Sunday, April 13, 2008

Article summary: Erosion of Trust--E-commerce and the Loss of Privacy

This article I found relates to Chapter 4; about how the information system leads to an ethical dilemma. It describes the development of trust by the consumer when doing e-business, and how to maintain it.

Some of the concerns expressed are the usage of cookies and web bugs that collect personal information. This information could be private information or sensitive, opening the possibility for fraud. With the information obtained by e-business, a company must develop a strong trust with consumers by assuring quality and protection.

According to The Federal Trade Commission (FTC), the self-regulation in the United States is failing to provide adequate protection for consumers. Legislation sought by the FTC would be based on four core elements: notice, choice, access and security.
· Clear notice to consumers of what information is collected and use.
· Choice as to how this information will be used for purposes beyond which it was originally collected
· Accessing of the collected information including a reasonable opportunity to correct inaccuracies and delete information.
· Reasonable security precautions to safeguard information collected about consumers.

Concerns over privacy in the US have been further deteriorated by the attempted sale of consumer information by dot-coms. With trust being the core foundation, lack of privacy is threatening the future of e-business. On one hand, e-commerce facilitates the gathering of information; however, many consumers consider such usage of collected information to be an invasion of their privacy.

There is neither a simple solution nor a single view on whether violation of privacy is ethical or not.

Information Systems Control Journal, Volume 3, 2001
By Jonathan D. Andrews, CA, CISA, FCA

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