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Case 12.2: EC Application: School Administrators Used Webcams to Spy on Students at Home        403

             Privacy Issues in Web 2.0 Tools and Social         Government Spying on Its Citizens
           Networks
                                                              At issue here is the proper balance between personal privacy
           The rise in social network use raises some special issues of  and national security, whereby innovation and commerce is
           privacy and free speech. Here are a few examples.  not stifled. The claim is that social networking sites have tech-
                                                              nology that has outpaced government law enforcement capa-
             Presence, Location-Based Systems, and Privacy    bilities. The laws on the books do not cover new communication
                                                              methods (i.e., texting and social networking). Opponents see
           Establishing real-time connections in the social networking  this as nothing more than unbridled government eavesdrop-
           world is an important activity. For example, Facebook offers  ping. During 2013 and 2014, it was found that the U.S. gov-
           Nearby Friends, an app that enables users to know where their  ernment did spy on its citizens. In 2014 and 2015, efforts
           friends are.                                       were taken to minimize such government surveillance.
              IBM has presence capabilities in its Lotus Software
           Connections (now called IBM Connections; ibm.com/soft-    P3P Privacy Platform
           ware/products/en/conn), while Microsoft offers similar
           cap abilities with SharePoint (office.microsoft.com/en-us/  The Platform for Privacy Preferences Project (P3P) is a
           sharepoint). Apple, Google, and other companies offer  similar  protocol for privacy protection on the Web developed by the
           features. Several social networks enable people to share their  World Wide Web Consortium (W3C). According to W3C, an
           location  with  others. What  are  the  privacy  implications  of  international standards organization for the  Web, the
           such capabilities if used by businesses to locate customers  “Platform for Privacy Preferences Project (P3P) enables web-
           and  goods?  Who will be held responsible or legally liable  sites to express their privacy practices in a standard format

           for unforeseen harm resulting from so much awareness and  that can be retrieved automatically and interpreted easily by
           connectivity?                                      user agents” (per w3.org/P3P). The W3C also explains that
              Obviously, clear policies are needed to govern what social  P3P is useful because “P3P uses machine readable descrip-
           networks can do with all the data they collect about people.  tions to describe the collection and use of data. Sites imple-
                                                              menting such policies make their practices explicit and thus
                                                              open them to public scrutiny.”  This exposure can increase
             Privacy Protection by Ethical Principles         users’ trust and confidence in e-commerce sites and vendors.
                                                              Figure 12.2 shows the process of P3P.
           Some ethical principles that exist for the collection and use
           of personal information also apply to information collected
           in e-commerce. Examples are: proper notification about the   Privacy Protection in Countries Other
           possible use of personal data, option of opting-in and/or  than the United States
           opting- out, accessibility to stored data, keeping consumers’
           data secured, and the ability to enforce related policies.  In 1998, the European Union passed a privacy directive
              The broadest law in scope is the Communications Privacy  (EU Data Protection Directive) reaffirming the principles of
           and  Consumer  Empowerment Act  (1997),  which  requires,  personal data protection in the Internet age. This directive
           among other things, that the FTC enforces online privacy  protects privacy more than U.S. protection laws do.
           rights in EC, including the collection and use of personal data.   In many countries, the debate about the rights of the indi-
           For the status of pending legislation in the United States, see  vidual versus the rights of society continues. In some coun-
           govtrack.us/congress/bills/subjects/right_of_privacy/  tries, like China, there is little protection of an individual’s
           5910.                                              Internet privacy.


           Figure 12.2  How P3P works
                                                           1  http GET request P3P policy files



                                                           2    Send P3P policy files


                                                           3    http GET request Web page
                                               Web Server
                                                                                                     5

                                                           4      send Web page                   display page and
                                                                                                   policy to user
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