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Salient Features of the IT Act, 2000

The Information Technology Act, 2000 is India's primary law governing electronic transactions, digital signatures, and cybercrimes. It provides the legal framework for e-commerce, electronic governance, and data protection in the digital age.


  • E-documents and digital signatures have the same legal status as physical records and handwritten signatures.
  • Enables electronic contracts and e-commerce transactions.

2. Electronic Governance

  • Encourages government agencies to accept digital records and digitally signed documents.
  • Promotes efficiency and transparency in public administration.

3. Regulation of Certifying Authorities

  • Establishes a framework for issuing and verifying digital signature certificates.
  • Certifying Authorities (CAs) are licensed to issue and validate digital signatures.

4. Cybercrime and Penalties

The Act defines various cyber offenses and prescribes penalties for violations.

Examples:

  • Hacking: Punishable with imprisonment up to 3 years and/or a fine of ₹5 lakhs.
  • Identity Theft: Up to 3 years in jail and/or a fine of ₹1 lakh.
  • Publishing obscene material: Up to 5 years in jail and/or a fine of ₹10 lakhs.

5. Liabilities of Intermediaries

  • Platforms like Facebook, YouTube, and Google are not liable for user-generated content unless they fail to act on complaints.
  • Requires intermediaries to comply with government orders for content removal.

6. Provisions for Data Protection

  • Companies must implement security measures to protect sensitive personal data.
  • Unauthorized access, data leaks, and financial frauds are punishable offenses.

7. Cyber Appellate Tribunal

  • A special tribunal was created to handle disputes related to cyber law.
  • Deals with cases involving cybercrime and electronic commerce disputes.

8. Amendments and IT Rules

  • The IT (Amendment) Act, 2008 added provisions for data privacy and cyber terrorism.
  • Introduced Section 66A (later struck down), which criminalized offensive online messages.

Cybercrimes and Their Penalties Under the IT Act

Cybercrime Punishment
Hacking (Section 66) 3 years imprisonment and/or ₹5 lakh fine
Identity Theft (Section 66C) 3 years imprisonment and/or ₹1 lakh fine
Cyber Terrorism (Section 66F) Life imprisonment
Publishing obscene material (Section 67) 5 years imprisonment and/or ₹10 lakh fine
Phishing and fraud Varies based on severity

Real-World Example: Clapnow

Clapnow is India's preloved marketplace, and the IT Act directly shapes how the platform operates to protect both buyers and sellers.

Here's how these provisions apply to Clapnow:

By operating within this legal framework, Clapnow ensures a safe, trustworthy environment for Gen Z buyers and sellers in the preloved fashion space.

If you're into thrifting or preloved fashion, shop from Clapnow & follow @clap.now on Instagram.