ELC 310 DAY 5. Agenda Assignment 1 Corrected Questions? Assignment #2 ?? Finish Discussion on Leveraging Technology Begin Discussion on Ethical and Legal

ELC 310

DAY 5

Agenda Assignment 1 Corrected Questions? Assignment #2 ?? Finish Discussion on Leveraging Technology Begin Discussion on Ethical and Legal issues eMarketing Plans due October 22 (6 weeks

from now) Exam 1 Sept 24 One week

Strauss Chaps 1-5 15 M/C (4 points each) 4 essays (10 points each) Open book, open notes 60 min time limit

Overview The Marriage of Marketing

&TechnologyProduct Technologies

Building a Web Site HTML Forms Java Dynamic HTML (DHTML) XHTML XML Multimedia Database Marketing Computer Viruses Denial of Service Attacks

Price Technologies Distribution Technologies

Bandwidth and Market Opportunities Content Filtering Transaction Security IMC Technologies Proxy Servers How Search Engines

Work Log Files and Cookies Rotating and Targeted Ad Banners

Relationship Marketing Technologies

Bandwidth and Market Opportunities

Complex infrastructure systems bring a variety of utilities to the consumer’s home.

The consumer is interested by the benefits and not how the systems works.

BUT to provide these additional services major infrastructure improvements behind the scenes are required.

Bandwidth: = The carrying capacity of an information channel

(telephone or cable TV wire).

Greater bandwidth results in greater information delivery speed (less download waiting time).

Measured in bits per second. Modems are used to pump information over a

telephone line. The fastest modems operate at about 50,000 bits per second. = 1,000 words sent from person A to person B in 1 second.

Bandwidth: Just how fast does transmission need to be to

support various media types?

Media Type

Speed Technology

Text 25 Kbps Modem POTS Graphics (pictures) 50 Kbps Modem POTS Sound 100 Kbps Cable/DSL Video 1 Mbps Cable/WI-FI/Commercial

DSL

Bandwidth: Developing low-involvement brands requires high-quality

multimedia on the Web but this is only available for high-bandwidth users.

High-bandwidth means: Personal selling and customer service, Phone calls delivered over the Internet, Delivery of music CDs over the Web, Delivery of movies over the Web, Real-time virtual reality.

DIFFICULTY: The telephone line to the consumer’s home was never designed to carry other than voice communications.

Need major infrastructure changes.

Digital Subscriber Line (DSL)

Methods for transmitting at speeds up to 8 Mbps over a standard phone line.

Uses the phone line already installed in consumer homes.

Allows users to simultaneously make phone calls + surf the Web because the data travels outside of the audible voice band.

Users must install a DSL modem + phone companies have to deploy the infrastructure to support DSL technology (some technical issues remain).

Cable Modems Allow transmission of Internet traffic

over the cable TV wire connected to the home.

Speed:500 Kbps - 2.5 Mbps. Problem: having too many subscribers!

(cable neighborhood share bandwidth).

Cable Modems The advantages:

Early market penetration = the cable modems were the first available,

Diffusion via word of mouth, The cable companies solved their infrastructure

issues early and are able focus on establishing value-added services (CD-quality audio)

= barriers to entry for the phone companies.

Other Broadband Options: Wireless

Relies on towers to relay signals. Personal data assistants (PDAs), notebook

computers and other wireless devices are best served by wireless communication.

Constraint: Users want access anytime from anywhere.


A natural outgrowth: Cell phone towers already in place + network very reliable + most of the communication already digital.

Problem: bandwidth, network designed to handle low bandwidth voice communications. Data communications is slow.

Solution: Third generation (3G) cell phone networks = transfer data up to 10 times faster.

Wireless Local Area Networks (WLANs): Major players such as Hewlett Packard are

investing in the infrastructure to provide WLANs to hotels and airports,

The major issues are ease of connectivity and the number of different devices that can be interconnected.


One of the most important standards: Wi-Fi Operate at 10 Mbps within a range of about 300

feet, Must connect back to a wired network To reach the

Internet. Wireless ISPs (WISPs):

Offer connectivity to Wi-Fi networks for a small daily fee,

Major issue: how to recover revenues when their subscribers roam to other WISP networks.


