Case #5

Privacy for Sale

Q1) Apply the guideline for ethical analysis to the failure to protect the privacy of individuals. Ans) Computerization has made everyone's private life an open secret. The issue of privacy looks as though it's going to be a big one in the next few years and justifiably so. The thesis of this wide-ranging--if somewhat paranoid--survey is that there is a need of new laws on internet to protect its consumers privacy against the nowoverwhelming powers of computers and other technology. Several studies have found that only 50% of companies surveyed have privacy policies; even though most have websites of the company that do post of the privacy policy on their websites, more than half do not monitor their sites to make sure they are there to their policies. Yahoo! Claimed it had not loosened its privacy policy but only made it more explicit & that it would focus primarily on selling its own services rather than those of its advertisers. The Jupiter research report found a similar problem with consumers. About 70% of online consumers claimed that they are concerned about online privacy, but only 40% say that they have read the privacy statements on websites. Only one-third of one percent of Yahoo! Users abandoned Yahoo! After it announced its new privacy policy. Q2) What legal or business steps do you think should be taken to protect the privacy of customers using the internet? Ans) BUSINESS STEPS: Safe web have offered products that enable users to surf the web anonymously, but customers have been reluctant to pay for such technologies. A few companies, such as HP install this software on the new computers they sell. Other companies also purchase the software so they can maintain privacy in their communications with their own remote employees, but consumers remain unwilling to purchase this software. Use of privacy protection tools can also help in order to maintain privacy while surfing webs like BHO Cop AdStract those blocking ads that pop up based on users profiles and prevents ads from collecting or sending information. Also Microsoft Internet Explorer 5 and 6 Cookie Crusher that block or limit cookies from being placed on the users computer.

LEGAL STEPS: On line services providing companies must follow these rules of FTCFIPP: 1. Notice/ Awareness) Website must disclose their information practices before collecting data. Includes identification of collector, uses of data, nature of collection, consequences of refusal, and steps taken to protect confidentiality, integrity, and quality of data. 2. Choice/Consent There must be a choice regime in place allowing consumers to choose how their information will be used for secondary purposes other than supporting transaction, internal use transfer to third parties. 3. Access/ Participation Consumers should be able to review and contest the accuracy and completeness of data collected about them in a timely inexpensive process. 4. Security: Data collector must take responsible steps to assure that consumer information is accurate and secure from unauthorized use. 5. Enforcement: There must be in place a mechanism to enforce FIP principles. This can involve self regulation, legislation giving consumers legal remedies for violations, or federal statutes and regulations.

Case#6
What can be done about Internet Credit card theft?
Q1). What management & business problems have been created by credit card theft over the iternet? Ans.Management Problem: A no. of organizations that are profiting from e-commerce,are buying and selling their products globally through both websites &e-mail. Management trying to keep its information and transactions secret. Payments occurs through credit card using online services. Problem arises here the credit cards no. being stolen there by the hackers, who are capable of obtaining credit cards no. breaking into the computer systems of online merchant and resale that no.s to others firm as a supplier. This creat a great problem for management how to build privacy for there customer in order to save there personal and financial information.

Business Problem:
As its indicated in the case that Internet retail merchant face a loss of about $1 billion anually (recent survey by Celent Communications, a market research firm) Offcourse when customers using online services for shopping finding credit card theft activities on

internet they prefer to buying by visiting in market, this cause decline in sale on internet. Q2). What measures can be taken to stop this illegal action? Ans. The Federal Burea of Investigation (FBI) & other organizations policing & trying to reduce the fraud use of credit cards. Hackers using different chat rooms and websites to communicate with their customers, and protecting themselves by switching websites locations, chat rooms & e-mail addresses very often. Its quite difficult to locate them and then stop and punish them as its a very complex and slow process. Some other measures are: When personal information is held within a computer, ensure that it can only be accessed and tracked by authorized personnel using passwords and is protected with an appropriate level of security/fire walls. When the information has been transferred to the computer, any handwritten information should be shredded. Shred customer personal or account information and receipts before discarding them. Consider keeping shredders within reach of those employees who handle personal/account information on a regular basis. Create policies to restrict the handling of customer information to a limited number of employees.