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Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
Ec2009 ch12 legal ethical and social
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Ec2009 ch12 legal ethical and social

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Chapter 12 …

Chapter 12
legal ethical and social

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  1. Chapter 12 Legal, Ethical, and Social Impacts of EC
  2. Learning Objectives <ul><li>Describe the differences between legal and ethical issues in EC. </li></ul><ul><li>Understand the difficulties of protecting privacy in EC. </li></ul><ul><li>Discuss issues of intellectual property rights in EC. </li></ul><ul><li>Understand the conflict between free speech and censorship on the Internet. </li></ul><ul><li>Describe major legal issues in EC. </li></ul>
  3. Learning Objectives (cont.) <ul><li>Describe the types of fraud on the Internet and how to protect against them. </li></ul><ul><li>Describe representative societal issues in EC. </li></ul><ul><li>Describe the role and impact of virtual communities on EC. </li></ul><ul><li>Describe the future of EC. </li></ul>
  4. MP3.com, Napster, and Intellectual Property Rights <ul><li>The Problem </li></ul><ul><ul><li>Before the advent of the Web, people made audiotape copies of music and videos to give to friends and family or used them for their own personal enjoyment </li></ul></ul><ul><ul><li>Such activities were ignored by the producers, distributors, and artists who had the legal rights to the content </li></ul></ul>
  5. MP3.com, Napster, and Intellectual Property Rights (cont.) <ul><ul><li>MP3.com enabled users to listen to music from any computer with an Internet connection without paying royalties </li></ul></ul><ul><ul><li>Using peer-to-peer (P2P) technology, Napster supported the distribution of music and other digitized content among millions of users </li></ul></ul>
  6. MP3.com, Napster, and Intellectual Property Rights (cont.) <ul><ul><li>MP3 and Napster claimed to be supporting what had been done for years and were not charging for their services </li></ul></ul><ul><ul><li>Popularity of MP3.com and P2P services was too great for the content creators and owners to ignore </li></ul></ul>
  7. MP3.com, Napster, and Intellectual Property Rights (cont.) <ul><ul><li>To the creators and owners, the Web was becoming a vast copying machine </li></ul></ul><ul><ul><li>MP3.com’s and Napster’s services could result in the destruction of many thousands of jobs and millions of dollars in revenue </li></ul></ul>
  8. MP3.com, Napster, and Intellectual Property Rights (cont.) <ul><li>The Solution </li></ul><ul><ul><li>December 2000, EMusic ( emusic.com ) filed a copyright infringement lawsuit against MP3.com </li></ul></ul><ul><ul><li>In 2001, Napster faced similar legal claims, lost the legal battle, and was forced to pay royalties for each piece of music it supported—Napster collapsed—in October 2003 it reopened as “for fee only” </li></ul></ul>
  9. MP3.com, Napster, and Intellectual Property Rights (cont.) <ul><ul><li>Existing copyright laws were written for physical, not digital, content </li></ul></ul><ul><ul><li>The Copyright Infringement Act states, “the defendant must have willfully infringed the copyright and gained financially” </li></ul></ul><ul><ul><li>The “no financial gain” loophole in the Act was later closed </li></ul></ul>
  10. MP3.com, Napster, and Intellectual Property Rights (cont.) <ul><li>The Results </li></ul><ul><ul><li>In 1997, the No Electronic Theft Act (NET) was passed, making it a crime for anyone to reproduce and distribute copyrighted works </li></ul></ul><ul><ul><ul><li>applied to reproduction or distribution accomplished by electronic means </li></ul></ul></ul><ul><ul><ul><li>even if copyrighted products are distributed without charge, financial harm is experienced by the authors or creators of a copyrighted work </li></ul></ul></ul>
  11. MP3.com, Napster, and Intellectual Property Rights (cont.) <ul><ul><li>MP3.com suspended operations in April 2000 and settled the lawsuit </li></ul></ul><ul><ul><li>Napster suspended service and settled its lawsuits </li></ul></ul><ul><ul><ul><li>tried to resurrect itself as an online music subscription service with the backing of Bertelsmann AG </li></ul></ul></ul><ul><ul><ul><li>filed for bankruptcy in June 2002 </li></ul></ul></ul><ul><ul><ul><li>purchased by Roxio with plans to revive Napster into a royalty-paying framework </li></ul></ul></ul>
  12. MP3.com, Napster, and Intellectual Property Rights (cont.) <ul><li>What we can learn… </li></ul><ul><ul><li>All commerce involves a number of legal, ethical, and regulatory issues </li></ul></ul><ul><ul><li>EC adds to the scope and scale of these issue </li></ul></ul><ul><ul><li>What constitutes illegal behavior versus unethical, intrusive, or undesirable behavior? </li></ul></ul>
  13. Legal Issues Versus Ethical Issues <ul><li>Ethics: The branch of philosophy that deals with what is considered to be right and wrong </li></ul><ul><ul><li>What is unethical is not necessarily illegal </li></ul></ul><ul><ul><li>Ethics are supported by common agreement in a society as to what is right and wrong, but they are not subject to legal sanctions </li></ul></ul>
