Exam 13: Privacy and Ethics Considerations

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What legislation increases privacy protection for all digitized consumer information?

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The Electronic Rights for the 21st Century (E-RIGHTS).

Is it a good idea for organizations to pre-check an opt-in box on a web page? Support your answer by discussing the pros and cons from the consumers' and the organization's perspectives.

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No. This practice gives the appearance of a consumer's willingness to participate in the respective activity while it may not be the consumer's intent. Technically it provides the company with proof of consumer intention although it was not ethically acquired and in fact may not be true of their intent. So whereas the pros are that they have reduced liability risk, they are not being honest with the customer. While some consumers may not care, some may find this as a very unethical practice, and the result can be the opposite of what the company intended.

Opt-out is an option that requires a consumer's explicit permission for the use and disclosure of their personal information beyond the original purpose for which it was collected.

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What legislation regulates the sharing of personal information about individuals who obtain financial products or services from financial institutions?

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Telemarketers and sellers are required to search the Do Not Call Registry at least once every 90 days and drop from their call lists the phone numbers of consumers who have registered.

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Some organizations have created a new position, Chief Privacy Officer, in order to place executive ownership on privacy issues.

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What is the major conflict organizations are facing with regards to privacy and CRM?

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Encryption is a technology that scrambles digital content with the use of a private code so that it cannot be read without the key to the code.

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The European Union has been very delinquent in the area of privacy legislation for the European community.

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The Direct Marketing Association offers a variety of privacy services to consumers.

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What are some things an organization can do to comply with consumer privacyexpectations?

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What can a consumer do to prevent sexually oriented advertising (SOA) in the mail?

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Technological advances have made it easier for consumers to take advantage of new legislation, as they can control how, when, and by whom they are marketed via the Internet.

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What legislation provides parents with control over what information is collected on their children and how it is used?

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____ is unsolicited "junk" e-mail containing advertising or promotional messagessent to large numbers of people

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The Deceased Do Not Contact list is a residential name and address file of deceased consumers.

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Pre-checking an opt-in box is a good practice as it ensures more accurate capture of the consumer's intent while eliminating an unnecessary step for the consumer.

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Most organizations have adopted phishing as an efficient way to market to customers.

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Spam is solicited "junk" e-mail containing advertising or promotional messages sentto large numbers of people.

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Platform for Privacy Preferences Project is a set of software-writing guidelines developed by the World Wide Web consortium.

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