The expanse of Internet advertising offers a solid platform for Electronic Commerce e-commerce) to explode. To give safe shopping transactions connected with instant validation and verification of transactions through credit card E-Commerce has the capacity. E-Commerce is doing business leveraging the technology not only about the technology itself the technology.
A change in technology is followed by usual incorporation of ethical standards into law. New forms of E-Commerce enables new business practices have many benefits but also take many liabilities. In this research describing about legal and ethical issues linked to e-commerce.
Ethical Issues
Commonly, lot of ethical and global issues of Information Technology apply to e-business.
The services given by intermediaries are
• Matching and providing information.
• Value added services such as consulting.
The matching and providing information can be fully automated, and this service is likely to be in e-marketplaces and portals that give free services. The value added service needs skills and this can only be in automated. The fact by which Intermediaries, who give importantly matching and giving information services are removed is called Disintermediation.
The brokers who give value added services or who manage electronic intermediation are not only continuing on but may really succeed; this phenomenon is called Reinter mediation.
By disintermediation the traditional sales channel will be affected negatively. The services needed to support or complement e-commerce are given by the web as new opportunities for reinter mediation. The factors that should be considered here are the very large number of participants, expanded information processing, elegant negotiations, etc. To be more predictable, they need a computer mediator.

Legal
It is a hot problem for both cyber and click-and-mortar merchants. The cheaters are active for the most part of area of stocks. By the promise of false profits by the stock promoters, the small investors are attracted. Auctions are also conductive to fraud, by both producers and consumers. The availability of e-mails and pop up ads has given the way for financial criminals to have access to many people.
Copyright
The various forms of copyright laws saved Intellectual property and cannot be used without restriction. It is very hard to save Intellectual property in E-Commerce. If we take an example, when we buy software we have the right to use it and not the right to distribute it. Copyright holder has the distribution rights and copying contents from the website also disobey copy right laws.
Domain Names
Another legal is the contest over domain names. Domain names are the Internet addresses and they appear in levels. iqburst.com or microsoft.com is A top level name and qburst.com/blog is second level name will be Top level domain names are nominated by a central non-profit organization which also checks for competition or possible infraction of trademarks. Problems begins when lot of companies having the names similar competing on the same domain name. The problem of domain names was assuaged somewhat in 2001 after several upper level names were added to