  14. Legal Issues Versus Ethical Issues (cont.) <ul><li>EC ethical issues </li></ul><ul><ul><li>Non-work-related use of the Internet </li></ul></ul><ul><ul><ul><li>Employees use e-mail and the Web for non-work-related purposes </li></ul></ul></ul><ul><ul><ul><li>The time employees waste while surfing non-work-related Web sites during working hours is a concern </li></ul></ul></ul>
  15. Legal Issues Versus Ethical Issues (cont.) <ul><ul><li>Corporate code of ethics </li></ul></ul><ul><ul><ul><li>Issue written policy guidelines </li></ul></ul></ul><ul><ul><ul><li>Copyrighted trademarked material cannot be used without permission </li></ul></ul></ul><ul><ul><ul><li>Post disclaimers concerning content </li></ul></ul></ul><ul><ul><ul><li>Post disclaimers of responsibility concerning content of online forums and chat sessions </li></ul></ul></ul>
  16. Legal Issues Versus Ethical Issues (cont.) <ul><ul><ul><li>Make sure that Web content and activity comply with the laws in other countries </li></ul></ul></ul><ul><ul><ul><li>Make sure that the company’s Web content policy is consistent with other company policies </li></ul></ul></ul><ul><ul><ul><li>Appoint someone to monitor Internet legal and liability issues </li></ul></ul></ul><ul><ul><ul><li>Have attorneys review Web content to make sure that there is nothing unethical, or illegal, on the company’s Web site </li></ul></ul></ul>
  17. Legal Issues Versus Ethical Issues (cont.) <ul><li>Major ethical/legal issues </li></ul><ul><ul><li>Privacy </li></ul></ul><ul><ul><li>Intellectual property rights </li></ul></ul><ul><ul><li>Free speech versus censorship </li></ul></ul><ul><ul><li>Consumer and merchant protection against fraud </li></ul></ul>
  18. Legal Issues Versus Ethical Issues (cont.) <ul><li>Privacy: The right to be left alone and the right to be free of unreasonable personal intrusions </li></ul><ul><ul><li>The right of privacy is not absolute. Privacy must be balanced against the needs of society </li></ul></ul><ul><ul><li>The public’s right to know is superior to the individual’s right of privacy </li></ul></ul>
  19. Legal Issues Versus Ethical Issues (cont.) <ul><li>Collecting information about individuals over the Internet: </li></ul><ul><ul><li>By reading an individual’s newsgroup postings </li></ul></ul><ul><ul><li>By looking up an individual’s name and identity in an Internet directory </li></ul></ul><ul><ul><li>By reading an individual’s e-mail </li></ul></ul>
  20. Legal Issues Versus Ethical Issues (cont.) <ul><ul><li>By conducting surveillance on employees </li></ul></ul><ul><ul><li>By wiretapping wireline and wireless communication lines and listening to employees </li></ul></ul><ul><ul><li>By asking an individual to complete a Web site registration </li></ul></ul><ul><ul><li>By recording an individual’s actions as they navigate the Web with a browser, usually using cookies </li></ul></ul>
  21. Legal Issues Versus Ethical Issues (cont.) <ul><li>Web site registration </li></ul><ul><ul><li>Most B2C and marketing Web sites ask visitors to fill out registration forms including: </li></ul></ul><ul><ul><ul><li>names </li></ul></ul></ul><ul><ul><ul><li>addresses </li></ul></ul></ul><ul><ul><ul><li>phone numbers </li></ul></ul></ul><ul><ul><ul><li>e-mail addresses </li></ul></ul></ul><ul><ul><ul><li>hobbies, etc. </li></ul></ul></ul>
  22. Legal Issues Versus Ethical Issues (cont.) <ul><ul><li>There are few restraints on the ways in which the site can use this information </li></ul></ul><ul><ul><ul><li>Use it to improve customer service or its own business </li></ul></ul></ul><ul><ul><ul><li>Or sell the information to another company that could use it in an inappropriate or intrusive manner </li></ul></ul></ul>
  23. Legal Issues Versus Ethical Issues (cont.) <ul><ul><li>Cookie: A small piece of data that is passed back and forth between a Web site and an end user’s browser as the user navigates the site; enables sites to keep track of users’ activities without asking for identification </li></ul></ul>
  24. Legal Issues Versus Ethical Issues (cont.) <ul><ul><li>Users can protect themselves against cookies: </li></ul></ul><ul><ul><ul><li>delete them from their computers </li></ul></ul></ul><ul><ul><ul><li>use anticookie software </li></ul></ul></ul><ul><ul><li>Microsoft Passport lets consumers permanently enter a profile of information along with a password and use this information and password repeatedly to access services at multiple sites—affords opportunities to invade privacy </li></ul></ul>
  25. Legal Issues Versus Ethical Issues (cont.) <ul><li>Privacy of employees </li></ul><ul><ul><li>Monitoring employees’ e-mail and Web activities </li></ul></ul><ul><ul><ul><li>wasting time </li></ul></ul></ul><ul><ul><ul><li>may disclose trade secrets </li></ul></ul></ul><ul><ul><li>77% of companies monitor their employees’ communications </li></ul></ul>
  26. Legal Issues Versus Ethical Issues (cont.) <ul><li>Protection of privacy </li></ul><ul><ul><li>Notice/awareness </li></ul></ul><ul><ul><li>Choice/consent </li></ul></ul><ul><ul><li>Access/participation </li></ul></ul><ul><ul><li>Integrity/security </li></ul></ul><ul><ul><li>Enforcement/redress </li></ul></ul>
