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Ethics & Legal
Social Behaviour
Learning Objectives

 • Laws that govern electronic commerce activities
 • Laws that govern the use of intellectual property by
   online businesses
 • Online crime, terrorism, and warfare




Electronic Commerce, Ninth Edition                        2
Learning Objectives (cont’d.)

 • Ethics issues that arise for companies conducting
   electronic commerce
 • Conflicts between companies’ desire to collect and use
   data about their customers and the privacy rights of
   those customers
 • Taxes that are levied on electronic commerce activities




Electronic Commerce, Ninth Edition                           3
The Legal Environment of Electronic
                  Commerce
 • All businesses:
     – Must comply with the same laws and regulations
     – Face the same set of penalties
 • Web businesses face additional complicating factors
     – Web extends reach beyond traditional boundaries
         • Subject to more laws more quickly
         • Web businesses are international businesses
     – More interactive and complex customer relationships
         • Due to increased communications speed and efficiency



Electronic Commerce, Ninth Edition                                4
Socially Responsible   ethical   Not ethical   Not legal
                                  but legal
Borders and Jurisdiction

 • Physical world of traditional commerce
     – Territorial borders clearly:
         • Mark range of culture
         • Mark reach of applicable laws
 • Physical travel across international borders
     – People made aware of transition through:
         • Formal document examination
         • Language and currency change




Electronic Commerce, Ninth Edition                6
FIGURE 7-1 Culture helps determine laws and ethical standards

 • Geographic influences of area’s dominant culture
     – Limit acceptable ethical behavior and laws adopted
 • Culture affects laws directly and indirectly
     – Through its effect on ethical standards

Electronic Commerce, Ninth Edition                                         7
8
Borders and Jurisdiction (cont’d.)

 • Power
     – Form of control over:
         • Physical space
         • People and objects residing in physical space
     – Defining characteristic of statehood
     – Effective laws require effective enforcement
     – Effective enforcement requires ability to:
         • Exercise physical control over residents
         • Impose sanctions on violators



Electronic Commerce, Ninth Edition                         9
Free the Grapes




                  10
ETHICAL DECISION
                  MAKING




                 SOCIAL-
INDIVIDUAL
             ENVIRONMENTAL      OPPORTUNITY
 FACTORS
                 FACTOR
• Identify and Define the Facts
• Define, Higher Order
• Stake Holders
• Options
• Consequences
• Golden Rule


            Golden Rule
Emmanuel Kant
Descarte:




                        Text




       Once you start it might lead to something bad
Advertising Regulation
 • Policy statements cover specific areas
     – Bait advertising
     – Consumer lending and leasing
     – Endorsements and testimonials
     – Energy consumption statements for home appliances
     – Guarantees and warranties
     – Prices
 • Other regulatory agencies
     – Food and Drug Administration (FDA); Bureau of
       Alcohol, Tobacco, and Firearms (BATF); Department of
       Transportation (DOT)
Electronic Commerce, Ninth Edition                            64
What right do you have to own my DATA
• Cookies
• Spyware
• Shopping carts (PII)
• Behavioural targeting
• Search engines & Gmail
Informed Consent
Privacy Rights and Obligations (cont’d.)

 • Opt-out approach
     – Assumes customer does not object to company’s use of
       information
         • Unless customer specifically denies permission
 • Opt-in approach
     – Company collecting information does not use it for any
       other purpose
         • Unless customer specifically chooses to allow use




Electronic Commerce, Ninth Edition                              78
Retargeting
      data mining
http://www.pastemagazine.com/articles/2012/09/watch-a-trai
Pay per post
Monitor Employees
Congress shall have the the power to
 “promote the progress of science and
useful arts, by securing for limited times
the authors and inventors the exclusive
 right to their perspective writings and
               discoveries”

           Article 1, section 8
           Article 1, section 8
                        Article 1, section 8
1790
3 types of trademarks

• Copyright
• Patent
• Trademark
Trademark is “any word name,
  or device or combination
thereof... Used in commerce...
  To identify and distinguish
      goods from those
   manufactured or sold by
  others and to indicate the
    source of the goods”
Business Process Patent
One Click Checkout
Patents
          Dynamic Delivery of Banners
Typo Squatting
Fordmortorsrecall.com
john zuccarini