Content Filtering Growing segment of Web users: children under 18. Major concern: exposition to pornography, violence,

or other unwanted material online. Solution: Curb exposure through education and/or

legislation: Educate children not to pursue offensive online material. Ban offensive material through legislative means. Require to put age warnings & run an age verification

system Require to rate their material using industry-standard

ratings.

Content Filtering Solution: Limit exposure by use of technology:

Ask the Internet service provider to filter the content.

Filter the content on the user’s own computer. Software filter content on any computer along

the path from the user’s computer to the Internet.

Proxy server: All communication to and from any corporate computer to the Internet passes through this server.

Content Filtering The home user installs software on computer to filter

content (NetNanny, CyberSitter). Some products operate with a “can go” and “can’t go”

lists. Each time the child attempts to access a site, the software can:

Make a silent record of the access for the parent to see later but do nothing else.

Mask out objectionable words or images from the accessed site.

Block any access to the banned site. Shut down the browser completely.

Transaction Security The number-one concern of all users online.

IssueExtremely Concerned orVery Concerned

Security of credit card transactions 86%

Protecting privacy 75%

Censorship 72%

Hate group Web sites 47%

Depiction of violence 38%

Pornography 30%

Exhibit 4 - 1 Top Issues for Online Users

Is this a legitimate concern? Transactions are probably much more secure on the Internet than in the brick-and-mortar world.

Credit Card Number Theft Places where a credit card number could potentially be stolen

on the Internet: Stolen from the user’s computer: Very unlikely = most

users do not store credit card numbers on their computers, Stolen in transit: Almost impossible = encryption

algorithms make this impossible, Stolen at the merchant’s site: Probably the most

legitimate user concern. The merchant may be:

Fraudulent, Honest but have a dishonest employee, Honest but fail to protect its database of credit card

numbers from hackers.

Encryption Algorithms Encryption algorithms are designed to protect

transaction information in transit.

The messages are encrypted in both directions.

But how does the user get the merchant’s key? Merchants give out a public key = can encrypt

the message but cannot decrypt it, Only a complementary private key can.

A lock indicates encrypted communication with the merchant.

Encryption Algorithms

E x h i b i t 4 - 1 A m a z o n G u a r a n t e e s S a f e t y o f O n l i n eT r a n s a c t i o n s

Source: www.amazon.com Amazon.com is a registered trademark or trademark of Amazon.com, Inc. in the UnitedStates and/or other countries. © 2000 by Amazon.com. All rights reserved.

Encryption Algorithms After the user has chosen to enter secure mode, Amazon continues

to reassure the user even on the secure mode screen!

E x h i b i t 4 - 1 U s e r E n t e r s S e c u r e M o d e

Source: www.amazon.com Amazon.com is a registered trademark or trademark of Amazon.com, Inc. in the UnitedStates and/or other countries. © 2000 by Amazon.com. All rights reserved

The user is in secure mode. Would you have noticedthe little lock?

Encryption Algorithms Sometimes the retailer does not adequately

protect the records stored on its computer.

Hackers: Begin by obtaining access to an account

with very limited access to protected computer resources,

Work their way up from account to account until they have sufficient access to compromise the system.

Security Testing Solution:

Professionals are able to recognize flaws in the security system of the merchant’s computer and suggest remedies to make it more secure,

Programs such as Jack the Ripper and Satan attack their own sites

Intrusion detection systems, such as Real Secure and Entrust, notify the merchant of an actual attack by recognizing the digital signatures of these attack programs.





Bandwidth and Market Opportunities Content Filtering Transaction Security IMC Technologies Proxy Servers How Search Engines

Work Log Files and Cookies Rotating and Targeted Ad Banners


IMC Technologies E-marketers use a variety of technologies for

integrated marketing communication:

Proxy servers, Search-engine listings, Log files and cookies, Rotating and targeted ad banners.

Proxy Servers Proxy server: technology that copies entire Web sites and then

lets users view the copies—a technology that makes the Web seem faster for users.

Problem for Banner ads: Sold on a basis of cost per thousand (CPM) impressions, Cost varies by site and even by page within site, Accurate counting of the number of impressions is critical.

