E-Commerce 10


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E-Commerce 10

  1. 1. Chapter 10 Public Policy: From Legal Issues to Policy 1
  2. 2. Legal and Ethical Issues Privacy Intellectual Property Difficult to protect since it is easy and inexpensive to copy and disseminate digitized information Free Speech Internet provides the largest opportunity for free speech; but, some postings are offensive to people Taxation Illegal to impose new sales taxes on Internet business at the present time (U.S. and2 some
  3. 3. Legal and Ethical Issues (cont.) Computer crimes Usually refers to computer fraud and computer abuse Consumer Protection Many legal issues are related to electronic trade Other legal issues Validity of contracts, legality of public key encryption infrastructures, jurisdiction over trades, encryption policies 3
  4. 4. Ethical Issues What is considered to be right and wrong? What is unethical is not necessarily illegal. Whether these actions are considered unethical depends on the organization, country, and the specific circumstances surrounding the scenarios. 4
  5. 5. Ethical Issues (cont.) Code of Ethics A collection of principles intended as a guide for its members Many companies and professional organizations develop their own codes of ethics A guide for members of a company or an association 5
  6. 6. A Framework for Ethical Issues Privacy—regarding information about individuals Collection Storage Dissemination Property Ownership and value of information and intellectual property 6
  7. 7. A Framework for Ethical Issues (cont.) Accuracy of: Authenticity Fidelity Information collected and processed Accessibility Right to access information Payment of fees for the access 7
  8. 8. Protecting Privacy Privacy The right to be left alone and the right to be free of unreasonable personal intrusions Information Privacy The “claim of individuals, groups, or institutions to determine for themselves when, and to what extent, information about them is communicated to others” 8
  9. 9. Protecting Privacy (cont.) Two basic rules The right of privacy is not absolute. Privacy must be balanced against the needs of society The public's right to know is superior to the individual’s right of privacy 9
  10. 10. How is Private Information Collected? Reading your newsgroups’ postings Finding you in the Internet Directory Making your browser record information about you Recording what your browsers say about you Reading your e-mail 10
  11. 11. Protecting Your Privacy Think before you give out personal information on a site Track the use of your name and information Keep your newsgroups’ posts out of archives Use the Anonymizer when browsing Live without cookies Use anonymous remailers Use encryption Reroute your mail away from your office Ask your ISP or employer about a privacy policy 11
  12. 12. Legislation The Consumer Internet Privacy Act The Federal Internet Privacy Protection Act The Communications Privacy and Consumer Empowerment Act The Data Privacy Act 12
  13. 13. Personal Information in Databases Databases of: Banks and financial institutions Cable TV Telephones Employers Schools Insurance companies Online vendors 13
  14. 14. Personal Information in Databases (cont.) Concerns Data collection Data accuracy Data confidentiality 14
  15. 15. Protecting Intellectual Property Copyright A statutory grant that provides the creators of intellectual property with ownership of it for 28 years Trade Secret Intellectual work such as a business plan, which is a company secret and is not based on public information Patent A document that grants the holder exclusive rights on an invention for 17 years (U.S.) 15
  16. 16. Copyrights Protects original expression of ideas Literary works Musical works Dramatic works Artistic works Sound recordings, films, broadcasts, cable programs Published editions of literary and musical works 16
  17. 17. Copyright Protection Techniques Digital watermarks Embedding of invisible marks Can be represented by bits in digital content Hidden in the source data, becoming inseparable from such data 17
  18. 18. International Aspects of Intellectual Property The World Intellectual Property Organization More than 60 member countries come up with an international treaty Part of the agreement is called the “database treaty” Its aim is to protect the investment of firms that collect and arrange information 18
  19. 19. Patents Patent—a document that grants the holder exclusive rights on an invention for 17 years Satisfy following legal criteria Novel—does not already exist as part of the public domain Involves sufficiently “inventive step” Capable of individual application (be put to practical use) 19
  20. 20. Trademarks Trademarks—graphical sign used by businesses to identify their goods and services Gives exclusive rights to: Use trademark on goods and services registered to that sign Take legal action to prevent anyone from using trademark without consent 20
  21. 21. Domain Names Domain name refers to the upper category of Internet address (URL) Three controversies Whether top-level domain names (similar to com, org and gov) should be added The use of trademark names by companies for domain names that belong to other companies If companies in different countries have the same name, who can use it as the domain name? 21
  22. 22. Defining Freedom of Speech The Bill of Rights First Amendment to the Constitution of the U.S. of America reads: “Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the government for a redress of grievances.” 22
  23. 23. The Debate About Free Speech on the Internet Free speech debate “Most citizens are implacably opposed to censorship in any form — except censorship of whatever they personally happen to find offensive.” The debate: what restrictions, if any, should there be on Internet content, and how should it be monitored? 23
  24. 24. The Debate About Free Speech on the Internet (cont.) What are the boundaries, and how should they be enforced? Governments protective of their role in society Parents concerned about exposing their children to inappropriate Web pages and chat rooms Federal agencies attempting to deal with illegal actions Citizen action groups desiring to protect every ounce of their freedom to speak Individuals concerned about their right to information on the Internet Organizations seeking to empower the citizens of the earth 24