  27. Legal Issues Versus Ethical Issues (cont.) <ul><ul><li>Opt-out clause: Agreement that requires computer users to take specific steps to prevent collection of information </li></ul></ul><ul><ul><li>Opt-in clause: Agreement that requires computer users to take specific steps to allow collection of information </li></ul></ul>
  28. Intellectual Property Rights <ul><li>Intellectual property: Creations of the mind, such as inventions, literary and artistic works, and symbols, names, images, and designs used in commerce </li></ul>
  29. Copyrights <ul><li>Copyright: An exclusive grant from the government that allows the owner to reproduce a work, in whole or in part, and to distribute, perform, or display it to the public in any form or manner, including the Internet </li></ul>©
  30. Copyrights (cont.) <ul><li>Copyright protection approaches </li></ul><ul><ul><li>Using software to produce digital content that cannot be copied </li></ul></ul><ul><ul><ul><li>Cryptography </li></ul></ul></ul><ul><ul><ul><li>Tracking copyright violations </li></ul></ul></ul><ul><ul><li>Digital watermarks: Unique identifiers imbedded in digital content that make it possible to identify pirated works </li></ul></ul>
  31. Intellectual Property Rights (cont.) <ul><li>Trademark: A symbol used by businesses to identify their goods and services; government registration of the trademark confers exclusive legal right to its use </li></ul>™
  32. Intellectual Property Rights (cont.) <ul><li>The owner of a registered trademark has exclusive rights to: </li></ul><ul><ul><li>Use the trademark on goods and services for which the trademark is registered </li></ul></ul><ul><ul><li>Take legal action to prevent anyone else from using the trademark without consent on goods and services (identical or similar) for which the trademark is registered </li></ul></ul>
  33. Domain Names <ul><ul><li>Domain name refers to the upper category of an Internet address (URL) </li></ul></ul><ul><ul><ul><li>Should additional (new) top-level domain names be added? </li></ul></ul></ul><ul><ul><ul><li>The use of trademarked names that belong to other companies as domain names </li></ul></ul></ul>
  34. Domain Names (cont.) <ul><ul><li>Network Solutions, Inc.—U.S. subsidiary of Verisign was the sole assigner of domain names until 1998 </li></ul></ul><ul><ul><li>ICANN, an international nonprofit corporation, took over assignment of domain names on a global basis—allowing competition in the registration system and the price of registration has dropped </li></ul></ul>
  35. Domain Names (cont.) <ul><ul><li>Council of Registrars (CORE) (European group) and the Global Internet Project (U.S. group) want to increase the number of top-level names </li></ul></ul><ul><ul><ul><li>One objectives is to create an adult-only top-level name that will keep pornographic material away from children </li></ul></ul></ul>
  36. Domain Names (cont.) <ul><ul><li>Domain name disputes and resolutions </li></ul></ul><ul><ul><ul><li>Major disputes are international in scope, because the same corporate name may be used in different countries by different corporations </li></ul></ul></ul><ul><ul><ul><li>Internet community now quickly resolves domain name disputes using arbitration </li></ul></ul></ul><ul><ul><ul><ul><li>Disputes.org </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Consortium, the National Arbitration Forum </li></ul></ul></ul></ul><ul><ul><ul><ul><li>WIPO </li></ul></ul></ul></ul>
  37. Intellectual Property Rights (cont.) <ul><ul><li>Cybersquatting: The practice of registering domain names in order to sell them later at a higher price </li></ul></ul><ul><ul><li>Anticybersquatting Consumer Protection Act of 1999 allows trademark owners sue for statutory damages </li></ul></ul><ul><ul><ul><li>Juliaroberts.com </li></ul></ul></ul><ul><ul><ul><li>Madonna.com </li></ul></ul></ul>
  38. Intellectual Property Rights (cont.) <ul><li>Patent: A document that grants the holder exclusive rights on an invention for a fixed number of years </li></ul><ul><ul><li>Patents serve to protect tangible technological inventions </li></ul></ul><ul><ul><li>Patents are not designed to protect artistic or literary creativity </li></ul></ul><ul><ul><li>Patents confer monopoly rights to an idea or an invention, regardless of how it may be expressed </li></ul></ul>
  39. Intellectual Property Rights (cont.) <ul><li>Fan and hate sites </li></ul><ul><ul><li>cyberbashing: The registration of a domain name that criticizes an organization or person </li></ul></ul><ul><ul><li>May violate the copyrights of the creators or distributors of intellectual property </li></ul></ul><ul><ul><li>This issue shows the potential collision between protection of intellectual property and free speech </li></ul></ul>
  40. Free Speech Versus Censorship and Other Legal Issues <ul><li>One of the most important issues of Web surfers (as per surveys) is censorship </li></ul><ul><ul><li>Censorship—governmental attempts to control broadcasted material </li></ul></ul>
  41. Free Speech Versus Censorship and Other Legal Issues (cont.) <ul><ul><li>“ Donham’s First Law of Censorship” “Most citizens are implacably opposed to censorship in any form—except censorship of whatever they personally happen to find offensive” </li></ul></ul>Censored!
