Legal, Ethical and Compliance Issues in EC

8/17/2019 Legal, Ethical and Compliance Issues in EC

1/42

© 2008 Pearson Prentice Hall, Electronic Commerce 2008, Efraim Turban, et al.

Chapter 17

Legal, Ethical, and Compliance

Issues in EC


2/42


3/42

17-%

*undamental Legal,

Ethical, and +egulator# Issues

ethics

he branch o! philosoph# that deals $ith $hatis considered to be right and $rong

privacyhe right to be le!t alone and !ree o!unreasonable personal intrusions

intellectual property

Creations o! the mind, such as inventions,literar# and artistic $ors, and s#mbols,names, images, and designs, used incommerce


4/42

17-&

plogs and earch Engine pam to

Capture Customer ra!!ic

search engine marketing (SEM)

/areting methods to increase theraning o! a 0eb site in the searchresults

search engine optimization (SEO)

echniue taes into consideration ho$

search engines $or e.g., logical deeplining or strategic e#$ord3 to ma'imi4ethe number o! uali!ied visitors to a site


5/42

17-(



comment spam

pam sent to all t#pes o! messagingmedia, including blogs, I/, and cellulartelephones to promote products orservices

search engine spam

5ages created deliberatel# to tric thesearch engine into o!!ering inappropriate,redundant, or poor ualit# search results


6/42

17-)



spam site

5age that uses techniues that deliberatel#subvert a search engine6s algorithms to

arti!iciall# in!late the page6s raningssplog

hort !or spam blog . site created solel# !ormareting purposes

search engine spammingCollective term re!erring to deceptive onlineadvertising practices


7/42

17-7

*undamental Legal,


Laws Are Subject to nterpretation*ree speech online versus child protection

debate!hil"ren#s nternet $rotection Act (!$A)

La$ that mandates the use o! !iltering

technologies in schools and libraries that

received certain t#pes o! .. !ederal !unding

legal prece"ent

judicial decision that ma# be used as a

standard in subseuent similar cases


8/42

17-8

*undamental Legal,


5olitical spam versus dependence on

political !und-raising


9/42

17-9

*undamental Legal,


Law% A System &or Social !ontrol"ue process

guarantee o! basic !airness and !air

procedures in legal action

right

Legal claim that others not inter!ere $ith an

individual6s or organi4ation6s protectedinterest


10/42

17-1:

*undamental Legal,


Law% A System &or Social !ontrolprotecte" interests

Interests, such as li!e, libert#, and propert#,

that a national constitution protects

"uty

Legal obligation imposed on individuals and

organi4ations that prevents them !rominter!ering $ith another 6s protected interest

or right


11/42

17-11

*undamental Legal,



12/42

17-12

*undamental Legal,


$ersonal an" $roperty 'ights civil litigation

n adversarial proceeding in $hich a part#

the plainti!!3 sues another part# the

de!endant3 to get compensation !or a

$rong committed b# the de!endant


13/42

17-1%

*undamental Legal,


$ersonal an" $roperty 'ights O$ners o! propert#, including intellectual

propert#, are entitled to;

1. Control o! the use o! the propert#

2. he right to an# bene!it !rom the propert#

%. he right to trans!er or sell the propert#

&.

he right to e'clude others !rom the propert#


14/42

17-1&

*undamental Legal,


!riminal Law an" !ivil Law!AS$AM Act

La$ that maes it a crime to send

commercial e-mail messages $ith !alse or

misleading message headers or misleading

subject lines


15/42

17-1(

*undamental Legal,


Characteristics o! criminal and civil la$scrime

O!!ensive act against societ# that violates a la$

and is punishable b# the governmentcriminal laws

La$s to protect the public, human li!e, or private

propert#

statutes+ules that de!ine criminal la$s


16/42

17-1)

*undamental Legal,


civil laws

La$s that enable a part# individual or

organi4ation3 that has su!!ered harm or a

loss to bring a la$suit against $homever isresponsible !or the harm or loss

!omputer *rau" an" Abuse Act (!*AA)

/ajor computer crime la$ to protectgovernment computers and other Internet-

connected computers


17/42

17-17

Civil La$, Intellectual 5ropert#

La$, and Common La$

ntellectual $roperty Lawcopyright

n e'clusive right o! the author or creator o!

a boo, movie, musical composition or otherartistic propert# to print, cop#, sell, license,distribute, trans!orm to another medium,translate, record, per!orm, or other$ise use

in&ringementse o! the $or $ithout permission orcontracting !or pa#ment o! a ro#alt#


18/42

17-18


La$, and Common La$"igital rights management (+'M)

n umbrella term !or an# o! several

arrangements that allo$ a vendor o! content

in electronic !orm to control the material andrestrict its usage

&air use

he legal use o! cop#righted material !ornoncommercial purposes $ithout pa#ing

ro#alties or getting permission


19/42

17-19


La$, and Common La$patent

document that grants the holder e'clusive

rights to an invention !or a !i'ed number o!

