And Of The COUNCIL of 8 June 2000 on certain legal aspects of information society services, in particular electronic commerce, in the Internal Market (Directive on electronic commerce) www.spamlaws.com/docs/2000-31-ec.pdf  page

[5] Alternative dispute resolution for consumer transactions in the borderless online marketplace department of commerce/Federal Trade Commission Invitation to comment and public workshop Comments by the European Commission 30/5/2000 page 3

[6] Electronic Communication Issues Related To Online Dispute Resolution Systems V. Bonnet, K. Boudaoud, J. Harms Centre Universitaire Informatique University of Geneva, Switzerland, available at: www2002.org/CDROM/alternate/676/  page 1

[7] Schneider, Gary P. Electronic Commerce. 12th ed., Cengage Learning, 2017.

[8] More information available at: http://www.techweb.com/encyclopedia/defineterm.jhtml?term=E-commerce.visited on 18^th December 2024.

[9] Dispute Resolution in International Electronic Commerce by Tapio Puurunen ACADEMIC DISSERTATION Faculty of Law University of Helsinki Helsinki, Finland, available at: ethesis.helsinki.fi/julkaisut/oik/julki/vk/puurunen/disputer.pdf page 22

[10] For statistics and other data on e-commerce, see: CRS Report RL30435, Internet and Ecommerce Statistics: What They Mean and Where to Find Them On the Web. Other sources include: http://www.idc.com, http://www.abcnews.go.com, http://www.forrester.com, http://earmarketer.com, and http://www.cs.cmu.edu.  It is important to note that some measurements of e-commerce particularly that data reported in the media have not been verified. Visited on 18th December 2024.

[11] Greenstein, Shane, and Ryan C. McDevitt. “The Broadband Bonus: Accounting for Broadband Internet’s Impact on U.S. GDP.” NBER Working Paper Series, no. 14758, National Bureau of Economic Research, 2009, doi:10.3386/w14758.

[12] U.S. Department of Commerce. The Emerging Digital Economy. U.S. Government Printing Office, 1998.

[13] so rapidly that projections often are outdated as fast as they are published. One 1998 industry

estimate projected that U.S. retail transactions would reach $7 billion by 2000 — a figure now

widely accepted as having been reached in the year the report came out.12

[14] Cohen, Adam. The Perfect Store: Inside eBay. Back Bay Books, 2003.

[15] Pierre Omidyar and the Birth of eBay. National Center for Supercomputing Applications’ ‘What’s New’ Web Page, 1995.

[16] An Introduction to eCommerce, Asuman Dogac. Middle East Technical University Software R&D Center Ankara, Turkey page 2-6

[17] CFIB/015/2012