B2B and B2C B2B vs.

B2B and B2C

B2B vs. B2C Transactions on the Web: Analysis and Overview

This paper will explain how ethical, legal and regulatory issues differ on B2C websites compared with B2B websites. B2C websites deal with business to consumer transactions, whereas B2B sites represent business to business transactions. Because of this, there are many similarities and differences between the ways these businesses are monitored legally and morally.

While different in their approaches, most B2C businesses have to address the same ethical considerations B2B businesses to; B2C websites however, have less stringent legal and regulatory issues to address than B2C businesses. These concepts are illustrated below. This paper also argues that as technology continues to progress and change the way companies conduct business with consumers and other businesses, it is essential that international agencies review their standards of practice and attempt to develop more uniform practices to ensure they are capable of fulfilling their ethical and moral obligations when doing business through websites.

B2C

B2C websites have an obligation to engage in ethical and moral transactions. These are defined by many as transactions that are truthful, honest and admirable in nature. When transacting with customers, businesses must not lie about their products. They have an ethical and moral obligation to provide customers with the best possible product they can, and to give customers what they represent on their website, or a version close to what they describe. While some customers assume that most businesses will deal with them fairly, it is important that consumers realize most businesses are in the "business" of making a profit, thus are much more likely to be less stringent with their ethical or moral practices than a business might be if dealing with another business they want to establish long-term relationships with.

B2C websites are subject to implied warranty, meaning by the very act of transacting with customers businesses are suggesting their products will perform as specified, or they will deliver on the services they offer as described in a contract or agreement (Thierer & Crews, 2003). While many businesses may assume a "buyer beware" vantage when interacting with customers, customers are more savvy than ever and looking for security and businesses that will ensure their security when transacting on the Web.

When working with consumers, businesses must be aware of jurisdictional laws that may dictate whether an individual may file claim against a company outside of their local jurisdiction for libelous claims, fraud or other problems; the same is true of corporations interacting with businesses on the Web (Thierer & Crews, 2003).

B2B

B2B businesses also have an ethical obligation to interact with other businesses by adhering to standard business principles and fair trading regulations. Global Internet protocols are being established now resulting in more rules and regulations regarding jurisdictional power and liability for businesses offering services to other businesses, especially from a global perspective (Thierer & Crews, 2003). Businesses conducting business with other organizations must be aware of support functions, outsourcing regulations and the extent to which they may be liable for external providers influence on operations (Jacobs & Yudken, 2003).

Some companies including China are attempting to provide online dispute resolution services and regulations to help head off any difficulty businesses may have when trying to "do" business with other corporations through websites alone (Hong, 2003). Still, it is likely that several years will pass before uniform regulations are in place for business transactions on the Web.