  42. Free Speech Versus Censorship and Other Legal Issues (cont.) <ul><ul><li>1998 Children’s Online Protection Act (COPA) required: </li></ul></ul><ul><ul><ul><li>companies verify a viewer’s age before showing online material that is deemed “harmful to minors” </li></ul></ul></ul><ul><ul><ul><li>parental consent is required before personal information can be collected from a minor </li></ul></ul></ul><ul><ul><li>Was ruled unconstitutional in Pennsylvania in 2001, is now in the hands of the U.S. Supreme Court </li></ul></ul>
  43. Free Speech Versus Censorship and Other Legal Issues (cont.) <ul><li>Controlling spam </li></ul><ul><ul><li>Spamming: The practice of indiscriminately broadcasting messages over the Internet (e.g., ., junk mail) </li></ul></ul><ul><ul><li>Spam comprises 25 to 50% of all e-mail </li></ul></ul>
  44. Free Speech Versus Censorship and Other Legal Issues (cont.) <ul><ul><li>Electronic Mailbox Protection Act requires those sending spam to indicate the name of the sender prominently and include valid routing information </li></ul></ul><ul><ul><ul><li>Recipients may waive the right to receive such information </li></ul></ul></ul>
  45. Free Speech Versus Censorship and Other Legal Issues (cont.) <ul><ul><li>ISPs are required to offer spam-blocking software </li></ul></ul><ul><ul><ul><li>Recipients have the right to request termination of future spam from the same sender and to bring civil action if necessary </li></ul></ul></ul>
  46. Free Speech Versus Censorship and Other Legal Issues (cont.) <ul><li>Other legal issues </li></ul><ul><ul><li>Electronic contracts </li></ul></ul><ul><ul><ul><li>Uniform Electronic Transactions Act of 1999 establishes uniform and consistent definitions for electronic records, digital signatures, and other electronic communications </li></ul></ul></ul><ul><ul><ul><ul><li>Shrink-wrap agreements or box-top licenses </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Click-wrap contracts </li></ul></ul></ul></ul>
  47. Free Speech Versus Censorship and Other Legal Issues (cont.) <ul><ul><li>Intelligent agents and contracts </li></ul></ul><ul><ul><ul><li>Contracts can be formed even when no human involvement is present </li></ul></ul></ul><ul><ul><ul><li>A contract can be made by interaction between an individual and an electronic agent, or even between two electronic agents </li></ul></ul></ul>
  48. Free Speech Versus Censorship and Other Legal Issues (cont.) <ul><ul><ul><li>Uniform Electronic Transactions Act (UETA) includes the following two provisions: </li></ul></ul></ul><ul><ul><ul><ul><li>Electronic records do satisfy the requirement for a contract </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Electronic signature is enforceable equal to a written signature on a paper contract </li></ul></ul></ul></ul>
  49. Free Speech Versus Censorship and Other Legal Issues (cont.) <ul><li>Gambling </li></ul><ul><ul><li>Internet Gambling Prohibition Act of 1999 </li></ul></ul><ul><ul><ul><li>Online wagering illegal except for minimal amounts </li></ul></ul></ul><ul><ul><ul><li>Provides criminal and civil remedies against individuals making online bets or wagers and those in the business of offering online betting or wagering venues </li></ul></ul></ul>
  50. Free Speech Versus Censorship and Other Legal Issues (cont.) <ul><li>Taxing business on the Internet </li></ul><ul><ul><li>Internet Tax Freedom Act passed the U.S. Senate on October 8, 1998 </li></ul></ul><ul><ul><ul><li>Barred any new state or local sales taxes on Internet transactions until October 2001 (extended by US Congress to 2006) </li></ul></ul></ul><ul><ul><ul><li>Created a special commission to study Internet taxation issues and recommend new policies </li></ul></ul></ul>
  51. Free Speech Versus Censorship and Other Legal Issues (cont.) <ul><ul><li>The global nature of business today suggests that Cyberspace be considered: </li></ul></ul><ul><ul><ul><li>A distinct tax zone unto itself </li></ul></ul></ul><ul><ul><ul><li>Unique rules and considerations befitting the stature of the online environment </li></ul></ul></ul>
  52. Free Speech Versus Censorship and Other Legal Issues (cont.) <ul><ul><li>Tax-free policies may give online businesses an unfair advantage—Internet businesses should pay their fair share of the tax bill for the nation’s social and physical infrastructure </li></ul></ul>
  53. EC Fraud and Consumer and Seller Protection <ul><li>Fraud on the Internet </li></ul><ul><ul><li>Online auction fraud—87% of online crime </li></ul></ul><ul><ul><li>Internet stock fraud—spread false positive rumors about the prospects of companies </li></ul></ul>
  54. EC Fraud and Consumer and Seller Protection (cont.) <ul><ul><li>Other financial fraud </li></ul></ul><ul><ul><ul><li>Bogus investments </li></ul></ul></ul><ul><ul><ul><li>Phantom business opportunities </li></ul></ul></ul><ul><ul><ul><li>Other schemes </li></ul></ul></ul><ul><ul><li>Other fraud in EC—nonfinancial fraud </li></ul></ul><ul><ul><ul><li>Customers receive poor-quality products and services </li></ul></ul></ul><ul><ul><ul><li>Customers do not get products in time </li></ul></ul></ul><ul><ul><ul><li>Customers are asked to pay for things they assume will be paid for by sellers </li></ul></ul></ul>
  55. EC Fraud and Consumer and Seller Protection (cont.) <ul><li>Consumer protection—tips for safe electronic shopping </li></ul><ul><ul><li>Make sure that they enter the real Web site of well-known companies </li></ul></ul><ul><ul><li>Search any unfamiliar site for an address and telephone and fax numbers and call </li></ul></ul><ul><ul><li>Check out the seller with the local chamber of commerce, BBB, or TRUSTe </li></ul></ul>
  56. EC Fraud and Consumer and Seller Protection (cont.) <ul><ul><li>Investigate how secure and organized the seller’s site is </li></ul></ul><ul><ul><li>Examine the money-back guarantees, warranties, etc. </li></ul></ul><ul><ul><li>Compare prices online to those in regular stores </li></ul></ul><ul><ul><li>Ask friends what they know, look for testimonials and endorsements </li></ul></ul>