BUT: Undercounting impressions robs the content provider of revenue.

Solutions: count the number of times that a proxy server serves out a copy.

Proxy Server

Yahoo

MatchLogic

1

4

3

User requestsWeb Page

Next user requesting samepage is given copyfrom proxy server.

Proxy serverintercepts and forwardsrequest on behalf of user.Copy of returned pagesaved on proxy server

Web page makesa noncachable requestto ad server

2

Exhibit 4 - 1 Circumventing the Proxy Server

Undercounting? 76% = a tremendous loss of revenue for companies selling

ads. Most proxy servers are in corporations:

the demographics of users advertisers try to reach. undercounting biases user demographic descriptions.

Other problems: The Web site records less impression to charge the

advertiser. The Web site records less page view to report to its

investors. the ads never rotate on the page.

How Search Engines Work The Web contains billions of pages. Impossible to search the entire Web every time someone types

in a search term.

Search engines do the searching up to a month in advance + store the results in a huge database.

They send automatic programs called spiders out on the Web to build up a massive index or database of all the words found, where they were found, how many times they appear on each page, and so on.

When users type in a search term, this is the database that is actually queried.

Search Engine

Search Engine

Database

Spider

Spider

Spider

user

Web site

Web site

Web site

Spiders crawlWeb sites up toa month in advancegathering keywords

Keywords areindexed notingtheir location onthe page andfrequency of appearance

User enterssearch term

Search enginescans database tofind the search term

1

4

3

2

Exhibit 4 - 1 How Search Engines Work

How Search Engines Work

But how does the search engine define relevance?

The spider: Counts words, Looks for the location of those words on the page, Avoids sites that attempt to trick them by

repeating words many times in a row.

But how does the search engine define relevance?

Relying on user behavior to form its rankings. Google ranks sites according to how many links point to the site from other Web sites.

Challenge: Get sites to appear high in the search engine rankings.

Solution: Specialized companies study the search engines algorithms for ranking pages.

Log Files Visitors on the Web leave footprints wherever they go on the

computer visited and on the user’s own computer. The computer visited maintains a log of all computers that

visit the site and exactly which pages they see. Date Time Visitor address Page viewed1/10/2003 10:30am FrostR.ohiou.edu Baking recipes1/10/2003 10:31am FrostR.ohiou.edu Cookies1/10/2003 10:32am FrostR.ohiou.edu Chocolate chip1/10/2003 10:40am FrostR.ohiou.edu Sign off

• The analysis also forms the basis for site redesign as marketers learn which pages are most popular.

• PerleyBrook log file

Cookies Files stored on the user’s computer. Each site a user visits may write a cookie on the

computer. Suppose a user is a repeat visitor to a site that

requires a password: The site could authenticate this user by looking up her

password in a cookie from a previous session, It could also use the cookie to store her purchase choices in

an electronic shopping basket prior to checkout, Raises a question about the ethics of gathering information

about people without their knowledge and explicit consent.

Cookies

Yahoo, userid(154)

AltaVista, userid(924)

Excite, userid(273)

1/25/01, home page

1

23

User visits Web site

Site assignsuser a userid AND records the page visitedSite records userid

on her computerin a cookie to identifyuser in future visits

Exhibit 4 - 1 How Cookies Are Stored

Rotating and Targeted Ad Banners

Using the reload button on Yahoo!’s Web site In a change in the banner ad displayed.

Yahoo! sells its inventory of banner slots on a rotating basis = number of impressions over a period of time guaranteed, but other ads will be interspersed with theirs.

Targeted ads: Change or rotate based on the search words that a user types into

the search engine, Targeted ads cost more per impression because advertisers are

more effectively able to reach their target based on psychographics.

DoubleClick = Ad networks

Tracks and target users as they move from site to site.

Stores a cookie on the user’s computer to identify each user by number.

Whenever the user visits a site in the DoubleClick network, DoubleClick reads the cookie, looks up and/or modifies the user’s profile, and then targets an appropriate ad.

The process is very effective from a direct marketing point of view and extremely successful. DoubleClick delivers billions of ads each day!