                 What connection
                  do they have?
Sting differs from Barry
      Diller why?
VS.
Online Crime
 • Online versions of physical world crimes
     – Theft, stalking, pornography distribution, gambling
 • New online crime
     – Commandeering computer to attack other computers
 • Law enforcement obstacles
     – Jurisdiction issues
         • Tricky to determine
     – Prosecuting across international boundaries
 • Internet provides new life to old fraud scams
     – Advance fee fraud
     – Nigerian scam (419 scam)
Electronic Commerce, Ninth Edition                           66
Child security
Online Crime, Terrorism, and Warfare

 • Internet
     – Opened up worldwide possibilities for people to
       communicate
     – Opened doors for businesses to:
         • Reach new markets
         • Create opportunities for economic growth
     – Useful tool for perpetrating crimes, conducting
       terrorism, waging war




Electronic Commerce, Ninth Edition                       65
COPA
 child protection
Gamblingand porn
Privacy
          & Confidentiality
• http://www.youtube.com/watch?
  v=BGrji2bIiG8hyperlink
Affiliate
taxes
Net Neutrality

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Ethics

  • 2. Learning Objectives • Laws that govern electronic commerce activities • Laws that govern the use of intellectual property by online businesses • Online crime, terrorism, and warfare Electronic Commerce, Ninth Edition 2
  • 3. Learning Objectives (cont’d.) • Ethics issues that arise for companies conducting electronic commerce • Conflicts between companies’ desire to collect and use data about their customers and the privacy rights of those customers • Taxes that are levied on electronic commerce activities Electronic Commerce, Ninth Edition 3
  • 4. The Legal Environment of Electronic Commerce • All businesses: – Must comply with the same laws and regulations – Face the same set of penalties • Web businesses face additional complicating factors – Web extends reach beyond traditional boundaries • Subject to more laws more quickly • Web businesses are international businesses – More interactive and complex customer relationships • Due to increased communications speed and efficiency Electronic Commerce, Ninth Edition 4
  • 5. Socially Responsible ethical Not ethical Not legal but legal
  • 6. Borders and Jurisdiction • Physical world of traditional commerce – Territorial borders clearly: • Mark range of culture • Mark reach of applicable laws • Physical travel across international borders – People made aware of transition through: • Formal document examination • Language and currency change Electronic Commerce, Ninth Edition 6
  • 7. FIGURE 7-1 Culture helps determine laws and ethical standards • Geographic influences of area’s dominant culture – Limit acceptable ethical behavior and laws adopted • Culture affects laws directly and indirectly – Through its effect on ethical standards Electronic Commerce, Ninth Edition 7
  • 8. 8
  • 9. Borders and Jurisdiction (cont’d.) • Power – Form of control over: • Physical space • People and objects residing in physical space – Defining characteristic of statehood – Effective laws require effective enforcement – Effective enforcement requires ability to: • Exercise physical control over residents • Impose sanctions on violators Electronic Commerce, Ninth Edition 9
  • 11. ETHICAL DECISION MAKING SOCIAL- INDIVIDUAL ENVIRONMENTAL OPPORTUNITY FACTORS FACTOR
  • 12. • Identify and Define the Facts • Define, Higher Order • Stake Holders • Options • Consequences
  • 13. • Golden Rule Golden Rule
  • 14.
  • 16. Descarte: Text Once you start it might lead to something bad
  • 17. Advertising Regulation • Policy statements cover specific areas – Bait advertising – Consumer lending and leasing – Endorsements and testimonials – Energy consumption statements for home appliances – Guarantees and warranties – Prices • Other regulatory agencies – Food and Drug Administration (FDA); Bureau of Alcohol, Tobacco, and Firearms (BATF); Department of Transportation (DOT) Electronic Commerce, Ninth Edition 64
  • 18.
  • 19.
  • 20. What right do you have to own my DATA
  • 21. • Cookies • Spyware • Shopping carts (PII) • Behavioural targeting • Search engines & Gmail
  • 23. Privacy Rights and Obligations (cont’d.) • Opt-out approach – Assumes customer does not object to company’s use of information • Unless customer specifically denies permission • Opt-in approach – Company collecting information does not use it for any other purpose • Unless customer specifically chooses to allow use Electronic Commerce, Ninth Edition 78
  • 24. Retargeting data mining
  • 27.
  • 28.
  • 30.
  • 31. Congress shall have the the power to “promote the progress of science and useful arts, by securing for limited times the authors and inventors the exclusive right to their perspective writings and discoveries” Article 1, section 8 Article 1, section 8 Article 1, section 8
  • 32. 1790
  • 33. 3 types of trademarks • Copyright • Patent • Trademark
  • 34. Trademark is “any word name, or device or combination thereof... Used in commerce... To identify and distinguish goods from those manufactured or sold by others and to indicate the source of the goods”
  • 35.
  • 36.
  • 37.
  • 40. Patents Dynamic Delivery of Banners
  • 43. john zuccarini What connection do they have?
  • 44. Sting differs from Barry Diller why?
  • 45.
  • 46. VS.
  • 47.
  • 48. Online Crime • Online versions of physical world crimes – Theft, stalking, pornography distribution, gambling • New online crime – Commandeering computer to attack other computers • Law enforcement obstacles – Jurisdiction issues • Tricky to determine – Prosecuting across international boundaries • Internet provides new life to old fraud scams – Advance fee fraud – Nigerian scam (419 scam) Electronic Commerce, Ninth Edition 66
  • 50. Online Crime, Terrorism, and Warfare • Internet – Opened up worldwide possibilities for people to communicate – Opened doors for businesses to: • Reach new markets • Create opportunities for economic growth – Useful tool for perpetrating crimes, conducting terrorism, waging war Electronic Commerce, Ninth Edition 65
  • 52.
  • 54.
  • 55.
  • 56. Privacy & Confidentiality
  • 57.
  • 58. • http://www.youtube.com/watch? v=BGrji2bIiG8hyperlink
  • 60.

