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I. Identification
The internet is growing at an astronomical rate, and is having a profound affect on the lives of people. No longer do people only check their answering machines for messages, because electronic mail has provided a new, easy, and cheap means of communicating. Advances in technology have facilitaTED the overnight success of the internet, and this in turn has contribuTED to a new means of business. Electronic commerce has been defined as using electronic networks and technology for economic activity such as commerce (Center for Strategic and International Studies). Electronic commerce is changing the way companies do business as we approach the new millennium. In addition to another method of communication, companies also have a new forum for advertising, and business transactions are being execuTED more efficiently than ever before. Electronic commerce allows anybody who has access to the internet to participate in these economic activities. However, many issues have surfaced with the internet and electronic commerce, and these issues range from security to telecommunications infrastructure to privacy. Privacy is the issue that this site will be focused on the most. It is important to note that the maintenance of one's privacy has been connecTED to being a citizen of the UniTED States since Amendment IV of the Constitution. This amendment protects citizens against "unreasonable search and seizure," but it is also important to note that the First Amendment also supports the freedom of information flows. It is imperative for the UniTED States to agree upon a policy which provides a healthy balance between the free flow of information without infringing upon the privacy of its citizens.
As staTED earlier, privacy has been an important characteristic of citizenship of the UniTED States, and this is not only seen through the example of the Constitution. The first privacy law which involved a someone's information was the Privacy Act of 1974. This act was in passed in order to please an American public which feared a society similar to the one portrayed in George Orwell's 1984. The following are the three most important requirements of this act: inform citizens that there are personal information record-keeping systems, agencies allow citizens to copy, correct, and amend the personal information which has been collecTED, and limiTED the type of data that agencies collecTED (Huff and Finholt, 468). It is also important to add that this act also required an agency to obtain written permission from the individual before making disclosures of personal information to any people outside the agency. This act is important because the protection of privacy was no longer implied like it had been in several amendments. Privacy protection was now established in its own forum, and there have been more recent legislation since this act to in order to safeguard against the violation of one's privacy even with the latest technological advancements. A recent case which supporTED the privacy of citizens over email was that of McVeigh v. Cohen. This act held the Electronic Communications Act of 1986 and granTED preliminary injunction to prevent the Navy from discharging the sailor because he was gay; because the Navy violaTED the sailor's rights under this act by acquiring his identification through e-mail from an Internet online service provider (Douglas and Binder-Arain, 16.05). This example clearly displays the position of the government of the UniTED States when it comes to the privacy of its citizens. Privacy is very important, and is to be protecTED even with the latest technological advances. As staTED earlier, the government is attempting to find a solution which protects privacy and international trade without ceasing the free flow of information. However, the government wants to have as little involvement as possible in regulating the internet and policies such as privacy protection.
The Center for Strategic and International Strategies has established Globally Information Infrastructure Commission in order to support a healthy forum for electronic commerce to take place, and encouraging leadership of the private sector. Privacy is one of the issues that the GIIC is attempting to find a formidable solution. The commission understands that it is important to make it easier to collect, recycle, and instantaneously transmit information without infringing upon sovereignty. Privacy can be infringed upon in many ways through the internet and this can discourage business from participating in electronic commerce. The UniTED States government established the privacy Working Group of the UniTED States government Information Task Force (IITF) which issued a report in June 1995, Privacy and the National Information Infrastructure: Principles for providing and Using Personal Information. This report staTED the following "Privacy Principles" concerning the collection, storage, and re-usage of information on the internet: "Data gatherers should inform consumers what information they are collecting and how they intend to use such data; and Data gatherers should provide consumers with a meaningful way to limit use and re-use of personal information"(The White House). The "Privacy Principles" also have three values which are information privacy, information integrity, and information quality. These three values and the two basic principles are a good attempt at balancing the free flow of information and privacy. However, people in the UniTED States are not the only ones participating in electronic commerce, and with a forum such as the internet that has no geographical lines, it is important to talk with other countries to come to a compromise concerning the situation. The Clinton Administration supports more private sector efforts to implement meaningful , consumer ready, self-regulating privacy regimes and anticipates that future technology will offer solutions to many concerns. However, there are other countries who have differing views from those of the UniTED States concerning the privacy issue.
