Commerce
Done by:
Sadoun AL-Suwaida
Turki AL-Anazi
Outline
 Anti-Competitive Practices
 Online Auction
 Trade
 Payment
 Cyber squatting
 Fraud
 Web-ads
Anti-Competitive Practices
Definition:
Practice done by a leader company to
hurt others
 Vaporware.
 Undercutting.
 Force
bundling.
Online Auction
 Definition: bid for products and services over
the Internet.
 No time constraints.
 No geographical constraints
 Large number of bidders.
 Large number of sellers.
Free Trade
 Definition: no restriction on international trade.
 Import
tariffs.
 Export subsidies.
 Export controls.
Supercomputers.
 Encryption.

Payment
 Definition: transfer of wealth from one party to another.


Credit Card.
Debit.
 Identity Theft.
Cyber squatting
 Definition:
Registering, selling or using a domain name with the
intent of profiting from the goodwill of someone else's trademark.
 One of the more notable transactions was the domain name
wallstreet.com, which was registered in 1994 for $70 and sold for
one million in 1999.
 Anti Cyber squatting


In August 1999, the U.S. government passed the AntiCybersquatting Consumer Protection Act.
which enables trademark holders to obtain civil damages up to
$100,000 from cybersquatters that register their trade names or
similar-sounding names as domain names.
Uniform Domain-Name DisputeResolution Policy (UDRP)
 The UDRP is a process established by the
Internet Corporation for Assigned Names and
Numbers (ICANN) for the resolution of
disputes regarding the registration of internet
domain names.
 The UDRP policy currently applies to all .biz,
.com, .info, .name, .net, and .org
Internet Fraud
 Definition:
Refers generally to any type of fraud scheme
that uses one or more components of the Internet.
such as:




chat rooms,
e-mail,
message boards,
Web sites.
Major Types of Internet Fraud
 Auction and Retail Schemes Online.
 Most frequently reported form of Internet fraud.
 How?

Offer high-value items that are likely to attract
many consumers their victims to send money for
the promised items, but then deliver nothing or
only an item far less valuable than what was
promised
Major Types of Internet Fraud
 Business Opportunity/"Work-at-Home"
Schemes Online.

Pay anywhere from $35 to several hundred
dollars or more, but fail to deliver the materials
or information that would be needed to make
the work-at-home opportunity a potentially
viable business.
Major Types of Internet Fraud
 Market Manipulation Schemes.


Disseminate false and fraudulent information
in an effort to cause dramatic price increases
in thinly traded stocks.
Immediately sell off their holdings of those
stocks to realize substantial profits before the
stock price falls back to its usual low level.
Major Types of Internet Fraud
 Identity Theft and Fraud.

Wrongful obtaining and using of someone
else's personal data.
How to avoid Fraud
 Don't Judge by Initial Appearances.
 Be Careful About Giving Out Valuable Personal Data
Online.
 Be Especially Careful About Online Communications
With Someone Who Conceals His True Identity.
 Watch Out for "Advance-Fee" Demands.
Web Advertising
 Web Advertising: Refers generally to any type of
Advertisement scheme that uses one or more components of
the Internet.
 Online advertising has two type:


legitimate
illegitimate
Legitimate Web Ads.
 Search Engine Advertising


80% of Web search is generated through
search engines.
The most effective way of advertising.
 Banner Advertising


Static banner
Dynamic banner
Illegitimate Web Advertising
 Spamming :
spam is E-mail that is not requested.
 Very inexpensive way to reach people.
 Billions of unwanted messages are transmitted daily.
 Spam does produce results.

Suppose that out of 2,000 spam messages, one person
clicks the link, and the spammer makes $1.

If a million spams were sent that day, the spammer made
$500 .
Costs of Spam
 Consumption of network resources .
 Cost human time.
 It is cost United States organizations alone more than $10 billion
in 2004 .
CAN-SPAM
 (Controlling the Assault of Non-Solicited
Pornography And Marketing Act of 2003) .
 In order not to be considered spammer:




The message header must have a truthful subject line .
a valid return address
The message must clearly state that it is an advertisement
have a simple way to remove you from their list.
Sources
 http://www.nolo.com/index.cfm
 http://www.internetfraud.usdoj.gov
 http://www.answer.com