The internet has revolutionized commercial activities, bringing a major technological advancement. E-commerce has completely transformed the business world by providing cost-effective opportunities for global transactions from any location. However, concerns about privacy are hindering the growth of e-commerce. According to Weston’s (1967) definition, privacy relates to an individual’s capability to manage their personal information and how it is used.
Privacy is protected by multiple laws and legislations as it is deemed a fundamental human right. One such law is the Human Rights Acts (1998) which includes Article 8, ensuring the right to privacy in personal and family life, home, and correspondence. In E-commerce, privacy becomes a significant consideration.
In online transactions, sharing sensitive information not only affects personal privacy but also raises security concerns. Thus, E-commerce security plays a vital role within the broader Information security framework. It encompasses elements like Data security and Computer security (Neurotransmitter and Charm, 2013).
According to Stateless (2007), computer threats can be categorized into two groups: insiders and outsiders. Insiders refer to factors or personnel within the organization, while outsiders consist of hackers, cyber criminals, or individuals not directly connected to the company. These threats not only endanger businesses and consumers but also create new security challenges for sectors like banking through the integration of online electronic payment systems.
One of the main reasons why online transactions can be risky is because consumers often lack knowledge about necessary precautions. This lack of awareness can lead to potential problems for many buyers. In particular, this article examines BBC (Business-touchstones) Commerce, an online platform where businesses sell products to customers. It explores various ethical, social, professional, and legal issues that arise in this context by considering perspectives from consumers, IT professionals, and business owners.
Ethics in moral philosophy is a complex topic, requiring ethical principles and theories to guide decision-making (Duquesne, Jones, Rash and Diaper, 2005). This analysis will examine the issues from the perspective of two influential ethical theories: Kantian, which determines moral rules as inherently good or bad without any conditions attached, and Consequentiality, which focuses on the consequences of actions rather than the actions themselves (Duquesne, et al. 2005). Privacy violation is a significant ethical concern in E-commerce. Article 12 of the Universal Declaration of Human Rights states that individuals should not be subjected to arbitrary interference with their privacy, family, home or correspondence nor to attacks on their honor. Sharing consumer personal data without consent poses a threat to privacy and may involve third parties.
From a business owner’s perspective, Consequentiality is advantageous. Consumer behavior studies assist companies in enhancing marketing strategies and trends, including behavioral marketing. This is vital for business success and improves the overall online shopping experience. However, ethical considerations arise from this viewpoint and will be further analyzed in relation to legal implications. Price discrimination is another ethical concern in online shopping.
According to the Universal Declaration of Human Rights, which prohibits discrimination based on factors such as race, sex, and religion, one could argue that dynamic pricing – wherein sellers charge varying prices to different customers for the same product – is unethical. Nonetheless, proponents contend that if these price differences are grounded in reasonable business practices rather than discriminatory motives, they are permissible. In a 2000 experiment, Amazon provided different prices to purchasers depending on their purchasing history. Considering the rapidly evolving nature of the industry, it is crucial for employees to keep abreast of new technological advancements.
Section 2(c) of the British Computer Society code of conduct (2001) states that professionals must continuously enhance their knowledge, skills, and competence. This requires keeping up with technological advancements, procedures, and standards. Non-compliance with this code may lead to security breaches.
Section 3(d) of the BCC code of conduct outlines that it is strictly prohibited to disclose or use confidential information for personal gain or benefit a third party without permission from the Relevant Authority or as required by Legislation. This constitutes a serious violation of professional conduct, wherein employees exploiting customer data for personal gain or assisting external threats in obtaining it are considered grave offenses. Engaging in such misconduct can lead to legal repercussions.
The lack of clear privacy policies on numerous websites is a significant factor behind the prevalence of legal problems in E-commerce. As stated in Chapter 29 Section 7 of the UK Data Protection Act 1998 (ADAPT), individuals have the entitlement to be informed by any data controller regarding the handling of their personal data. Hence, it is against the law for business owners to reveal a customer’s personal information without their awareness or consent.
A study conducted by the US Berkeley School of Information (Gomez, et al. 2009) found that many websites share confidential user data with ad serving companies. This violates Section 2 of the Computer Misuse Act (1990), which considers unauthorized access for the purpose of committing or aiding additional offenses as an offense in itself. The breach often occurs due to external threats, such as hackers and cyber criminals, who use various strategies to gain illicit entry into system databases. Their motives for this unauthorized access include extortion, manipulation, and financial fraud, among other objectives.
Jurisdiction is the primary legal issue in online business. Disputes may occur when a Chinese company sells a product to an individual in England, as it raises questions about the applicable laws of each country. From a societal standpoint, e-commerce has produced both favorable and unfavorable outcomes. On a positive note, it has generated employment prospects within the IT industry and enhanced convenience and time efficiency in shopping, especially for disabled individuals.
Despite the reduced start-up costs that E-commerce has facilitated for businesses, it has also resulted in adverse consequences. These include the gradual disappearance of retailers, leading to increased unemployment rates and challenges in supply chain management. Furthermore, there is a growing occurrence of crime incidents like financial fraud and identity theft. Consequently, individuals are becoming more vigilant when participating in online transactions due to concerns over the security of their personal information.
Many online shoppers have discovered that the privacy policies on most websites are written in complex legal language, making them difficult to understand. As a result, many users do not know if these policies truly protect their privacy. Additionally, e-commerce businesses face challenges due to cultural and religious barriers. For example, selling alcohol in Muslim nations goes against religious laws that prohibit its consumption. This creates a dilemma when deciding which products to target for specific markets.
Despite advancements in E-commerce, concerns about privacy and security continue to arise. Addressing privacy is crucial because different stakeholders have differing views on data. Customers believe it is their right to have control over their personal information. However, business owners and companies see personal data as valuable assets. Fortunately, some issues can be resolved by implementing appropriate measures.
Organizations should implement ethics training programs to educate employees and establish clear responsibilities and duties to prevent incompetence. This will effectively reduce the occurrence of unnecessary intrusions from external threats. Additionally, privacy policies should be enhanced to facilitate transactions and grant buyers greater control over their personal data. It is crucial for organizations to incorporate security measures into the architecture, design, and implementation of their system.
