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Some businesses send spamming messages to everybody’s inboxes to see who it can get to purchase their product or service. The web is controlled by a community of web surfers. There are limited amounts of laws online so enforcement is done by a community of people that use the internet.

The government has some programs to monitor how online businesses are doing ecommerce,
◦ a quote on this topic that is interesting is “The programs are as effective as an umbrella in a cat 5 hurricane.”

harder to gain trust on line because you don’t know the people and they don’t know you.

ethics is important if you want people to trust you and to do business with you.
◦ steps you can use to gain customers trust. These are:
 Post Your Business Policies  Honor Your Policies  Protect Your Buyer’s Privacy and Security

Data Mining - They discuss how businesses get customers personal information to better understand the customer’s needs and so forth. They go on to discuss that this is legal, but is it ethical..

Examples  eToys website where many people where angry about what the company did and eventually hurt the company so much that they dropped the lawsuit.

Adware - A form of spyware that collects information about the user in order to display advertisements in the Web browser based on the information it collects from the user's browsing patterns. Typosquatting - Purchasing a domain name that is a variation on a popular domain name with the expectation that the site will get traffic off of the original sight because of a user's misspelling of the name. For example, registering the domain names webapedia.com or yahooo.com in the hopes that someone making a typo will get to that site unexpectedly.

e-mail spoofing - Forging an e-mail header to make it appear as if it came from somewhere or someone other than the actual source. The main protocol that is used when sending e-mail -SMTP -- does not include a way to authenticate. There is an SMTP service extension (RFC 2554) that allows an SMTP client to negotiate a security level with a mail server. But if this precaution is not taken anyone with the know-how can connect to the server and use it to send spoofed messages by altering the header information.

Spam – Email that is sent to thousands of random email addresses for a purpose. Some business will send their ads to people’s emails to gain new customers and increase sales. Bait and Switch – When a company has a ad that most of the time sounds to good to be true, to get people on their site and then once they are on the site the customer finds out what the ad said isn’t entirely true or misleading. Example: Ad claims $10 laptop (while supplies last) there was one a while ago that was 10 years old, but that ad wasn’t lying, but it was misleading and it got the customer onto their site.

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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Privacy Intellectual Property Free Speech Taxation Computer Crimes Consumer Protection Miscellaneous

Electronic Communications Privacy Act of 1986 – is the main law governing privacy on the internet today.
Opt-out approach – the company collecting the information assumes that the customer does not object to the company's use of the information. Opt-in approach - the company collecting information does not use information for any other purpose unless the customer gives permission. Direct Marketing Association DMA – a trade association of business that advertise their product and services directly to customers.

Stronger protection of personal data such as race, politics, finances, religion, health and union membership Other countries following suit
◦ Argentina, Australia, Canada, Switzerland and New Zealand

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Bush rejects EU laws as being unduly burdensome Safe Harbor Agreement is a bridge between the US and European positions


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Companies must tell consumers how and why personal data is collected and who it's shared with Consumers must be able to request their data not be shared Companies must provide notice and choice before data is given to third parties Consumers must have access to data about them and have the ability to correct mistakes Companies must take reasonable measures to protect data Personal data must be relevant to its intended purpose Procedures must be in place to settle complaints and resolve disputes


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


Protects expression of idea – not the idea itself
Confers owner exclusive right to
◦ Copy the work ◦ Distribute to the public ◦ Example , pull-down menus cannot be copyrighted

Expires after certain number of years after death of copyright holder Generally, contents of websites are copyrighted
◦ 28 years in the US ◦ 50 years in UK

Digital Watermarks
◦ Embedded invisible bits in the digital content ◦ Cannot prevent copying but helps identify who is doing it

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Validation codes Activation or deactivation of software

Grants holder exclusive rights on inventions for fixed time Innovation must be
◦ 17 years in US ◦ 20 years in UK

Amazon sued Barnes and Noble for patent infringement (1-click ordering) Priceline has patent on reverse-auction model – sued Expedia

◦ Novel ◦ Sufficiently inventive step (not trivial) ◦ Capable of industrial application

Graphical sign used by business to identify their goods and services
◦ Type of IP ◦ Must meet criteria of distinctive, original, and not deceptive ◦ Domain names can be trademarked if they meet above criteria

WWF won first ever ruling against man who filed for worldwrestlingfederation.com

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Censorship – attempts to control material on the Web Communications Decency Act (CDA) was passed by Congress but later ruled unconstitutional 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 shut them down worldwide

Indiscriminate distribution of messages without permission 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

Internet Tax Moratorium Act (1998-2001)
◦ prohibits states from taxing the fees that Internet service providers collect for providing Internet service and from collecting Internetspecific taxes on e-commerce transactions

President George W. Bush signed into law a bill from Congress proposing a new twoyear moratorium extension (starting Nov. 29, 2001)

Benefits of the internet for children  educational tool  meeting others with similar interests  Entertainment

Governmental Laws  1998 Children’s Online Protection Act (COPA) – protect children from material harmful to children
◦ ruled unconstitutional because it restricted access to a lot of material that was unnecessary which violated the First Amendment.

Governmental Laws Continued  1998 Children’s Online Privacy Protection Act (COPPA) – restrictions of data collection from children from electronic commerce sites aimed toward children.
◦ does not regulate content

2001 Children’s Internet Protection Act (CIPA)
– requires schools that receive federal funds to install filtering software

Company Procedures  ask birth date to ensure the person is of age and if not does not allow them to gain access to the site.
◦ ex alcohol promoting websites

provide choices for registration select age range and may ask for parents permission.
◦ ex Disney website

Marketing to Children  Companies depend on child for advertising for their nag factor
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they use cartoons and characters that children can relate to including colors 4 million children a year use the internet – estimated

◦ they beg their parents for things

Marketing to Children Continued  some sites ask children to fill out surveys asking about preferences, buying behaviors, other members of their family and personal information.
◦ they may offer free items for intisement as well

children may feel inferior to classmates if they do not have the new items being marketed to them advertisers hire psychologists to help their marketing campaigns aim better at children more effectively

How Parent can Protect Their Children  monitor and limit their children’s access to the internet  keep themselves informed on internet safety  software that can protect children

How Parent can Protect Their Children Continued

teach their children the dangers of the internet and how someone may target them
◦ teach children what to do if they think they are being targeted ◦ prime example = chat rooms and who is appropriate to talk to, what to disclose

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-Commerce transaction ◦ Can web site link to another without permission ◦ ◦ ◦ ◦ ◦
 Example Ticketmaster vs. Microsoft