Hinweis der Redaktion

  1. Do onto others, hillel
  2. Universalization immanuel kant the idea needs to work every where
  3. Descarte once you start it might lead to something bad in the future
  4. In europe its illegal to retarget
  5. 1) Beware the Wolf in Sheep's Clothing: While your biggest concern may be the loss of credit card information, the fact is that much litigation is coming from inside jobs. Maintain your data internally on a "need to access" basis, and be vigilant in guarding against employee and contractor misappropriation. Don't let those with access to your data do any affiliate marketing on the side, for instance, and have strong written contracts with employees and contractors that will discourage the "borrowing" of your data. 2) Use Salt Liberally: Place your own (preferably fictitious) personally identifiable information in your databases so if they are stolen you will be the recipient of the end use of the data. Banks have been doing this for years. It's called "salting". Sprinkle into your databases information like an anonymous email address so if your data is stolen you'll get an email if someone decides to spam with it.  3) Put it on the Other Guy: No, don't just blame someone else. That's nothing new. Actually anticipate this issue arising and guard against assuming liability brought about by others. Make sure you have indemnification provisions in your web development, web hosting and other third party contracts so if the access is not your fault, you can look to a third party for reimbursement of your losses. 4) Under Promise, Over Deliver: Make sure that your privacy practices are well understood internally and are accurately set forth in your privacy policy. Make sure that your privacy policy provisions do not conflict with your User Agreement and other contracts. And then make sure that your website content is consistent with your Privacy Policy and privacy practices. This is where you will get nailed by the Federal Trade Commission and others even if the loss was not due to your own neglect. Don't promise more than you are prepared to deliver. And in doubt, under promise. For most businesses, you can offer up no promises about data security in your privacy policies and avoid this contract based obligation. Other laws may apply if you have a data loss, but at least you will have limited your exposure. 
  6. 3) Google loses in New York City and has to identify an anonymous blogger. Expect an appeal.
  7. Copyright is on a process or item Trademark is on an item itself
  8. Yet Another (Yes, Another) Study Shows File Sharers Buy More ( Studies ) by Mike Masnick from the how-many-more-do-we-need? dept on Monday, November 2nd, 2009 @ 10:44AM Pretty much every single non-industry-backed study has shown this same thing, but just for the record, here's yet another study showing that those who engage in unauthori zed file sharing end up buying more media . The study, looking at the UK (home of the new proposal to kick people off the internet), wasn't even close. Those who engaged in unauthorized file sharing tended to spend ÂŁ77 on media per year, while those who did not spent about ÂŁ44. And yet file sharers are the enemy? And the industry wants to kick them offline so they discover less new content? How will that hel
  9. U own the song can you copy it on your computer and back it up and use it for the ipad iPod.... The lawers have been arguing about this
  10. 4) Oprah files suit in federal court in New York against a laundry list of defendants allegedly using her name and/or likeness to sell products online.  ant destitute for sure. The original verdict was for $9,250 per song. The new verdict is for $80,000 each song. The verdict has increased from $222,000 to $1.92 Million. And these groups, headed up by the Elec
  11. Kentucky trying to sue for gambling rights
  12. Amazon has fired all of its affiliate marketers in Rhode Island and North Carolina. Overstock.com has done them two better, and just announced the termination of affiliates in North Carolina, Rhode Island, Hawaii, and California in response to taxation issues.