Who do you trust? Beyond encryption, secure e-business

Electronic commerce has added a new complex issue to international trade. It is based upon the assumption that buyers and sellers conduct business with very little information about each other. This lack of information about the contracting parties reputation makes risk assessment more complex and the importance of trust in online contracting becomes increasingly important. The difficulties and expense of enforcing international agreements makes adequate risk assessment more important than ever before. At the same time the web is struggling to improve anonymity for its users. Most solutions to this problem have either been technological or the harmonization of technologies and law. This unfortunately does not resolve the problem of trust in electronic commerce. This paper is on the importance and development of trust and reputation in electronic commerce. The importance of these assets in commercial relations is discussed. Then it describes how reputation is protected as a legal asset and how trust relationships in trade are supported by laws or legal principles. The importance of developing legal guidelines for trust and reputation as a counterbalance to the lack of morality on the Internet described. The paper takes its starting point in Swedish/Nordic law but due to the international flavour of electronic commerce and Internet law references to other legal systems will be included.