Bài giảng E-commerce business, technology, society - Chapter 8: Ethical, Social, and Political Issues in E-Commerce

E-commerce Kenneth C. LaudonCarol Guercio Traverbusiness. technology. society.seventh editionCopyright © 2011 Pearson Education, Inc.E-commerce: Business. Techology. Society.Copyright © 2011 Pearson Education, Inc.Chapter 8: Ethical, Social, and Political Issues in E-commerceCopyright © 2010 Pearson Education, Inc.Slide 8-*Chapter 8Ethical, Social, and Political Issues in E-commerceCopyright © 2011 Pearson Education, Inc.Copyright © 2011 Pearson Education, Inc.Discovering Law and Ethics in a Virtual WorldClass DiscussionWhy is “mischief” in virtual worlds more difficult to stop? What constitutes mischief in Second Life?Which behaviors have been banned in Second Life?Is there a consensus regarding whether or not in-game gambling and other virtual crimes are also actual crimes? What is Second Life’s stance?How faithfully do you believe the law should be enforced in virtual worlds?Slide 8-*Copyright © 2011 Pearson Education, Inc.Understanding Ethical, Social, and Political Issues in E-commerceInternet, like other technologies, can:Enable new crimesAffect environmentThreaten social valuesCosts and benefits must be carefully considered, especially when there are no clear-cut legal or cultural guidelinesSlide 8-*Copyright © 2011 Pearson Education, Inc.A Model for Organizing the IssuesIssues raised by Internet and e-commerce can be viewed at individual, social, and political levelsFour major categories of issues:Information rightsProperty rightsGovernancePublic safety and welfareSlide 8-*Copyright © 2011 Pearson Education, Inc.The Moral Dimensions of an Internet SocietyFigure 8.1, Page 498Slide 8-*Copyright © 2011 Pearson Education, Inc.Basic Ethical ConceptsEthicsStudy of principles used to determine right and wrong courses of actionResponsibilityAccountabilityLiabilityLaws permitting individuals to recover damagesDue processLaws are known, understoodAbility to appeal to higher authorities to ensure laws applied correctlySlide 8-*Copyright © 2011 Pearson Education, Inc.Analyzing Ethical DilemmasProcess for analyzing ethical dilemmas:Identify and clearly describe the factsDefine the conflict or dilemma and identify the higher-order values involvedIdentify the stakeholdersIdentify the options that you can reasonably takeIdentify the potential consequences of your optionsSlide 8-*Copyright © 2011 Pearson Education, Inc.Candidate Ethical PrinciplesGolden RuleUniversalismSlippery SlopeCollective Utilitarian PrincipleRisk AversionNo Free LunchThe New York Times TestThe Social Contract RuleSlide 8-*Copyright © 2011 Pearson Education, Inc.Privacy and Information RightsPrivacy: Moral right of individuals to be left alone, free from surveillance or interference from other individuals or organizationsInformation privacySubset of privacyIncludes:The claim that certain information should not be collected at allThe claim of individuals to control the use of whatever information is collected about themSlide 8-*Copyright © 2011 Pearson Education, Inc.Privacy and Information Rights (cont.)Major ethical issue related to e-commerce and privacy: Under what conditions should we invade the privacy of others?Major social issue: Development of “expectations of privacy” and privacy normsMajor political issue: Development of statutes that govern relations between recordkeepers and individualsSlide 8-*Copyright © 2011 Pearson Education, Inc.Information Collected at E-commerce SitesData collected includesPersonally identifiable information (PII)Anonymous informationTypes of data collectedName, address, phone, e-mail, social securityBank and credit accounts, gender, age, occupation, educationPreference data, transaction data, clickstream data, browser typeSlide 8-*Copyright © 2011 Pearson Education, Inc.Social Networks and PrivacySocial networksEncourage sharing personal detailsPose unique challenge to maintaining privacyFacebook’s Beacon programFacebook’s Terms of Service changeSlide 8-*Copyright © 2011 Pearson Education, Inc.Profiling and Behavioral TargetingProfilingCreation of digital images that characterize online individual and group behaviorAnonymous profilesPersonal profilesAdvertising networksTrack consumer and browsing behavior on WebDynamically adjust what user sees on screenBuild and refresh profiles of consumersGoogle’s AdWords programSlide 8-*Copyright © 2011 Pearson Education, Inc.Profiling and Behavioral Targeting (cont’d)Deep packet inspectionBusiness perspective:Web profiling serves consumers and businessesIncreases effectiveness of advertising, subsidizing free contentEnables sensing of demand for new products and servicesCritics perspective:Undermines expectation of anonymity and privacyConsumers show significant opposition to unregulated collection of personal informationEnables webliningSlide 8-*Copyright © 2011 Pearson Education, Inc.The Internet and Government Invasions of PrivacyVarious laws strengthen ability of law enforcement agencies to monitor Internet users without knowledge and sometimes without judicial oversightCALEA, PATRIOT Act, Cyber Security Enhancement Act, Homeland Security ActGovernment agencies are largest users of private sector commercial data brokersRetention by ISPs of