Legal social ethical

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  • 1. Chapter 17 Legal, Ethical, and Social Impacts of EC

2. Electronic Commerce Prentice Hall 2006 2 Learning Objectives 1. Describe the differences between legal and ethical issues in EC. 2. Understand the difficulties of protecting privacy in EC. 3. Discuss issues of intellectual property rights in EC. 4. Describe unsolicited ad problems and remedies. 5. Understand the conflict between free speech and censorship on the Internet. 3. Electronic Commerce Prentice Hall 2006 3 Learning Objectives 6. Describe major legal issues in EC. 7. Describe the types of fraud on the Internet and how to protect against them. 8. Describe representative societal issues in EC. 9. Describe the role and impact of virtual communities on EC. 10. Describe the future of EC. 4. Electronic Commerce Prentice Hall 2006 4 Legal Issues Versus Ethical Issues ethics The branch of philosophy that deals with what is considered to be right and wrong 5. Electronic Commerce Prentice Hall 2006 5 Legal Issues Versus Ethical Issues The Major Ethical and Legal Issues Discussed in this Chapter Privacy Intellectual property rights and online piracy Unsolicited electronic ads and spamming Free speech versus censorship Consumer and merchant protection against fraud 6. Electronic Commerce Prentice Hall 2006 6 Legal Issues Versus Ethical Issues EC Ethical Issues Non-Work-Related Use of the Internet Employees are tempted to use e-mail and the Web for non-work-related purposes In some companies, this use is tremendously out of proportion with its work-related use The utility of monitoring employee usage can be considered one of the most controversial EC issues 7. Electronic Commerce Prentice Hall 2006 7 Legal Issues Versus Ethical Issues Codes of Ethics: Useful guidelines for a corporate Web policy: Issue written policy guidelines about employee use of the Internet Make it clear to employees that they cannot use copyrighted trademarked material without permission Post disclaimers concerning content, such as sample code, that the company does not support Post disclaimers of responsibility concerning content of online forums and chat sessions 8. Electronic Commerce Prentice Hall 2006 8 Legal Issues Versus Ethical Issues Codes of Ethics: Useful guidelines for a corporate Web policy: Make sure that Web content and activity comply with the laws in other countries Make sure that Web content and activity comply with the laws in other countries Make sure that the companys 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 companys Web site 9. Electronic Commerce Prentice Hall 2006 9 Privacy privacy The right to be left alone and the right to be free of unreasonable personal intrusions Collecting Information about Individuals Web Site Registration Cookies Spyware and Similar Methods RFIDs Threat to Privacy Privacy of Employees Privacy of Patients 10. Electronic Commerce Prentice Hall 2006 10 Protection of Privacy Notice/awareness Choice/consent opt-out clause Agreement that requires computer users to take specific steps to prevent the collection of personal information opt-in clause Agreement that requires computer users to take specific steps to allow the collection of personal information 11. Electronic Commerce Prentice Hall 2006 11 Privacy Protection of Privacy Access/participation Integrity/security Enforcement/redress 12. Electronic Commerce Prentice Hall 2006 12 Privacy The USA Patriot Act E-mail and Internet searches Nationwide roving wiretaps Requirement that ISPs hand over more user information Expanded scope of surveillance based on new definitions of terrorism Government spying on suspected computer trespassers with no need for court order Wiretaps for suspected violations of the Computer Fraud and Abuse Act 13. Electronic Commerce Prentice Hall 2006 13 Privacy The USA Patriot Act Dramatic increases in the scope and penalties of the Computer Fraud and Abuse Act General expansion of Foreign Intelligence Surveillance Act (FISA) authority Increased information sharing between domestic law enforcement and intelligence FISA detours around federal domestic surveillance limitations; domestic surveillance detours around FISA limitations 14. Electronic Commerce Prentice Hall 2006 14 Privacy Privacy Protection in Other Countries In 1998, the European Union passed a privacy directive (EU Data Protection Directive) reaffirming the principles of personal data protection in the Internet age The directive aims to regulate the activities of any person or company that controls the collection, storage, processing, or use of personal data on the Internet 15. Electronic Commerce Prentice Hall 2006 15 Intellectual Property Rights intellectual property Creations of the mind, such