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8/2/2019 ECIS560 Lecture 7 - Ethics and M-L- Commerce
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Legal and Ethical Issuesin E-Commerce
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Major Legal and Ethical Issues inElectronic Commerce
Privacy
Intellectual Property
Free Speech Taxation
Computer Crimes
Consumer Protection Miscellaneous
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Legality vs. Ethics
Illegal acts break the law while unethical actsmay not be illegal
Ethics
Branch of philosophy that deals with what isconsidered right or wrong
Right and wrong not always clear
Consider Company sells profiles of customers with information
collected through cookies Company allows personal use of Web but secretly monitors
activity
Company knowingly sells tax software with bugs
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Privacy Issues
Information privacy: claim of individuals,groups, or organizations to determinewhen and to what extent information about
them is disseminated.
Right to privacy is not absolute
Publics right to know superceded
individuals right to privacy
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How is private informationcollected?
Reading your newsgroup postings
Finding you in an Internet Directory
Making your browser collect information about
you Recording what your browser says about you
Reading your email From Rainone, et al, 1998)
Most common methods are cookies and siteregistration
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Web Site Registration
Must fill in registration to get to site
Sometimes sold to third parties
User survey found (Eighth User Survey, 1998)
40% users falsify information
Nearly 67% (US and Europe) dont register because
of privacy concerns
Nearly 57% say they dont trust sites collecting
information
Only 6% will always register when asked
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Cookies
Help maintain user status A temporary passport
Used for Customizing sites (Yahoo)
Improve online services (Amazon) Collect demographics and usage statistics
(Doubleclick)
Protection
Delete cookies Anti-cookie software
PGPs Cookie Cutter
Luckmans Anonymous Cookie
CookieCrusher
Cookie Monster
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Five Principles of PrivacyProtection
Notice/Awareness Notice of collection practices prior to collecting information
Choice/consent Consumers to be made aware of options and give consent
Access/participation Must be able to access and challenge information
Integrity/Security Must be assured data is secure
Enforcement/Redress Government legislation or legal remedies
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EUs Data Privacy Directive
Stronger protection of personal data suchas race, politics, finances, religion, healthand union membership
Other countries following suit Argentina, Australia, Canada, Switzerland and
New Zealand
Bush rejects EU laws as being unduly
burdensome Safe Harbor Agreement is a bridge
between the US and European positions
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Principles of Safe Harbor
Companies must tell consumers how and why personaldata is collected and who it's shared with
Consumers must be able to request their data not beshared
Companies must provide notice and choice before data isgiven to third parties
Consumers must have access to data about them andhave the ability to correct mistakes
Companies must take reasonable measures to protectdata
Personal data must be relevant to its intended purpose
Procedures must be in place to settle complaints andresolve disputes
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Intellectual Property
Intangible property rights
In E-Commerce
Copyrights
Patents Trademarks
IP Rights are not absolute
Perishable Legal exceptions to allow public use at a specific rate
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Copyrighting
Protects expression of idea not the idea itself Example , pull-down menus cannot be copyrighted
Confers owner exclusive right to
Copy the work Distribute to the public
Expires after certain number of years after deathof copyright holder
28 years in the US 50 years in UK
Generally, contents of websites are copyrighted
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Copyrights Protection
Digital Watermarks
Embedded invisible bits in the digital content
Cannot prevent copying but helps identify whois doing it
Validation codes
Activation or deactivation of software
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Patents
Grants holder exclusive rights on inventions forfixed time 17 years in US
20 years in UK Innovation must be
Novel
Sufficiently inventive step (not trivial)
Capable of industrial application Amazon sued Barnes and Noble for patent
infringement (1-click ordering)
Priceline has patent on reverse-auction modelsued Expedia
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Trademarks
Graphical sign used by business to identify theirgoods and services
Type of IP
Must meet criteria of distinctive, original, and notdeceptive
Domain names can be trademarked if they meetabove criteria
WWF won first ever ruling against man who filedfor worldwrestlingfederation.com
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Free Speech, Internet Decency,Spamming, and Censorship
Censorship attempts to control material on theWeb
Communications Decency Act (CDA) was
passed by Congress but later ruledunconstitutional
Protecting Children Parental control
Governmental control
ISP accountability AOL does not allow hate sites
CompuServe was forced by Germany to shut down 200
newsgroups related to sex CompuServe forced to shutthem down worldwide
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Spamming
Indiscriminate distribution of messages withoutpermission of receiver
Spam comprised 30% of all AOL mail in 1998
Now down to 10% with spam blockers
Some legislation out there
Unsolicited Commercial Electronic Mail Act Requires all spam to start with word advertisement
Includes name and address of sender
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Taxation
Internet Tax Moratorium Act (1998-2001)
prohibits states from taxing the fees thatInternet service providers collect for providing
Internet service and from collecting Internet-specific taxes on e-commerce transactions
President George W. Bush signed into lawa bill from Congress proposing a new two-
year moratorium extension (starting Nov. 29,2001)
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Other Issues
Consider on your own
Electronic contracts
Online Gambling
Validity of electronic documents Time and date on documents across borders
Which country has jurisdiction over E-Commercetransaction
Can web site link to another without permission Example Ticketmaster vs. Microsoft
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New Frontiers in E-Commerce:M-Commerce and L-Commerce
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Mobile Vignettes
Bus riders in San Francisco can find when thenext bus is due from their cell phone or Palm VII
NextBus tracks in real time
Dine One One uses AT&T PocketNet serviceto link driver cell phones to central network. System locates and notifies driver to get to restaurant
Emails order to restaurant
Food ready to be delivered DoCoMo I-Mode in Japan offers wirelessservices that include shopping guides, maps,ticketing, news, gambling, dining and
reservations
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What is M-Commerce?