user data a concernSlide 8-*Copyright © 2011 Pearson Education, Inc.Legal ProtectionsIn U.S., privacy rights explicitly granted or derived fromConstitution First Amendment – freedom of speech and associationFourth Amendment – unreasonable search and seizureFourteenth Amendment – due processSpecific statutes and regulations (federal and state)Common lawSlide 8-*Copyright © 2011 Pearson Education, Inc.Informed ConsentU.S. firms can gather and redistribute transaction information without individual’s informed consentIllegal in EuropeInformed consent:Opt-in Opt-outMany U.S. e-commerce firms merely publish information practices as part of privacy policy without providing for any form of informed consentSlide 8-*Copyright © 2011 Pearson Education, Inc.The FTC’s Fair InformationPractices PrinciplesFederal Trade Commission:Conducts research and recommends legislation to CongressFair Information Practice Principles (1998):Notice/Awareness (Core)Choice/Consent (Core)Access/ParticipationSecurityEnforcementGuidelines, not lawsSlide 8-*Copyright © 2011 Pearson Education, Inc.FTC’s Fair Information Practice PrinciplesSlide 8-*Notice/AwarenessSites must disclose information practices before collecting data. Includes identification of collector, uses of data, other recipients of data, nature of collection (active/inactive), voluntary or required, consequences of refusal, and steps taken to protect confidentiality, integrity, and quality of the dataChoice/ConsentThere must be a choice regime in place allowing consumers to choose how their information will be used for secondary purposes other than supporting the transaction, including internal use and transfer to third parties. Opt-in/Opt-out must be available.Access/ParticipationConsumers should be able to review and contest the accuracy and completeness of data collected about them in a timely, inexpensive process.SecurityData collectors must take reasonable steps to assure that consumer information is accurate and secure from unauthorized use.EnforcementThere must be in place a mechanism to enforce FIPprinciples. This can involve self-regulation, legislation giving consumers legal remedies for violations, or federal statutes and regulation.See Table 8.5, page 516Copyright © 2011 Pearson Education, Inc.FTC Recommendations: Online ProfilingPrincipleRecommendationNoticeComplete transparency to user by providing disclosure and choice options on the host Web site. “Robust” notice for PII (time/place of collection; before collection begins). Clear and conspicuous notice for non-PII.ChoiceOpt-in for PII, opt-out for non-PII. No conversion of non-PII to PII without consent. Opt-out from any or all network advertisers from a single page provided by the host Web site.AccessReasonable provisions to allow inspection and correction.SecurityReasonable efforts to secure information from loss, misuse, or improper access.EnforcementDone by independent third parties, such as seal programs and accounting firms.Restricted CollectionAdvertising networks will not collect information about sensitive financial or medical topics, sexual behavior or sexual orientation, or use Social Security numbers for profiling.Slide 8-*See Table 8.6, page 517Copyright © 2011 Pearson Education, Inc.The European Data Protection DirectivePrivacy protection much stronger in Europe than U.S.European approach: Comprehensive and regulatory in natureEuropean Commission’s Directive on Data Protection (1998): Standardizes and broadens privacy protection in European Union countriesDepartment of Commerce safe harbor program:For U.S. firms that wish to comply with DirectiveSlide 8-*Copyright © 2011 Pearson Education, Inc.Private Industry Self-RegulationSafe harbor programs: Private policy mechanism to meet objectives of government regulations without government involvemente.g. Privacy seal programsIndustry associations include:Online Privacy Alliance (OPA)Network Advertising Initiative (NAI)CLEAR Ad Notice Technical SpecificationsPrivacy advocacy groupsEmerging privacy protection businessSlide 8-*Copyright © 2011 Pearson Education, Inc.Insight on BusinessChief Privacy OfficersClass DiscussionWhat does a Chief Privacy Officer do?Why do corporations need a CPO?What is a “privacy audit?”Why did ChoicePoint hire a CPO? How do federal laws like Graham-Leach Bliley and HIPPA influence corporate privacy practices?What is a “legalistic” approach to privacy as opposed to a “pro-consumer” approach?Slide 8-*Copyright © 2011 Pearson Education, Inc.Technological SolutionsSpyware, pop-up blockersCookie managersAnonymous remailers, surfingPlatform for Privacy Preferences (P3P): Comprehensive technological privacy protection standardWorks through user’s Web browserCommunicates a Web site’s privacy policyCompares site policy to user’s preferences or to other standards such as FTC’s FIP guidelines or EU’s Data Protection DirectiveSlide 8-*Copyright © 2011 Pearson Education, Inc.How P3P WorksFigure 8.2(A), Page 524Slide 8-*SOURCE: W3C Platform for Privacy Preferences Initiative, 2003.Copyright © 2011 Pearson Education, Inc.Insight on TechnologyThe Privacy Tug of War: Advertisers Vs. ConsumersClass DiscussionWhat are some of the technologies being used to invade privacy?What are some of the technologies being used to protect privacy?Do