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Legal and Ethical Issues: Privacy and Security Chapter Five
Legal and Ethical Issues:
Privacy and Security
Chapter Five
Copyright © Houghton Mifflin Company. All rights reserved. 5–2
Chapter FiveLearning Objectives
• To understand why Internet laws and jurisdiction are in a state of flux and what remedies are being attempted
• To learn what important legal issues confront internet marketers
• To consider whether ethical marketing behaviors can be enforced on the Internet
• To understand why online security problems concern buyers and sellers
Copyright © Houghton Mifflin Company. All rights reserved. 5–3
Tips for Smart Web Shopping
Before purchasing, shoppers should determine• Is the business legitimate?
• Are prices and conditions clearly stated?
• Is the transaction currency calculated?
• Is ordering secure?
• Is privacy respected?
• Is there recourse?
• Is the credit card statement correct?
Copyright © Houghton Mifflin Company. All rights reserved. 5–4
Laws and Jurisdiction
• Lack of uniform Internet law
• Challenge to maintain order
• Maintaining order affects business success
• Different national legal systems often conflict
• UN, ABA, WTO, OECD and others trying to develop uniform guidelines
• Should there be a unique law of the Internet?
Copyright © Houghton Mifflin Company. All rights reserved. 5–5
Laws and Jurisdiction (cont’d)
• Jurisdiction determines – Which courts have the right to exercise authority?
– Which courts have the power to do so?
– Which courts have control over issues and parties?
• Interactive/passive relations jurisdiction test
• Upload/download status jurisdiction test
• The USA Patriot Act of 2001 – The United States as the Internet’s police?
Copyright © Houghton Mifflin Company. All rights reserved. 5–6
Legal Concerns
• Fraud is a criminal act– The Internet fraud complaint center
– Most frauds at online auctions
– EBay and other sites responding to fraud threat
• On-site self-monitoring
• Posted warnings
• Bar offenders from site
• Diversify to lessen risk from auction fraud
Copyright © Houghton Mifflin Company. All rights reserved. 5–7
Legal Concerns (cont’d)
Property protection• Copyright
• Patents
• Trademarks
• Domain names
• Liability and disclaimers
• Contracts and digital signatures
Copyright © Houghton Mifflin Company. All rights reserved. 5–8
Legal Concerns (cont’d)
• Speech– Consumer complaints
– Corporate bashing
– Free speech
• Taxation
• Gambling
• Visual pornography
Copyright © Houghton Mifflin Company. All rights reserved. 5–9
Online Ethics and Privacy
• Online ethics – Moral principles, rules of conduct
– Standards differ between and even within countries
• Online consumer research– Ethics of information collection
– Identification of researchers
– Scientific soundness of chat room research
– Information use
Copyright © Houghton Mifflin Company. All rights reserved. 5–10
Online Ethics and Privacy (cont’d)
• Marketing of professionals
• Marketing to children and other vulnerable groups– COPPA
• Marketing restricted products
• Unsolicited commercial email (spam)
• Self-regulation
• Privacy or personalization
Copyright © Houghton Mifflin Company. All rights reserved. 5–11
Security Issues
• Hackers
• Crackers
• Cyberterrorism
• Viruses
Copyright © Houghton Mifflin Company. All rights reserved. 5–12
Security Issues (cont’d)
A DOS Attack
Access to a Web Site Is Blocked for Legitimate Users When Captured Computers Overwhelm the Site’s Servers
Vandals Take Over Innocent Computers
Access to the Web Site is Blocked