  57. EC Fraud and Consumer and Seller Protection (cont.) <ul><ul><li>Find out what redress is available in case of a dispute </li></ul></ul><ul><ul><li>Consult the National Fraud Information Center (fraud.org) </li></ul></ul><ul><ul><li>Check the resources available at consumerworld.org </li></ul></ul>
  58. EC Fraud and Consumer and Seller Protection (cont.) <ul><li>Third-party assurance services </li></ul><ul><ul><li>TRUSTe (truste.org) </li></ul></ul><ul><ul><li>Better Business Bureau (bbbonline.com) </li></ul></ul><ul><ul><li>WHICHonline (which.net) </li></ul></ul><ul><ul><li>Web Trust seal (TRUSTe, cpawebtrust.org, Gomez.com) </li></ul></ul><ul><ul><li>Online Privacy Alliance </li></ul></ul>
  59. EC Fraud and Consumer and Seller Protection (cont.) <ul><ul><li>Evaluation by consumers— product and vendor evaluations </li></ul></ul><ul><ul><ul><li>groups.google.com, epubliceye.com </li></ul></ul></ul>
  60. EC Fraud and Consumer and Seller Protection (cont.) <ul><ul><li>Authentication and biometric controls provide </li></ul></ul><ul><ul><ul><li>Access procedures that match every valid user with a unique user identifier (UID ) </li></ul></ul></ul><ul><ul><ul><li>Authentication method that verifies that users requesting access to the computer system are really who they claim to be </li></ul></ul></ul><ul><ul><ul><li>Are valid for both consumer and merchant protection </li></ul></ul></ul>
  61. EC Fraud and Consumer and Seller Protection (cont.) <ul><li>Seller protection against: </li></ul><ul><ul><li>Customers who deny that they placed an order </li></ul></ul><ul><ul><li>Customers who download copyrighted software, etc. and sell it to others </li></ul></ul><ul><ul><li>Customers who give false payment information </li></ul></ul><ul><ul><li>Use of their name by others </li></ul></ul><ul><ul><li>Trademark protection </li></ul></ul>
  62. EC Fraud and Consumer and Seller Protection (cont.) <ul><li>What can sellers do? </li></ul><ul><ul><li>Use intelligent software to identify possibly questionable customers </li></ul></ul><ul><ul><li>Identify warning signals for possibly fraudulent transactions </li></ul></ul><ul><ul><li>Ask customers whose billing address is different from the shipping address to call their bank and have the alternate address added to their bank account </li></ul></ul>
  63. Societal Issues <ul><li>Digital divide: The gap between those who have and those who do not have the ability to access electronic technology in general, and the Internet and EC in particular </li></ul>
  64. Societal Issues (cont.) <ul><li>Other societal issues </li></ul><ul><ul><li>Education </li></ul></ul><ul><ul><ul><li>Virtual universities </li></ul></ul></ul><ul><ul><ul><li>Companies use the Internet to retrain employees </li></ul></ul></ul><ul><ul><ul><li>Home-bound individuals can get degrees </li></ul></ul></ul>
  65. Societal Issues (cont.) <ul><ul><li>Public safety and criminal justice </li></ul></ul><ul><ul><ul><li>e-911 systems </li></ul></ul></ul><ul><ul><ul><li>collaborative commerce </li></ul></ul></ul><ul><ul><ul><li>e-procurement </li></ul></ul></ul><ul><ul><ul><li>e-government—coordinating, information sharing, and expediting legal work and cases </li></ul></ul></ul><ul><ul><ul><li>intelligent homes, offices, and public buildings </li></ul></ul></ul><ul><ul><ul><li>e-training of law enforcement officers </li></ul></ul></ul>
  66. Societal Issues (cont.) <ul><ul><li>Health aspects </li></ul></ul><ul><ul><ul><li>safer and healthier to shop from home than to shop in a physical store </li></ul></ul></ul><ul><ul><ul><li>some believe that exposure to cellular mobile communication radiation may cause health problems </li></ul></ul></ul><ul><ul><ul><li>collaborative commerce can help improve health care </li></ul></ul></ul>
  67. Virtual (Internet) Communities <ul><li>Virtual (Internet) community: A group of people with similar interests who interact with one another using the Internet </li></ul>
  68. Virtual (Internet) Communities (cont.) <ul><li>Characteristics of virtual communities </li></ul><ul><ul><li>Internet communities may have thousands or even millions of members </li></ul></ul><ul><ul><li>Online communities are geographically confined </li></ul></ul>
  69. Virtual (Internet) Communities (cont.) <ul><ul><li>Classify members as: </li></ul></ul><ul><ul><ul><li>Traders </li></ul></ul></ul><ul><ul><ul><li>Players </li></ul></ul></ul><ul><ul><ul><li>Just friends </li></ul></ul></ul><ul><ul><ul><li>Enthusiasts </li></ul></ul></ul><ul><ul><ul><li>Friends in need </li></ul></ul></ul><ul><ul><li>The gathering of needs in one place enables vendors to sell more and community members to get discounts </li></ul></ul>
  70. Virtual (Internet) Communities (cont.) <ul><li>Examples of online communities: </li></ul><ul><ul><li>Associations </li></ul></ul><ul><ul><li>Ethnic communities </li></ul></ul><ul><ul><li>Gender communities </li></ul></ul><ul><ul><li>Affinity portals </li></ul></ul><ul><ul><li>Catering to young people </li></ul></ul><ul><ul><li>Mega communities </li></ul></ul><ul><ul><li>B2B online communities </li></ul></ul>
  71. Virtual (Internet) Communities (cont.) <ul><li>Types of virtual communities: </li></ul><ul><ul><li>Transaction </li></ul></ul><ul><ul><li>Purpose or interest </li></ul></ul><ul><ul><li>Relations or practice </li></ul></ul><ul><ul><li>Fantasy </li></ul></ul>
  72. Virtual (Internet) Communities (cont.) <ul><li>How to transform a community site to a commercial site: </li></ul><ul><ul><li>Understand a particular niche industry, </li></ul></ul><ul><ul><li>Build a site that provides that information, </li></ul></ul><ul><ul><li>Set up the site to mirror the steps a user goes through in the information-gathering and decision-making process </li></ul></ul>
  73. Virtual (Internet) Communities (cont.) <ul><ul><li>Set up the site to mirror the steps a user goes through in the information-gathering and decision-making process </li></ul></ul><ul><ul><li>Start selling products and services that fit into the decision-support process </li></ul></ul>