DoubleClick

DoubleClick

DoubleClick assignsuser a userid AND records the site visited

DoubleClick places ad onWeb page for user

www.travelocity.com 3 875930236.doubleclick.net 485720434 6

1

6

3

4 5

DoubleClick recordsuserid on user's computerin a cookie to identify user in future visits

Computer requestsad from DoubleClickAND identifies sitethat user visited

Userid(485720434 6), Travelocity Home Page 1/25/01

Userid(3875930 236), Raymond Frost

2 Travelocity assignsuser a userid AND records user's nameso as to greet user byname on the next visit

User visits Travelocity

7

Travelocity sends page ANDsilently instructs user's computer to a) Request DoubleClick adb) Tell DoubleClick which section of Travelocity was visitedc) Write Travelocity cookie on user's computer

Exhibit 4 - 1 Tracking Users Site to Site

DoubleClick

# Netscape HTTP Cookie File# http://www.netscape.com/newsref/std/cookie_spec.html# This is a generated file! Do not edit.www.travelocity.com FALSE / FALSE 3875930236 grtng 1.doubleclick.net TRUE / FALSE 4857204346 id AExhibit 4 - 1 Netscape Cookie File (cookie.txt)

• The user has two cookies on her computer:

• One from Travelocity: allow personalized greeting.

• One from DoubleClick: used to track the user around the Internet.

The next time that the user visits a site on the DoubleClick network, DoubleClick will be able to target an ad to that user for a travel-related service = closed loop marketing.

DoubleClick Users who do not wish to be tracked have three

options:

1. Disable cookies in their browser. In practice this option is not effective since many Web sites will not provide content if cookies are disabled,

2. Delete the cookie files at the end of each session,

3. Purchase a product such as Intermute blocks all requests to the ad server. If the user’s computer never contacts the ad server, the ad server cannot write a cookie (tracking is not possible).

The Platform for Privacy Preferences (P3P)

A technical solution giving sites needed information to serve customers without compromising user privacy.

The idea: users specify in advance how much information they are willing to reveal to a Web site and under what conditions. Information is stored on each user’s computer.

When the user visits a participating site:

the user’s browser reviews the P3P policies of that site and compares them against the stored policies on the user’s computer,

If this is acceptable to the browser, then it loads the page, This saves the user from having to read the privacy policy of each

site—something that users very seldom do.





Bandwidth and Market Opportunities

Content Filtering Transaction Security IMC Technologies Proxy Servers How Search Engines Work Log Files and Cookies Rotating and Targeted Ad

Banners Relationship Marketing Technologies


= Personalization (greeting by name) + Customization (changing a site's content to match a

user's preferences) relying on database driven Web sites.

When the user requests a Web page, a program extracts content from the database and creates the page in a fraction of a second.

Change the content in the database and the Web page is automatically updated the next time it is accessed.


1. Exhibit 4 - 1 Amazon Welcome Screen

Source: www.amazon.com Amazon.com is a registered trademark or trademark of Amazon.com, Inc. in the United Statesand/or other countries. © 2000 by Amazon.com. All rights reserved.


Relationship marketing in action: Amazon uses a database driven Web site that incorporates personalization and customization. The process begins when the user first registers with Amazon.

Amazon records information about the user in its user database file:

Userid Last First Street City Zip CreditCard #

12345 Frost Raymond 8 WebWay

Athens 45701 4444 55556666 7777

76543 Strauss Judy 10 NetLane

Reno 89557 3333 22229999 8888

Exhibit 4 - 1 User Database File


Amazon then stores the user’s Userid in a cookie file on the user’s computer.

.amazon.com Userid = 12345my.yahoo.com Userid = 88875.hotwired.com Userid = 55235

Exhibit 4 - 1 Simplified Cookie File

• On a return trip to the Amazon site, the user’s computer sends the Userid value (12345). Amazon’s server uses the number to look up the user’s record in its database.

• The server merges the user’s name with its home page, inserting the personalized greeting.

“We have recommendations for you in books.” Clicking on this link brings up this exhibit showing a recommendation in an area in which the author has recently ordered books—romance set in Southeast Asia.

