978-1285197159 Chapter 4 Emphasize that the marketing firms aggregate the

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Quick Quiz 1

1. ____ is the combination of communications privacy (the ability to communicate with

others without those communications being monitored by other persons or organizations)

and data privacy (the ability to limit access to one’s personal data by other individuals and

organizations in order to exercise a substantial degree of control over that data and its use).

2. A(n) ____ is a device that records electronic impulses to identify the numbers dialed for

outgoing calls.

3. A(n) ____ is a device that records the originating number of incoming calls for a particular

phone number.

II. Key Privacy and Anonymity Issues

1. Use the rest of this chapter to discuss current and important privacy issues, including data

breaches, electronic discovery, consumer profiling, workplace monitoring, and advanced

surveillance technology.

A. Data Breaches

1. Note that an alarming number of identity theft incidents can be traced back to data

breaches involving large databases of personal information. Use Table 4-3 to aid the

discussion.

2. Point out that the cost to an organization that suffers a data breach can be quite high—

by some estimates nearly $200 for each record lost.

B. Electronic Discovery

1. Explain that discovery is part of the pretrial phase of a lawsuit in which each party can

obtain evidence from the other party by various means, including requests for the

production of documents.

C. Consumer Profiling

1. Introduce the term cookies.

2. Emphasize that the marketing firms aggregate the information they gather about

consumers to build databases that contain a huge amount of consumer data, and then

D. Workplace Monitoring

1. Remind students many organizations have developed policies on the use of IT in the

workplace in order to protect against employee abuses that reduce worker productivity

or that expose the employer to harassment lawsuits.

2. Note that many U.S. firms find it necessary to record and review employee

communications and activities on the job, including phone calls, email, and Web

surfing. Some are even videotaping employees on the job. In addition, some companies

employ random drug testing and psychological testing.

3. As the laws governing employee privacy and monitoring continue to evolve, business

managers must stay informed in order to avoid enforcing outdated usage policies.

Organizations with global operations face an even greater challenge because the

legislative bodies of other countries also debate these issues.

E. Advanced Surveillance Technology

1. Draw attention to the fact that advances in information technology—surveillance cameras

and satellite-based systems that can pinpoint a person’s physical location—have

provided new data-gathering capabilities. However, these can also diminish individual

privacy and complicate the issue of how much information should be captured about

people’s private lives.

Camera Surveillance

1. Note that camera surveillance is used extensively in London, and that a number of

U.S. cities plan to expand their surveillance systems.

Teaching

Tip

Discuss whether people have the expectation of anonymity in public places and

whether anonymity is protected under the law.

Vehicle Event Data Recorders

1. Note that a vehicle event data recorder (EDR) is a device that records vehicle and

occupant data for a few seconds before, during, and after any vehicle crash that is

severe enough to deploy the vehicle’s air bags.

Stalking Apps

1. Explain that stalking app can be loaded onto someone’s cell phone or smartphone

within minutes, making it possible for the user to perform location tracking, record

calls, view every text message or picture sent or received, and record the URLs of any

Web site visited on the phone.

2. Note that there is no law that prohibits a business from making an app whose primary

purpose is to help one person track another, and anyone can purchase this software

over the Internet.

Discussion Questions

1. Since there are few legal limitations to the surveillance of private citizens by industry, could

the government contract surveillance to private companies? Would this be legal? Would it be

desirable?

2. Recall that there is a national “do not call” number where consumers can register to opt out

of telemarketing. Could the same type of centralized system be implemented to allow

Additional Projects

1. Write a paper comparing and contrasting privacy policies in Germany and privacy policies in

the United States.

2. Write a paper analyzing the legality of the NSA program to collect and analyze pen register

and tap-and-trace data, and the NSA program to listen to the overseas phone calls of U.S.

