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1、 Prentice Hall,2000Chapter 10Public Policy:From Legal Issues to Privacy1 Prentice Hall,2000Learning ObjectiveszList and describe the major legal issues related to electronic commercezUnderstand the difficulties of protecting privacy and describe the measures taken by companies and individuals to pro
2、tect itzDescribe the intellectual property issues in EC and the measures provided for its protectionzDescribe some of the ethical issues in EC and the measures taken by organizations to improve ethics2 Prentice Hall,2000Learning Objectives(cont.)zUnderstand the conflict between Internet indecency an
3、d free speech,and the attempts to resolve the conflictzDescribe the issues involved in imposing sales tax on the InternetzDiscuss the controls over exporting encryption software and the issues of government policieszDifferentiate between contracts online and offlinezDescribe the measures available t
4、o protect buyers and sellers on the Internet3 Prentice Hall,2000Legal and Ethical Issues:an OverviewzPrivacyzIntellectual PropertyyDifficult to protect since it is easy and inexpensive to copy and disseminate digitized informationzFree SpeechyInternet provides the largest opportunity for free speech
5、zTaxationyIllegal to impose new sales taxes on Internet business at the present timezConsumer ProtectionyMany legal issues are related to electronic trade4 Prentice Hall,2000Ethical IssueszWhat is considered to be right and wrong?zWhat is unethical is not necessarily illegal.zWhether these actions a
6、re considered unethical depends on the organization,country,and the specific circumstances surrounding the scenarios.5 Prentice Hall,2000Ethical Issues(cont.)zCode of EthicsyMany companies and professional organizations develop their own codes of ethicsyA collection of principles intended as a guide
7、 for its membersyA guide for members of a company or an association6 Prentice Hall,2000yPrivacyxCollection,storage,and dissemination of information about individualsyAccuracyxAuthenticity,fidelity,and accuracy of information collected and processedyPropertyxOwnership and value of information and int
8、ellectual propertyyAccessibilityxRight to access information and payment of fees to access itOrganize IT Ethical Issues into a Framework7 Prentice Hall,2000Protecting PrivacyzPrivacyyThe right to be left alone and the right to be free of unreasonable personal intrusionszInformation PrivacyyThe“claim
9、 of individuals,groups,or institutions to determine for themselves when,and to what extent,information about them is communicated to others”8 Prentice Hall,2000Protecting Privacy(cont.)zTwo rulesThe right of privacy is not absolute.Privacy must be balanced against the needs of society.The publics ri
10、ght to know is superior to the individuals right of privacy.9 Prentice Hall,2000How is Private Information Collected?yReading your newsgroups postingsyFinding you in the Internet DirectoryyMaking your browser record information about youyRecording what your browsers say about youyReading your e-mail
11、 10 Prentice Hall,2000Web-Site Self-RegistrationyRegistration Questionnairesxtype in private information in order to receive a password to participate in a lottery,to receive information,or to play a gameyUses of the Private Informationxcollected for planning the businessxmay be sold to a third part
12、yxused in an inappropriate manner11 Prentice Hall,2000y40%of all users have falsified information when registering onliney66%of all U.S.and European respondents dont register as they dont know how the information is going to be usedy63%dont feel that registration is worthwhile considering the conten
13、t of the sitesy58%dont trust the sites collecting this information from themFrom the Eighth User Survey by GVU(1988)12 Prentice Hall,2000CookiesyPiece of information that allows a Web site to record ones comings and goingsxWeb sites can remember information about users and respond to their preferenc
14、es on a particular site,process is transparent to usersxWeb sites can maintain information on a particular user across HTTP connections13 Prentice Hall,2000yReasons for using cookiesxto personalize informationxto improve online sales/servicesxto simplify tracking of popular links or demographicsxto
15、keep sites fresh and relevant to the users interestsxto enable subscribers to log in without having to enter a password every visitxto keep track of a customers search preferencesxpersonal profiles created are more accurate than self-registrationySolutions to cookiesxusers can delete cookie files st
16、ored in their computerxuse of anti-cookie software(e.g.Cookie Cutter and Anonymous Cookie)CookCookies(cont.)14 Prentice Hall,2000Privacy Protectiony5 basic principlesxNotice/Awareness Customers must be given notice and be able to make informed decisions.xChoice/Consent Customers must be made aware o
17、f their options as to how their personal information may be used.Consent may be granted through opt-Out clauses requiring steps.xAccess/Participation Consumers must be able to access their personal information and challenge the validity of the data.xIntegrity/security Consumers must be assured that
