Virtual Business - Essay Example

Virtual Business Virtual business has enjoyed a considerable share of the boundary-less-ness that has promised significant advantage for online shoppers. Nevertheless, the increased usage of virtual business has impacted – to a certain degree – consumer rights, confidentiality of data and consumer privacy. Existing anxieties has resulted to the digital divide that has appreciably affected policy creation regarding pertinent privacy issues. The increased internet usage, notably Information Communication Technologies, has shaped a number of attributes in e-business. Although its introduction has been met by an amalgamation of pessimism and optimism, it is anticipated that a proffered approach to legislation consolidates these relevant issues. The increased use poses a significant threat to the users that are dependent on it (Andoh-Baidoo, 2010). In this regard, this paper seeks critically to evaluate the legislative implications affected by security and market attributes of internet usage. The paper draws upon divergent views and empirical findings that pertain to consumer privacy and affiliated issues. Whether e-commerce has brought considerable advantages, or augmented business penetration, divergent issues have affected its viability. Arguably, its implication in making proffered decision that pertains to legislative concerns is questioned. Introducing new approach to e-business, has in most cases questioned concerns of privacy and commercial laws. Virtual spaces have offered autonomous shopping, where shopper can conveniently shop. However such improvements have raised security concerns. The privacy laws are relevant in addressing key issues that pertain to the less noisy environment – where the regulations are not limited to managerial implications. Consumer rights and confidentiality of data has been considerably impacted in varied degrees. Evidently, e-commerce has presented the need to submit personalised data that increases their susceptibility to fraudulent activities. Arguably, commercial laws have questionable attributes that fail to addresses the need for consumer protection. These laws need to be designed to address such imperative issues. Increased cyber crimes have increased the number of frauds related cases to more than half a billion in the US alone. Additional to the e-business issues, is a trend that has aroused consumer fear relating to consumer privacy and confidentiality (Whitley, 2010, p.110). Consumer research shows that the privacy acts as a principle factor that has discouraged shoppers from online shopping. The key issue being addressed is privacy, where countries ought to follow their privacy approach or alter this approach to combat such disadvantages effectively. It is argued that the incorporation of the assurance seals has been beneficial over the years, and the affiliated websites should be granted wisdom as to whether to consolidate such practices1. Most individuals support the right to privacy under different regimes. Nevertheless, the scope of the seals is limited. Hence, they should be committed to addressing relevant issues such as proffered privacy policy, as well as, the consolidation of an opt-in2 provision (Goldsmith, 2010), p3. By 2001, it was realised that little government regulations existed in many parts of the world, notably the U.S., which indicated the importance of addressing consumer rights. Privacy disclosure with respect to e-commerce is subjected to non regulated platforms, in line with financial announcements. Studies of privacy standards, audit demand and disclosure proceedings are instrumental, to a certain degree, in effectively presenting the effects of a competitive command and policy setting for significant e-commerce practices (Drori, 2010,). Legally mandate audits lacked from the thriving e-commerce business; since e-commerce sites were not subjected to privacy policies that governed audit approaches. E-commerce has a profound effect on the concept of risk, demand for the assurance services and control in the organisation4. Privacy standards, disclosures and policies aimed towards the standardization of e-commerce have developed a competitive platform that lacks regulations regarding different sanctions (Perkins, and Neumayer, 2011). On the other hand, Goldsmith (2010) asserts that the current state of cyber security consolidates various aspects of market depreciation. The global economy is dependent on internet since it propels major functions. Manifestly, internet failures are characterized by low dependability hence compels the users to develop systems that counter such attacks (Goldsmith, 2010). The overarching problem in devising appropriate systems is witnessed through creating ways that increases the government’s role in enhancing safety in digital information (Quigley & Roy, 2010). Governments should improve their enforcement on fair and thriving markets, but should be effective in procurement decisions and setting policies that govern the fairness (Quigley & Roy, 2010). The sufficiently unstructured Internet Protocol (IP) protection through national lines, presently presents dominance by three countries namely; Germany, United States and Japan. These countries contribute about 57 percent