ethics

Social Behaviour

Ethics & Legal

Electronic Commerce, Ninth Edition 22

Learning Objectives

• Laws that govern electronic commerce activities

• Laws that govern the use of intellectual property by online businesses

• Online crime, terrorism, and warfare


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


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

Not legalNot ethical but legal

ethicalSocially Responsible


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


• 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

FIGURE 7-1 Culture helps determine laws and ethical standards


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

10

Free the Grapes

ETHICAL DECISION ETHICAL DECISION MAKINGMAKING

SOCIAL-SOCIAL-ENVIRONMENTAL ENVIRONMENTAL

FACTORFACTOR

OPPORTUNITOPPORTUNITYY

INDIVIDUALINDIVIDUALFACTORSFACTORS

•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)


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

Retargeting data mining

http://www.pastemagazine.com/articles/2012/09/watch-a-trailer-for-identity-theft-starring-jason.html





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

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

PatentsDynamic Delivery of Banners

Typo Squatting

Fordmortorsrecall.com

john zuccarini

What connection do they have?

Sting differs from Barry Diller why?


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)

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

child protection

COPA

Gambling and porn

Privacy & Confidentiality

•http://www.youtube.com/watch?v=BGrji2bIiG8hyperlink

Affiliate Affiliate taxestaxes

Net Neutrality