By Lisa Cedrone
If you spend a lot of time purchasing online, chances are high that at some point in time you will have your privacy violated, or you will encounter a “bait and switch” scam, or what you were promised was not what arrived in the box.
Case in point: My partner Harry is a savvy online shopper, but he still gets burned now and again. Most recently, it was an antique Tibetan Buddhist vajra and bell set he purchased on eBay. The seller was in China and seemed legit; Tibet is a part of China. However, when the box arrived it was obviously not authentic. When Harry contacted the seller, a refund was issued immediately, and the company said to keep the set free of charge, probably to try to avoid negative customer feedback on eBay.
Scenarios like this make Internet customers wary and, if you are planning to become a successful e-commerce purveyor of goods and/or services, you need to work hard to establish credibility and build trust online—just as you would with a traditional business. While ensuring security for your online payment system should be at the top of your start-up’s “to-do” list in this regard (and we will address it as a separate topic next month), there are many other areas and issues to consider when creating your company’s code of e-business ethics.
Work from the Top Down
At the broadest level, it’s helpful to review and make a commitment to abide by the “The 10 Commandments of Computer Ethics” as you start to develop your specific e-business policies and procedures. Developed by The Computer Ethics Institute, which was founded as a nonprofit in 1992, this list is designed to provide “advice to individuals, communities, organizations and government concerning their ethical and social responsibilities.”
The Ten Commandments of Computer Ethics are:
- Thou shalt not use a computer to harm other people.
- Thou shalt not interfere with other people’s computer work.
- Thou shalt not snoop around in other people’s computer files.
- Thou shalt not use a computer to steal.
- Thou shalt not use a computer to bear false witness.
- Thou shalt not copy or use proprietary software for which you have not paid.
- Thou shalt not use other people’s computer resources without authorization or proper compensation.
- Thou shalt not appropriate other people’s intellectual output.
- Thou shalt think about the social consequences of the program you are writing or the system you are designing.
- Thou shalt always use a computer in ways that ensure consideration and respect for your fellow humans.
Next, look at your e-commerce business model specifically and consider documenting policies around the following areas, which can cause ethical dilemmas and subsequent legal problems for your business if you throw caution to the wind:
Accurate Product Data
According to an article on ethical issues in e-commerce by Ryan Lunka on nChannel.com, “E-commerce is different from traditional retail. Your customers cannot touch the product they will buy. They’ll look at pictures and videos that show the product in ideal lighting, [with] Photoshop processing…Therefore it’s important that you make the effort to list your products accurately, completely and honestly.” 1
Lunka also advises to research:
- Privacy laws;
- Tax regulations (you most likely will be selling across state and/or national borders);
- Online marketing regulations such as the CAN-SPAM act (which sets the rules for commercial email) and laws about advertising disclosure (“The Federal Trade Commission updated its rules about what is paid advertising (and what is not) in 2009 and again in 2013, in part because of the rise of social media and social media marketing.”2)
- International regulations, like those applicable in the European Union; and
- Product-specific regulations (“for example, you can’t sell alcohol to customers under 21.”)
In an article on Chron.com, Amber Keefer adds that ethical web content is a must for success in e-commerce. “Pay special attention to the marketing materials you include on your website,” she notes. “Avoid publishing misleading statements that could give consumers the wrong idea about the products you offer. For example, don’t exaggerate claims about the quality of a product. If you fail to deliver what you promise, the Internet can work against you as dissatisfied customers may spread the word to others via social networking sites. Keep the content on your site current so you continue to offer consumers reliable information.”3
Data Mining
“One of the main ethical problems in the e-commerce arena centers on the controversy over data mining—the selling of consumer information by e-commerce merchants to online advertisers,” points out Zachary Tobias on an online Computer World article.4
“After we give our information away, we have no idea what companies do with it,” notes Martha C. White in a Time Magazine article on “big data.” “Unlike credit reporting agencies, which are required to let you see the composite picture of you they’ve created with the data they mine and organize, data companies keep their vast virtual warehouses under lock and key…Most of the time, this information is used to sell you stuff. This has the potential to be sneaky—if it knows enough about you, a company can figure out what type of ad is most likely to sway you—but a lot of it isn’t inherently bad and might be helpful…
“But that’s not what concerns lawmakers and privacy experts,” she adds. “They worry that people’s virtual selves could get them written off as undesirable, whether the depiction is correct or not. There’s also the question of accuracy in general. Some consumer groups estimate that up to 25 percent of credit reports have errors, and those errors can lead to difficulty getting a loan or other type of credit. Without any way to look at our consumer profiles, people have no idea what marketers and other interested parties see and how they’re judging us.”
If you decide to share or sell your customers’ information, make sure the policy is loud and clear and that there is an easy way for people to opt out of receiving additional marketing from your company or other businesses that will have access to the data. And think twice before you use deceptively small checkboxes that are already checked “yes,” giving your business permission to use customers’ data.
Counterfeit Goods
You might be selling counterfeit goods and not even know it. “Utilizing third-party suppliers, drop shipping and some of the dynamic order fulfillment tactics that are available today can bring your business a lot of value. But, they also introduce some risk, says Ryan Lunka in his nChannel.com article on e-commerce ethics. “When you buy from someone who isn’t the manufacturer, how do you know where the product is coming from?”
As a business owner, it’s up to you to ensure that any products sold through your website are authentic. Regardless of where the products are made or shipped from, you are responsible for what the customers receive—and remember it is illegal to sell counterfeit merchandise. Here are some tips from Lunka on protecting your business reputation and customers from counterfeit goods:
Check what your website is selling. You may not physically handle some or all of the goods you sell, but at least buy one of each item and check it out before you start fulfilling orders. There are many articles and sites online that can give you tips on how to spot a fake, such as WikiHow.