E x h i b i t 4 - 1 A m a z o n ’ s C u s t o m i z e d R e c o m m e n d a t i o n s

Source: www.amazon.com Amazon.com is a registered trademark or trademark of Amazon.com, Inc. in the UnitedStates and/or other countries. © 2000 by Amazon.com. All rights reserved.

How did Amazon identify the author’s preferences?

It maintains a separate file containing all the orders for its users.

The same file contains books that other users have ordered. There are thousands of users following the same pattern determine the recommendation list.

Userid Title12345 The Language of Threads12345 Night of Many Dreams76543 Cloud Mountain76543 The Language of Threads22233 Cloud Mountain22233 Night of Many Dreams

Exhibit 4 - 1 Amazon Orders File

To Review the Process Once Again

First Purchase:

The user makes a purchase, User’s full information stored in its user

file, Purchase record stored in its orders file, User’s Userid stored in a cookie file on the

user’s computer.

To Review the Process Once Again

Subsequent Visits: Record pulled from the user’s computer to find

the Userid, The Userid is used to look up the user’s record, The name is extracted from the user’s record and

merged with the Web page to produce a personal greeting,

The Userid is used to look up the user’s order history from the orders file,

Collaborative filtering software is used to find patterns among other users’ orders, which can help to recommend book titles.

Companies specializing in CRM software solutions:

Siebel Systems (www.siebel.com) E.piphany (www.epiphany.com) Oracle (www.oracle.com) PeopleSoft (www.peoplesoft.com) SAP (www.sap.com) SAS (www.sas.com) Net Perceptions (www.netperceptions.com)

In many cases a company interested in CRM will hire a consulting firm such as Accenture to both choose the software vendor and install and tune the software.

E-Marketing, 3rd edition Judy Strauss, Adel I. El-Ansary, and Raymond Frost

Chapter 5: Ethical and Legal Issues

© Prentice Hall 2003

Overview Ethics and Legal Issues

Ethics & Ethical Codes The Problem of Self-Regulation

Privacy Privacy within Digital Contexts International Privacy Issues

Digital Property Copyright Trademarks Patents Licenses Trade Secrets Data Ownership

Online Expression Emerging Issues Online Governance & ICANN Jurisdiction Fraud

Conclusion

Overview of Ethics and Legal Issues

Ethics: The values and practices of professionals, The concerns and values of society as a whole, Directed toward individual or group endeavors, Important contributions to legal developments = The experiences and practices of those who

work in the field are helpful to those who are charged with regulation and legal decision-making.

Overview of Ethics and Legal Issues

Law: Also an expression of values, Created for broader purposes = national or

sometimes international populations, It is a public endeavor = made by legislatures

such as Congress or Parliament, enforced by executives or agencies, and interpreted by the courts,

Progress in the law can be slow, and particularly within the new context of digital communication.

Ethics & Ethical Codes The study of ethics:

Central focus = analysis and description of basic concepts as what is right and wrong,

The examination of responsibilities, rights, and obligations, Not limited to purely theoretical boundaries but study all

levels of human interaction, Important aspect: the study of professional activities, Groups of individuals possessing special skills or knowledge

have established codes and systems of fair practice, E.g. The American Marketing Association’s (AMA) Code of

Ethics = Professional codes provide members with guidelines which are specific to their pursuits.

Ethics & Ethical Codes Digital processes and potentialities are so new that ethics is

only beginning to adapt itself to the Computer Revolution.

Critical issues:

The ownership of intangible data (intellectual property),

The role of privacy in a virtual world without walls, The extent to which freedom of expression should be

allowed,

The uses of data.

Ethics & Ethical Codes

Difficulties:

Lack of comparative historical situations,

The inability to analogize computers to objects or institutions with which society has had greater experience,

Electronic spaces are global in nature. What is accepted in Europe may be rejected in Asia or America,

Each participant in electronic marketing has to adhere to professional codes, but also to contribute to them.

The Problem of Self-Regulation

Emerging area of conflict: the role of formal law in the regulation of online conduct.

The Administration answer: the development of the Internet should be largely left to the free operation of the market.

The proper behaviors of participants are typically set forth in ethical codes developed by trade associations, commercial standards groups and the professions.

