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E-Marketing
Dr. Karim Kobeissi
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Dr. Karim Kobeissi
Chapter 5Ethical
&
LegalIssues
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Keywords: We site & Wepage
! wepage is what you see through your
rowser y scrolling the window up and down"
A Web site is a collection of Web pages
which #ay link to other pages that are not
part o$ that site" %or ea#ple' !#a(on"co# is
a We site' ut there are #illions o$ We
pages that #ake up the !#a(on"co# site"
d ll d i* l
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Keywords: )ersonally Identi*aleIn$or#ation
)ersonally identi*ale in$or#ation
+)II,: ata that can e used to
identi$y' locate' or contact an
indi.idual"
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/ o $ t w a re I n $ r i n g e # e n t
Copyright infringementis the use o$ works protected
y copyright law without per#ission' .iolating certain
eclusi.e rights granted to the copyright holder' such
as the right to reproduce' distriute' display or per$or#
the protected work' or to #ake deri.ati.e works"
Counter$eiting occurs when illegally copied so$tware is
duplicated and distriuted on a large scale" Countries with weak so$tware copyright en$orce#ent
cost so$tware owners illions o$ dollars in lost re.enue"
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!lthough ethics and law are closely related' they di1er in
that ethics are social guidelines based on moral
principles and values while laws are rules and
regulations that have specic penalties and
consequences when violated.Ethics do not ha.e
punish#ents' *nes or associated penalties when people
$ail to aide y the# while laws do" 2oth set standards o$
epected societal eha.iours' ut ethics epress social
guidelines while laws i#pose actions"
In so#e instances' laws are estalished ased on ethics'
principles or #orals"
3.er.iew o$ Ethics and Legal Issues
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Modern technology presents challenges to
#arketing ethics and laws" Critical issues include:
I" 4he role o$ pri.acy in a .irtual world
II" 3wnership o$ intellectual propertyIII" %reedo# o$ epression
I" 6se o$ data and its collection
" )ulic /a$ety and Wel$are
I" 0o.ernance
II" 4aation
3.er.iew o$ Ethics and Legal Issues +con,
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I- 4he 7ole o$ )ri.acy in a irtual World
)ri.acy: 4he #oral right o$ indi.iduals to e le$t
alone' $ree $ro# sur.eillance or inter$erence
$ro# other indi.iduals or organi(ations"
In$or#ation pri.acy: Includes oth the clai#
that certain in$or#ation should not e
collected at all' as well as the clai# o$indi.iduals to control the use o$ whate.er
in$or#ation is collected aout the#"
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With widely usage o$ the Internet ' the
right to indi.idual pri.acy #o.ed eyond
pri.ate property" 4he Internet industry
essentially go.erns itsel$" 4his condition
enales the Internet to grow without the
constraints o$ legislation' ut it also
creates prole#s ecause there are $ew
speci*c guidelines to $ollow"
4he 7ole o$ )ri.acy in a irtual World +con,
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!l#ost all e-co##erce co#panies collect )ersonally identi*ale
in$or#ation and use cookies to track clickstrea# eha.ior" While online #arketers and ad.ertisers suggest that' y
recording the likes and dislikes o$ online consu#ers' online
co#panies can etter ser.e their users' pri.acy ad.ocates argue
that these e1orts .iolate indi.iduals8 pri.acy rights " %or
ea#ple' online ad.ertising *r#s such as ouleClick ha.e
traditionally recorded users9 clickstrea#s to $or# user pro*les $or
#arketing purposes" Contro.ersy arose in ;;; when
ouleClick ac
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4he 7ole o$ )ri.acy in a irtual World +con,
4he !#erican Marketing !ssociation +!M!,
Code o$ Ethics $or Marketing on the internet:>in$or#ation collected $ro# custo#ers shoulde con*dential and used only $or epressedpurposes?"
