The regulatory environment of electronic commerce
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This document discusses several key legal issues related to electronic commerce (EC), including privacy, intellectual property, free speech, taxation, computer crimes, and consumer protection. It outlines specific concerns around the collection and use of personal information, cookies, and spam. The principles of notice, choice, access, integrity, and enforcement are presented as important for consumer privacy protection. Intellectual property rights such as copyrights, patents, and trademarks are also covered.
The regulatory environment of electronic commerce
- 1. Dr. Wisnu Sakti Dewobroto, MSc
- 2. ¡ The implementation of EC involves many legal issues : § Privacy § Intellectual property § Free speech § Taxation § Computer Crimes § Consumer protection § Other legal issues
- 3. ¡ If you do something that is not legal, you are breaking the law. If you do something unethical, you may not be breaking the law.
- 4. ¡ Privacy : Collection, storage and dissemination of information about individuals ¡ Accuracy : authenticity, fidelity and accuracy of information collected and processed ¡ Property : Ownership and value of information and intellectual property ¡ Accessibility : Right to access information and payment of fees to access it.
- 5. ¡ Privacy means different things to different people. ¡ Privacy issues : How is private information collected : § Reading your newsgroup postings § Finding you in the internet directory § Making your browser record information about you § Recording what your browsers say about you § Reading your email
- 6. ¡ Web sites can gather customer information through filled – out registration questionnaires ¡ Consequently, users have concerns over privacy information, although self registration creates fewer concerns that cookies. ¡ Make sure end user knows about the consequences.
- 7. ¡ A cookie is a piece of information that allows a web site to record ones comings and goings. ¡ Cookies help websites maintain user status.This means that web sites can “remember” information about users and respond to their preferences on a particular site, process transparent user password and so on. ¡ However cookies have brought about more concerns over privacy than self registration because cookies allow web sites to collect private information such as users preferences, interests, and surfing patterns on the web sites user visit.
- 8. ¡ Users can delete cookie files stored in their computer. However deleting cookie files entirely will cause users to start from scratch with every website they usually. ¡ Use anti cookie software, usually free software.
- 9. ¡ The five basic principles : § Notice awareness.Consumers must be given notice of an entity’s information practices prior to collection of personal information. § Choice / consent.Customers must be made aware of their options as to how their personal information may be used as well as any potential secondary uses of the information. § Access / participation.Consumers must be able to access their personal information and challenge the validity of the data. § Integrity / security.Consumers must be assured that the data is secure and accurate. § Enforcement / redress.There must always be a method of enforcement and remedy, otherwise there is no real deterrent or enforceability for privacy issues.
- 10. ¡ Intellectual property : associated with intangible property rights, which are created and protected by law : § Copyright § Patents § Trademarks ¡ Copyrights § Usually exist in the following works : ▪ Literature works ▪ Musical works ▪ Dramatic works ▪ Artistic works ▪ Sound recordings, film, broadcasts, cable program ▪ Published editions of literary and musical works.
- 11. ¡ A patent is a document that grants the holder exclusive rights on an invention for a fixed number of years. ¡ Trademarks form an important type of intellectual property. Well known trade marks are very valuable assets to a business.
- 12. ¡ A domain name refers to the upper category of on internet address (URL), such as www.google.com, www.astaga.com ¡ Top level domain names : .com, .org, .gov, .edu
- 13. ¡ Free speech § The debate about free speech on the internet § Protecting children : One of the major points in the free speech versus censorship debate is the potential damage to children ▪ Parent governing their own children ▪ Government protecting children ▪ Responsibility for internet providers ▪ Forcing internet providers to be accountable § Responsibility of employers (in office environment)
- 14. ¡ Spamming refers to the practice of indiscriminate distribution of messages without permission of the receive and without consideration for the messages appropriateness. ¡ How to cut spamming § Tell users not to validate their address by answering spam request for replies if they want to be taken off mailing list. § Disable the relay feature on mail servers so mail cannot be bounce off the server § Delete spam and forget it § Use blockers whenever possible.
- 15. ¡ Electronic CommerceVS Communication ¡ “Should EC business be allowed to operate without taxing consumers while regular telephone companies cannot”
- 16. ¡ Computer crimes usually refer to computer fraud and computer abuse. ¡ Computer frauds may be committed by mean of : § Alteration of input § Alteration of computer data § Alteration misuse of programs § Destruction / suppression / misappropriation of output
- 17. ¡ Online auction fraud : the majority (68%) of complaints registered at the National Consumers league deal with auctions. money is collected but the goods are not satisfactory or not even delivered ¡ Internet stocks fraud. In fall 1998, the securities and exchange commission (SEC) brought charges against 44 companies and individuals who illegally promoted stocks on computer bulletin boards, online newsletters and investment website. ¡ Other financial fraud. ¡ Other fraud in EC : § Receive poor quality product and service § May not get product in time