When using the Internet and E-Commerce, it is important to remember that there are many legal and ethical issues to consider. According to Turban et al. (2002, p644) when it come to legal issues, laws are enacted by governments and developed through case precedents (common law). Laws are strict, legal rules, governing the acts of all citizens within their jurisdictions. Someone who breaks the law has done something illegal and can be held liable for punishment by the legal system.
On the other hand, "ethics is a branch of philosophy that deals with what is considered to be right and wrong" (Turban et al. 2002, p.644). However, what is unethical is not necessarily illegal unless it overlaps with activities that are also illegal. Society will agree on what is considered right and wrong.
In a world of E-Commerce, companies using Web sites to conduct business, need to adhere to the same ethical standards that other businesses follow. According to Schneider (2003, p.308) businesses that fail to adhere to these ethical standards will suffer the consequences that all companies suffer. These include; a damaged reputation and long-term loss of trust that can result in loss of business.
While E-Commerce opens up a whole new world of unregulated activity, the definitions of right and wrong are not always clear. People engaging in E-Commerce need guidelines as to what behaviours are reasonable under any given set of circumstances (Turban et al. 2002, p.644). However, the differences in cultures throughout the world have resulted in different expectations about ethical and legal issues associated with E-Commerce. What is unethical in one culture may be perfectly acceptable in another. According to Turban et al. (2002, p.644) many Western countries have a much higher concern for individuals and their privacy than do some Asian countries. Many European countries have laws that prohibit companies from exchanging consumer data without the express consent of the consumer. However, in Asia, more emphasis is placed on the benefits that information about consumer behaviour provides, to society, rather than on the rights of the individual.
Many companies and professional organisations develop their own codes of ethics as a guide for its members. Mason et al (cited in Turban et al. 2000, p.343) categorised ethical and legal issues into privacy, intellectual property rights, free speech versus censorship and consumer and merchant protection against fraud.
Privacy: the collection, storage, and dissemination of information about individuals. Internet users in many countries rate privacy as their first or second top concerns.
Intellectual property rights Ownership and value of information and intellectual property. Rights to intellectual property are easy to violate on the Internet, resulting in billions of dollars of losses to the owners of the rights.
Free speech versus censorship: The issue of attempting to control offensive, illegal, and potentially dangerous information on the Internet is controversial. This collides with rights of free speech.
Consumer and merchant protection against fraud: It is easy to reach millions on the Internet and to conduct different types of E-Commerce-related fraud. The success of E-Commerce depends on the protection provided to consumers and merchants (Turban et al. 2000, p.343).
The issue of online privacy is continuing to evolve as the Internet and the Web continues to grow. "The FTC is serious about enforcing online privacy concerns, and Congress continues to debate instituting online privacy regulations such as the proposed Consumer Privacy Protection Act. Web data collectors are forced to dedicate ever-increasing attention and resources to privacy protection" (Arney & Garrison, 2004). While many organisations are active in promoting privacy rights, many are not.
"Advertising on the Web should include only true statements and should not omit any information that could mislead potential purchasers or wrongly influence their impressions of a product or service" (Schneider, 2003, p.307). Legal and ethical issues play a major role in the world of E-Commerce and need to be taken seriously to prevent any problems from occurring.
===Reference List:===
1. Arney, N. & C. Garrison. (2004, July 22). Boulder County Business Report, retrieved from Proquest Database on October 18, 2004.
2. Consumer Data Industry Association. 2004 CDIA. http://www.cdiaonline.org/ (accessed October 12, 2004).
3. Miraglia, E. 1996. What Is Culture http://www.wsu.edu:8001/vcwsu/commons/topics/culture/culture-index.html (accessed October 14, 2004).
4. Schneider, G.P. 2003. Electronic Commerce. 4th Ed. Canada: Thomson Course Technology. ISBN 0619159553.
5. Turban, E. King, D. Lee, J. and M. Chung. 2000. Electronic Commerce: A Managerial Perspective. 1st Ed. USA: Prentice Hall. ISBN 0139752854.
6. Turban, E. King, D. Lee, J. and D. Viehland. 2002. Electronic Commerce: A Managerial Perspective. 3rd Ed. USA: Prentice Hall. ISBN 0131230158.
7. WIKIPEDIA: The Free Encyclopedia. 2004. www.wikipedia.org (accessed October 2, 2004).
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Melanie Mackrodt 17:19, 27 Oct 2004 (EST)