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Cookies and 3nline ata Collection4echnologies such as cookies' @a.a applets' and intelligent
agents are e.erywhere applications that can $unction without
the user9s knowledge or control"
Cookies ser.e #any purposes:
A, Create shopping askets to hold purchases
, 7ecall stored sales in$or#ation
B, Collect user data
4hey allow #arketers to pinpoint an indi.idual9s
online eha.ior"
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7egulatory )rotections o$ 3nline )ri.acy +con,
B, Access$&articipation!ccess includes not only aconsu#er8s aility to .iew the data collected' utalso to .eri$y and contest its accuracy" 4his access#ust e inepensi.e and ti#ely in order to euse$ul to the consu#er"
, 'ntegrity$(ecurityIn$or#ation collectors shouldensure that the data they collect is accurate andsecure" 4hey can i#pro.e the integrity o$ data ycross-re$erencing it with only reputale dataasesand y pro.iding access $or the consu#er to .eri$yit"
5, )nforcement$*edressIn order to ensure thatco#panies $ollow the %I))' the %4C identi*ed so#een$orce#ent #easures that include ci.il andcri#inal penalties"
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%4C 7eco##endations $or 3nline )ro*ling
I I 3 w n e r s h i p o $ I n t e l l e c t u a l
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Intellectual property: Enco#passes all tangile and intangile
products o$ hu#an #ind"
MaFor social issue: Is there continued .alue in protecting
intellectual property in the Internet ageG
MaFor political issue: I$ so' how' should Internet and e-
co##erce e regulatedHgo.erned to protect intellectual
property G
4he law protects intellectual property through *.e asic#echanis#s:
&atents
rademar+s
,icenses
Copyrights
(ui generis Database *ights
I I - 3 w n e r s h i p o $ I n t e l l e c t u a l) r o p e r t y
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)atent: the eclusi.e right granted y a
go.ern#ent to an in.entor to #anu$acture' use'
or sell an in.ention $or a certain nu#er o$ years
+usually ; years,"
Creators o$ so$tware are atte#pting to #ake use
o$ patent law protection"
!d.ocates argue that granting o$ patents $or so$tware
will encourage inno.ation"
Critics argue that patents will ha.e o.erpowering and
#onopolistic e1ects"
)atents
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Internet and E-Co##erce 2usiness Method)atents
SOURCE: Based on data from United States Patent and Trademark Office, 2005
d k
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! trade#ark is a #ark used to identi$y and distinguish
products' and indicate their sources"
4rade#arks protect pulic y ensuring it gets what it
pays $orHepects to recei.e protects trade#ark owner
against piracy and $raud"
4rade#ark law has een applied to the internet na#ing
syste# o$ do#ain na#es"
/i#ilarities in na#es #ay result in trade#ark in$ringe#entclai#s"
! trade#ark .iolation +cyer-s
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Licenses are an increasingly popular
#ethod o$ intellectual property protection"
Licenses allow the uyer to use the product
ut restrict duplication or distriution"
Licenses #ay e two asic types:
/hrink-wrap or reak-the-seal licenses Click wrap licenses where the user is re
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4he copyright law protects original $or#s o$ epression +e"g"'
e-ooks, ut not ideas $ro# eing copied y others $or an
initial period o$ ti#e at which the #aterial is sold"
4he Jo Electronic 4he$t !ct +JE4' A, presents copyright
protection $or co#puter content and i#poses penalties $or
in$ringe#ent"
4he AD igital Millenniu# Copyright !ct +MC!' AD,contains se.eral stipulations:
- )rotects Internet /er.ice )ro.ider +I/), $ro# acts o$ userin$ringe#ent"
- Cri#inali(es the circu#.ention +getting around, o$so$tware protections"
- Co#plies with international standards $or copyrighted
#aterial"
Copyr igh ts
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d $ i
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I I I- %reedo# o$ Epression
%reedo# o$ epression is protected y the %irst
!#end#ent"
Internet technology has resulted in what #any consider
inappropriate or untargeted types o$ consu#er contact"
/pa# is the #ass distriution o$ unsolicited electronic #ail"
Many internet users elie.e that spa# steals their resources +spa#
costs co#panies around illion a year in anti-spa# *lters' new
e
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4he internet pro.ides opportunities $or
$alse appearance or state#ent:
/poo*ng is the use o$ e-#ail or We sites to
#i#ic indi.iduals or corporations"
%raud is the use o$ trickery and $alse
clai#sHdata to otain pro*t"
I- 6se o$ ata & Its Collection
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6se o$ ata & Its Collection +con,
!nother issue is phishing which is the practice of
sending fraudulent that appear to come from
a trusted- legitimate source and request
personal information for the purpose of
committing identity theft. )hishing #essages
will o$ten co#e $ro# *nancial *r#s' like Citiank
and #ay direct .iewers to an authentic-looking
wesite to trick the# into gi.ing personal
in$or#ation including account nu#ers and
passwords"
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)rotection o$ children and strong senti#ents against pornography
)assing legislation that will sur.i.e court challenges has pro.ed
diNcult:
Co##unications ecency !ct struck down +unen$orceale,
Children9s 3nline )rotection !ct struck down +ut still e
considered y lower courts,
Children9s Internet )rotection !ct sustained y /upre#e Court
+re
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I - 0o.ernance
)ri#ary
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0o.ernance +con,Who 0o.erns E-co##erce and the InternetG
Currently we are in a #ied #ode policy
en.iron#ent where sel$-regulation' through a
.ariety o$ internet policy and technical odies'
co-eists with li#ited go.ern#ent regulation"
Jot true that Internet cannot e controlled" In
$act' Internet can e .ery easily controlled'
#onitored' and regulated $ro# a central location
+such as done y China' /ingapore' etc","
I I 4 a a t i o n
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I I - 4 a a t i o n 4he Internet has created a world without orders" Consu#ers can
purchase goods and ser.ices $ro# around the world" !s a
consu#er' I can go online' co#parison shop $or whate.er I want P
a co#puter' a car' a ook' or whate.er P and #ake #y
purchases' all ta-$ree +unless the .endor has a physical presence
in #y state," 4rying to estalish a ta syste# that takes into
account the di1erent Furisdictions' ta rates' the di1erent product
de*nitions' and which products are suFect to taation is a great
challenge that could signi*cantly i#pair the aility o$ large and
s#all dotco#s to #ake #oney or e.en to operate"
't is unli+ely that the issue of 'nternet taation will have
been resolved by the time you read this presentation