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Adverse Effects of E-Commerce 47 Companies can sell their customer information as a good or service much as if a magazine publisher would sell its mailing lists. Many believe that e-commerce technology is eroding personal privacy because consumers have no control over their personal data that merchants have collected during their shopping experience. In addition, personal record-keeping systems of merchants are not regulated or restricted. People fear that if the trend of collecting information continues, they may lose their individuality since they would have no control over the information about them (Kling & Linowes, 1996). CONCLUSIONS E-commerce involves buying and selling on the Internet among businesses and consumers. E-commerce has provided opportunity for better interactions with partners, suppliers, and targeted customers for service and relationships. Ecommerce provides the customers with choice, information, convenience, time, and savings with improvements that add value to their shopping. However, loss of privacy with e-commerce, security issues, increasingly sophisticated frauds, abuse of personal information, and impact on prices have aroused as the main concerns. Companies increasingly rely on the collection and use of information about consumers for many purposes, including targeted advertising and marketing, maximizing the convenience of electronic commerce, and personalizing customer service and support. In many ways, the creation and maintenance of databases containing information about consumers and their activities can provide a “win-win” situation for both private companies and individuals. It enables companies to operate more efficiently, lower costs, and streamline marketing and promotion efforts while simultaneously giving consumers access to “customized” information about products and services that correlates to their personal preferences. The collection and use of personally identifiable information has, however, raised significant concerns from lawmakers, regulators, and private litigants, especially when it involves sensitive information such as financial or medical information and information related to children. The e-commerce revolution, affordability, technology and the skill to use has been restricted to the world’s information haves. E-commerce infrastructure is still not available in many countries and even if available in some countries, it is limited to a few cities. Much of the world’s population is part of the information have-nots — those who lack the technology and training of the technologically privileged. Ecommerce promoters must also be challenged to try to bridge the gap between these “have and have-nots” in order to form a singular society and not a society separated by a digital divide. Copyright © 2003, Idea Group Inc. Copying or distributing in print or electronic forms without written permission of Idea Group Inc. is prohibited.
48 Sharma and Gupta The e-commerce and Internet revolution could adversely affect the ability of a society, business or an individual in various ways. As e-commerce and Internet use becomes a common household and business phenomenon, strategies for minimizing the adverse effects of such impacts must be developed and implemented. It is only then that we can realize the full potential of these emerging powerful technologies and philosophies. REFERENCES Ackerman, M. S, Allen, J. P. & Kling, R. (Eds.) (1996). Information Entrepreneurialism and Controversy (2 nd ed.), San Diego: Academic Press. Ambrose, Jr., S.F. & Gelb, J.W. (2001). Consumer privacy regulation and litigation. The Business Lawyer, 56 (3), pp. 1157-1178, Chicago. Anonymous (2000). E-commerce: Impacts and policy challenges. Organization for Economic Cooperation and Development. OECD Economic Outlook, (67), 193-213. Bakos, J.Y. (1997). Reducing buyer search costs: Implications for electronic marketplaces. Management Science, 43, (12), pp. 1676-1692. Bassols, V.L. & Vickery, G. (2001). E-commerce: The truth behind the web. Organisation for Economic Cooperation and Development. The OECD Observer, 24, pp. 17-19. Borck, J.R. (2001). Currency conversion, fraud prevention are hurdles to successful global commerce, InfoWorld, 23 (6), p. 55. Boulton, R.E.S., Libert, B.D. & Samek, S.M. (2000). A business model for the new economy. The Journal of Business Strategy , 21 (4), pp. 29-35. Computer Security Institute/Federal Bureau of Investigation (2001). Computer crime and security survey. Computer Security Issues & Trends, 7 (1). Green, P.L. (2001). E-finance business models evolve, Global Finance, 15 (3), pp. 30-35, New York. Gupta, J.N.D & Sharma, S.K. (2001). Cyber shopping and privacy. In A. Gangopadhyay (Ed.), Managing Business with Electronic Commerce: Issues and Trends, Hershey, PA: Idea Group Publishing, pp. 235-249. Hatch, D. (1996). Privacy: How much data do direct marketers really need. In R. Kling (Ed.), Computerization and Controversy (2 nd ed.), San Diego: Academic Press. Kemp, R.L. (2001). Cities in the 21st century: The forces of change. Economic Development Review, 17 (3), pp. 56-62. Copyright © 2003, Idea Group Inc. Copying or distributing in print or electronic forms without written permission of Idea Group Inc. is prohibited.
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