E-Business

Ch 6
The internet: law,
privacy, trust
and security
key issues:
The internet and the law;
Privacy;
Trust;
Security.
This chapter outlines and discusses issues of law, privacy, trust and security relating to e-business.
The internet & the law
personal data must:
1. Be fairly and lawfully processed;

2. Be processed for limited purposes;

3. Be adequate, relevant and not excessive;

4. Be accurate;

5. Not be kept longer than necessary;

6. Be secure;
• Individuals and subjects, on whom information and data is stored, have a number of rights that offer
protection.

These include the right to:

1. Receive notification whenever data is collected;

2. Approach collectors or receivers of personal data for a copy of the data collected;

3. Have the data corrected;

4. Object to certain types of data.

Data protection legislation is designed to protect the interests of the individual and to ensure deterrence of the
misuse of information.

Data protection lies at the heart of the issue of privacy of personal information.
Privacy
Privacy refers to the rights of individuals to control the information held about them by third parties.

The growth of the information economy has led to increasing interest in the issue of privacy.
 There have been a number of efforts made to bolster consumer confidence in matters of privacy.

Companies can participate in initiatives designed to set standards and formalise codes of conduct.

Membership of organisations that oversee standards and codes of conduct receive a seal of assurance that
informs customers of the reliability of the organisation in meeting its obligations in relation to privacy.
Trust
Very often the issue of trust is equated with security. In fact, these two concepts are different but
complementary constructs.
Trust can be described as the willingness to accept a level of insecurity for the
realisation of future benefits.
There are four important trust factors that e-businesses and consumers have to consider :
Product quality;

Authenticity of information;

Authenticity of the business or consumer;

Integrity of the business or consumer.

Trust in B2B relationships

Collaboration is an increasing feature across the e-business landscape as firms seek cost savings through
synergy in activities and the economies of scale associated with combining expertise and experience in trading
online.
The economic benefits of collaboration provide an incentive for firms to seek partners.
Security
Security is one of the most important issues affecting e-business. Secure transactions are of high value to
customers.

Security also underpins confidence in e-business and e-commerce and helps e-businesses to achieve growth.
However, online transactions are inherently insecure.
• There are a number of ways internet security can be breached. The most common is the spreading of computer viruses.

• Security in e-business and e-commerce typically entails setting in place systems that ensure:

Authenticity;

Data integrity;

Confidentiality;

Availability.
 The development of the internet and the World Wide Web has led to a huge growth in online transactions for
products and services.
The existing legal framework of individual countries and trading pacts, such as the EU, have had to be updated
to take account of this particular method of transacting.

Consumers are offered a measure of protection through data protection legislation that ensures access to
information held by organisations.
THANKYOU