1. 1 Click your mouse anywhere on the screen to advance the text in each slide. After the starburst appears, click a blue triangle to move to the next slide or previous slide.

2. 2 Quote of the Day “The moving finger writes; and, having writ Moves on: nor all thy piety nor wit Shall lure it back to cancel half a line. Nor all thy tears wash out a word of it.” Omar Khayyam (1050?-1123?), Persian poet, astronomer and mathematician

3. 3 Cyberlaw Issues  Contract law has to deal with the validity of electronic signatures.  Securities law has to determine proper methods of online transactions.  Intellectual property law has been challenged by the ease of downloading copyrighted material and the potential for abuse.  The new area of cyberlaw itself is dealing with issues such as online privacy, hacking and spam.

4. 4 Privacy  Personal communications and private information such as financial data may be exposed when transmitted via the Internet from three main sources: Internet tracking Computer hard drive E-mail

5. 5 Internet Tracking  A cookie is a small file that includes an identification number and personal data such as your name, address, phone and credit card numbers and Internet searches you have made. Cookies are used to target ads to the specific interests of a user. Cookies allow “one-stop-shopping” on sites where the user has registered information. Some cookies work only on a specific web site; others follow a user from site to site.

6. 6 Self-Regulation of Online Privacy  The Network Advertising Initiative is a voluntary organization with guidelines. Web sites should provide “clear and conspicuous notice” of their privacy policy. Consumers should be able to choose if personal data is collected. Web sites should give reasonable access to collected data. (What is reasonable?) Web sites should provide reasonable security for collected data. Web sites may not use highly sensitive data to create individual profiles. An independent third party must monitor web sites for compliance. Click here for internet links about NAI principles.

7. 7 Security Technology  Platform for Privacy Preferences (P3P) This technology allows you to set your privacy requirements on your web browser and your browser will allow access only to sites that meet that minimum standard of privacy.

8. 8 Government Regulation of Online Privacy  Federal regulations The FTC originally asked Congress to enact Federal standards, to prevent having 50 different state laws. In 2001, the Chairman of the FTC suggested that the FTC instead use existing statutes.  Children’s Online Privacy Protection Act of 1998 (COPPA) This statute prohibits internet operators from collecting information from children under age 13 without parental permission. It also requires sites to disclose how they will use any information they acquire.

9. 9 Government Regulation of Online Privacy  Gramm-Leach-Bliley Privacy Act of 1999 Requires banks and other financial institutions to disclose to consumers any non-public information they wish to reveal to third parties. Also prohibits pretexting, a process by which information brokers use deception to find out private financial information.  State Regulations A few states have enacted online privacy statutes.  European Directive Prohibits transfer of personal data to any countries that do not provide adequate privacy protection.

10. 10 Your Hard Drive as a Witness  In some cases, a computer hard drive may be seized as evidence. Even long-deleted e-mail messages may be stored on your hard drive and may be used as evidence.  Seizure must be reasonable and conducted with a warrant.  Computers may even be subpoenaed as “witnesses” in civil litigation cases.

11. 11 Electronic Communications Privacy Act of 1986  Prohibits the unauthorized interception or disclosure of wire and electronic communication. The intended recipient of an e-mail may disclose it to anyone she desires. ISPs are generally prohibited from disclosing electronic messages to anyone other than the addresee. An employer may monitor e-mail only in certain situations. The government must have a search warrant to access e-mail messages.

12. 12 Common Law Regulation of E-mail Privacy  Under the common law, intrusion onto someone’s private life is a tort if a reasonable person would find it offensive.

13. 13 Crime on the Internet  Hacking: gaining unauthorized access to a computer; illegal under the federal Computer Fraud and Abuse Act of 1986.  Fraud: deception of a person for the purpose of gaining money or property. Internet auctions are a venue for fraud –Shilling: bidding on your own items for sale or agreeing to cross-bid with a group of sellers –Selling defective or non-existent items  Identity Theft: not a new crime, but made easier with the Internet.

14. 14 Fighting Internet Crime  Technology exists to monitor Web sites, bulletin boards, e-mails and chat rooms, but this monitoring may endanger privacy.  The F.B.I. has used monitoring software to gather intelligence data, but some people fear that this software could be used to monitor political dissidents.

15. 15 Fighting Internet Crime  The Convention on Cybercrime An international treaty with provisions dealing with computer fraud, network security and child pornography. It has been signed by 33 countries, including the U.S., but only ratified by Albania.

16. 16 Spam  Unsolicited Commercial (or Bulk) e-mail Creates additional cost to internet users, as the ISP’s bear the costs for processing excessive e-mails.  Fraudulent Spam Up to 30% of all e-mail is spam; roughly half of all spam is fraudulent. FTC has attacked fraudulent spam, but enforcement is difficult.  Non-Fraudulent Spam Harder to fight, but some ISP’s block all messages from other ISP’s known to promote spam.

17. 17 Communications Decency Act of 1996  An ISP is not liable for information that is provided by someone else, even if it is transmitted through its service.

18. 18 “The law in this area is so young and unformed that oftentimes we must ask not only, ‘What is the law?’ but also, ‘What should the law be?’” “The law in this area is so young and unformed that oftentimes we must ask not only, ‘What is the law?’ but also, ‘What should the law be?’”

19. 19 Link to the Internet  Clicking on the orange button below will link you the website for this book. (You must first have an active link to the internet on this computer.)  Once there, click: Your text cover Interactive Study Center Select a Chapter Internet Applications  You should then see web links related to that chapter. Click above to return to the slide show. Click Here!