Double Click

Double Click Case Analysis

Organizations experience challenges every day and Internet-based businesses are no exception. This paper will address the challenges of the Internet-based organization, Double Click. The company must develop a privacy policy that will with legal issues, ethical issues, and regulatory issues.

Legal Issues

Fraudulent advertising is a serious legal issue that occurs when intentionally misleading

and fraudulent statements are made or published about products and services advertised or sold in an attempt to sell more products. According to Guzzo (2003), Double Click "fraudulently routed millions of Internet users to its customers' commercial web sites by disseminating deceptive advertising banners that impersonated computer system warnings or e-mail messages" (p. 14. para. 2). Internet users were misled and spent time needlessly answering deceptive system messages. These Internet users were unknowingly routed to unsolicited websites as a result of fraudulent warnings posted by Double Click.

Website use cookies to store Internet users' information to complete sales transactions. A cookie is a harmless computer program that a website installs onto the consumer's computer hard drive. The cookie retains a customer's name, mailing address, and credit card information. Transactions between third party providers like Double Click, retailers, and purchasers must be secure. Encryption methods are employed to ensure the security of the information and to reduce the risk of privacy issues and identity theft.

The purchase of Abacus by Double Click raised the concern of the violation of privacy issues. Double Click previously had the ability to collect personal information such as IP addresses, the type of operating system in use, and the number of time a website was navigated (Ramasastry, 2003, p. 1). With the acquisition of Abacus, a marketing research firm that records the purchasing habits of 90% of American households, Double Click could match Internet use and website visits to individual consumers. As a result, Double Click is at risk of invading the privacy of Internet users.

Ethical Issues

Consumers desire to control their personal information and how that information is disclosed and used. Double Click has the challenge of maintaining the consumers' personal information while meeting the demands of its marketing customers. An important aspect of Internet privacy is regulating the data that can be accessed and averting the inappropriate release of personal and distinguishable data collected and inventoried by websites. The challenge is to find an efficient method to protect the nonpublic information.

Prior to the acquisition of Abacus, Double Click did not have an informed consent form available to Internet users. They are currently developing a privacy policy that will include an informed consent form. The informed consent will provide customers with a full disclosure of known relevant information, including the risk of computer cookie. The informed consent must address five topics: disclosure, comprehension, voluntariness, competence, and agreement. The disclosure will address the release of all relevant information and what Double Click does with cookies and how it affects the consumer. Comprehension is important because a well-written and easy to understand disclosure will be understood by consumers and users. Voluntariness is important in the disclosure to permit users to voluntarily opt-in or -out of the cookie recording program. Competence of the user is important because it ensures the consumer is competent to make an educated decision. The agreement should be brief and explicitly describe the terms of the disclosure with an electronic acknowledgement or e-signature.

Cookies store personal information of consumers such as credit card information, purchasing habits, and transaction history. Consumers have concerns with this information being shared with other organizations or individuals without their permission. Double Click has the challenge of maintain and protecting consumer information when a purchasing transaction occurs. This will enable the consumer to control the information transmitted during the transaction.

Regulatory Issues

The Electronic Privacy Act of 1986 protects wire, oral,