Ch07 E-Business and E-Commerce Part 3

CHAPTER
7
E-Business and E-
Commerce
>>>
1. Describe benefits of E-Commerce
2. Describe limitations of E-Commerce
3. Identify the ethical and legal issues related to
electronic commerce, providing examples.
1. Benefits of E-Commerce
2. Limitations of E-Commerce
3. Ethical and Legal Issues in E-
Business
Benefits of E-Commerce
• Organization Benefits
• Customer Benefits
• Benefits to Society
• Organization Benefit: National and international
markets more accessible by lowering the costs of
processing, distributing, and retrieving information
• Customer Benefit: Being able to access a vast
number of products and services, around the clock
• Benefit to Society: The ability to easily and
conveniently deliver information, services, and
products to people in cities, rural areas, and
developing countries
• National and international markets are
more accessible
• Lowers cost of processing, distributing,
and retrieving information
• Provides access to a vast number of
products and services 24/7
• Deliver information, services, and products
to people in cities, rural areas, and
developing countries
Potential Benefits of Social
Commerce
E-Commerce Opportunities
• E-Agriculture and food processing

• Green Energy
• Geo-localisation systems and Domotics
• Fintech – Finance Technology: Blockchain, Cryptocurrency,
etc.
• Cloud computing
• E-health
• Data an knowledge management, Business Intelligence,
Artificial Intelligence, Big data, etc.
• Data and Information Security
• Social Computing
• E-Governance
• Etc.
Limitations of E-Commerce
• Technological Limitations
• Non-technological Limitations
Limitations of E-Commerce
Technological Limitations:
– Lack of universally accepted security standards
– In less-developed countries, telecommunications
bandwidth often is insufficient, and accessing the Web is
expensive
Non-technological Limitations of E-Commerce:

– Perceptions that EC is insecure
– EC has unresolved legal issues
– EC lacks a critical mass of sellers and buyers
7.4 Ethical and Legal
Issues in E-Business
• Ethical Issues
• Legal and Ethical Issues Specific
to E-Commerce
ETHICS
You always want

your actions to fall in
Quadrant I – both
ethical and legal.
Ethical Issues
• Threats to Privacy
• Potential Job Loss
Ethical Issues
• Threats to Privacy:
– Business makes it easier to store and transfer personal information
– To protect the buyers’ identities businesses must frequently use encryption to
provide this protection
– Tracking: individuals’ activities on the Internet can be tracked by cookies that
store a user's browsing history on their PC’s hard drive
– Antivirus software packages must routinely search for potentially harmful
cookies
• The use of EC may eliminate the need for some of a company’s
employees, as well as brokers and agents
– How should the company handle the layoffs?
– Should companies be required to retrain employees for new positions?
– Should the company compensate or otherwise assist the displaced workers?
Legal and Ethical Issues Specific to E-
Commerce
• Fraud on the Internet
• Taxes and other fees
• Domain names
• Cybersquatting
• Copyright
Fraud on the Internet
• Stock promoters spread positive

false rumors to boost stock prices
• Auctions by both sellers and buyers.
• Selling bogus investments
• Setting up phantom business
opportunities
Taxes and Other Fees
1. Federal, state, and local authorities are now
scrambling to create some type of taxation
policy for e-business within their jurisdictions
2. Based on location, should electronic
businesses pay business license taxes,
franchise fees, gross receipts taxes, excise
taxes, privilege taxes, and utility taxes?
3. How should tax collection be controlled?
Domain Names, Cybersquatting, and Copyrights
• Domain Names: Considered legal when the person or business who owns
the name has operated a legitimate business under that name for some time
• Cybersquatting: Unauthorized registration and use of Internet domain
names that are identical or similar to trademarks, service marks, company
names, or personal names. The Anti-Cybersquatting Consumer Protection
Act (1999) permits trademark owners in the United States to sue for
damages in such cases
• Domain Tasting: Involves registering domain names (often in bulk) and
subsequently using the 5 day ICANN add grace period (AGP) to return
names that do not have high enough traffic to offset their registration cost.
This practice is similar to Domain Kiting
• Copyright: Intellectual property is protected by copyright laws and cannot
be used freely which is difficult to enforce online
Domain Names, Cybersquatting, and Copyrights
• Examples of Cybersquatting: Click this link

• Examples of Violation of Copyright in the Cyberspace
o Plagiarism: Technology improvements have made it
easier to reproduce content protected by copyrights.
Creating and distributing thousands of copies of books,
films, music, and other media is simple in the
cyberspace.
o Unlawful database use
o Unlawful use of software within computers
o Etc.

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CHAPTER

• E-Agriculture and food processing

Non-technological Limitations of E-Commerce:

You always want

• Stock promoters spread positive

• Examples of Cybersquatting: Click this link

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