legal +ehical issues _mcomm
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Issues in M-commerce.
Need for Internet security Consumers buying products, trading stocks and
banking online Credit-card, social security and confidential business
information exchanged Security attacks
Data theft and hacker attacks Wireless transmissions easier to intercept
Secure transaction fundamentals Privacy: no third party Integrity: information unaltered Authentication: proving identities Non-repudiation: legal proof of message received
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Issues in M-commerce
Availability
Network stays in operation continuously and arebecoming wireless
4 main security issues Privacy
Integrity
Authentication Non-repudiation
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Issues in M-commerce
There are number ethical and social issues arisefrom the growth of mobile computing devices,technologies and systems
Privacy and access
Security
Reliability
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Issues in M-commerce
Privacy and access: The ability to track workersand monitor mobile device users has social andethical ramifications.
Security: Wireless data communication is not assecure as wired data communication. Care andintegrity of networked systems is an important
principle of mobile systems.
Reliability: Mobile systems need to possess thesame robust levels of reliability as fixed-wireinformation systems
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Electronic Commerce Prentice Hall 2006 5
Privacy
The right to be left alone and the right to be free ofunreasonable personal intrusions
Collecting Information about Individuals Web Site Registration
Cookies
Spyware and Similar Methods
RFIDs Threat to Privacy
Privacy of Employees
Privacy of Patients
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Privacy
Privacy is not the same as security.
Wireless information systems containpersonalized information like location of user, SIM
card details
Wireless systems must be built to prevent thedeliberate /accidental violation of confidentiality.
Cookiesone of the greatest violations M-Commerce requires extensive systems
knowledge of the movements.
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Wireless Internet and the Right to Privacy.
Transfer of customer location information Companies informing wireless users how personal
information will be handled may be difficult on smallscreen
Company may transfer information to partners/affiliates
Bankrupt dot-coms can sell consumer information
Third-party vendors have own privacy policies
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Wireless Internet and the Right to Privacy.
Location-based technology May facilitate kidnapping and other illegal
activities No legislation monitoring use of location-based
technology
Businesses fear legislation will slowdevelopment
Cellular Telecommunications and InternetAssociation (CTIA) guidelines for privacy
Alert consumer when identifying location Opt-in as standard Consumers can access own information Same protections for all consumers
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Wireless Internet and the Right to Privacy.
World Wide Web Consortiums Platform forPrivacy Preferences Project (P3P) Companies release questionnaire asking user privacy
desired XML applications match user preferences with privacyprotocols
Means of avoiding legislation
Digital redlining: advertisers limit information seen bybasing advertisements on users past behavior
Recording of personal activities is privacy issue
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Wireless Internet and the Right to Privacy.
The Bankruptcy Reform Act.
Monitors consumer information sale in case ofbankruptcy
Privacy policies should be followed even duringbankruptcy
eBay changed policy stating they could share users
personal information with subsidiaries
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Electronic Commerce Prentice Hall 2006 11
Privacy
Protection of Privacy Notice/awareness
Choice/consent
opt-out clauseAgreement that requires computer users to takespecific steps to preventthe collection of personalinformation
opt-in clauseAgreement that requires computer users to takespecific steps to allowthe collection of personalinformation
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Electronic Commerce Prentice Hall 2006 12
Privacy
Protection of Privacy
Access/participation
Integrity/security
Enforcement/redress
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Electronic Commerce Prentice Hall 2006 13
Privacy
The USA Patriot Act E-mail and Internet searches
Nationwide roving wiretaps
Requirement that ISPs hand over more userinformation
Expanded scope of surveillance based on newdefinitions of terrorism
Government spying on suspected computertrespassers with no need for court order
Wiretaps for suspected violations of the ComputerFraud and Abuse Act
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Privacy
Privacy Protection in Other Countries
In 1998, the European Union passed a privacydirective (EU Data Protection Directive) reaffirming
the principles of personal data protection in theInternet age
The directive aims to regulate the activities of anyperson or company that controls the collection,
storage, processing, or use of personal data on theInternet
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Electronic Commerce Prentice Hall 2006 15
Intellectual Property Rights
Intellectual property
Creations of the mind, such as inventions,
literary and artistic works, and symbols, names,images, and designs, used in commerce.
