Addressing the legal and ethical issues of electronic commerce.

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Contents        

        Introduction                                                                3

        Definition                                                                4

        Legal & Ethical Issues                                                4

                Privacy                                                        5

                        Website Self-Registration                                5

                        Cookies                                                6

                        Protection                                                6

                        Self Regulation                                        6

                        Legislation                                                7

                Intellectual Property                                                8

                        Copyright                                                8

                        Patents                                                        8

                        Registered Trademarks                                9

                        Domain Names                                        9

                Free Speech                                                        10

                        Protecting Children                                        10

                        Measures being taken in the UK                        11

                        Controlling Spam                                        12

                        Methods of Control                                        13

                Taxation                                                        13

                        California Considers Online Sales Tax                13

                        What Sellers Have To Say                                14

                        Watching from the Sidelines                                14

                        Keeping Tech Businesses Going                        15

                Computer Crimes                                                16

                Consumer and Seller Protection                                18        

        Summary                                                                20

        Appendix A                                                                21

                TRUSTe’s Consumer Privacy Protection Guidelines

        Appendix B                                                                23

                The rights of data subjects and data users

        Appendix C                                                                24

                Views of  Internet Freedom

        Appendix D                                                                25

                Computer Security Institute 2002 Computer and Crime Survey

        Appendix E                                                                26

                Consumer Protection (Distance Selling) Regulations 2000

        Bibliography                                                                27


Introduction

“Jane remembers her parents saying they spent a lot of time getting the kids off to school and then fighting their way into work through rush-hour traffic to sit at a desk in front of a big square box that would often ‘crash’. Thank heavens life is so much easier now. Rush hours were eliminated years ago: Jane works when it suits her, and carries her office around in her pocket. The files she needs from work fit on a square-inch memory chip. Anything else she wants, including the three dozen newspapers and magazines she likes to skim regularly, she can get anywhere from the web. Sometimes she still meets her colleagues in the same room for ‘face time’, but she thinks this is overrated. Usually three-dimensional video does just as well.”

“Dick is depressed. He does not feel it is enough to talk to Jane on video a dozen times a day, and get together a few times a week for sex. Yes, watching the football together last night via video was fun, and Jane picked some great camera angles to look at the game from. They laughed so much that he wanted to send a clip from Jane’s video to Harry at University, but the boy had someone with him and had blocked the cameras in his room. That made Dick wistful. It would have been nice for Jane and him to be in the same room together too. Dick is bored with his job, but that isn’t his main problem. He just feels watched all the time, even though Jane has explained to him that only those with authorised access can know what he is doing. He is not so sure. Certainly, all kinds of strangers-his personal tax collector, officials at the town hall-seem to know an awful lot about him. And he really dislikes the idea that everything he does is poured into a database. He wants another beer, but everyone will know about it-the supermarket, Jane, his doctor. The trouble is, he is slightly older than Jane, and can still remember a time when it was possible to be alone.”

“Maybe his father has the right idea. Dick hardly sees the old man these days because he always seems to have his video image and live-communication access blocked. Blocking access is considered rude, even suspicious, but Dick wonders if he shouldn’t do the same.”

‘Only Disconnect - A taste of life in 2033’ Extract from the Economist 25 January 2003’

Although this is a hypothetical situation and may never in fact become reality it still leaves us with plenty to consider. With the explosion of new technology in the past twenty years much of what was once deemed impossible is now theoretically possible. As the above article highlighted there are many legal and ethical issues to consider in the electronic world many of which relate to organisations and also to the individual. In the body of this report it is hoped that many of these issues will be addressed, specifically those relating to electronic commerce.

Definition

In order to address the legal and ethical issues of electronic commerce it is important to define what is meant by legal and ethical. According to Turban and King in their book, “An Introduction to E-Commerce”, Legal issues involve laws enacted by governments and developed through case precedents (common law). They are strict legal rules governing the acts of all citizens within their jurisdiction. On the other hand according to (Turban And King, 2003, pp732-766) “Ethics is a branch of philosophy that deals with what is considered to be right and wrong. Over the years, philosophers have proposed many ethical guidelines, yet what is unethical is not necessary illegal”.

Legal and Ethical Issues

Having established the difference between and ethical issues I now intend to deal with each of the issues under the following headings.

  • Privacy
  • Intellectual property
  • Free Speech
  • Taxation
  • Computer Crimes
  • Consumer protection

Privacy

‘Information privacy according to Agranoff (1993) in Turban et al (2002) p736, is the “claim of individuals, groups, or institutions to determine for themselves when, and to what extent, information about them is communicated to others.”

How then is private information collected through the Internet? According to Rainon et al. (1998) in Turban et al (2002) p737: it can be collected through any of the following methods:

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  1. Reading your newsgroup postings.
  2. Finding you in the Internet directory.
  3. Making your browser record information about you.
  4. Recording what your browsers say about you.
  5. Reading your e-mail.

However, the two major sources of information gathering is by web site self-registration and the use of cookies.

Web Site Self-Registration

This occurs in a registration process, when customers type in their private information, such as name, address, phone, e-mail address, or even interests and hobbies, in order to receive a password to participate in a lottery, to receive information, or to play a game. ...

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