Verify goods with manufacturers. A branded manufacturer can help you identify if a product is fake. Usually, serial numbers are available and there are specific aesthetic identifiers.
Work with trusted suppliers. Look for validation from organizations like the Better Business Bureau, and verify credibility with other buyers. Prove to yourself a supplier can be trusted.
Be extra careful with international suppliers. While international suppliers can be more competitive on price and reach broader markets, regulations might be lax in countries outside the United States, so be extra careful with international deals.
Customer Trust
Publishing business principles, such as core values and a code of ethics, on your website can help show potential customers that your company is legitimate and responsible. Core values help a small business set priorities and plan for the future, says Keefer in her article on Chron.com. “These are the rules that govern how your company is run. Values give a company direction while a company code of ethics defines the behavior you expect your business to exemplify. Identifying a set of business values tells your customers that you are committed to providing quality service and that you take responsibility for the business decisions you make.”
Joining your local Chamber of Commerce or the Better Business Bureau also can give your credibility a boost. These organizations have logos and seals that can be used on your website to recognize business members.
Customer Service
Leading online retailers like Amazon.com have set the customer service bar high, so you will need to have exceptional standards and above-average ethical practices around customer service and return policies if you are to survive long-term in the e-business arena. According to an article by Tom Streissguth on ethical problems in e-business, questions to answer in this area include:6
- Will your company take responsibility when something is damaged in shipping?
- How will you handle returns?
- What will be your response time on customer complaints?
- Will you offer live customer service chat or phone support?
In this regard, here are seven ways that you can raise the bar on customer service from an article in Entrepreneur by Jonathan Long:7
Have a resource to address common questions immediately. A FAQ (frequently asked questions) page on your website will eliminate a lot of common questions before they bombard your support channels.
Respond instantly. Having an auto-response stating someone will be in touch within 24-48 hours is completely unacceptable in today’s e-commerce world.
React even faster on social media. You don’t need to solve the problem immediately, but you must provide some type of feedback, such as customer service email or another way to receive fast help.
Take customers’ privacy seriously. Never ask customers for credit card information or other sensitive data over the phone or via email, etc.
Minimize the technical jargon. Don’t use terminology that is “over the head” of your customers. Make answers to questions clear and direct.
Use third-party customer-service software. Several platforms are available, such as Zendesk, that provide organizational and time-management tools to help deliver excellent customer service.
Be human. An upset customer can quickly change mindsets if you show compassion.
Intellectual Property and Copyright
With a few clicks of the mouse, it’s possible to cut and paste someone’s original copy or reuse photos and artwork—without permission or a license. “The victim of this theft only has recourse if he’s registered a copyright and then wants to spend the time and trouble to write demand letters and threaten lawsuits,” says Streissguth on Chron.com, but that doesn’t mean your business should do it.
“By now you would expect that virtually everyone knows that you cannot cut and paste the work of others [text or graphics] onto your website without their permission, but I am not sure that is the case,” says Gene Quinn in an article on copyright infringement published at IPWatchdog.com.8 “…A copyright owners’ rights have been infringed if another reproduces the work without their permission with or without citation. In the minds of some copyright infringement is synonymous with plagiarism. Plagiarism, however, is the passing off of the work of another as your own without citation. So those who cite and link back are not absolved from copyright infringement. They are misappropriating an original work and free-riding,” and there is nothing creative, laudatory or ethical about free-riding.
The Digital Millennium Copyright Act, more commonly referred to as the DMCA, was signed into law on October 28, 1998, and its primary purpose is to update the United States copyright laws with an eye toward making them more relevant and flexible given the ever-changing digital information climate. Make sure that you follow the rules and understand what constitutes copyright infringement before you set up shop and start posting and sharing, etc. You can download a pdf copy of the DMCA from https://www.copyright.gov/legislation/dmca.pdf.
Lisa Cedrone is the editor of Transformation Magazine and a freelance editor, writer, and graphic designer working primarily in the spiritual and alternative healing communities. Prior to establishing her Sarasota, FL-based freelance business in 2008, Lisa spent 20 years as an editor/editor-in-chief for two of the Top 10 business-to-business publishers in the United States, serving the apparel manufacturing and residential construction/building markets. Her company, DragonFly Nation, offers a wide range of creative services, with an emphasis on cost-effective, turnkey editorial and design projects for both print and web. Contact her at lisa@suncoasttransformation.com or visit DragonFlyNation.com.
References
1. “Ethical Issues in eCommerce: Are you violating any of them?” by Ryan Lunka, April 21, 2015, nChannel.com, online article at https://www.nchannel.com/blog/ethical-issues-in-ecommerce/
2. “When a social media campaign violates the law,” Daphne Howland, April 15, 2015, RetailDive.com, online article at http://www.retaildive.com/news/when-a-social-media-campaign-violates-the-law/385649/
3. “How to Put Ethics in E-Business,” by Amber Keefer, Chron.com, online article at http://smallbusiness.chron.com/put-ethics-ebusiness-41216.html
4. “Putting the Ethics in E-Business,” By Zachary Tobias, November 6, 2000, Computerworld, online article at http://www.computerworld.com/article/2588768/e-commerce/putting-the-ethics-in–e-business.html
5. “Big Data Knows What You’re Doing Right Now,” by Martha C. White, July 31, 2012, Time Magazine, online article at http://business.time.com/2012/07/31/big-data-knows-what-youre-doing-right-now/
6. “The Ethical Problems In E-Business,” by Tom Streissguth, Chron.com, online article at http://smallbusiness.chron.com/ethical-problems-ebusiness-62037.html
7. “7 Tips to Knock Your Online Customer Support Out of the Park,” by Jonathan Long, January 12, 2015, Entrepreneur, online article at https://www.entrepreneur.com/article/241600