Legal, Ethical, and Social Impacts of EC

 Ethics: The branch of philosophy that deals with what is considered to be right and wrong  What is unethical is not necessarily illegal  Ethics are supported by common agreement in a society as to what is right and wrong, but they are not subject to legal sanctions © Prentice Hall 20042

 EC ethical issues  Non-work-related use of the Internet ▪ Employees use and the Web for non-work-related purposes ▪ The time employees waste while surfing non-work- related Web sites during working hours is a concern © Prentice Hall 20043

 Corporate code of ethics ▪ Issue written policy guidelines ▪ Copyrighted trademarked material cannot be used without permission ▪ Post disclaimers concerning content ▪ Post disclaimers of responsibility concerning content of online forums and chat sessions © Prentice Hall 20044

▪ Make sure that Web content and activity comply with the laws in other countries ▪ Make sure that the company’s 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 company’s Web site © Prentice Hall 20045

 Major ethical/legal issues  Privacy  Intellectual property rights  Free speech versus censorship  Consumer and merchant protection against fraud © Prentice Hall 20046

 Privacy: The right to be left alone and the right to be free of unreasonable personal intrusions 1. The right of privacy is not absolute. Privacy must be balanced against the needs of society 2. The public’s right to know is superior to the individual’s right of privacy © Prentice Hall 20047

 Web site registration  Most B2C and marketing Web sites ask visitors to fill out registration forms including: ▪ names ▪ addresses ▪ phone numbers ▪ addresses ▪ hobbies, etc. © Prentice Hall 20048

 There are few restraints on the ways in which the site can use this information ▪ Use it to improve customer service or its own business ▪ Or sell the information to another company that could use it in an inappropriate or intrusive manner © Prentice Hall 20049

 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  Users can protect themselves against cookies: ▪ delete them from their computers ▪ use anticookie software © Prentice Hall

 Privacy of employees  Monitoring employees’ and Web activities ▪ wasting time ▪ may disclose trade secrets  77% of companies monitor their employees’ communications © Prentice Hall

 Protection of privacy  Notice/awareness  Choice/consent  Access/participation  Integrity/security  Enforcement/redress © Prentice Hall

 Opt-out clause: Agreement that requires computer users to take specific steps to prevent collection of information  Opt-in clause: Agreement that requires computer users to take specific steps to allow collection of information © Prentice Hall

 Intellectual property: Creations of the mind, such as inventions, literary and artistic works, and symbols, names, images, and designs used in commerce © Prentice Hall

 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 © Prentice Hall

 Copyright protection approaches  Using software to produce digital content that cannot be copied ▪ Cryptography ▪ Tracking copyright violations  Digital watermarks: Unique identifiers imbedded in digital content that make it possible to identify pirated works © Prentice Hall

 Trademark: A symbol used by businesses to identify their goods and services; government registration of the trademark confers exclusive legal right to its use © Prentice Hall

 The owner of a registered trademark has exclusive rights to:  Use the trademark on goods and services for which the trademark is registered  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 © Prentice Hall

 Domain name refers to the upper category of an Internet address (URL) ▪ Should additional (new) top-level domain names be added? ▪ The use of trademarked names that belong to other companies as domain names © Prentice Hall

 Domain name disputes and resolutions ▪ Major disputes are international in scope, because the same corporate name may be used in different countries by different corporations ▪ Internet community now quickly resolves domain name disputes using arbitration © Prentice Hall

 Cybersquatting: The practice of registering domain names in order to sell them later at a higher price  Anticybersquatting Consumer Protection Act of 1999 allows trademark owners sue for statutory damages ▪ Juliaroberts.com ▪ Madonna.com © Prentice Hall

 Patent: A document that grants the holder exclusive rights on an invention for a fixed number of years  Patents serve to protect tangible technological inventions  Patents are not designed to protect artistic or literary creativity  Patents confer monopoly rights to an idea or an invention, regardless of how it may be expressed © Prentice Hall

 Fraud on the Internet  Online auction fraud—87% of online crime  Internet stock fraud—spread false positive rumors about the prospects of companies © Prentice Hall

 Consumer protection—tips for safe electronic shopping  Make sure that they enter the real Web site of well-known companies  Search any unfamiliar site for an address and telephone and fax numbers and call  Check out the seller with the local chamber of commerce, BBB, or TRUSTe © Prentice Hall

 Investigate how secure and organized the seller’s site is  Examine the money-back guarantees, warranties, etc.  Compare prices online to those in regular stores  Ask friends what they know, look for testimonials and endorsements © Prentice Hall

 Find out what redress is available in case of a dispute  Consult the National Fraud Information Center (fraud.org)  Check the resources available at consumerworld.org © Prentice Hall

 Authentication and biometric controls provide ▪ Access procedures that match every valid user with a unique user identifier (UID) ▪ Authentication method that verifies that users requesting access to the computer system are really who they claim to be ▪ Are valid for both consumer and merchant protection © Prentice Hall

 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 © Prentice Hall

 Other societal issues  Education ▪ Virtual universities ▪ Companies use the Internet to retrain employees ▪ Home-bound individuals can get degrees © Prentice Hall

 Public safety and criminal justice ▪ e-911 systems ▪ collaborative commerce ▪ e-procurement ▪ e-government—coordinating, information sharing, and expediting legal work and cases ▪ intelligent homes, offices, and public buildings ▪ e-training of law enforcement officers © Prentice Hall

 Health aspects ▪ safer and healthier to shop from home than to shop in a physical store ▪ some believe that exposure to cellular mobile communication radiation may cause health problems ▪ collaborative commerce can help improve health care © Prentice Hall