18、the data is secure and accurate.xEnforcement/Redress There must always exist a method of enforcement and remedy.The alternatives are government intervention,legislation for private remedies,or self-regulation.15 Prentice Hall,2000Protecting Your PrivacyyThink before you give out personal information
19、 on a siteyTrack the use of your name and informationyKeep your newsgroups posts out of archivesyUse the Anonymizer when browsingyLive without cookiesyUse anonymous remailersyUse encryptionyReroute your mail away form your officeyAsk your ISP or employer about a privacy policy16 Prentice Hall,2000Le
20、gislationyThe Consumer Internet Privacy ActyThe Federal Internet Privacy Protection ActyThe Communications Privacy and Consumer Empowerment ActyThe Data Privacy Act17 Prentice Hall,2000zPersonal Information in DatabasesyDatabases of banks and financial institutions;cable TV;telephone;employers;schoo
21、ls;insurance companies;and online vendorsyConcernsxUnder what circumstances will personal data be released?xDo you know where the records are?xHow are the data used?Electronic Surveillance-Monitoring Computer UserszTens of millions of computer users are monitored,many without their knowledgezEmploye
22、es have very limited protection against employers surveillance18 Prentice Hall,2000Privacy Policy Basics m Data Collectionm Data Accuracym Data Confidentialityo Data should be collected on individuals only to accomplish a legitimate business objective.o Data should be adequate,relevant,and not exces
23、sive in relation to the business objective.o Individuals must give their consent before data pertaining to them can be gathered.o Sensitive data gathered on individuals should be verified before it is entered into the database.o Data should be accurate and,where and when necessary,kept current.o The
24、 file should be made available so the individual can ensure that the data are correct.o If there is disagreement about the accuracy of the data,the individuals version should be noted and included with any disclosure of the file.o Computer security procedures should be implemented to provide reasona
25、ble assurance against unauthorized disclosure of data.o Third parties should not be given access to data without the individuals knowledge or permission,except as required by law.o Disclosures of data,other than the most routine,should be noted and maintained for as long as the data are maintained.o
26、 Data should not be disclosed for reasons incompatible with the business objective for which they are collected.19 Prentice Hall,2000Protecting Intellectual PropertyzCopyrightyA statutory grant that provides the creators of intellectual property with ownership of it for 28 yearszTrade SecretyIntelle
27、ctual work such as a business plan,which is a company secret and is not based on public informationzPatentyA document that grants the holder exclusive rights on an invention for 17 years20 Prentice Hall,2000Copyright Protection TechniquesyDigital watermarksxembedding of invisible marksxcan be repres
28、ented by bits in digital contentxhidden in the source data,becoming inseparable from such data21 Prentice Hall,2000Legal PerspectivesyElectronic Theft(NET)Actximposed criminal liability for individuals who reproduce or distribute copies of copyrighted works even if no commercial advantage or financi
29、al gain existsyDigital Copyright Clarification and Technology Education Actxlimits the scope of digital copyright infringement by allowing distance learning exemptionsyOnline Copyright Liability Limitation Actxseeks to protect Internet access providers from liability for direct and vicarious liabili
30、ty under specific circumstances where they have no control or knowledge of infringement22 Prentice Hall,2000Legal Perspectives(cont.)yDigital Millennium Copyright Actxreasserts copyright in cyberspacexmakes illegal most attempts to defeat anti-copying technologyxrequires the National Telecommunicati
31、ons and Information Administration to review the effect the bill would have on the free flow of information and makes recommendations for any changes two years after it is signed into lawxlets companies and common citizens circumvent anti-copying technology when necessary to make software or hardwar
32、e compatible with other products,to conduct encryption research or to keep personal information from being spread via Internet“cookies”or other copy-protection toolsxforbids excessive copying of databases,even when those databases contain information already in the public domain23 Prentice Hall,2000
33、International Aspects of Intellectual PropertyzThe World Intellectual Property Organizationymore than 60 member countries to come up with an international treatyypart of the agreement is called the database treatyyits aim is to protect the investment of firms that collect and arrange information24 P
