legal +ehical issues _mcomm

8/2/2019 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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There are number ethical and social issues arisefrom the growth of mobile computing devices,technologies and systems

Privacy and access

Security

Reliability

Electronic Commerce Prentice Hall 2006 3


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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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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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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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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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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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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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Privacy

Protection of Privacy

Access/participation

Integrity/security

Enforcement/redress


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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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