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Intellectual Property Rights
copyright
An exclusive grant from the government that allows theowner to reproduce a work, in whole or in part, and to
distribute, perform, or display it to the public in any formor manner, including over Internet
Literary works
Musical works
Dramatic works Artistic works
Sound recordings, films, broadcasts, cable programs
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Electronic Commerce Prentice Hall 2006 17
Intellectual Property Rights
Copyrights
Piracy of Software, Music, and Other DigitizableMaterial
Copyright Protection Approachesdigital watermarks
Unique identifiers embedded in digital content thatmake it possible to identify pirated works
Digital Rights Management
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Intellectual Property Rights
trademark
A symbol used by businesses to identify theirgoods and services; government registration of
the trademark confers exclusive legal right to itsuse
Domain Name Disputes and Resolutions
cybersquattingThe practice of registering domain names in orderto sell them later at a higher price
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Intellectual Property Rights
patent
A document that grants the holder exclusiverights to an invention for a fixed number of years
Fan and Hate Sites
cyberbashing
The registration of a domain name that criticizes an
organization or person
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Ethical, Social and Legal Issues
Ethical issues: Questions about what is good andproper;
Legal issues: Questions about ensuring and
enforcing compliance with the law and defining,detecting and prosecuting.
Tendency technology providers and their customer
organizations to concentrate on the introduction oftechnology at the expense of the social aspects.
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Electronic Commerce Prentice Hall 2006 21
Legal Issues Versus Ethical Issues
EC Ethical Issues
Non-Work-Related Use of the Internet
Employees are tempted to use e-mail and the Web for
non-work-related purposes In some companies, this use is tremendously out of
proportion with its work-related use
The utility of monitoring employee usage can beconsidered one of the most controversial EC issues
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Legal Issues Versus Ethical Issues
Codes of Ethics: Useful guidelines for a corporateWeb policy:
Issue written policy guidelines about employee use of theInternet
Make it clear to employees that they cannot usecopyrighted trademarked material without permission
Post disclaimers concerning content, such as samplecode, that the company does not support
Post disclaimers of responsibility concerning content ofonline forums and chat sessions
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Legal Issues Versus Ethical Issues
Codes of Ethics: Useful guidelines for a corporate Webpolicy:
Make sure that Web content and activity comply with the laws inother countries
Make sure that Web content and activity comply with the laws inother countries
Make sure that the companys Web content policy is consistent
with other company policies
Appoint someone to monitor Internet legal and liability issues. Have attorneys review Web content to make sure that there is
nothing unethical, or illegal, on the companys Web site
U li i d El i Ad
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Electronic Commerce Prentice Hall 200624
Unsolicited Electronic Ads:Problems and Solutions
E-Mail Spamming
unsolicited commercial e-mail (UCE)
The use of e-mail to send unwanted ads or
correspondence What Drives UCE?