#ears tra"emark

s#mbol used b# businesses to identi!#

their goods and services< governmentregistration o! the trademar con!ers

e'clusive legal right to its use


20/42

17-2:


La$, and Common La$

common law (case law)

La$ created b# judges in court decisions

tortCivil $rong that can be grounds !or a

la$suit


21/42

17-21


La$, and Common La$hree t#pes o! torts;

=egligence

=uisance

"e!amation libel

"e!amator# statement that is printed or broadcast

over the media that causes damage

slan"er

Oral or spoen de!amator# statement that causes

damage


22/42

17-22

Legal and Ethical

Challenges and >uidelines

E! Ethical ssues=on-$or-related use o! the Internet

Codes o! ethics


23/42

17-2%

5rivac#,

*ree peech, and "e!amationOrigin o& $rivacy 'ights an" the Evolution

o& ts Meaning 5rivac# is the right to be le!t alone and the right to

be !ree o! unreasonable personal intrusions o some e'tent privac# concerns have been

overshado$ed b# post-eptember 11 terrorism

e!!orts, but consumers still e'pect and demand that

companies behave as responsible custodians o!their personal data


24/42

17-2&

5rivac#,

*ree peech, and "e!amationopt out

?usiness practice that gives consumers the

opportunit# to re!use sharing in!ormation

about themselvesopt in

greement that reuires computer users to

tae speci!ic steps to allo$ the collection o!personal in!ormation


25/42

17-2(

5rivac#,

*ree peech, and "e!amation

*ree Speech+ights to privac# and !ree speech have an

increasingl# important role in an in!ormation

societ# and to EC

,he $rice o& $rotectionhe Internet, in combination $ith large-scale

databases, allo$s access to vast amountso! data can be used !or good or ill


26/42

17-2)

5rivac#,



27/42

17-27

5rivac#,

*ree peech, and "e!amation0a#s o! gathering in!ormation on the internet;

0eb site registration

Cooies

p#$are and similar methods+*I"6s threat to privac#

5rivac# o! emplo#ees

"arknet5rivate online communit# that is onl# open to those

$ho belong to it


28/42

17-28

5rivac#,


$rivacy $rotectionEthical principles commonl# applied to the

collection and use o! personal in!ormation;=otice or a$arenessChoice or consent

ccess or participation

Integrit# or securit#

En!orcement or redress


29/42

17-29

5rivac#,


,he -SA $atriot Acthe intent is to give la$ en!orcement

agencies broader range in their e!!orts to

protect the publicConcerns about the act include;

E'panded surveillance $ith reduced checs andbalances

Over breadth $ith a lac o! !ocus on terrorism+ules that $ould allo$ .. !oreign intelligence

agencies to more easil# sp# on mericans


30/42

17-%:

pam, plogs, and 5op-ps

Spam an" Splogscomment spam

pam sent to all t#pes o! messaging media,

including blogs, I/, and cellular telephones

to promote products or services

search engine spam

5ages created deliberatel# to tric thesearch engine into o!!ering inappropriate,

redundant, or poor ualit# search results


31/42

17-%1


splog

hort !or spam blog . site created solel# !or

mareting purposes

trackback

n acno$ledgment or signal !rom an

originating site to a receiving site


32/42

17-%2


utomated spam!aptcha tool

Completel# utomated 5ublic uring test to tell

Computers and @umans part, $hich uses averi!ication test on comment pages to stop

scripts !rom posting automaticall#


33/42

17-%%



34/42

17-%&


$rotecting against $op-p A"s,ools &or Stopping $op-ps

*an an" .ate Sitescyberbashing

"omain name that critici4es an organi4ation

or person


35/42

17-%(

*raud and

Consumer and eller 5rotection*rau" on the nternetclick &rau"

cams and deceptions that in!late

advertising bills b# illicitl# manipulatinge#$ord-based advertising

Other !inancial !raud


36/42

17-%)

*raud and

Consumer and eller 5rotectionOther Legal ssuesElectronic contractselectronic signature

generic, technolog# neutral term that re!ersto the various methods b# $hich one canAsignB an electronic record

"igital signature

erm !or a technolog# speci!ic t#pe o!electronic signature. It involves the use o!public e# cr#ptograph# to AsignB a message


37/42

17-%7

*raud and

Consumer and eller 5rotection!onsumer $rotection

ips !or sa!e electronic shopping include; se the real 0eb site o! $ell-no$n companies

Chec an# un!amiliar site !or an address and telephone

and !a' numbers and call and ui4 a salesperson about

the seller

Chec out the seller $ith the local chamber o! commerce,

?etter ?usiness ?ureau, or +e

Investigate ho$ secure and ho$ $ell organi4ed theseller6s site is

E'amine the mone#-bac guarantees, $arranties, and

service agreements be!ore maing a purchase


38/42

17-%8

*raud and

Consumer and eller 5rotection!onsumer $rotection

ips !or sa!e electronic shopping include; Compare prices online $ith those in regular storestoo-

lo$ prices ma# be too good to be true

s !riends $hat the# no$ and !ind testimonials and

endorsements

*ind out $hat redress is available in case o! a dispute

Consult the =ational *raud In!ormation Center !raud.org3

Chec the resources available at consumer$orld.org


39/42

17-%9

*raud and

Consumer and eller 5rotectionhird-part# assurance services

+e6s ArustmarB

?etter ?usiness ?ureau

0@IC@online0eb rust eal and others

Online 5rivac# lliance

Evaluation b# consumers

uthentication and biometric controls


40/42

17-&:

*raud and

Consumer and eller 5rotectionSeller $rotectionhe Internet maes !raud b# customers or

others easier because o! the ease o!

anon#mit# b#;Customers $ho den# that the# placed an order Customers $ho do$nload cop#righted so!t$are

andDor no$ledge and sell it to others

Customers $ho give !alse pa#ment Imposter sellersse o! others6 trademars


41/42

17-&1

*raud and

Consumer and eller 5rotection/hat !an Sellers +o0

se intelligent so!t$are to identi!# possibl#

uestionable customers

Identi!# $arning signals !or possible !raudulenttransactions

s customers $hose billing address is di!!erent

!rom the shipping address to call their ban and

have the alternate address added to their ban

account


42/42

/anagerial Issues

1. 0hat legal and ethical issues should

be o! major concern to an EC

enterprise

2. 0hat are the most critical ethical

issues

%. hould $e obtain patents

&. 0hat impacts on business is EC

e'pected to mae

Legal, Ethical and Compliance Issues in EC

Documents