  25. 25. Protecting Children 3 approaches (regarding the protection of children from inappropriate material on the Internet) No information should be held back and parents should be responsible for monitoring their own children The government is the only one who can truly protect children from this material To hold the Internet providers responsible for all the material and information they provide, or enable access to it 25
  26. 26. Protecting Children (cont.) Parents governing their own children Government protecting the children Responsibility of the Internet providers Forcing Internet providers to be accountable, or enable access to information 26
  27. 27. Legal Perspectives in the USA Child Online Protection Act Internet Tax Freedom Act Family Friendly Internet Access Act Internet Protection Act Internet School Filtering Act 27
  28. 28. Controlling Spamming What is spamming, why is it bad? Spamming “The practice of indiscriminate distribution of messages (for example junk mail) without permission of the receiver and without consideration for the messages’ appropriateness” Spam comprised 30% of all mail sent on America Online (in the past, now less than 10%) Slows the internet in general Shuts ISPs down completely 28
  29. 29. Controlling Spamming (cont.) Legislation, Legal The Electronic Mailbox Protection Act The Unsolicited Commercial Electronic Mail Act The Netizens Protection Act The Telephone Consumer Protection Act 29
  30. 30. Controlling Spamming (cont.) How to cut spamming Tell users not to validate their addresses by answering spam requests for replies if they want to be taken off mailing lists Disable the relay feature on SMTP (mail) servers so mail cannot be bounced off the server Delete spam and forget it— it’s a fact of life and not worth wasting time over Use software packages, e.g. getlost.com and junkbusters.com 30
  31. 31. Other Legal Issues What are the rules of electronic contracting, and whose jurisdiction prevails when buyers, brokers, and sellers are in different states and/or countries? How can gambling be controlled on the Internet? Gambling is legal in Nevada and other states. How can the winner’s tax be collected? By whom? When are electronic documents admissible evidence in the courts of law? What do you do if they are not? 31
  32. 32. Other Legal Issues (cont.) Time and place can carry different dates for the buyers and sellers when they are across the ocean. Which time should be considered? Is a digital signature legal? The use of multiple networks and trading partners makes the documentation of responsibility difficult. How is such a problem overcome? 32
  33. 33. Electronic Contracts Uniform Electronic Transactions Act Uniform Commercial Code (UCC) Shrink-wrap agreements (or box-top licenses) The user is bound to the license by opening the package 33
  34. 34. Computer Crimes Computer crimes refers to computer fraud and/or computer abuse Computer fraud committed by: Alteration of input Alteration of computer data Alteration/misuse of programs Destruction/suppression/misappropriation of output 34
  35. 35. Computer Crimes (cont.) Computer abuse committed by: Misuse of company computer service/resources by performing unauthorized private work or playing games by employees Compromise of system integrity by: Altering company data Introducing viruses Hacking into the system 35
  36. 36. Computer Crimes (cont.) Characteristics of computer crime Chronic underreporting of abuse Security not introduced until abuse has occurred Organizational size unrelated to severity of punishment Abuses by high-level employees less likely to be prosecuted Programmers most difficult to identify Publicity discourages abuse Security efforts reduce abuse 36
  37. 37. Computer Crimes (cont.) Effective measures in deterring computer crime Make computer security visible Define and communicate company’s policy regularly Make staff aware of penalties Report cases to police Publicize successful prosecution Deploy security technologies extensively 37
  38. 38. Fraud on the Internet Internet Stocks Fraud SEC brought charges against 44 companies and individuals who illegally promoted stocks on computer bulletin boards, online newsletters and investment Web sites Other Financial Fraud Selling bogus investments, phantom business opportunities, and other fraud schemes 38
  39. 39. Fraud on the Internet (cont.) Other Fraud in EC Customers may: Receive poor quality products and services Not get products in time Be asked to pay for things they assume will be paid for by sellers 39
  40. 40. Authentication If authentication online can be verified Students will be able to take exams online from home Fraud of recipients of government entitlements and other payments will be reduced to a bare minimum Buyers will be assured who the sellers are and sellers will know who the buyers are with a very high degree of confidence 40
  41. 41. Biometric Controls Matching against a template: Photo of face Fingerprints Hand geometry Blood vessel pattern in the retina of a person’s eye Voice Signature Keystroke dynamics y. Iris ath C 41
  42. 42. What Can Vendors Do? Use intelligent software that signals questionable customers Develop a list of warning signals for possibly fraudulent transactions Ask customers to have shipping address added to their bank account if different from billing address 42
  43. 43. Managerial Issues Multinational corporations face different cultures in the different countries in which they are doing business Issues of privacy, ethics, and so on may seem to be tangential to running a business, but ignoring them may hinder the operation of many organizations 43
  44. 44. Managerial Issues (cont.) The impact of EC and the Internet can be so strong that the entire manner in which companies do business will be changed, with significant impacts on: Procedures People Organizational structure Management Business processes 44