you accept the trade off between privacy invasion and “free” Web content?Is a “Do Not Track” list a viable solution?Slide 8-*Copyright © 2011 Pearson Education, Inc.Intellectual Property RightsIntellectual property:Encompasses all tangible and intangible products of human mindMajor ethical issue:How should we treat property that belongs to others?Major social issue:Is there continued value in protecting intellectual property in the Internet age?Major political issue:How can Internet and e-commerce be regulated or governed to protect intellectual property?Slide 8-*Copyright © 2011 Pearson Education, Inc.Intellectual Property ProtectionThree main types of protection:CopyrightPatentTrademark lawGoal of intellectual property law:Balance two competing interests — public and privateMaintaining this balance of interests is always challenged by the invention of new technologiesSlide 8-*Copyright © 2011 Pearson Education, Inc.CopyrightProtects original forms of expression (but not ideas) from being copied by others for a period of timeLook and feel copyright infringement lawsuitsFair use doctrineDigital Millennium Copyright Act, 1998First major effort to adjust copyright laws to Internet ageImplements WIPO treaty that makes it illegal to make, distribute, or use devices that circumvent technology-based protections of copyrighted materials Slide 8-*Copyright © 2011 Pearson Education, Inc.PatentsGrant owner 20-year monopoly on ideas behind an inventionMachinesMan-made productsCompositions of matterProcessing methodsInvention must be new, non-obvious, novelEncourages inventorsPromotes dissemination of new techniques through licensingStifles competition by raising barriers to entrySlide 8-*Copyright © 2011 Pearson Education, Inc.E-commerce Patents1998 State Street Bank & Trust v. Signature Financial GroupBusiness method patentsLed to explosion in application for e-commerce “business methods” patentsMost European patent laws do not recognize business methods unless based on technologyExamplesAmazon’s One-click purchasingDoubleClick’s dynamic delivery of online advertisingSlide 8-*Copyright © 2011 Pearson Education, Inc.Internet and E-commerce Business Method PatentsFigure 8.3, Page 537Slide 8-*SOURCE: Based on data from United States Patent and Trademark Office, 2010Copyright © 2011 Pearson Education, Inc.TrademarksIdentify, distinguish goods and indicate their sourcePurposeEnsure consumer gets what is paid for/expected to receiveProtect owner against piracy and misappropriationInfringementMarket confusionBad faithDilutionBehavior that weakens connection between trademark and productSlide 8-*Copyright © 2011 Pearson Education, Inc.Trademarks and the InternetCybersquattingAnticybersquatting Consumer Protection Act (ACPA)CyberpiracyTyposquattingMetataggingKeywordingDeep linkingFramingSlide 8-*Copyright © 2011 Pearson Education, Inc.GovernancePrimary questionsWho will control Internet and e-commerce?What elements will be controlled and how?Stages of governance and e-commerceGovernment Control Period (1970–1994)Privatization (1995–1998)Self-Regulation (1995–present)Government Regulation (1998–present)Slide 8-*Copyright © 2011 Pearson Education, Inc.Who Governs E-commerce and the Internet?Mixed mode environmentSelf-regulation, through variety of Internet policy and technical bodies, co-exists with limited government regulationICANN : Domain Name SystemInternet could be easily controlled, monitored, and regulated from a central locationSlide 8-*Copyright © 2011 Pearson Education, Inc.TaxationE-commerce taxation illustrates complexity of governance and jurisdiction issuesU.S. sales taxed by states and local governmentMOTO retailingE-commerce benefits from tax “subsidy”October 2007: Congress extends tax moratorium for an additional seven yearsUnlikely that comprehensive, integrated rational approach to taxation issue will be determined for some time to comeSlide 8-*Copyright © 2011 Pearson Education, Inc.Net NeutralityCurrently, all Internet traffic treated equally – all activities charged the same rate, no preferential assignment of bandwidthBackbone providers would like to charge differentiated prices and ration bandwidth2010, U.S. appeals court ruled that FCC had no authority to regulate Internet providersSlide 8-*Copyright © 2011 Pearson Education, Inc.Public Safety and Welfare Protection of children and strong sentiments against pornographyPassing legislation that will survive court challenges has proved difficultEfforts to control gambling and restrict sales of drugs and cigarettesCurrently mostly regulated by state lawUnlawful Internet Gambling Enforcement ActSlide 8-*Copyright © 2011 Pearson Education, Inc.Insight on SocietyThe Internet Drug BazaarClass DiscussionWhat’s wrong with buying prescription drugs online, especially if the prices are lower?What are the risks and benefits of online pharmacies?Should online pharmacies require a physician’s prescription?How do online pharmacies challenge the traditional business model of pharmacies and drug firms?What are the challenges in regulating online pharmacies?Who benefits and who loses from online pharmacies?Slide 8-*Copyright © 2011 Pearson Education, Inc.All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice HallCopyright © 2011 Pearson Education, Inc.