The document discusses the ethical issues surrounding a company called Toysmart.com that went bankrupt and decided to sell customer data to new owners. Key issues are whether it was ethical to sell customer data, if customers were misled by the original privacy policy, and if the new owners should respect the original policy. Applying utilitarianism and deontology, the conclusion is that the most ethical approach is for new owners to respect the original privacy policy and not use customer data in ways it prohibits.

1. ICT Ethics
First Bigger Task
Anssi Mustonen

2. Case
● Toysmart.com, an Internet-based retailer
company
● Customers provided personal information
as they registered to the website
● Privacy policy stated that information would
be protected and not spread outside the
company

3. Case
● Company went bankrupt and decided to
sell its assets to the highest bidder –
including its customer database
● Buyers believed that the privacy policy was
now void, and that the customer
information could be used freely

4. Key ethical issues
● Is it ethical to sell customer data to new
owners? Should it even be legal?
● Were customers misled? Were the new
owners misled?
● Should the original privacy policy be
respected by the new owners?

5. Stakeholders
● Customers – Were they misled?
● Original owners – Has their responsibility ended?
● New owners – What should they do with the data?
● Government?
– Is selling customer information legal?
– Should the original privacy policy always be
respected?

6. Description and analysis
● The case is mainly a privacy issue
– If new owners can do whatever they like, it
has potential to expand
– The customers' privacy has clearly been
violated
● Should the new owners be allowed to do
whatever they like with the information?
– Were they misled to believe that they are?
– Is it the same company anymore?

7. Motives and interests
● Customers
– Expect not to hear anything in connection
to the given information
● Original owners
– Only see the information as part of their
business and want to get rid of it
● New owners
– Depends on the owners

8. Ethical theories
● Case doesn't clearly state if information
has been sold yet → we suppose it has
● Applied theories
– Act utilitarianism
– Act deontology

9. Act utilitarianism
● Utilitarianism: what is best for everyone
● An act is moral if it produces the greatest
amount of good for the greatest number of
persons (stakeholders)
● Weigh the positive and negative sides of
each possible action

10. Act utilitarianism
● Action: Delete customer data
– Customers are happy, new owners might
not be
● Action: Use data by your own rules
– Customer response depends on what is
done, new owners are happy
● Action: Keep original privacy policy
– Customers are happy, new owners might
benefit from data somehow

11. Act utilitarianism
● Customers are clearly the largest group of
stakeholders
→ It is ethical to keep them happy.
● New owners might benefit from the data
somehow even if they adhere to the privacy
policy
● Original owners probably don't care

12. Act deontology
● Duty-based approach
→ It's ethically correct to follow your
obligations to others
● Consider each situation separately and
decide what is the right thing to do

13. Act deontology
● Action: Delete customer data
– Right to the customers, not right to the new
owners
● Action: Use data by your own rules
– Not right to the customers, right to the new
owners
● Action: Keep original privacy policy
– Probably ok to most customers, new
owners might benefit from data somehow

14. Conclusion
● It is not ethical to use the customer data in
a way that goes against the privacy policy
● Most stakeholders are probably happy if
the privacy policy is respected
● A situation like this can be avoided by
setting up a law