Also known as pervasive computing
E-commerce done in a wireless environment
Any transaction with a monetary value that is
conducted via a mobile telecommunicationsnetwork.
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Attributes of M-Commerce
M-Commerce
Mobility
Reachability
Productpersonalization
Product and service
localization
Ubiquity
Instant connectivity
Convenience
Characteristics
Value-AddedAttributes
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Other Drivers of E-Commerce
Widespread availability of devices
No need for PC
Cell phone culture
Vendors push Declining prices
Improvement in bandwidth
E-commerce growth in general
Digital divide (more cell phones in developingcountries)
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Generations of Mobile networks
First Generation (1G) 1979-1992
Analog cell communications
Second Generation (2G)
Digital Technology in place today Mostly text
2.5G Interim technology based on standards (GPRS and EDGE) that
can accommodate graphics
Third Generation (3G) Non-IP based interface
Supports rich multimedia
2001 introduced in Japan
2002 introduced in Europe 2003 Verizon introduces 3G in US
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3G Communications
Global wireless communication technology thatmakes possible packet-based transmission ofdigitized voice, data and video
ITU Guidelines from 2000 2Mbits/s for fixed position 144Kbits/sec in moving vehicles
Allow global roaming
Race for spectrum 1710 to 1855 MHz and 2520 to 2670 MHz 1.7GHz currently used by military for satellite control
Billions of $ plus a decade to change
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Where are we today?
The first 3G network released in Japan,Oct. 1, 2001.
This new service will allow users toreceive data at six to 40 times faster thancurrent speeds, making fast mobileInternet access and video downloads
possible.
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How about 3G in the US?
On January 28, 2002, Verizon Wireless rolledout its 3G Express Network along the nationseast coast, thus making it the first US carrier tooffer such services to the public(Computerworld, Jan 29, 2002).
The same day, Cingular Wireless and AT&TWireless announced a joint-venture project tomake wireless web access available along 3000miles of interstate highways in Arizona,Colorado, Kansas, Minnesota, New Mexico,Nebraska, Oklahoma, Texas and Utah (AT&TWireless News Release, Jan 28, 2002).
http://www.computerworld.com/itresources/rcstory/0,4167,STO67805_KEY68,00.htmlhttp://www.attws.com/press/releases/2002_01/012802.htmlhttp://www.attws.com/press/releases/2002_01/012802.htmlhttp://www.attws.com/press/releases/2002_01/012802.htmlhttp://www.attws.com/press/releases/2002_01/012802.htmlhttp://www.computerworld.com/itresources/rcstory/0,4167,STO67805_KEY68,00.html8/2/2019 ECIS560 Lecture 7 - Ethics and M-L- Commerce
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A quote from the 3G Forum
The Promise of 3G technologies is acombination of high-speed wireless access w/internet protocol(IP) Based services will bring
the world to your fingertips. It is a world in whichwe will be able to check emails, book holidays,organize share portfolios, hold videoconferences or download video clips of the
latest film, instantly & simply from our mobiles.The capability of mobile networks to pinpoint amobile users location opens opportunities forthe creation of new situational information on,
and directions to, the nearest restaurant orhotel.
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10 Key Trends in M-Commerce
M-Commerce hype will peak Over 1 billion phone worldwide capable of Internet
access in 2003
Enterprise Applications Will Become the WhiteHot Center of Mobile eBusiness
Wireless CRM
Consumer Use of Mobile Will Revolve AroundInformation, Not Transactions
Embedded Barcode Readers in Phones Sidesteps problem of data entry
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Key trends
Smart Handheld Displays Will Show SomeImprovement
Mobile Security Will Become a Hot Issue
Voice Navigation Will Remain a Work in Progress
Convergence Will Continue, but It Will Still Be aMultiple-Device World
Advertising Will Continue to Expand to WirelessDevices
Carriers Must Shift Their Distribution Strategies Shift from end users to enterprise
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L-Commerce
location, location, location
Satellite-based location technology that iscapable of finding people on foot or in vehicles
General Motors Corp. in Detroit has installed over1 million of its OnStar GPS-enabled systems invehicles
FCC sets 2005 deadline for E911
Location-tracking technology also createspotential Big Brother issues
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Global Positioning System
GPS-enabled devices allow exact identificationof location
Supported by 24 US government satellites
Orbits earth every 12 hours 10,900 miles altitude
Satellite transmits position and time signal fromonboard atomic clock
Receivers have synchronized clock
Using speed of signals (~186,000 mps), possible topinpoint location to within 50 feet.
See www.trimble.com/gps for a tutorial
Ob t l t M C d L
http://www.trimble.com/gpshttp://www.trimble.com/gps8/2/2019 ECIS560 Lecture 7 - Ethics and M-L- Commerce
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Obstacles to M-Commerce and L-Commerce
Usability issues Effectiveness, efficiency, satisfaction
Lack of standardized security protocol
Insufficient bandwidth 3G licenses
Transmission limitations GPS does not work in cities with skyscrapers
Power consumption Wireless and Health hazards