34、rentice Hall,2000Domain NameszTwo controversiesyWhether top-level domain names(similar to com,org and gov)should be addedyThe use of trademark names by companies for domain names that belong to other companies25 Prentice Hall,2000Domain Names(cont.)zNetwork Solutions Inc.yContracted by the governmen
35、t to assign domain addresseszTrade Name DisputesyCompanies are using trade names of other companies as their domain address to help attract traffic to their Web sitezIncrease Top Level NamesyIdea is that an adult only top-level name will be created to prevent pornographic material getting into the h
36、ands of children26 Prentice Hall,2000Defining Freedom of SpeechzThe Bill of Rights First Amendment to the Constitution of the U.S.of America readsy“Congress shall make no law respecting an establishment of religion,or prohibiting the free exercise thereof;or abridging the freedom of speech,or of the
37、 press;or the right of the people peaceably to assemble,and to petition the government for a redress of grievances.”27 Prentice Hall,2000zThe united nations Universal Declaration of Human Rights in 1948 addresses the right of freedom of expressiony“Everyone has the right to freedom of opinion and ex
38、pression;this right includes freedom to hold opinions without interference and to seek,receive,and impart information and ideas through any media and regardless of frontiers.”Defining Freedom of Speech(cont.)28 Prentice Hall,2000The Debate about Free Speechon the InternetzFree speech debatez“Most ci
39、tizens are implacably opposed to censorship in any form except censorship of whatever they personally happen to find offensive.”zWhat the boundaries are,and how they should be enforcedGovernments protective of their role in society,parents concerned about exposing their children to inappropriate Web
40、 pages and chat rooms,and federal agencies attempting to deal with illegal actionsCitizen action groups desiring to protect every ounce of their freedom to speak,individuals concerned about their right to information on the Internet,and organizations seeking to empower the citizens of the earth29 Pr
41、entice Hall,2000The Debate about Free Speechon the Internet(cont.)yProvisions in law for 2 cases that limit free speechxobscene materialxcompelling government interesty“Indecency”y“any comment,request,suggestion,proposal,image,or other communication that,in context,depicts or describes,in terms pate
42、ntly offensive as measured by contemporary community standards,sexual or excretory activities or organs”30 Prentice Hall,2000Protecting Childrenz3 approaches(regarding the protection of children from inappropriate material on the Internet)yNo information should be held back and parents should be res
43、ponsible for monitoring their own childrenyThe government is the only one who can truly protect children from this materialyTo hold the Internet providers responsible for all the material and information they provide31 Prentice Hall,2000Protecting Children(cont.)zParents Governing Their Own Children
44、zGovernment Protecting the ChildrenzResponsibility for the Internet ProviderszForcing Internet Providers to be Accountable32 Prentice Hall,2000Legal Perspectives in the USAzChild Online Protection ActzInternet Tax Freedom ActzFamily Friendly Internet Access ActzInternet Protection ActzInternet Schoo
45、l Filtering Act33 Prentice Hall,2000Controlling SpammingzWhat is spamming,why is it bad?ySpamming y“the practice of indiscriminate distribution of messages(for example junk mail)without permission of the receiver and without consideration for the messages appropriateness”ySpammings negative impacts
46、xSpam comprised 30%of all mail sent on America Online slowing the Internet in general shutting ISPs down completely now less than 10%34 Prentice Hall,2000zLegislation,LegalyThe Electronic Mailbox Protection ActyThe Unsolicited Commercial Electronic Mail ActyThe Netizens Protection ActyThe Telephone
47、Consumer Protection ActControlling Spamming(cont.)35 Prentice Hall,2000Controlling Spamming(cont.)zHow to cut spammingyTell users not to validate their addresses by answering spam requests for replies if they want to be taken off mailing listsyDisable the relay feature on SMTP(mail)servers so mail c
48、annot be bounced off the serveryDelete spam and forget it its a fact of life and not worth wasting time overyUse software packages, and 36 Prentice Hall,2000Taxation PolicieszThe Taxation Exemption Debate yInternet Tax Freedom Act(8 Oct,98)xpromotes electronic commerce through tax incentives by barr
49、ing any new state or local sales taxes on Internet transactions during the next three yearsApplying existing law to new mediums of exchange is far more difficult than ever imagined.The global nature of business today suggests that cyberspace be considered a distinct tax zone unto itself with unique
50、rules and considerations befitting the stature of the environment.Electronic commerce industriesThe Internet businesses must pay its fair share of the bill for the nations social and physical infrastructure.They feel that the Internet industries are not pulling their own weight.These companies are s