(a) Describe two distinct current or potential privacy problems associated with electronic commerce (shopping on the Web).

(b) For each problem, give arguments, data, and/or examples to show that the problem is or could be significant.

(c) For each problem, describe one or two ways to reduce the negative impact of the problem. Try to give examples of a few different types, e.g., technical, management policy, education, legal.

(d) Describe one relevant trade-off. i.e., one benefit that comes with reduced privacy.

Answer:

(a) Privacy problems associated with electronic commerce

Doing business in the E-Commerce model has become very popular in these days due to various reasons. Privacy concerns are the most important problem associated with electronic commerce. The following are the two current problems associated with electronic commerce.

• Unauthorized use of personal data of customers.
• Chance of cyberattacks.

(b) Significance of the problem

The following are the significance of the problems mentioned.

Unauthorized use of personal data of customers

Many E-commerce companies are using personal data of customers and selling it to other interested business firms without getting proper consent from the customers. Many cheating websites are functioning only for the purpose of getting personal information from customers.

Chance of cyberattacks

Cyber attackers are in most cases using personal information shared among its users to snoop into the computer. It normally resulted in the loss of much financial information. It may also result in damage to customer's computers.

(c) Ways to reduce the negative impact of the problem

The following are the ways to the negative impact of the problem.

• Customers shall change their passwords frequently.
• Customers shall not use the same passwords on different e-commerce websites.
• Customers must check the authenticity of an e-commerce website before doing any transaction.
• The URL of the e-commerce website must be checked before doing any transaction.
• Use of technology-based security protection.
• Companies can inform customers regarding security threats and loopholes and precautions to be taken.
• Governments can pass laws and regulations for protecting customers from problems connected with e-commerce transactions.

(d) The benefit of reduced privacy

Reduced privacy in the case of E-commerce often resulted in the provision of better services to customers. E-commerce companies could analyze the personal information of customers for offering suitable products. It shall also be used for the customization of services for customers.