LML4810
ASSIGNMENT 2
SEMESTER 2 2026
UNIQUE NO. 278100
DUE DATE: 7 SEPTEMBER 2026
, Legal Aspects of Electronic Commerce - LML4810
Assignment 2 Semester 2 2026
QUESTION 2
2.1 Identify and discuss the provisions under the Electronic Communications and
Transactions Act 25 of 2002 (ECTA) that give rise to the ISP regime in South
Africa. (10 marks)
The rapid development of electronic commerce has created significant opportunities for
communication and commercial activity, but it has also created difficulties concerning
liability for unlawful material transmitted or made available through the internet. Such
unlawful activity may include copyright and trade-mark infringement, defamation,
unlawful competition and other delictual or statutory wrongs. A central question is
whether an Internet Service Provider (ISP), merely because its infrastructure is used to
transmit, store or provide access to unlawful material, should itself be held liable for the
conduct of its users.
In South Africa, the principal statutory framework addressing this issue is the Electronic
Communications and Transactions Act 25 of 2002 (ECTA). Chapter XI of ECTA,
comprising sections 70 to 79, specifically establishes a regime dealing with the
limitation of liability of service providers. The Act does not create an unrestricted
immunity for ISPs. Instead, it creates conditional safe harbours where a qualifying
service provider performs particular functions and complies with the statutory
requirements. The current consolidated version of ECTA reflects amendments made by,
among others, the Consumer Protection Act 68 of 2008, the Protection of Personal
Information Act 4 of 2013 and the Cybercrimes Act 19 of 2020.
Meaning of “service provider”
The starting point is section 70, which defines a “service provider” for purposes of
Chapter XI as a person who provides “information system services”. The definition of
“information system services” in section 1 is sufficiently broad to encompass, among
ASSIGNMENT 2
SEMESTER 2 2026
UNIQUE NO. 278100
DUE DATE: 7 SEPTEMBER 2026
, Legal Aspects of Electronic Commerce - LML4810
Assignment 2 Semester 2 2026
QUESTION 2
2.1 Identify and discuss the provisions under the Electronic Communications and
Transactions Act 25 of 2002 (ECTA) that give rise to the ISP regime in South
Africa. (10 marks)
The rapid development of electronic commerce has created significant opportunities for
communication and commercial activity, but it has also created difficulties concerning
liability for unlawful material transmitted or made available through the internet. Such
unlawful activity may include copyright and trade-mark infringement, defamation,
unlawful competition and other delictual or statutory wrongs. A central question is
whether an Internet Service Provider (ISP), merely because its infrastructure is used to
transmit, store or provide access to unlawful material, should itself be held liable for the
conduct of its users.
In South Africa, the principal statutory framework addressing this issue is the Electronic
Communications and Transactions Act 25 of 2002 (ECTA). Chapter XI of ECTA,
comprising sections 70 to 79, specifically establishes a regime dealing with the
limitation of liability of service providers. The Act does not create an unrestricted
immunity for ISPs. Instead, it creates conditional safe harbours where a qualifying
service provider performs particular functions and complies with the statutory
requirements. The current consolidated version of ECTA reflects amendments made by,
among others, the Consumer Protection Act 68 of 2008, the Protection of Personal
Information Act 4 of 2013 and the Cybercrimes Act 19 of 2020.
Meaning of “service provider”
The starting point is section 70, which defines a “service provider” for purposes of
Chapter XI as a person who provides “information system services”. The definition of
“information system services” in section 1 is sufficiently broad to encompass, among
