Many consumers are sceptical or suspicious about the functional mechanisms of electronic commerce, its intransparent processes and effects, and the quality of many products that are offered online. This paper analyses the role of consumer trust as a foundation for the diffusion and acceptance of electronic commerce. Starting from a functional perspective trust is seen as distinct but potentially coexisting mechanism for reducing the uncertainty and complexity of transactions and relationships in electronic markets. The analysis focuses on conditions of e-commerce (...) transactions that are relevant for the formation of trust problems. Drawing on the theory of information two types of uncertainty are described: system-dependent and transaction-specific uncertainty. Finally different activities and instruments are described and categorized that Internet firms can use to establish and maintain trust. (shrink)

The Internet presents opportunities for corporations to efficiently build their brands online and to enhance their global reach. But there are threats as well as opportunities, since anti-branding and free-riding activities are easier in cyberspace. One such threat is theunauthorized incorporation of a trademark into a domain name. This can lead to trademark dilution and cause consumer confusion. But some users claim a right to use these trademarks for the purpose of parody or criticism. Underlying these trademark conflicts is the (...) familiar tension between property rights and free speech rights. While some trademark scholars are reluctant to consider a trademark as property, we find strong support for the property paradigm in Hegel’s philosophy. Assuming that a trademark is an earned property right, we propose that a trademark owner should be allowed to control the permutations of its trademark incorporated into domain names unless a reasonable person would not confuse that domain name with the company’s mark. But we also conclude that there must be latitude to employ a domain name for negative editorial comment, so long as the source and purpose of that domain name is plainly apparent. (shrink)

The Internet presents opportunities for corporations to efficiently build their brands online and to enhance their global reach. But there are threats as well as opportunities, since anti-branding and free-riding activities are easier in cyberspace. One such threat is theunauthorized incorporation of a trademark into a domain name. This can lead to trademark dilution and cause consumer confusion. But some users claim a right to use these trademarks for the purpose of parody or criticism. Underlying these trademark conflicts is the (...) familiar tension between property rights and free speech rights. While some trademark scholars are reluctant to consider a trademark as property, we find strong support for the property paradigm in Hegel’s philosophy. Assuming that a trademark is an earned property right, we propose that a trademark owner should be allowed to control the permutations of its trademark incorporated into domain names unless a reasonable person would not confuse that domain name with the company’s mark. But we also conclude that there must be latitude to employ a domain name for negative editorial comment, so long as the source and purpose of that domain name is plainly apparent. (shrink)

Consumer surveys indicate that concerns about privacy are a principal factor discouraging consumers from shopping online. The keypublic policy issue regarding privacy is whether the US should follow its current self-regulation course (where the FTC encourages websites to obtain private “privacy web-seals”), or whether a European style formal legal regulation approach should be adopted in the US.We conclude that the use of assurance seals has worked reasonably well and websites should be free to decide whether they have aprivacy seal or (...) not. Given the narrow scope and the wide variety among these seals, we do argue that the seals should commit themselves to the key features of a good privacy policy and that an opt-in provision be required. We believe that insufficient evidence exists to propose formal Government mandated Internet privacy regulation. (shrink)

Drawing on William F. Ogburn's cultural lag thesis, an inherent conflict is proposed between the rapid speed of modern technological advances and the slower speed by which ethical guidelines for utilization of new technologies are developed. Ogburn's cultural lag thesis proposes that material culture advances more rapidly than non-material culture. Technology is viewed as part of material culture and ethical guidelines for technology utilization are viewed as an adaptive aspect of non-material culture. Cultural lag is seen as a critical ethical (...) issue because failure to develop broad social consensus on appropriate applications of modern technology may lead to breakdowns in social solidarity and the rise of social conflict. Reasons for cultural lag between technology and ethics include the social structural and market conditions under which each are developed. The thesis is illustrated by reviews of technological trends involving computer-telecommunications electronics and bio- genetic engineering, and the implications of these and other technologies for privacy rights, electronic commerce, control of essential resources and social definitions of life are discussed. (shrink)

This manuscript reviews the background of Radio Frequency Identification (RFID) as well as the ethical foundations of individual privacy. This includes a historical perspective on personal privacy, a review of the United States Constitutional privacy interpretations, the United Nations Declaration of Human Rights, European Union Regulations, as well as the positions of industry and advocacy groups. A brief review of the information technology ethics literature is also included. The RFID privacy concerns are three-fold: pre-sales activities, sales transaction activities, and post-sales (...) uses. A proposal to address these privacy concerns is detailed, generally based on past philosophical frameworks and specifically on the Fair Information Practices that the Federal Trade Commission has outlined for the electronic marketplace (e-commerce). It is proposed that by application of these Fair Information Practices, the major privacy issues of RFID can be addressed. (shrink)

The speed and degree to which e- commerce is infiltrating the very fabric of our society, faster and more pervasively than any other entity in history, makes an examination of its ethical dimensions critical. Though ethical lag has heretofore hindered ourexplorations of e- commerce ethics, it is now time to identify and confront them. In this paper we define e- commerce and describe thecharacteristics that set it apart from traditional brick and-mortar business. We then examine the ethical foundation of e- (...) commerce, focusing on the question, “Is there a special e- commerce ethics?” Our answer is “no.” We support our answer by showing that the current issues in e- commerce ethics and brick-and-mortar business are fundamentally the same, but that e- commerce issues have different manifestations and scope. We then demonstrate that ethical principles and rules in e- commerce and brick-and-mortar business are fundamentally the same, but have different manifestations at the most specific level. We elucidate this point by discussing the use of personal information and the opt-in, opt-out debate. We conclude with a call for research on trust, a key value in the success of e- commerce. (shrink)

As use of the Internet has increased, many issues of trust have arisen. Users wonder: will may privacy be protected if I provide information to this Internet vendor? Will my credit card remain secure? Should I trust that this party will deliver the goods? Will the goods be as described? These questions are not merely academic. A recent Boston Consulting Group study revealed that one out of ten consumers have ordered and paid for items online that never were delivered (Williams, (...) 2001). This year consumers filed around 11 000 complaints with the Federal Trade Commission alleging auction fraud, a figure up from the 107 lodged in 1997. It is no wonder that people are increasingly worried about whom to trust in online interactions. This paper explores the conditions under which online trust thrives and looks at examples of best and worst corporate practices. Online trust issues arise in a wide array of forums - chat rooms, news postings, e-catalogues, and retail transactions, to name a few. This paper focuses primarily on the online retail market, but the analysis applies to informational and entertainment sites as well. (shrink)