  74. Virtual (Internet) Communities (cont.)
  75. Virtual (Internet) Communities (cont.) <ul><li>Financial viability of communities </li></ul><ul><ul><li>Revenue model of communities can be based on: </li></ul></ul><ul><ul><ul><li>Sponsorship </li></ul></ul></ul><ul><ul><ul><li>Membership fees </li></ul></ul></ul><ul><ul><ul><li>Sales commissions </li></ul></ul></ul><ul><ul><ul><li>Advertising </li></ul></ul></ul>
  76. Virtual (Internet) Communities (cont.) <ul><ul><li>The operating expenses for communities are very high due to the need to provide fresh content and free services </li></ul></ul><ul><ul><li>Most communities initially provide free membership </li></ul></ul><ul><ul><li>The objective is to have as many registered members as possible and to build a strong brand in order to attract advertisers </li></ul></ul>
  77. Virtual (Internet) Communities (cont.) <ul><li>Key strategies for successful online communities: </li></ul><ul><ul><li>Increase traffic and participation in the community </li></ul></ul><ul><ul><li>Focus on the needs of the members; use facilitators and coordinators </li></ul></ul>
  78. Virtual (Internet) Communities (cont.) <ul><ul><li>Encourage free sharing of opinions and information—no controls </li></ul></ul><ul><ul><li>Obtain financial sponsorship. This factor is a must. Significant investment is required </li></ul></ul><ul><ul><li>Consider the cultural environment </li></ul></ul>
  79. Virtual (Internet) Communities (cont.) <ul><ul><li>Provide several tools and activities for member use; communities are not just discussion groups </li></ul></ul><ul><ul><li>Involve community members in activities and recruiting </li></ul></ul><ul><ul><li>Guide discussions, provoke controversy, and raise sticky issues. This keeps interest high </li></ul></ul>
  80. The Future of EC <ul><li>Nontechnological success factors: </li></ul><ul><ul><li>Internet usage </li></ul></ul><ul><ul><li>Opportunities for buying </li></ul></ul><ul><ul><li>M-commerce </li></ul></ul><ul><ul><li>Purchasing incentives </li></ul></ul><ul><ul><li>Increased security and trust </li></ul></ul>
  81. The Future of EC (cont.) <ul><ul><li>Efficient information handling </li></ul></ul><ul><ul><li>Innovative organizations </li></ul></ul><ul><ul><li>Virtual communities </li></ul></ul><ul><ul><li>Payment systems </li></ul></ul><ul><ul><li>B2B EC </li></ul></ul><ul><ul><li>B2B exchanges </li></ul></ul>
  82. The Future of EC (cont.) <ul><ul><li>Auctions </li></ul></ul><ul><ul><li>Going global </li></ul></ul><ul><ul><li>E-government </li></ul></ul><ul><ul><li>Intrabusiness EC </li></ul></ul><ul><ul><li>E-learning </li></ul></ul><ul><ul><li>EC legislation </li></ul></ul>
  83. The Future of EC (cont.) <ul><li>EC technology trends: </li></ul><ul><ul><li>Clients </li></ul></ul><ul><ul><li>Embedded clients </li></ul></ul><ul><ul><li>Pervasive computing </li></ul></ul><ul><ul><li>Wireless communications and </li></ul></ul><ul><ul><li>m-commerce </li></ul></ul><ul><ul><li>Wearable devices </li></ul></ul><ul><ul><li>Servers and operating systems </li></ul></ul><ul><ul><li>Networks </li></ul></ul>
  84. The Future of EC (cont.) <ul><ul><li>EC software and services </li></ul></ul><ul><ul><li>Search engines </li></ul></ul><ul><ul><li>Peer-to-peer technology </li></ul></ul><ul><ul><li>Integration </li></ul></ul><ul><ul><li>Web services </li></ul></ul><ul><ul><li>Software agents </li></ul></ul><ul><ul><li>Interactive TV </li></ul></ul><ul><ul><li>Tomorrow’s Internet </li></ul></ul>