of the global patent acquisition by non-residents; who need the IP protection since their markets cannot account for proffered enforcement approach (Perkins, and Neumayer, 2011). With an increased number of countries addressing the need for innovation, the countries that contribute to the strict IP conformance and an increased integration in the legal systems have increased too.5 The IP regime linked towards the stability of monopoly and disclosures, as well as, right to access and protection as incentives. Evidently, no patenting has been created to date regarding the full tension emanating from this aspect (Quigley, 2011). In a technologically enhanced and improved society, it is imperative to deal with first mover advantages; legislators have to deal sufficiently with network effects and handle attempts by private entities to open industry standards. Control with respect to standards has become an imperative source of acquiring competitive advantage (Quigley, 2011, p 78). These created a prevailing case against Microsoft Company. Most government’s roles have to be re-evaluated, given the main justification of misdemeanour amongst a limited numbers of abusers. Given the increased consumer awareness regarding privacy, numerous consumers have realised the increased adoption of privacy standards in collective market share (Quigley, 2011, p 87)6. In addressing privacy implications, consistent and effective policies need to be developed in this regard. FTC suggests the need to increase regulations in e-commerce privacy laws (Federal Trade Commission, 2011). In its report, it cited that a limited number of the business sites meet the regulations standards (Federal Trade Commission, 2011). As such, a split vote was recommended that proposed the need for all consumer-oriented commercial websites to comply with the accepted fair information standards. From the study conducted, it is proffered to incorporate voluntary actions done by government, whenever such actions are successful in addressing these problems (Heinonen, Holt & Wilson, 2012. The consolidation of privacy seals is garnered towards the protection of internet’s privacy rights. In U.K. for example, strict legal laws do not result in proffered compliance to privacy laws. More often than not, most of the websites in the UK are not bound by effective compliance policies as opposed to the U.S. laws. This attributes the need why a voluntary action needs to be implemented (Quigley, 2010). Nevertheless, this approach does not explicitly address the issues addressed by rogue misdemeanour. Internet websites that do not adhere to the opt–out approach do not lose their privacy seals. In order for the voluntary approach to work, it is advised that internet sites that blatantly violate such principles should have their licenses (seals) revoked (Goldsmith & Hathaway, 2010). Criticism against this approach suggests the there are no judgments regarding these policies. It is argued that a consensus exists regarding ethical theory against accepted privacy principles. Evidently, it is believed that the consumer’s autonomy is protected in a market that offers the opportunity to conduct business and offer personally Identifiable Information (PII) that is subject to protection by the assurance policies and privacy policies. For this reason, it would not be required for consumers to purchase from internet sites that have a company seal. The global technological advancement is tantamount to the consolidation of privacy assurance seals; where certain conditions will hold when the seals are granted and maintained. The opt-out7 policy is therefore regarded as the most proffered approach in creating consumer choice. Tentatively, the opt-out policy is efficient in addressing privacy assurance seals. It is argued therefore that commercial laws, and consumer privacy be safeguarded against the increased susceptibility to divergent changes in e-commerce. Virtual spaces ought to be developed in ways that protects the consumer’s integrity and create proffered e-business. Reference List Drori, S., 2010. Globalization and Technology Divides: Bifurcation of Policy between the ‘‘Digital Divide’’ and the ‘‘Innovation Divide.Sociological Inquiry, Vol. 80, No. 1, 63-91. Goldsmith, J., & Hathaway, M., 2010. The cyber security changes we need. The Washington Post.Accessed at . Federal Trade Commission, 2011. Consumer Sentinel network data book for January–December 2010. Accessed at: . Heinonen, J., Holt, T., & Wilson, J., 2012. Product Counterfeits in the Online Environment: An Empirical Assessment of Victimization and Reporting Characteristics.International Criminal Justice Review 22: 353 Stein, J., 2012. CIA’s secret fear: high-tech border checks will blow spies’ cover. 12 April. Available at: . Perkins, R., and Neumayer, E., 2011. Is the Internet Really New After All? The Determinants of Telecommunications Diffusion in Historical Perspective.The Professional Geographer, 63(1), 55–72. Quigley, K., Roy, J., 2011. Cyber-Security and Risk Management in an Interoperable World: An Examination of Government Action In North America. Social Science Computer Review, 30: 83. Whitley, E., &Hosein, G., 2010. Global Challenges for Identity Policies. Basingstoke: Palgrave Macmillan. Read More