E-commerce has grown in stature since the dawn of the 21st century with more and more e-commerce ventures lining up to provide the consumers with their needs through digital medium. E-commerce follows strict laws that ensure that certain ethical standards are followed by the companies because these ethical considerations lead to a successful development of the business policy. It has been studied that there are different ethical considerations in aspect to the data protection of consumers that are needed to be incorporated within the business policy of e-commerce (Turban, Lee and Turban, 2009).
The data protection is one of the most important part of the law that the companies need to pay heed to if they aim to successfully develop ways to achieve their business objectives. A new business’ main focus when building the policy should be on integrating the data protection aspects within it. If the business model aims to collect data from the visitors of the website then it is important that the Data Protection Act is followed to handle the legal compliance of the data (Laudon and Traver, 2016). Based on the view of Antoniou and Batten (2011), it is important that the information of the customers are not given out to parties beyond those involved as the privacy of the customers is a highly important matter in the data protection element of the policy.
The formulation of the business policy should be based on the legal and accounting responsibilities of the business along with other crucial regulations that are needed to be followed. The different factors that can strengthen any business policy includes the handling of the private data of the customers, the protection of customer privacy and collecting relevant taxes that are needed to be included in the business policy of the e-commerce business (Gupta, Iyer and Weisskirch, 2010). According to Tsai (2011), the online privacy and data protection is a major concern for a large number of online shoppers. As a result, the effectiveness of the business policy is dependent on how well it explains to the customers about the antics of data protection. It was further established that the e-commerce websites have to work towards making sure that detailed protection is carried out of the personal information of the customers that is collected. Furthermore, it should be collected in compliance of the federal and state privacy laws.
Despite the implementation of data protection measures, customers are often not convinced by the measures that are adapted by the e-commerce organisations to protect the data and personal information. The business policy of the website is imperative in bridging the gap of the misunderstanding as it was established that a successful business policy would give out ample details on the information of the customers that will be collected and stored and the tactics that will be deployed for the using of the information without surpassing any legal barriers (Martin and...