  85. The Future of EC (cont.) <ul><li>Integrating the marketplace and marketspace: </li></ul><ul><ul><li>The most noticeable integration of the two concepts is in the click-and-mortar organization </li></ul></ul><ul><ul><ul><li>Some organizations will use EC as just another selling channel </li></ul></ul></ul><ul><ul><ul><li>Others will use EC for only some products and services </li></ul></ul></ul>
  86. The Future of EC (cont.) <ul><ul><li>A major problem in the click-and-mortar approach is how the two outlets can cooperate in: </li></ul></ul><ul><ul><ul><li>Planning </li></ul></ul></ul><ul><ul><ul><li>Advertising </li></ul></ul></ul><ul><ul><ul><li>Logistics </li></ul></ul></ul><ul><ul><ul><li>Resource allocation </li></ul></ul></ul><ul><ul><ul><li>Alignment of strategic plans of the marketspace and marketplace </li></ul></ul></ul>
  87. The Future of EC (cont.) <ul><ul><li>Conflict with existing distribution channels </li></ul></ul><ul><ul><li>Coexistence in B2C ordering systems </li></ul></ul><ul><ul><li>The impact of EC on our lives may be as much or more profound than that of the Industrial Revolution </li></ul></ul>
  88. พรบ . คอมพิวเตอร์ พ . ศ . 2550 <ul><li>เจ้าของไม่ให้เข้าระบบคอมพิวเตอร์ของเขา แล้วเราแอบเข้าไป คุก 6 เดือน  </li></ul><ul><li>แอบไปรู้วิธีการเข้าระบบคอมพิวเตอร์ของชาวบ้าน แล้วเที่ยวไปโพนทะนาให้คน อื่นรู้ คุกไม่เกินปี  </li></ul><ul><li>ข้อมูลของเขา เขาเก็บไว้ในระบบคอมพิวเตอร์ดี ๆ แล้วแอบไปล้วงของ เขา คุกไม่เกิน 2 ปี </li></ul><ul><li>เขาส่งข้อมูลหากันผ่านเครือข่ายคอมพิวเตอร์แบบส่วนตั๊วส่วนตัว แล้วเรา ทะลึ่งไปดักจับข้อมูลของเขา ... คุกไม่เกิน 3 ปี </li></ul><ul><li>ข้อมูลของเขาอยู่ในระบบคอมพิวเตอร์ของเขาดี ๆ เราดันมือบอนไปโมมันซะ งั้น คุกไม่เกิน 5 ปี  </li></ul>
  89. พรบ . คอมพิวเตอร์ พ . ศ . 2550 <ul><li>ระบบคอมพิวเตอร์ของชาวบ้านทำงานอยู่ดี ๆ เราดันยิง packet หรือ message หรือ virus หรือ trojan หรือ worm หรือ ( โอ๊ยเยอะ ) เข้าไปก่อกวนจนระบบเขาเดี้ยง คุกไม่เกิน 5 ปี </li></ul><ul><li>เขาไม่ได้อยากได้ข้อมูลหรืออีเมลล์จากเราเลย เราก็ทำตัวเป็นอีแอบเซ้าซี้ ส่งให้เขาซ้ำ ๆ อยู่นั่นแหล่ะ จนทำให้เขาเบื่อหน่ายรำคาญ ... เจอปรับไม่ เกินหนึ่งแสนบาท </li></ul><ul><li>ถ้าเราทำผิดข้อ 5. กับ ข้อ 6. แล้วมันสร้างความพินาศใหญ่โตในระดับรากหญ้า งานนี้มีซวยแน่ คุกสิบปีขึ้น </li></ul><ul><li>ถ้าเราสร้างซอฟต์แวร์เพื่อช่วยให้ใคร ๆ ทำเรื่องแย่ ๆ ในข้อข้างบน ๆ ได้ ... เจอคุกไม่เกินปีนึง เหมือนกัน </li></ul><ul><li>โป๊ก็โดน , โกหกก็โดน , เบนโลก็โดน , ท้าทายอำนาจรัฐก็โดน ... เจอคุกไม่ เกิน 5 ปี </li></ul>
  90. ผู้ใช้คอมพิวเตอร์และอินเทอร์เน็ต  <ul><li>ในฐานะบุคคลธรรมดาท่านไม่ควรทำในสิ่งต่อไปนี้ เพราะอาจจะเป็นหนทางที่ทำให้ท่าน &quot; กระทำความผิด &quot; ตาม พรบ . นี้ </li></ul><ul><li>อย่าบอก password ของท่านแก่ผู้อื่น </li></ul><ul><li>อย่าให้ผู้อื่นยืมใช้เครื่องคอมพิวเตอร์หรือโทรศัพท์เคลื่อนที่เพื่อเข้าเน็ต  </li></ul><ul><li>อย่าติดตั้งระบบเครือข่ายไร้สายในบ้านหรือที่ทำงานโดยไม่ใช้มาตรการการตรวจสอบผู้ใช้งานและการเข้ารหัสลับ  </li></ul><ul><li>อย่าเข้าสู่ระบบด้วย user ID และ password ที่ไม่ใช่ของท่านเอง  </li></ul><ul><li>อย่านำ user ID และ password ของผู้อื่นไปใช้งานหรือเผยแพร่  </li></ul>
  91. ผู้ใช้คอมพิวเตอร์และอินเทอร์เน็ต  <ul><li>อย่าส่งต่อซึ่งภาพหรือข้อความ หรือภาพเคลื่อนไหวที่ผิดกฎหมาย </li></ul><ul><li>อย่า กด &quot;remember me&quot; หรือ &quot;remember password&quot; ที่เครื่องคอมพิวเตอร์สาธารณะ </li></ul><ul><li>อย่า log-in เพื่อทำธุรกรรมทางการเงินที่เครื่องสาธารณะ ถ้าท่านไม่ใช่เซียนทาง computer security  </li></ul><ul><li>อย่าใช้ WiFi (Wireless LAN) ที่เปิดให้ใช้ฟรี โดยปราศจากการเข้ารหัสลับข้อมูล  </li></ul><ul><li>อย่าทำผิดตามมาตรา ๑๔ ถึง ๑๖ เสียเอง ไม่ว่าโดยบังเอิญ หรือโดยรู้เท่าไม่ถึงการณ์ </li></ul>www.yenta4.com