The Problem of Self-Regulation

Supporters of the self-regulation:

The private sector’s is able to rapidly identify and resolve problems specific to its areas of competence,

Once consensus is reached, uniformity is achieved through members’ compliance with ethical codes as well as by ongoing education of providers and consumers,

The law cannot force participation in these codes, but improved consumer confidence and enhanced economic opportunities will ensure voluntary compliance.

The Problem of Self-Regulation Critics of self-regulation:

These incentives are insufficiently compelling,

Perpetrators of fraud benefit from schemes of short duration and are rarely interested in the long-term gains offered by adherence to ethical codes,

Commercial self-interest and pressures to maximize profits compromise the private sphere’s ability to police itself and only the sanctions the law can provide will make a difference.

This debate is far from over but governments are asserting themselves at least in the area of fraud prevention and in issues involving children’s privacy.

Consumer Protection at the FTC Source: www.ftc.gov

Overview Ethics and Legal Issues

Ethics & Ethical Codes The Problem of Self-Regulation

Privacy Privacy within Digital Contexts International Privacy Issues

Digital Property Copyright Trademarks Patents Licenses Trade Secrets Data Ownership

Online Expression Emerging Issues Online Governance & ICANN Jurisdiction Fraud

Conclusion

Privacy The concept of privacy:

Both ethical and legal aspects and is relatively new to both disciplines,

Privacy is a product of the twentieth century: reactions to the phenomena of a maturing industrial and technological age, including the mass distribution of newspapers, the development of listening devices and the widespread use of photography,

Privacy has always been about information and the means of its delivery.

BUT lack of definition within the Constitution.

Privacy The common law has established a series of privacy

violations:

Unreasonable intrusion into the seclusion of another,

Unreasonable publicity of another’s private life,

The appropriation of another’s name or likeness,

The publication of another’s personal information in a false light.

Privacy

Disagreement remains:

The seclusion theory = the ability to remain isolated from society.

This model encourages laws and ethical standards which are oriented toward maintaining personal distance and punishing those who cross the limits set by individuals.

The access-control: Places its emphasis upon laws and standards which enable

persons to reasonably regulate the information which they are giving up.

The autonomy model: Define what constitutes private data = those which are

necessary for a person to make life decisions.

Privacy Within society, privacy interests compete against

concerns of personal and public safety, economics and even the social and psychological need for association with others.

People are willing to give up personal information to get certain benefits - credit cards or frequent flyer mileage.

Ethics and law attempt to provide guidelines in the final decision.

Privacy within Digital Contexts

Information plays a pivotal role in the concept of privacy.

Conflicts about how data should be collected and used.

AMA Code of Ethics for Marketing on the Internet: “information collected from customers should be confidential and used only for expressed purposes.”


DoubleClick:

An online advertising firm, Collects and compiles large amounts of personal

consumer information, Developed a system of over 11,000 Web sites that carry

advertising which, when clicked, enables users to visit product sites,

The system records the responses (clickstreams) to form a user profile and transmit individually-targeted advertising,

Active consent of the users is not required, 100,000 online profiles have been filed.

Privacy within Digital Contexts DoubleClick acquired Abacus-Direct:

Specialized in the acquisition of off-line consumer data (names, addresses and buying histories of a large percentage of American households).

Plans to integrate this data linking real life identities to DoubleClick’s online personalities.

Complain was filed by a coalition of privacy, civil rights and consumer groups for obtaining consent from each subject.


How does it work? With cookies:

Packets of data created within the hard-drive of a user in response to instructions received from a Web page,

Once stored, they can be re-transmitted from a user’s computer to a pertinent Web site.

Privacy within Digital Contexts Many purposes:

Handle online information, creating such features as shopping baskets to hold purchases.

Recall stored sales information to remind users of items already ordered or to suggest new products.

Store data = full name, email and postal addresses, phone numbers, a computer’s geographic location and time logged online.

Normally automatically executed without any user action. Cookie packets may be combined with other digital

information and may be transferred between servers or sold to anyone with the capacity to read computer-generated data.

User tracking: when cookies are examined to determine an individual’s online behavior.

