ECIS560 Lecture 7 - Ethics and M-L- Commerce

8/2/2019 ECIS560 Lecture 7 - Ethics and M-L- Commerce

1/35

Legal and Ethical Issuesin E-Commerce


2/35

Major Legal and Ethical Issues inElectronic Commerce

Privacy

Intellectual Property

Free Speech Taxation

Computer Crimes

Consumer Protection Miscellaneous


3/35

Legality vs. Ethics

Illegal acts break the law while unethical actsmay not be illegal

Ethics

Branch of philosophy that deals with what isconsidered right or wrong

Right and wrong not always clear

Consider Company sells profiles of customers with information

collected through cookies Company allows personal use of Web but secretly monitors

activity

Company knowingly sells tax software with bugs


4/35

Privacy Issues

Information privacy: claim of individuals,groups, or organizations to determinewhen and to what extent information about

them is disseminated.

Right to privacy is not absolute

Publics right to know superceded

individuals right to privacy


5/35

How is private informationcollected?

Reading your newsgroup postings

Finding you in an Internet Directory

Making your browser collect information about

you Recording what your browser says about you

Reading your email From Rainone, et al, 1998)

Most common methods are cookies and siteregistration


6/35

Web Site Registration

Must fill in registration to get to site

Sometimes sold to third parties

User survey found (Eighth User Survey, 1998)

40% users falsify information

Nearly 67% (US and Europe) dont register because

of privacy concerns

Nearly 57% say they dont trust sites collecting

information

Only 6% will always register when asked


7/35

Cookies

Help maintain user status A temporary passport

Used for Customizing sites (Yahoo)

Improve online services (Amazon) Collect demographics and usage statistics

(Doubleclick)

Protection

Delete cookies Anti-cookie software

PGPs Cookie Cutter

Luckmans Anonymous Cookie

CookieCrusher

Cookie Monster


8/35

Five Principles of PrivacyProtection

Notice/Awareness Notice of collection practices prior to collecting information

Choice/consent Consumers to be made aware of options and give consent

Access/participation Must be able to access and challenge information

Integrity/Security Must be assured data is secure

Enforcement/Redress Government legislation or legal remedies


9/35

EUs Data Privacy Directive

Stronger protection of personal data suchas race, politics, finances, religion, healthand union membership

Other countries following suit Argentina, Australia, Canada, Switzerland and

New Zealand

Bush rejects EU laws as being unduly

burdensome Safe Harbor Agreement is a bridge

between the US and European positions


10/35

Principles of Safe Harbor

Companies must tell consumers how and why personaldata is collected and who it's shared with

Consumers must be able to request their data not beshared

Companies must provide notice and choice before data isgiven to third parties

Consumers must have access to data about them andhave the ability to correct mistakes

Companies must take reasonable measures to protectdata

Personal data must be relevant to its intended purpose

Procedures must be in place to settle complaints andresolve disputes


11/35

Intellectual Property

Intangible property rights

In E-Commerce

Copyrights

Patents Trademarks

IP Rights are not absolute

Perishable Legal exceptions to allow public use at a specific rate


12/35

Copyrighting

Protects expression of idea not the idea itself Example , pull-down menus cannot be copyrighted

Confers owner exclusive right to

Copy the work Distribute to the public

Expires after certain number of years after deathof copyright holder

28 years in the US 50 years in UK

Generally, contents of websites are copyrighted


13/35

Copyrights Protection

Digital Watermarks

Embedded invisible bits in the digital content

Cannot prevent copying but helps identify whois doing it

Validation codes

Activation or deactivation of software


14/35

Patents

Grants holder exclusive rights on inventions forfixed time 17 years in US

20 years in UK Innovation must be

Novel

Sufficiently inventive step (not trivial)

Capable of industrial application Amazon sued Barnes and Noble for patent

infringement (1-click ordering)

Priceline has patent on reverse-auction modelsued Expedia


15/35

Trademarks

Graphical sign used by business to identify theirgoods and services

Type of IP

Must meet criteria of distinctive, original, and notdeceptive

Domain names can be trademarked if they meetabove criteria

WWF won first ever ruling against man who filedfor worldwrestlingfederation.com


16/35

Free Speech, Internet Decency,Spamming, and Censorship

Censorship attempts to control material on theWeb

Communications Decency Act (CDA) was

passed by Congress but later ruledunconstitutional

Protecting Children Parental control

Governmental control

ISP accountability AOL does not allow hate sites

CompuServe was forced by Germany to shut down 200

newsgroups related to sex CompuServe forced to shutthem down worldwide


17/35

Spamming

Indiscriminate distribution of messages withoutpermission of receiver

Spam comprised 30% of all AOL mail in 1998

Now down to 10% with spam blockers

Some legislation out there

Unsolicited Commercial Electronic Mail Act Requires all spam to start with word advertisement

Includes name and address of sender


18/35

Taxation

Internet Tax Moratorium Act (1998-2001)

prohibits states from taxing the fees thatInternet service providers collect for providing

Internet service and from collecting Internet-specific taxes on e-commerce transactions

President George W. Bush signed into lawa bill from Congress proposing a new two-

year moratorium extension (starting Nov. 29,2001)


19/35

Other Issues

Consider on your own

Electronic contracts

Online Gambling

Validity of electronic documents Time and date on documents across borders

Which country has jurisdiction over E-Commercetransaction

Can web site link to another without permission Example Ticketmaster vs. Microsoft


20/35

New Frontiers in E-Commerce:M-Commerce and L-Commerce


21/35

Mobile Vignettes

Bus riders in San Francisco can find when thenext bus is due from their cell phone or Palm VII

NextBus tracks in real time

Dine One One uses AT&T PocketNet serviceto link driver cell phones to central network. System locates and notifies driver to get to restaurant

Emails order to restaurant

Food ready to be delivered DoCoMo I-Mode in Japan offers wirelessservices that include shopping guides, maps,ticketing, news, gambling, dining and

reservations


22/35

What is M-Commerce?

