Treasurys Consumer Best Practice Model - Essay Example

E-Law Question 1 1. Businesses working in the electronic commerce environment do not necessarily have to adapt to the “Treasury’s Consumer Best Practice Model” provisions” since it is a voluntary set of guidelines that have no enforcement procedures. Nevertheless, the adoption of this model especially for businesses in the electronic commerce environment is advantageous. Basically, this code of practice provides guidelines on how to ensure consumer protection in electronic commerce without imposing trade barriers. Thus, adopting the code of practice provides both businesses and consumers substantial benefits. This model incorporates a comprehensive coverage of essential electronic consumer issues such as security, marketing, advertising, authentication, privacy, identification and the completion of transactions (Department of Treasury Australia 2000). Some of the benefits of adapting this model include the fact that, it provides consumers with protection from exploitation. When dealing with an overseas market, adopting this code of practice is beneficial in the sense that it guarantees consumer protection by setting out guidelines to businesses on how to ensure consumer sovereignty by providing information to consumers on what businesses ought to do when dealing with their online consumers. Adopting this code of practice can help to enhance consumer confidence especially in business to consumer electronic commerce. It also offers guidance to consumers and industry on some of the effective elements of self-regulatory frameworks that are effective (Campbell 2006; Connolly 2012). Moreover, this model offers guidance on fair business practices particularly in relation to mechanisms of implementing contract terms, marketing, advertising, the disclosure of contract terms and conditions, disclosure of payment and security information, authentication mechanisms and the disclosure of business location and identity. In addition to this, adapting this code of practices especially when dealing with overseas markets can help businesses to implement effective and fair procedures when it comes to resolving disputes and addressing complaints. Generally the adoption of this model can help business to implement effective and fair businesses practices when it comes to dealing with their online consumers around the world. This in turn helps to enhance consumer protection and minimise consumer exploitation. The main disadvantage of adapting this model is that it lacks enforcement or built in complaint mechanisms. Thus it would be essential to incorporate enforcement or built in complaint mechanisms so as to aid in the enforcement and implementation of provisions set out in this model (Fitzgerald, Lim & Fitzgerald 2011;Connolly 2012). 2. Personally, I think it is necessary for the Federal Government to introduce mandatory codes of practice so as to combat unethical behaviours and business practices in the electronic commerce environment. This is mainly because the electronic business environment has many risks that expose consumers to fraudulent practices and other forms of exploitation (Fitzgerald, Lim & Fitzgerald 2011). By introducing mandatory codes of business practices in e-business, organisations will be bound to penalties under the Australian Consumer Law. Consequently, organisation that breach voluntary and mandatory codes will be subject to penalties stipulated under the Australian Consumer Law 2010. Some of these penalties include disqualification, public warning notices, redress for non-parties and a fine of $ 220, 000 for a person or 1.1 million for a corporate body. I think this is fair mainly because just like any other business, businesses operating in the electronic business environment should have mandatory codes of practice with penalties so as to enhance consumer protection and minimise consumer exploitation (Fitzgerald, Lim & Fitzgerald 2011; Australian Consumer Law 2010). Question 2 1. Foremost, as a senior officer, one of the measures that I would take in order to enhance a culture of privacy protection is training the staff in department on privacy laws and policies, the importance of privacy protection and the strategies that they can use in order to ensure privacy of client records. The staff within the department play a critical role in privacy protection thus it is essential to equip them with necessary skills on privacy protection and knowledge on privacy laws and policies and the significance of privacy protection (Fitzgerald, Lim & Fitzgerald 2011). Secondly, I would set goals and objectives on privacy protection and communicate these objectives and goals to the staff in the department. Moreover, I would develop and implement a risk management process that I would incorporate processes such as identification of privacy risks in the department, analysing privacy risks in relation to the causes, consequences and likelihood of occurrence. Subsequently, based on the result of the risk identification and analysis processes, I would develop and implement specific action plans to prevent, mitigate or minimise the identified privacy risks. In this case, I would implement measures such as data controls, purchase internet liability insurance and incorporate IT solutions in privacy protection. Lastly, I would institute a regular and continuous risk monitoring process to identify new risks, evaluate the effectiveness of risk management strategies and introduce new strategies of risk management (Privacy by Design 2012). 2. When creating a business website that deals with the personal information of consumers especially in relation to their health maintaining a high level of privacy and confidentiality over the health information or records of consumers is paramount. When it comes to dealing with patients’ health information some of the key issues that should be put into account include; what kind of patient data should be stored, how much patient data should be stored, who can access patient information , where patient information will be stored and terms of disclosure (Meingast, Roosta & Sastry 2006). Privacy Policy Health Solutions is committed to ensuring that our client’s privacy and confidentiality is protected and upheld at all times. When you sign up for our health services, we require that you provide basic personal information such as name, age, email address and location. Nevertheless, you can visit our website as an anonymous client. In some cases, we may require that you provide additional information in relation to your medical history so as to help us respond to your individual needs more effectively. We have put in place a variety of security measures so as to ensure that your information is protected. We do not sell, transfer or allow access of client personal information to third parties. In some cases, we may collect information about your visit to our website and subscription to our health services so as to provide statistical information to potential investors and advertisers. However, this information will not disclose any personal details of our clients. By using this website, you consent to our privacy policy. Question 3 