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International E-commerce and Ethics IN E-commerce

International E-commerce and Ethics IN E-commerce

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International E-commerce and Ethics IN E-commerce

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  1. International E-commerce andEthics IN E-commerce

  2. International e-commerence Businesses want the world, but they don't yet grasp how complex e-commerenceglobalization can be. • You must inform your clients about all the work that goes with going International. • tax calculation and currency converters. The next page will give you some ideas to think about

  3. Building a Global Online Presence • Payment processing services and software that show pricing in multiple currencies. • Displaying prices in the customers’ currency presents some of the most frustrating, and largely unresolved challenge that face sites seeking global customers. • Dealing with multi-currency customers is not cheap. Many banks and processors add international fees that can total as much as 4 percent of a multicurrency transaction. That’s right around 8 percent of the product's cost to a transaction. • Service calculation of shipping, International fees, duties, and other global charges. • The client most comply with International rules and laws • multilingual service center support • SET (Secure Electronic Transaction) payment standard advocated by Visa and MasterCard (including its fraud protection) is dead in the water • Your client may want to start thinking about new payment methods, basically because of the fact that most of the world doesn't use credit cards.

  4. What it comes down to • Picking the right currency conversion model Simple small businesses my need something like; • multicurrency pricing (i.e WorldPay) Bigger businesses my need to spend a little more; • selling high-priced components (i.e Uniscape) • Around 35,000 for some businesses to provide the consulting and technology needed in International transactions.

  5. Banking interfaces & Questions to ask yourself • Which ones are used in different countries • What kind of supported 1payment gateway services are included • Which one would work best for merchants with less than 5,000 transactions per month & vise versa • Good comparison web sites • http://www.woozashop.co.za/

  6. Info and more questions to ask • All payment gateways have an intial setup cost and then charge a small percentage of the transaction says startupdunia.com • How good is the customer support • What is the charge back policy

  7. Examples of payment services used by merchants today • Payment Services • CyberCash • ICOMS • CyberSource • Examples of two Hosting Provider Systems which install their own software • At&t • Yahoo • Paylinx • ClearCommerce • CyberCash

  8. Ethics in Ecommerce Ethics, created by religion, culture, and history, are very powerful. People feel the need to defend their ethical values. Prior to the information age countries could determine how to deal with their own ethical value system within its own borders; creating laws to defend their ethical values. The Internet however, creates a whole new issue because it opens up countries borders and allows the outside world in.

  9. Internet Ethics with Children • Almost all countries hold that children are not as capable as adults in making informed decisions. Therefore laws are created to keep children from being forced into a decision or situations where an adult mind is needed to make a proper decision. • In order to help keep websites from taking advantage of children, the US Government created the Children's Online Privacy Protection Act (COPPA) which establishes the legal age of a "child " as anyone under the age of 13. COPPA states that it is unlawful to collect and use of personal information from children on the Internet.  

  10. Violations of the COPPA • In 2006 the website Xanga.com settled charges that it violated the COPPA and was fined $1 million dollars. Although on the Xanga site it stated that children under 13 could not join, it still allowed visitors to create accounts if they provided a birth date indicating they were under 13. • In 2008 Sony BMG Music also paid a $1 million dollar civil penalty for violation of the COPPA. Through its music fan Web sites Sony BMG Music improperly collected, maintained, and disclosed personal information from thousands of children under the age of 13, without their parents’ consent.

  11. Big Money in Ecommerce for Children • Despite the challenges associated with children’s ecommerce, there is still big money available. It was the $350 million sale of children's social networking site Club Penguin to Disney in August of 2007 that showed the serious commercial potential of targeting children online.

  12. Ethics with Spam • The differences between European and American web surfers is the expectation of privacy of information. • In 1995 the European Parliament and Council created the Protection of Personal Data Directive. • It is a set of rules that seeks to strike a balance between protection for the privacy and the and the free movement of personal data within the European Union (EU). • The directive sets strict limits on the collection and use of personal data and demands that each member state set up an independent national body responsible for the protection of these data. • In America there is no law that governs how data collected by websites can used. • Consumer's collected information can be sold to 3rd party companies without their given permission. • Generally Americans do not expect their information to stay private. • The US relies on a combination of legislation, regulation, and self-regulation to protect the of personal data of customers. • Many US companies display privacy pages and give users the ability to opt-in or opt-opt of the selling of their information. • Opt-in e-mail is a term used when someone is given the option to receive "bulk" e-mail of mailing lists, newsletters, or advertising. With opt-out email, a consumer is automatically put on a mailing list and has to explicitly contact the website to be taken off. • According to CipherTrust, the makers of IronMail mail protection systems, the United States is the biggest offending country when it comes to sending out Spam with 37.76% of all Spam volume, followed next by the Republic of Korea with only 18.07%.

  13. Ethics and Ecommerce Advertising • An ethics complaint will soon test the boundaries advertising on the Internet. • A complaint, filed in 47 states against 550 attorneys, targets the owner of a website that offers free consultations with attorneys and all of the attorneys who participate in the site. • The website uses the pay-per-click model used by Google Adwords that tie fees to performance. • This business model closely resembles a fee for referral that violates the rules of professional conduct. • The complaint alleges that several websites run by Chicago attorney Kevin Chern (including totalattorneys.com and totalbankruptcy.com) violate ABA Model Rule 7.2, which puts limits on payments for legal referrals by • The websites offer consumers a free consultation with an attorney. Attorneys who participate in a website have an exclusive contract with Chern for their area code. When a consumer contacts the website through an online form, the lawyer in that consumer’s territory pays Chern a fee for the information. • Chern claims this is a cooperative advertising arrangement permitted under the rules, and attorneys are paying him for the cost of licensing the website and marketing costs.

  14. Code of Ethical Conduct As an ecommerce business, it is the best interest of the business to have a Code of Ethical Conduct. A Code of Ethical Conduct set the ethical guidelines for a company. It also helps to give consumers a sense of trust toward that company because the time was taken to state what they stand for. In a Code of Ethical Conduct consider stating things such as: • Core Values • Ideals • Morals • Principals