Public Policy & the Internet The role of public policy Policy issues in the Internet environment

Why do we need policy? Relevant for the central exchange environment Representative issues - new problems Marketers - privacy Consumers - fraud Policy is reactive and proactive Reactive when problems occur Proactive for consumer education Coupey

The policy/marketing relationship A history of policy From 1914 to now Early focus on marketer protection Consumerism in the 1960’s New issues with the Internet The mandate for policy A balancing act Protection for marketers and consumers Coupey

Making policy happen Who is responsible? Government agencies Legislative bodies Industry (self-regulation) Consumer groups General approaches for policy implementation How do policy issues get raised? How do policy issues get resolved? What are the desirable characteristics of regulation? Coupey

Policy issues for the Internet Marketer issues Jurisdiction and liability Copyright http://www.speakout.com/activism/napster/popup/popup.htm http://www.riaa.com/Copyright-What.cfm Taxation Verification (identity and age) http://www.livegrip.com/trackball.htm Security Consumer issues Privacy http://www.hawaii.edu/help/security/ http://www.truste.org/ Fraud Access Information use Coupey

Copyright in a digital world Author’s rights to allow or forbid use of work Patrimonial (for profit) Moral Requirements for copyright protection Original work (idea and expression) Fixed “in a tangible medium of expression” ==> is the Internet tangible? User’s rights: exceptions Fair use, Email, FTP, WWW Coupey

Freedom of expression Two sided: to provide and to get information Internet increases the consequences Law provides limits Defamation (harm to reputation) ==> Internet increases spread of communication ==> What is the affected community on the ‘net? Fighting words (encouraging lawlessness) Pornography(sort of…) State-based legislation Overturn of the Comm. Dec. Act Coupey

Keeping information private Privacy as a basic value Keeping things secret From government agencies Constitutional right applies to the Internet Elec. Comm. Priv. Act -- get a warrant! From private parties Can’t intercept interstate email Messy: common law conflicts with constitution right From computer-based data processing Greater restraint for public than for private sector International transfers? Coupey

Advertising regulation Playing by the usual rules Product regulation: e.g., alcohol and tobacco Audience regulation: protect vulnerable consumers Method regulation: don’t lie, don’t fib (FTC) Integrating the Internet Advertising issues Active v. passive audiences (voluntary acquisition) Email solicitations (like mail, or fax?) Promotional offers (matching restrictions on offers across national borders) Coupey