Additional Resources

Key Terms

American Recovery and Reinvestment Act—a wide-ranging act passed in 2009 that

authorized $787 billion in spending and tax cuts over a 10-year period; Title XIII, Subtitle

D of this act (known as the Health Information Technology for Economic and Clinical

Health Act, or HITECH) included strong privacy provisions for electronic health records,

including banning the sale of health information, promoting the use of audit trails and

encryption, and providing rights of access for patients

Bill of Rights—after the Constitution went into effect in 1789, several amendments were

proposed that would spell out additional rights of individuals; ten of these proposed

amendments were ultimately ratified and became known as the Bill of Rights

Children’s Online Privacy Protection Act (COPPA)—law that requires any Web site that

caters to children to offer comprehensive privacy policies, notify parents or guardians

about its data collection practices, and receive parental consent before collecting any

personal information from children under 13 years of age

Cookie—text file that can be downloaded to the hard drives of users who visit a Web site,

so that the Web site is able to identify visitors on subsequent visits

Communications Act of 1934—law that established the Federal Communications

Commission and gave it responsibility for regulating all non-federal-government use of

radio and television broadcasting and all interstate telecommunications as well as all

international communications that originate or terminate in the United States; the act also

restricted the government’s ability to secretly intercept communications

Electronic Communications Privacy Act of (ECPA)—a law focusing on three main

issues: (1) the protection of communications while in transfer from sender to receiver; (2)

the protection of communications held in electronic storage; and (3) the prohibition of

devices from recording dialing, routing, addressing, and signaling information without a

search warrant

Electronic discovery (e-discovery)—the collection, preparation, review, and production

of electronically stored information for use in criminal and civil actions and proceedings

Electronically stored information (ESI)—any form of digital information, including

emails, drawings, graphs, Web pages, photographs, word-processing files, sound

recordings, and databases stored on any form of electronic storage device, including hard

drives, CDs, and flash drives

European Data Protection Regulation—law that enforces a single set of rules for data

processing across the EU

European Union Data Protection Directive—law that requires any company doing

business within the borders of the countries comprising the European Union to implement

a set of privacy directives on the fair and appropriate use of information

Fair and Accurate Credit Transactions Act—an amendment passed in 2003 to the Fair

Credit Reporting Act that allows consumers to request and obtain a free credit report once

each year from each of the three primary consumer credit reporting companies (Equifax,

Experian, and TransUnion)

Foreign Intelligence Surveillance Act (FISA)—law that describes procedures for the

electronic surveillance and collection of foreign intelligence information in

communications between foreign powers and the agents of foreign powers

Fourth Amendment—the right of the people to be secure in their persons, houses, papers,

and effects, against unreasonable searches and seizures, shall not be violated, and no

Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and

particularly describing the place to be searched, and the persons or things to be seized

Freedom of Information Act (FOIA)—grants citizens the right to access certain

information and records of the federal, state, and local governments upon request.

Gramm-Leach-Bliley Act (GLBA)—a bank deregulation law that enabled financial

entities to merge; it also included key rules that affect personal privacy

Health Insurance Portability and Accountability Act (HIPAA)—law designed to

improve the portability and continuity of health insurance coverage; to reduce fraud, waste,

and abuse in health insurance and healthcare delivery; and to simplify the administration of

health insurance

NSL gag provision—a law which prohibits NSL recipients from informing anyone, even

the person who is the subject of the NSL request, that the government has secretly

requested his or her records

Opt in—to give a financial institution the right to share personal data

Opt out—to refuse to give financial institutions the right to collect and share personal data

with unaffiliated parties

Pen register—a device that records electronic impulses to identify the numbers dialed for

outgoing calls

Privacy Act—prohibits U.S. government agencies from concealing the existence of any

personal data record-keeping system

Right of privacy—it is the right to be left alone, the most comprehensive of rights, and the

right most valued by a free people

Right to Financial Privacy Act—an act that protects the records of financial institution

customers from unauthorized scrutiny by the federal government

Stalking app—cell phone spy software that can be loaded onto someone’s cell phone or

smartphone within minutes, making it possible for the user to perform location tracking,

record calls, view every text message or picture sent or received, and record the URLs of

any Web site visited on the phone

USA PATRIOT Act—law that gave new powers both to domestic law enforcement and

U.S. international intelligence agencies, including increasing the ability of law enforcement

agencies to search telephone, email, medical, financial, and other records; it also eased

restrictions on foreign intelligence gathering in the United States

Vehicle event data recorder (EDR)—a device that records vehicle and occupant data for

a few seconds before, during, and after any vehicle crash that is severe enough to deploy

the vehicle’s air bags

Wiretap Act—regulates the interception of wire (telephone) and oral communications; it

allows state and federal law enforcement officials to use wiretapping and electronic

eavesdropping, but only under strict limitations