Also known as pervasive computing

E-commerce done in a wireless environment

Any transaction with a monetary value that is

conducted via a mobile telecommunicationsnetwork.


23/35

Attributes of M-Commerce

M-Commerce

Mobility

Reachability

Productpersonalization

Product and service

localization

Ubiquity

Instant connectivity

Convenience

Characteristics

Value-AddedAttributes


24/35

Other Drivers of E-Commerce

Widespread availability of devices

No need for PC

Cell phone culture

Vendors push Declining prices

Improvement in bandwidth

E-commerce growth in general

Digital divide (more cell phones in developingcountries)


25/35

Generations of Mobile networks

First Generation (1G) 1979-1992

Analog cell communications

Second Generation (2G)

Digital Technology in place today Mostly text

2.5G Interim technology based on standards (GPRS and EDGE) that

can accommodate graphics

Third Generation (3G) Non-IP based interface

Supports rich multimedia

2001 introduced in Japan

2002 introduced in Europe 2003 Verizon introduces 3G in US


26/35

3G Communications

Global wireless communication technology thatmakes possible packet-based transmission ofdigitized voice, data and video

ITU Guidelines from 2000 2Mbits/s for fixed position 144Kbits/sec in moving vehicles

Allow global roaming

Race for spectrum 1710 to 1855 MHz and 2520 to 2670 MHz 1.7GHz currently used by military for satellite control

Billions of $ plus a decade to change


27/35


28/35

Where are we today?

The first 3G network released in Japan,Oct. 1, 2001.

This new service will allow users toreceive data at six to 40 times faster thancurrent speeds, making fast mobileInternet access and video downloads

possible.


29/35

How about 3G in the US?

On January 28, 2002, Verizon Wireless rolledout its 3G Express Network along the nationseast coast, thus making it the first US carrier tooffer such services to the public(Computerworld, Jan 29, 2002).

The same day, Cingular Wireless and AT&TWireless announced a joint-venture project tomake wireless web access available along 3000miles of interstate highways in Arizona,Colorado, Kansas, Minnesota, New Mexico,Nebraska, Oklahoma, Texas and Utah (AT&TWireless News Release, Jan 28, 2002).
http://www.computerworld.com/itresources/rcstory/0,4167,STO67805_KEY68,00.htmlhttp://www.attws.com/press/releases/2002_01/012802.htmlhttp://www.attws.com/press/releases/2002_01/012802.htmlhttp://www.attws.com/press/releases/2002_01/012802.htmlhttp://www.attws.com/press/releases/2002_01/012802.htmlhttp://www.computerworld.com/itresources/rcstory/0,4167,STO67805_KEY68,00.html


30/35

A quote from the 3G Forum

The Promise of 3G technologies is acombination of high-speed wireless access w/internet protocol(IP) Based services will bring

the world to your fingertips. It is a world in whichwe will be able to check emails, book holidays,organize share portfolios, hold videoconferences or download video clips of the

latest film, instantly & simply from our mobiles.The capability of mobile networks to pinpoint amobile users location opens opportunities forthe creation of new situational information on,

and directions to, the nearest restaurant orhotel.


31/35

10 Key Trends in M-Commerce

M-Commerce hype will peak Over 1 billion phone worldwide capable of Internet

access in 2003

Enterprise Applications Will Become the WhiteHot Center of Mobile eBusiness

Wireless CRM

Consumer Use of Mobile Will Revolve AroundInformation, Not Transactions

Embedded Barcode Readers in Phones Sidesteps problem of data entry


32/35

Key trends

Smart Handheld Displays Will Show SomeImprovement

Mobile Security Will Become a Hot Issue

Voice Navigation Will Remain a Work in Progress

Convergence Will Continue, but It Will Still Be aMultiple-Device World

Advertising Will Continue to Expand to WirelessDevices

Carriers Must Shift Their Distribution Strategies Shift from end users to enterprise


33/35

L-Commerce

location, location, location

Satellite-based location technology that iscapable of finding people on foot or in vehicles

General Motors Corp. in Detroit has installed over1 million of its OnStar GPS-enabled systems invehicles

FCC sets 2005 deadline for E911

Location-tracking technology also createspotential Big Brother issues


34/35

Global Positioning System

GPS-enabled devices allow exact identificationof location

Supported by 24 US government satellites

Orbits earth every 12 hours 10,900 miles altitude

Satellite transmits position and time signal fromonboard atomic clock

Receivers have synchronized clock

Using speed of signals (~186,000 mps), possible topinpoint location to within 50 feet.

See www.trimble.com/gps for a tutorial

Ob t l t M C d L
http://www.trimble.com/gpshttp://www.trimble.com/gps


35/35

Obstacles to M-Commerce and L-Commerce

Usability issues Effectiveness, efficiency, satisfaction

Lack of standardized security protocol

Insufficient bandwidth 3G licenses

Transmission limitations GPS does not work in cities with skyscrapers

Power consumption Wireless and Health hazards

Documents

ECIS560 Lecture 7 - Ethics and M-L- Commerce