Online businesses are not regulated; as a result, viagra scams and the like are prevelant. Undaunted, business on the internet climbs : here's on free market solution to the lack of trust on the internet.
http://forums.digitalpoint.com
They have invented the iTrade system. It's pretty simple : you do a money transaction in their buy, sell and trade market place, and you can do an iTrade with the people you are trading with. So, a guy with 50 iTrades is probably not gonna rip you off for a $20 transaction; whereas the guy with 25 posts and a -3 itrade is probably a scammer. The system is simple : you can do positive, neutral or negative iTrade. I don't see much point in the neutral, but the positive is clearly for good jobs and the negative for when they take ur money and run. You don't use negative for if they cancel only if they dont give u the money back etc.
A little better, I think, then having the government regulate it saying you need to register with the government and pay a $1000 licensing fee to sell goods online, imo.