The European Union and Japan agree with the UniTED States to a certain extent when considering the privacy issue. They do agree that the private sector should lead the way in providing regulation and they do feel that it is important to provide a area where there is very little regulation. The European Union feels very strongly about using encryption to protect confidential business and personal information. There are also several other laws in France which prevent a freer area of commerce. Japan believes that the issue of privacy should be considered in a business by business forum and not a uniform spectrum. Both the EU and Japan have continued to discuss with the UniTED States. However, the Global Information Infrastructure Commission has put together the following nine principles to help address the issue of privacy: collection, data quality, purpose specification, use, security safeguards, individual participation, accountability, transborder, special personal data categories (Center for Strategic and International Studies). One must remember that even though this is a privately-funded, non-governmental organization. It is important to note that it is based in the UniTED States and is biased in this manner. However, one believes that the nine principals staTED earlier are important and should be taken under consideration. They offer somewhat of a compromise such as the free flow of information through the Transborder Data Flow Principle, tighter control over information through the Security Safeguards Principle, and specific regulation through the Accountability Principle. One would say that these principles offer a little of everything.
In conclusion, the future of electronic commerce is very promising, but it is important to address issues such as a loss of privacy. One would advocate the position held by the UniTED States being that the private sector should provide the leadership for any regulation that is needed. However, it is important to find the right balance between regulation and free information flows. It is especially important for people to find a balance between maintaining privacy and free trade on the internet.
CRYPTOG Cryptography and Exports
CELLULAR Cellular Phones and Health and Trade
Note Date April 13, 1999
II. Legal Clusters
The dispute concerning how the amount of regulation of the internet and especially the issue of privacy has not been resolved. There are many nations involved from the UniTED States to other members of the UniTED Nations. There are several specialists, such as those at the Center for Strategic and International studies, who believe that the various governments should change their legal and financial systems so that they do not hinder the success of the information age. The UniTED States government is pushing to have the Internet be governed by the same principles despite the level (State, national, international). The following displays President Clinton's feelings concerning the role of the private sector in relation to the privacy issue: "I direct the Secretary of Commerce and the Director of the Office of Management and Budget to encourage private industry and privacy advocacy groups to develop and adopt within the next 12 months effective codes of conduct, industry developed rules, and technological solutions to protect privacy on the Internet..." (William J. Clinton, 3). President Clinton also direcTED the Secretary of Commerce to discuss with private industry, State and local governments, and foreign governments to support the development. I would have to agree with the goals for the U.S. policy set forth by the UniTED States government and the President. However, the UniTED States is not the only country who has thought long and hard over privacy. As staTED earlier, the European Union, and Japan also have strong feelings, but the UniTED Nations has worked very hard for an international law to regulate electronic commerce. The UniTED Nations Commission on International Trade Law (UNCITRAL) has just finished a model law that supports electronic commerce as a forum where international contracts can be negotiaTED (The White House--Framework for Global Electronic Commerce). This step shows a lot of progress and a positive and safe future for electronic commerce. It is important that this law is made an international law, because it would provide uniform regulations for the Internet. It is good that most countries have national laws to regulate electronic commerce and privacy, but these laws conflict with each other and have caused confusion and frustration for all parties involved. It is important to repeat that the private sector should be told of the implications of this law and provide its opinion on it. It is important to understand that any regulation imposed upon electronic commerce not impede the free flows of information.
The ideas of the UniTED States in regulating the Internet are those which seem to be the most likely to provide the best balance for privacy protection and electronic commerce. However, there are other nations that are affecTED by the Internet so it is important to develop international guidelines for electronic commerce and privacy. One of the most recent attempts at this was when OECD member nations met to update the Guidelines on the Protection of Privacy and Transborder Flows of Personal Data.
The have been no formal multilateral treaty that have been signed into international law which regulate electronic commerce, but there have been many conferences, initiatives, and many discussions. The attempt by the UniTED Nations Commission for International Trade Law is the best solution, because of the jurisdiction of the UniTED Nations.
III. Geographic Clusters
a. Geographic Domain:Global
b. Geographic Site:Global
c. Geographic Impact:Global
There have only been laws regulating electronic commerce on the national level, but it is important to remember that even with all the international conferences concerning electronic commerce, the private sector is just as an important player in this dilemma as the governments. As staTED earlier, the UniTED States feels that the private sector should lead the any regulation efforts, and most countries feel that electronic commerce and its operation should be market driven, not by government (Center for Strategic and International Studies).
IV. Trade Clusters
All the discussions and conferences both at a national and at an international level seek to simply provided minimal control to the Internet in order to prevent the invasion of privacy, and to promote a safe environment for electronic commerce.
a. Directly RelaTED to Product: Information
b. Indirectly RelaTED to Product: No
c. Not RelaTED to Product: No
d. RelaTED to Process: Electronic Commerce
The trade product is information when one is investigating the issue of privacy and international trade. This information is both commercial and personal information which should be protecTED in some way. Preventing unwanTED eyes to view this information without having negative impact on the free flow of information is very important.