1. The internet provides a platform for numerous business ventures nevertheless legal uncertainties in relation to jurisdiction is one of the key limitations of using the internet as platform for commerce. One of the main challenge that the internet presents as a commerce platform revolves around compliance with jurisdictional laws. Internet business transactions lack sufficient certainties when it comes limited exposure to legal risks. Laws that govern internet business transactions vary significantly depending on jurisdiction or national boundaries. Since business websites are accessible and function globally, there is likelihood that some business practices may be incompatible with laws in other jurisdictions. Thus the prospects of online business owners succumbing to legal liabilities are high. Commercial disputes are also inevitable especially in cases where jurisdiction laws and policies governing e-business are different. Moreover, many e-business transactions raise issues of compliance with relevant sectoral policies and public laws. Consequently, legislatures, judiciaries and governments continue to grapple with the questions of which laws are applicable in cyberspace. Furthermore, business owners often lack comprehensive understanding on which laws to follow, which rules govern business arrangements and which recourse to use in the course of dealing with disputes. As a result of these legal uncertainties in relation to jurisdiction the widespread adoption of the internet as an e-commerce platform is bound to be undermined (Geist 2001; Fitzgerald, Lim, & Fitzgerald 2011). 2. In order for electronic commerce to flourish there is need for international agreement on choice of law rules that are applicable to electronic commerce. Inconsistent jurisdictional and national legislations act as major impediments to internet commerce since they expose businesses to legal liabilities. Therefore, developing international trade laws for internet commerce will play a significant role in promoting the widespread growth of electronic commerce. Internet business transactions lack sufficient certainties since laws that govern internet business transactions vary significantly depending on jurisdiction or national boundaries. Due to the continuing uncertainties, there is evidently need for international trade laws for internet commerce so as to enforce consistent e-business codes of practice and minimise uncertainties that expose businesses to risks(Malawer 1999). Moreover, international agreement on choice of laws will help to promote global commerce since these laws will ensure the protection of business parties thus minimising liabilities. This will in turn encourage free trade and minimise trade barriers that are brought about by fraudulent and risky business practices. Basically suitable structures and laws are required in order to develop internet trade that is market –driven as an engine of promoting global commerce (Fitzgerald, Lim, & Fitzgerald 2011). 3. A critical look at US jurisdiction cases revolving around website businesses shows that Australia employs a more conservative approach when it comes jurisdiction whereas in the US jurisdiction is accepted on the basis of minimum contact. From some US jurisdiction cases we can learn that, the possibility that personal jurisdiction can be constitutionally exercised is directly proportionate to the quality and nature of commercial activity that a party conducts over the internet. To some extent, the courts have not been consistent in their approach since when it comes to business to consumer (B2C) business transactions conducted online the US government is opposed to consumer rights to sue in their country of origin. Instead, the government supports the seller to determine jurisdiction in (B2C) business transactions. Evidently, the inconsistent case decisions do not provide clear guidelines for businesses opting to use websites to do their businesses. Therefore, there is need for legislations that will clarify the application of relevant jurisdiction statues so as to ensure consistency in court decisions (Malawer 1999; Fitzgerald, Lim, & Fitzgerald 2011). 4. The cyberspace can be considered to be a lawless frontier mainly because there are many inconsistent laws governing this platform such that it is sometimes difficult to determine what is applicable and what is not. Despite the fact that, the cyberspace is a global platform that cuts across national and jurisdictional barriers, there are different and inconsistent laws that govern the cyberspace. Thus one can argue that the cyberspace is a lawless frontier since it lacks certainties when it comes to laws that govern it. On the other hand, one can argue that the cyberspace frontier is subjected to many laws. Most of these laws revolve around issues such as privacy, security, technical standards, content, intellectual property protection, content, electronic payment systems, taxation, customs and consumer protection among many other issues revolving around e-commerce. Moreover, some existing laws that apply to traditional business also apply to cyberspace businesses. For instance laws on product standards, product safety, business registration, criminal code, trademarks, deceptive advertising, intellectual property and trade treaties are also applicable to cyberspace businesses (Fitzgerald, Lim, & Fitzgerald 2011). B2B 1. Many companies in the business to business markets have adopted EDI as a critical system component since it plays a significant role in their businesses. Electronic Data Interchange (EDI) helps companies to save money since it provides an alternative to information flows which demand a great deal of materials and human interactions. The development of EDI from manual documents to critical systems components minimizes the costs of orginising, sorting, distributing and searching for documents. As a critical system component it helps to reduce errors and speeds up processes (Fitzgerald, Lim, & Fitzgerald 2011). 2. Some of the legal issues raised by EDI include privacy and security. Bibliography Australian Consumer Law 2010, Retrieved on July 24, 2012 from Campbell, D., 2006, The Internet Laws and Regulatory Regimes, Yorkhill Law, Salzburg, Austria. Connolly, C., 2012, New Ecommerce best practice model (June 2000), Retrieved on July 24, 2012 from Department of Treasury Australia, 2000, Building Consumer Sovereignty in Electronic Commerce: A Best Practice Model for Business, Department of Treasury, Canberra. Fitzgerald, B., Lim,Y. & Fitzgerald, A., 2011, Internet and E-commerce Law Technology Law and Policy, Thomson Law book, Pyrmont, NSW. Geist, M., 2001, “Is there a there there? Toward greater certainty for internet jurisdiction”, Berkeley Technology Law Journal 16, 1-29. Malawer, S., 1999, Internet Commerce and Trade Policy, Retrieved on July 24, 2012 from Meingast, M., Roosta, T. & Sastry, S., 2006, Security and Privacy Issues with Health Care Information Technology, Proceedings of the 28th IEE EMBS Annual International Conference, New York. Privacy by Design Curriculum, 2012, Embedding Privacy in Organisational, Culture, Policy and Process, Retrieved on July 24, 2012 from Read More