Lecture Eight--ICS 131--Fall 00--19 Oct 00

Recap on Lecture Seven--Privacy

Privacy problems

Lots of people collecting information on us

•Web sites collect information on users

•Government agencies collect info on people and organizations

e.g., IRS, DMV, state tax agencies, Carnivore

•Financial institutions collect info on users

What is being done with the information?

•Using it, e.g., Amazon, governments

•selling or giving info to others

e.g., state gov'ts selling DMV info

Security of the information

Privacy solutions

Self-regulation, market

User actions

•delete cookies

•exercise rights under privacy policies

•don't disclose

•pay cash, don't use club cards

Government actions

•FTC proposals--Model behavior

"fair information practices"

notice, choice, access, and security."

•Bills pending in Washington

•Can we trust the government in this area

Read UCI privacy policy on student records®


Return of pen--Installment Two



Internet anonymity

AK Steel case,

Schwartz, John. Corporate case in Ohio raises questions on internet anonymity, NY Times, 17 Oct, C1, C4 ®

Middle America.

Jane Doe characterizes the boss as litigious

Boss wants to know who Jane Doe is

Defense says wait until prove libel

Supreme Ct says freedom of speech includes anonymous statements

Can't yell "fire" in a crowded theatre

Some background on AK Steel

Suing USWA on RICO grounds

Combat fatigues and combat boots--war

So USWA has offered support to Jane Doe

Florida case--Hvide Marine

Dunn, Ashley, and Kaplan, Karen. 2 Firms ordered to identify internet message posters, LA Times, 17 Oct 00, C5®

Florida court has issued an order to AOL and Yahoo

ACLU tried to protect identity of eight anonymous individuals

How will this play out?

Remember not to do it from company hardware


Lecture Eight--Electronic Commerce--Retail

Future of e-tailing--BW

Responsibility of auction sites--E-Bay, Yahoo

Responsibility of e-tailers--Buy.com

New ideas--Land's End, Raytheon



Future of e-tailing--BW


Berman, Dennis K., and Green, Heather. Cliff-hanger Christmas.

BusinessWeek E.BIZ, 23 Oct 00, EB 30-EB 38®

Great Internet Shakeout

once-limitless venture capital running out, stock prices down

Goldman, Sachs "...predicts at least 15 of 28 public e-tailers

will run out of money by the end of next year."

will e-tailing pure plays survive on their own?

traditional merchants having problems with on-line units

New model

"Both pure e-tailers and traditional retailers

need to tap the expertise of the other

to make online selling work."

Example: Toy 'R' Us and Amazon

e-tailing should double this season

"consumers love it"

bricks and clicks

get customer to merchandise quickly,

get merchandise to customers quickly

cut costs of getting customers/business

Example number two: British grocer Tesco

Beck, Ernest. British grocer Tesco thrives filling web orders

from its stores' aisles. WSJ, 16 Oct 00, B1, B13®

US Counterparts (Webvan, Peapod) building automated

warehouses while Tesco operates simpler, cheaper

Tesco is largest grocer in UK, distances shorter

another example of "bricks and clicks" working together


Mix it up

sending catalogs

mix of products

higher profit products

sell ads

Service counts

multi-channel customers buy more, e.g., Eddie Bauer

some pure plays may make it if they can get volume up


Sounds like Brown and Duguid to JF

What are responsibilities of Web site?

Associated Press. Yahoo purchases to be insured against fraud.

LA Times, 16 Oct 00, C8®

Lloyds of London,

auction site

shopping site

Guernsey, Lisa. EBay faces suit on sale of fake goods.

NY Times, 16 Oct 00, C6®

CA judge has allowed six people to proceed with a law suit

against eBay.

sports memorabilia fakes

Can eBay be responsible?

Should eBay be responsible?

auctioneer or forum?


What if web site makes a pricing error?

Fields, Robin. Buy.com will pay $575,000 to settle bait-and-switch suit.

LA Times, 18 Oct 00, C3®

What is "...online stores' obligations to consumers when

pricing errors occur on Web sites"

"Last February, Buy.com's Web site mistakenly listed the Hitachi SuperScan 753 on sale for $164.50 when, at the time, the product retailed for $588. Orders flooded in. Buy.copm honored the price for the 143 monitors it had in stock but canceled thousands of other orders."

Why is it different than a bricks and mortar pricing error?


Developments in e-tailing

Tedeschi, Bob. E-Commerce Report: Large companies try to find ways to spread Internet retailing throughout their operations,

NY Times, 16 Oct 00, C14(O)

Raytheon developing software that other divisions might use

Might sell it to other organizations


Queen supply--plastic bags

Kibbutz--develops system for bakery


Quick, Rebecca. Getting the Right Fit--Hips and All. WSJ, 18 Oct 00,

B1, B4(O)

Big obstacle to on-line clothing sales:

"How can you tell if something fits if you can't try it on."

So Lands' End has this trailer

Computer scan

Unhappy reporter


Bricks and clicks--similarity to Brown and Duguid

Responsibility of web sites to protect consumer against fraud

Responsibility of web sites on pricing errors

"New" wrinkles in e-tailing



Associated Press. University to require students to take online courses,

LA Times, 16 Oct 00, C11 [www.fdu.edu](O)

Berry, Kate. One less tax-time headache:

software to download data, NY Times, 16 Oct 00, C2(O)

Answers to Question 2 on Quiz 2


Week Five Schedule

Discussions (noon on Tuesday) (one on Thursday)

Lectures--Monday and Friday

Office hours--wed