As staTED earlier, the internet has had a profound effect on the economies of the world. This is because any business with a telephone line and a computer is using the Internet for in order to reduce costs in purchasing supplies, coordinating supplier/customer relations, streamline logistics and inventory, plan production, and to reach new and current customers (Department of Commerce). Businesses are reducing their costs because of the freedom with which information flows through the Internet without being weighed down by undue restrictions. This reduce in costs and means of providing more effective service to customers has caused more and more business to participate in electronic commerce. It is estimaTED that by 2002 Internet commerce will be over $300 billion, and this would seem very likely considering the traffic on the Internet is doubling everyday (Department of Commerce). This growth in business in electronic commerce must continue and must not stop due to privacy concerns of differing nations. The UniTED States and the European Union have not agreed with each other on many things and this is one of the best examples that could give the electronic commerce a crushing blow. As staTED earlier, the EU and the UniTED States have differing solutions for the privacy and international trade dilemma. In fact, if the two institutions do not reach a compromise, the new EU directive will not allow companies in Europe to trade over the Internet if the countries in which the other companies are based do not have "adequate" rules for protecting privacy. U.S. Secretary of Commerce William Delay had the following response to this directive, 'We must succeed, or millions of transactions between the UniTED States and Europe will be blocked' ( Deck, 10/16/98). This is only one example of the importance of coming to a global agreement concerning the issue of privacy in relation to electronic commerce.
If barriers continue to be erecTED and governments do not work with the private sector to formulate solutions to the privacy issue, then Internet trade could be highly restricTED and its growth will stop. It is important to have as little regulation as possible over electronic commerce.
The are the two industry sectors that are most directly affecTED by international restrictions concerning the protection of privacy, but the efficiency and competitiveness of the manufacturing, financial, distribution, medical, and entertainment industries would also feel the effects.
V. Environment Clusters
Name:n/a
Type:n/a
Diversity:n/a
VI. Other Factors
The Internet does not have any geographic lines or borders which prevent people from accessing information in another country. However, there are several cross-border barriers which must be diminished in order to further facilitate trade. This is a good reason why one advocates the UniTED States' belief that it is necessary to have universal international regulations.
The rights of privacy and access to information involved in this issue. Both are rights that the citizens of the UniTED States have possessed since the implementation of the Constitution. Thus the government of the UniTED States feels very strongly about its position, and feels that it is important to negotiate minimal, global regulations which provide for the protection of privacy, but do not hinder the flow of information.
U.S. Government Electronic Commerce Policy, IITF, PrivacyExchange, Online Privacy Alliance, GIIC, Center for Strategic and International Studies, U.S. Trade Representative, A European Initiative in Electronic Commerce, OECD, Information Superhighway
Center for Strategic and International Studies. "A Comparison of US, EU, MITI, and GIIC Reports on Electronic Commerce" 27 March 1998. http://www.giic.org/events/ec1.html.
Center for Strategic and International Studies. "Comparison of US, EU, MITI, and GIIC Report on Electronic Commerce" 6 Oct. 1998. http://www.giic.org/focus/ecommerce/eccomparesII.html.
Center for Strategic and International Studies."GIIC Annual Forum 1998" 24 March 1998. http://www.giic.org/events/ann4ecpanel.html.
Center for Strategic and International Studies "GIIC Recommendations for Promoting the Use of Electronic Commerce" 6 Oct. 1998. http://www.giic.org/focus/ecommerce/erecs.html.
Clinton, William J. "Presidential Directive on Electronic Commerce" 1 July 1997. http://www.ecommerce.gov/presiden.htm.
Deck, Stewart. "Tax bill also addresses online privacy." Online News 16 Oct. 1998. http://www.computerworld.com/home/news.nsf/all/98101642priv2.
Department of Commerce.The Emerging Digital Economy. April 1998. http://www.ecommerce.gov/viewhtml.htm.
Douglas, James A. and Laurel Binder-Arain. Computer and Information Law Digest. West Group, New York: 1998.
Huff, Chuck and Thomas Finholt. Social Issues in Computing. McGraw-Hill, USA: 1998.
The White House. A Framework for Global Electronic Commerce. July 1, 1997. http://www.ecommerce.gov/framewrk.htm.