Privacy within Digital Contexts This controversy reflects the unsettled nature of

privacy itself:

A closely-guarded right = the ability to remain secluded from unwelcome intrusion + the capability to control the disclosure of personal data.

Advocates the implementation of policies which allow individuals to be explicitly informed of any data collection event and to have collection take place only if there is an affirmative decision to participate or opt-in.

Supporters of DoubleClick: argue that most users wish to receive the benefits of targeted advertising.

Privacy within Digital Contexts The preliminary terms of an agreement include:

The obligation to provide clear notice of data collection,

A ban on combining existing data with personal information unless explicit permission,

Data obtained from cookies will be routinely deleted,

DoubleClick will initiate an extensive program of consumer privacy education.

There is a trend toward the reduction of the use of cookies: Prominence of privacy policies, Use of opt-in routines.

Privacy within Digital Contexts Some cutting edge applications are raising additional

issues: JAVA

A Web-friendly programming language allowing the downloading and running of programs or applets on individual computers,

Increasingly used to provide enhancements = dynamic animation, Web-based simulations,

Used to design programs = hostile applets used to surreptitiously access and transmit data on hard-drives, including email addresses, credit card records and other account information.

Privacy within Digital Contexts Intelligent agents:

Programs which, once released by a user, can function autonomously within the Web to make electronic decisions,

Tasks: the searching of sites or the buying of products which conform to an individual’s tastes or interests,

Critics worry that the preferences which they hold may be chosen or controlled by entities other than their “owner.”

Privacy within Digital Contexts Cookies, Java applets and intelligent agents are ubiquitous

applications = Able to function in any online session, without a user’s knowledge or control.

Online forms and electronic mail are used to gather information in exchange for browsing privileges or other benefits.

BUT most average users are uncertain of the ultimate value of the data they provide.

Solution: Consumer education about all uses of revealed

data to increase the ability to make informed judgments.

Privacy within Digital Contexts The collection of material from children:

Congress passed the Children’s Online Protection Act (COPPA), it requires that Web sites and other online media which knowingly collect information from children 12 years of age or under:

Provide notice to parents, Obtain verifiable parental consent prior to the collection,

use or disclosure of most information, Allow parents to view and correct this information, Enable parents to prevent further use or collection of data, Limit personal information collection for a child’s

participation in games, prize offers or related activities, Establish procedures which protect the “confidentiality,

security, and integrity of the personal information collected.”


The problem of privacy within electronic mail = Unsettled aspect of online interaction.

U.S. Law = Users who operate email accounts on private services are assured of their legal privacy through service agreements with their ISP.

International Privacy Issues

1998: The European Union’s Data Protection Directive

= Requires its member states to enact national laws to protect “fundamental rights + freedoms of natural persons, and in particular their right to privacy with respect to the processing of personal data.”

Subjects: Are informed on how their data is used, Are given opportunities to review and correct

information.


Data: Use is restricted to the announced purpose, Origin is disclosed.

Procedures to punish illegal activities are established.

Consumer collection contains opt-out capabilities.

Sensitive data collection cannot be accomplished without explicit permission.

Any international transfer of data is executed only with countries possessing adequate privacy protection laws.


2000: The U.S. Department of Commerce and the European Commission agreement = U.S. organizations would submit to a series of safe harbor provisions for the protection of EU citizen data:

Notice about collection, purpose and use,

Choice in ability to opt-out of disclosure and third-party dissemination,

Third-party transfer, protection, and provisions for security, data integrity, redress and enforcement.


Norms representing the present consensus for the minimum requirements essential to the ethical use of consumer information:

Notice: Users should be aware of a site’s information policy before data is collected,

Consent: Users should be allowed to choose participation or exclusion from the collection,

Access: Users should have the ability to access their data and correct it if erroneous,

Security: Policies to ensure the integrity of data and the prevention of misuse should be in place,

Enforcement: Users should have effective means to hold data collectors to their policies.

FTC Monitors Online Privacy Source: www.ftc.gov

Documents

ELC 310 DAY 5. Agenda Assignment 1 Corrected Questions? Assignment #2 ?? Finish Discussion on Leveraging Technology Begin Discussion on Ethical and Legal