1C23 - April 28 2008

Business 54 - Introduction to eCommerce

Spring 2008

2C23 - April 28 2008

Class Game Plan

Law, Ethics and the Internet.

Question and Answer.

Lab Time.

3C23 - April 28 2008

Privacy has been an issue from the start on the Internet Internet was designed-built to be a secure network!

But it’s always been the Wild, Wild West! Adult Porn. Use of ‘Cookies’. Web Bugs. Selling Customer Identify & Behavior Information. Credit Card Fraud.

Today, the primary Internet Privacy-Security concerns are: Hacking. Identity Theft. Spamming. Copywriting / Legal Use of Content.

Shifting public attitudes have prompted governmental action.

Introduction to Privacy

4C23 - April 28 2008

Identity Theft Original problem was plain old credit card theft.

Today credit card misuse is less than 1% of all eCommerce transactions: VeriSign. Pay Pal. eWallet. MSN .Passport.

Basic solutions for individual consumers: Avoid bogus-scam sites. Use only one credit card for online purchases. Read privacy and billing disclosures!

There is still theft out here, but is now the province of organized crime: Ransom. Creation of false identifies.

Your site needs to be protected: Avoid liability by not storing credit card information directly. Invest in hacker security software. Invest in policies and procedures.

5C23 - April 28 2008

Spamming is the sending of unwanted & unsolicited email.

Affects both individuals and web sites.

Growing problem BECAUSE IT WORKS!

Why is it a problem for your web site? Performance Impacts. Time Waste. $$$ cost to stop/block.

Some ways to block Spam: Simple (Addressor) Blocking. Algorithm-based Blocking. Market-based. Challenge-Response. Image-based Login’s.

Targeted, Direct Online Marketing, aka Spam

I e G G 7 F H

6C23 - April 28 2008

Spamming

Has become an annoyance second only to telemarketing calls during mealtime.

Has become a political issue.

But may not be easy to legislate it out of existence:• Many sites are overseas or anonymous.• Who is the true owner /operator?• May not be subject to US laws and regulations.

Technology solutions are not providing a good answer either.

Some action will be taken unless the Market / Web finds a way to police itself.

7C23 - April 28 2008

Copyrights / Misuse of Content Success of your eCommerce business can be dependant upon the uniqueness

of your idea and the Look & Feel-Operation of your site.

Need to protect your Intellectual Property (IP): Copyrighting. Trade Secrets. Trademarks / Service Marks. Napster lessons. Court Case Precedents.

But you can use Free Content to improve your site: Rule Of 80% / 8 Bars. Public Domain Content. Non-copyrighted / Unmarked Content. Special Suppliers.

8C23 - April 28 2008

New Govt Regulations & Activities

States and Federal government have moved to both improve AND control the Internet.

Areas of focus include: Privacy Rules & Disclosures. Digital Images. Libel-Slander.

9C23 - April 28 2008

Privacy & Disclosures Abuses in the use and selling of online customer data has prompted Federal action.

Legislation now limits what can be done with customer data: Can only be used / shared in the aggregate with other companies. Detailed information and web history CAN be shared with affiliated

organizations, regardless if they are online or offline.

Other provisions include: Must move towards an Opt-in / Double Opt-in option. Must have a Privacy Policy. Must disclose uses / sources of data. Non-Deniability.

Applies also to Credit Card, Financial Institutions and Telephone companies.

10C23 - April 28 2008

Digital Images Use of digital likeness for commercial purposes:

John Wayne & Coors beer ads. Trends towards totally digital movies:

• Finding Nemo.• Final Fantasy.• Convergence of video games and Movies (e.g., Mortal Kombat; Laura Croft).

Some entertainers although dead are still earning money: The estates of James Dean and Marilyn Monroe still earn over $100K a year in royalties!

Tremendous cost and other incentives for studios to migrate towards ‘digital actors’.

The Sonny Bono Law: Extends copyrights of images effectively forever. Designed to protect actors and entertainers from studios-producers until long after they are

dead. Has yet to be tested in court. It can be argued that it creates an unreasonable time period of

protection.

11C23 - April 28 2008

Free Speech on the Internet Can you be held liable for slander or libel on the Internet?

You have limited recourse, either as an individual or an eCommerce company.

Recent court decisions say NO. Free Speech trumps other rights: Sullivan vs. NY Times precedent holds also on the Internet. Commercial speech (e.g., defaming competitors) yet to be fully tested.

Lastly, many sites are overseas or anonymous: Who is the owner /operator? May not be subject to US laws and regulations.

Best option is to monitor and counter, not sue.

Just another cost of doing business on the Web.

12C23 - April 28 2008

Net Neutrality.

Protecting kids.

Cyber-Kiddie Porn.

Other Privacy / Ethical Concerns

13C23 - April 28 2008C17 - April 7, 2008

Questions……

(and maybe some) Answers

14C23 - April 28 2008C17 - April 7, 2008

Lab Time

Visit http://www.ftc.gov/bcp/menus/consumer/tech/privacy.shtm.

Check out a some ‘typical’ Internet frauds and scams.

Think about: Why do so many people fall for internet scams?