Many spammers are just trying to get peoples financial
information
U li i d El i Ad
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Unsolicited Electronic Ads:Problems and Solutions
Why It Is Difficult to Control Spamming
Spammers send millions of e-mails, shifting Internetaccounts to avoid detection
Spammers use different methods to find their victims
Solutions to Spamming
Junk-mail filters
Automatic junk-mail deleters
Blocking certain URLs and e-mail addresses
F S h V C hi
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Electronic Commerce Prentice Hall 200626
Free Speech Versus Censorshipand Other Legal Issues
On the Internet, censorshiprefers togovernments attempt to control, in one way oranother, the material that is presented
Donhams First Law of Censorship. Thissemiserious precept states: Most citizens areimplacably opposed to censorship in any formexcept censorship of whatever they personally
happen to find offensive. Childrens Online Protection Act (COPA)
exemplifies the protective approach
F S h V C hi
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Free Speech Versus Censorshipand Other Legal Issues
Other Legal Issues
Electronic Contracts
A legally binding contract requires a few basic elements:
an offer, acceptance, and consideration These requirements are difficult to establish when the
human element in the processing of the transaction isremoved and the contracting is performed electronically
Intelligent Agents and ContractsUniform Computer Information Transactions Act ( 2000), makesclear that contracts can be formed even when a human is notdirectly involved
F S h V C hi
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Free Speech Versus Censorshipand Other Legal Issues
Taxing Business on the Internet
This issue is extremely important because it is relatedto global EC, as well as to fairness in competition
when EC competes with off-line marketing channels,which requires the collection of taxes
Free Speech Versus Censorship
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Free Speech Versus Censorshipand Other Legal Issues
The Tax-Exemption Debate
The Internet Tax Freedom Act 1(998) sought topromote e-commerce through tax incentives, by
barring any new state or local sales taxes on Internettransactions until October 2001
The U.S. Congress extended the tax moratorium until2006, giving it time to digest the contents of the report
and hash out contentious tax issues
Free Speech Versus Censorship
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Free Speech Versus Censorshipand Other Legal Issues
The Tax-Exemption Debate
Proposed Taxation in the United States
The National Governors Association, the National League
of Cities, and the U.S. Conference of Mayors fought theTax Free Bill for the Internet
The U.S. Congress blocked state and local governmentsfrom taxing connections that link consumers to theInternet, at least until November 2007
EC F d d
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EC Fraud andConsumer and Seller Protection
Fraud on the Internet
Online Auction Fraud
Internet Stock Fraud
Other Financial Fraud
EC Fra d and
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EC Fraud andConsumer and Seller Protection
Fraud on the Internet
Identity Theft and Phishing
identity theft
A criminal act in which someone presents himself(herself) as another person and uses that persons
social security number, bank account numbers,
and so on, to obtain loans, purchase items, makeobligations, sell stocks, etc.
EC Fraud and
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EC Fraud andConsumer and Seller Protection
Consumer Protection
Third-Party Assurance Services
TRUSTes Trustmark
Better Business Bureau
WHICHonline
Web Trust Seal and Others
Online Privacy Alliance Evaluation by Consumers
Authentication and Biometric Controls
EC Fraud and
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EC Fraud andConsumer and Seller Protection
Seller Protection
Customers who deny that they placed an order
Customers who download copyrighted software
and/or knowledge and sell it to others Customers who give false payment (credit card or bad
checks) information in payment for products andservices provided
Use of their name by others Use of their unique words and phrases, names, and
slogans and their Web addresses by others
EC Fraud and
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EC Fraud andConsumer and Seller Protection
What can Sellers Do?
Use intelligent software to identify possiblyquestionable customers
Identify warning signals for possibly fraudulenttransactions
Ask customers whose billing address is different fromthe shipping address to call their bank and have the
alternate address added to their bank account
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Virtual (Internet) Communities
virtual (Internet) community
A group of people with similar interests whointeract with one another using the Internet
Characteristics of Communities
One possibility is to classify members as traders,players,just friends, enthusiasts, or friends in need
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Virtual (Internet) Communities
1. Search communities
2. Trading communities
3. Educationcommunities
4. Scheduled events
communities5. Subscriber-based
communities
6. Community consultingfirms
7. E-mail-basedcommunities
8. Advocacy communities
9. CRM communities10.Mergers and
acquisitions activities
Commercial Aspects of Communities
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Virtual (Internet) Communities
Types of Virtual Communities Transaction
Purpose or interest
Relations or practice
Fantasy Financial Viability of Communities: Revenue model of
communities can be based on: Sponsorship
Membership fees Sales commissions
Advertising
Combination of these
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Virtual (Internet) Communities
1. Increase traffic andparticipation in the community
2. Focus on the needs of the
members; use facilitators andcoordinators
3. Encourage free sharing ofopinions and informationnocontrols
4. Obtain financial sponsorship.This factor is a must.Significant investment isrequired
5. Consider the culturalenvironment
6. Provide several tools andactivities for member use;communities are not justdiscussion groups
7. Involve community members inactivities and recruiting
8. Guide discussions, provoke
controversy, and raise stickyissues. This keeps interest high
Eight critical factors for community success:
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