  92. ผู้ให้บริการ  <ul><li>ผู้ให้บริการ อาจจะเป็นท่าน หรือหน่วยงานของท่าน ผู้ให้บริการมีหน้าที่และสิ่งที่ต้องทำมากกว่าบุคคลทั่วไป สิ่งที่ท่านต้องเข้าใจ คือ </li></ul><ul><li>ผู้ให้บริการ นอกจากจะหมายถึง Internet Service Provider ทั่วไปแล้ว ยังหมายถึง ผู้ดูแลเว็บ และครอบคลุมถึงหน่วยงานที่มีการจัดบริการออนไลน์ บริการใช้อินเทอร์เน็ตและเครือข่ายทั่วไปในหน่วยงานของตนเองอีกด้วย เจ้าของร้านอินเทอร์เน็ต เจ้าของเว็บไซต์ รวมทั้งเจ้าของเว็บบอร์ด ล้วนแล้วเข้าข่ายที่จะเป็นผู้ให้บริการทั้งสิ้น หากท่านเปิดบริการให้สาธารณชน เข้ามาใช้บริการเข้าถึงอินเทอร์เน็ต หรือสามารถแพร่ข้อความ ภาพ และเสียง ผ่านเว็บที่ท่านเป็นเจ้าของ  </li></ul>
  93. ผู้ให้บริการ  <ul><li>ผู้ให้บริการตามกฎหมายนี้ ต้องทำตามหน้าที่ของ ผู้ให้บริการ ตามที่บัญญัติไว้ในพระราชบัญญัติฯนี้ กล่าวคือ  &quot; มาตรา ๒๖ ผู้ให้บริการต้องเก็บรักษาข้อมูลจราจรทางคอมพิวเตอร์ไว้ไม่น้อยกว่าเก้าสิบวัน นับแต่วันที่ข้อมูลนั้นเข้าสู่ระบบคอมพิวเตอร์ แต่ในกรณีจำเป็นพนักงานเจ้าหน้าที่จะสั่งให้ผู้ให้บริการผู้ใดเก็บรักษาข้อมูลจราจรทางคอมพิวเตอร์ไว้เกินเก้าสิบวัน แต่ไม่เกินหนึ่งปีเป็นกรณีพิเศษ เฉพาะรายและเฉพาะคราวก็ได้  </li></ul>
  94. ผู้ให้บริการ  <ul><li>ผู้ให้บริการจะต้องเก็บรักษาข้อมูลของผู้ใช้บริการเท่าที่จำเป็นเพื่อให้สามารถระบุตัวผู้ใช้บริการนับตั้งแต่เริ่มใช้บริการ และต้องเก็บรักษาไว้เป็นเวลาไม่น้อยกว่าเก้าสิบวันนับตั้งแต่การใช้บริการสิ้นสุดลง ...  ผู้ให้บริการผู้ใดไม่ปฎิบัติตามมาตรานี้ ต้องระวางโทษปรับไม่เกินห้าแสนบาท &quot;  </li></ul>
  95. ผู้ให้บริการ  <ul><li>เพื่ออำนวยความสะดวกในการทำหน้าที่ของผู้ให้บริการ รัฐมนตรีว่าการกระทรวงเทคโนโลยีสารสนเทศและการสื่อสาร จะออกประกาศ เรื่องหลักเกณฑ์การเก็บรักษา Traffic data ของผู้ให้บริการ เพื่อให้ผู้ให้บริการทุกแบบ สามารถทำหน้าที่เก็บ logfile ของข้อมูลจราจรทางคอมพิวเตอร์ได้ตรงตามความจำเป็นขั้นต่ำ ประกาศดังกล่าวนี้ ยังเป็นหนทางที่จะทำให้เกิดธุรกิจบริการรับฝากข้อมูลจราจรทางคอมพิวเตอร์ขึ้นได้ เพราะจะมีผู้ให้บริการขนาดเล็กจำนวนมาก ที่ไม่สามารถทำตาม พรบ . นี้ได้ด้วยตนเอง  ( อาจมีประกาศอื่นตามมาอีก ) </li></ul>
  96. หลักในการเก็บข้อมูลจราจรทางคอมพิวเตอร์ <ul><li>หลักในการเก็บข้อมูลจราจรทางคอมพิวเตอร์ที่เกี่ยวกับกฎหมายนี้  ในการจัดเก็บข้อมูลจราจรทางคอมพิวเตอร์ให้น่าเชื่อถือ ขอให้ท่านยึดหลักการง่ายๆดังนี้ </li></ul><ul><li>ข้อมูลที่เก็บ ต้องมีรายการที่สามารถระบุว่า ผู้ใช้คอมพิวเตอร์ เป็นใคร เข้ามาทางเครือข่ายทางประตูใด มีหมายเลข IP อะไร ใช้โปรแกรมประยุกต์อะไร ในห้วงเวลาใด  </li></ul>
  97. หลักในการเก็บข้อมูลจราจรทางคอมพิวเตอร์ <ul><li>นาฬิกาของเครื่องคอมพิวเตอร์หรืออุปกรณ์สื่อสาร ต้องมีการตั้งเวลาให้ตรงกับนาฬิกาอะตอมที่ใช้อ้างอิง เช่น ที่ NIST ( สหรัฐอเมริกา ) กรมอุทกศาสตร์ ( กองทัพเรือ ) สถาบันมาตรวิทยา ( กระทรวงวิทยาศาสตร์และเทคโนโลยี ) หรือใช้เทียบเวลากับเครื่อง time server ผ่านทางอินเทอร์เน็ต เช่น </li></ul><ul><li>เนคเทค (ntp://clock.nectec.or.th) ซึ่งอุปกรณ์เครือข่ายทั่วไป รวมทั้งเครื่องคอมพิวเตอร์มาตรฐานทั่วไป สามารถตั้งเวลาให้ตรงกับเวลามาตรฐานโลกได้ด้วยความแม่นยำในระดับ 1 มิลลิวินาทีหรือดีกว่านี้  </li></ul>
  98. หลักในการเก็บข้อมูลจราจรทางคอมพิวเตอร์ <ul><li>ข้อมูลจราจร ต้องมีการจัดเก็บอย่างปลอดภัย ไม่เสี่ยงต่อการถูกแก้ไข หรือสื่อข้อมูลเสื่อมคุณภาพ ในระยะเวลาไม่น้อยกว่า 90 วัน </li></ul>wiki.nectec.or.th
  99. Managerial Issues <ul><li>What sorts of legal and ethical issues should be of major concern to an EC enterprise? </li></ul><ul><li>What are the most critical ethical issues? </li></ul>
  100. Managerial Issues (cont.) <ul><li>Should we obtain patents? </li></ul><ul><li>What impacts on business is EC expected to make? </li></ul><ul><li>Do we have a community? </li></ul>
  101. Summary <ul><li>Differences between legal and ethical issues. </li></ul><ul><li>Protecting privacy in EC. </li></ul><ul><li>Intellectual property rights in EC. </li></ul><ul><li>Conflict between free speech and censorship. </li></ul><ul><li>Legal issues. </li></ul>
  102. Summary (cont.) <ul><li>Protecting buyers and sellers online. </li></ul><ul><li>Societal issues and EC. </li></ul><ul><li>The role of virtual communities. </li></ul><ul><li>The future of EC. </li></ul>

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