Lecture 5 ref: Chapter 16 Regulatory, Ethical, and Compliance Issues in EC PREPARED BY L. Nouf Almujally 1.

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Lecture 5ref: Chapter 16

Regulatory, Ethical, and Compliance Issues in EC

PREPARED BY L. Nouf Almujally

Copyright © 2010 Pearson Education, Inc.

Learning Objectives 1. Understand the foundations for legal and

ethical issues in EC.2. Describe civil, intellectual property, and

common law.3. Understand legal and ethical challenges and

how to contain them.4. Describe the needs and methods to protect

sellers.5. Describe EC-related societal issues. 6. Describe Green EC and IT.

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16.1 The Complexity of Legal and Regulatory Issues

intellectual propertyCreations of the mind, such as inventions, literary and artistic works, and symbols, names, images, and designs, used in commerce

Why are laws subject to interpretationMost laws and regulations are broadly written and, therefore, only provide outlines to guide public policy.

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intellectual property lawArea of the law that includes patent*1 law, copyright law, trademark law, trade secret law, and other branches of the law such as licensing and unfair competition

_________________________________1* االختراع براءة

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16.2 Civil Law, Intellectual Property Law, Common Law, and EC Legal Issues


copyrightAn exclusive right of the author or creator of a book, movie, musical composition, or other artistic property to print, copy, sell, license, distribute, transform to another medium, translate, record, perform, or otherwise use infringement

Use of the work without permission or contracting for payment of a royalty

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digital rights management (DRM)An umbrella term for any of several arrangements that allow a vendor of content in electronic form to control the material and restrict its usage fair use

The legal use of copyrighted material for noncommercial purposes without paying royalties or getting permission

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patentA document that grants the holder exclusive rights to an invention for a fixed number of years

trademarkA symbol used by businesses to identify their goods and services; government registration of the trademark confers exclusive legal right to its use

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COMMON LAW IN E-COMMERCE• common law (case law)

Law created by judges in court decisions

FAN AND HATE SITESIndependent websites that express strong opinions about their like or dislike of products, services and individuals.– cyberbashing

Domain name that criticizes an organization or person

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16.3 Ethical Challenges and Guidelines

ethicsThe branch of philosophy that deals with what is considered to be right and wrong

privacyThe right to be left alone and free of unreasonable personal intrusions

business ethicsA form of applied ethics that examines ethical principles and moral or ethical problems that arise in a business environment

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EC ETHICAL ISSUES• Non–Work-Related Use of the Internet

Most employee use e-mail and surf on the web for non-work-related purpose

• Codes of EthicsA practical and necessary approach to limiting non-work-related Internet surfing is an Internet acceptable use policy (AUP) to which all employees must conform.

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16.3 Ethical Challenges and Guidelines


16.4 Privacy Rights, Protection, and Free Speech

PRIVACY RIGHTS AND PROTECTION• opt-out

Business practice that gives consumers the opportunity to refuse sharing information about themselves

• opt-inAgreement that requires computer users to take specific steps to allow the collection of personal information

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HOW INFORMATION ABOUT INDIVIDUALS IS COLLECTED

1. Web Site RegistrationBy filling registration forms ( name, telephone#, email, …etc.)2. Cookies3. spyware

All unwanted software programs designed to steal proprietary information, or that target data stores containing confidential information

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4. Site transaction logsThe usage patterns of how people surfing the internet5. EC ordering systems and shopping cartsLet people know what you ordered, when, from whom, and how much you paid6. Search enginesCollect information about your search, chatting and blogging

7. Behavioral targetingUses tools for collaborative filtering and analysis of user data

8. Payment information and e-wallets

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PRIVACY PROTECTION BY INFORMATION TECHNOLOGIES• Encryption: software for encrypting emails, and other

documents.• Spam blocking: built into browsers and email; blocking pop-up

and unwanted mails• Spyware blocking: detect and remove spyware and adware• Cookie managers: prevent the computer from accepting cookies

PRIVACY ISSUES IN WEB 2.0 TOOLS AND SOCIAL NETWORKS• Presence, Location, and Privacy

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16.5 Consumer and Seller Protection from Online Fraud

CONSUMER (BUYER) PROTECTION Representative Tips and Sources for Your Protection

• User should make sure that they enter the real Web site of well-known company by going directly to the site rather than through a link.

• Examine the money-back guarantees, warranties, and service agreements before making a purchase

• Compare prices online with those in regular stores• Ask friends what they know

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Third-Party Assurance ServicesSeveral public organizations and private companies attempt to protect consumers.Ex. Better Business Bureau (BBB)

Computer Fraud and Abuse Act (CFAA)Major computer crime law to protect government computers and other Internet-connected computers

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SELLER PROTECTIONWhat Can Sellers Do?Sellers should follow best practices including:1. verifying credit card information2. watching for warning signals3. ensuring delivery to approved addresses.

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• PROTECTING BUYERS AND SELLERS: ELECTRONIC AND DIGITAL SIGNATURES

o electronic signatureA generic, technology-neutral term that refers to the various methods by which one can “sign” an electronic recordtypes: the image of a signature , PIN number, Code, Digital signature, fingerprint

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o Authentication and Biometric Controls- Authentication is the process through which you can confirm with whom you are communicating.

- Biometric controls provide access procedures that match every valid user with a unique user identifier (UID). They also provide an authentication method that verifies that users requesting access to the computer system are really who they claim to be.

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How EC can improve education.EC technologies can give access to information that was difficult or expensive to access in the past.

How EC can improve Public safety and security.EC technologies can allow for better monitoring of individuals and property.Ex. E-922, e-procurement, e-government

How EC can improve health services.EC technologies allow for the better filing and cross-referencing of records.Ex. Delivery of health care from distance

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16.6 Societal Issues and Green EC


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Lecture 5 ref: Chapter 16 Regulatory, Ethical, and Compliance Issues in EC PREPARED BY L. Nouf Almujally 1.

Documents

copyright law

common law case law

civil law

trademark law

intellectual property

trade secret law

ec legal issues

pearson education