as inventions, literary and artistic works, and symbols, names, images, and designs, used in commerce 16. Electronic Commerce Prentice Hall 2006 16 Intellectual Property Rights 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 over Internet Literary works Musical works Dramatic works Artistic works Sound recordings, films, broadcasts, cable programs 17. Electronic Commerce Prentice Hall 2006 17 Intellectual Property Rights Copyrights Piracy of Software, Music, and Other Digitizable Material Copyright Protection Approaches digital watermarks Unique identifiers embedded in digital content that make it possible to identify pirated works Digital Rights Management 18. Electronic Commerce Prentice Hall 2006 18 Intellectual Property Rights trademark A symbol used by businesses to identify their goods and services; government registration of the trademark confers exclusive legal right to its use Domain Name Disputes and Resolutions cybersquatting The practice of registering domain names in order to sell them later at a higher price 19. Electronic Commerce Prentice Hall 2006 19 Intellectual Property Rights patent A document that grants the holder exclusive rights to an invention for a fixed number of years Fan and Hate Sites cyberbashing The registration of a domain name that criticizes an organization or person 20. Electronic Commerce Prentice Hall 2006 20 Unsolicited Electronic Ads: Problems and Solutions E-Mail Spamming unsolicited commercial e-mail (UCE) The use of e-mail to send unwanted ads or correspondence What Drives UCE? Many spammers are just trying to get peoples financial information 21. Electronic Commerce Prentice Hall 2006 21 Unsolicited Electronic Ads: Problems and Solutions Why It Is Difficult to Control Spamming Spammers send millions of e-mails, shifting Internet accounts to avoid detection Spammers use different methods to find their victims Solutions to Spamming Junk-mail filters Automatic junk-mail deleters Blocking certain URLs and e-mail addresses 22. Electronic Commerce Prentice Hall 2006 22 Exhibit 17.1 How Spam Blockers Work 23. Electronic Commerce Prentice Hall 2006 23 Unsolicited Electronic Ads: Problems and Solutions E-Mail Spamming Anti-spam Legislation Do-not-spam lists Protecting employees 24. Electronic Commerce Prentice Hall 2006 24 Unsolicited Electronic Ads: Problems and Solutions Protecting against Pop-Up Ads Pop-Up stoppers Concluding Remarks The spam situation has not yet been resolved. However, it seems that both e-mail spamming and pop-ups are not increasing, and they may even be declining 25. Electronic Commerce Prentice Hall 2006 25 Free Speech Versus Censorship and Other Legal Issues On the Internet, censorship refers to governments attempt to control, in one way or another, the material that is presented Donhams First Law of Censorship. This semiserious precept states: Most citizens are implacably opposed to censorship in any form except censorship of whatever they personally happen to find offensive. Childrens Online Protection Act (COPA) exemplifies the protective approach 26. Electronic Commerce Prentice Hall 2006 26 Free Speech Versus Censorship and Other Legal Issues Other Legal Issues Electronic Contracts A legally binding contract requires a few basic elements: an offer, acceptance, and consideration These requirements are difficult to establish when the human element in the processing of the transaction is removed and the contracting is performed electronically Intelligent Agents and Contracts Uniform Computer Information Transactions Act ( 2000), makes clear that contracts can be formed even when a human is not directly involved 27. Electronic Commerce Prentice Hall 2006 27 Free Speech Versus Censorship and Other Legal Issues Taxing Business on the Internet This issue is extremely important because it is related to global EC, as well as to fairness in competition when EC competes with off-line marketing channels, which requires the collection of taxes 28. Electronic Commerce Prentice Hall 2006 28 Free Speech Versus Censorship and Other Legal Issues The Tax-Exemption Debate The Internet Tax Freedom Act 1(998) sought to promote e-commerce through tax incentives, by barring any new state or local sales taxes on Internet transactions until October 2001 The U.S. Congress extended the tax moratorium until 2006, giving it time to digest the contents of the report and hash out contentious tax issues 29. Electronic Commerce Prentice Hall 2006 29 Free Speech Versus Censorship and Other Legal Issues The Tax-Exemption Debate Proposed Taxation in the United States The National Governors Association, the National League of Cities, and the U.S. Conference of Mayors fought the Tax Free Bill for the Internet The U.S. Congress blocked state and local governm