Seeking Greater Customer Acceptance Your organization has been in business over

Question

Seeking Greater Customer Acceptance Your organization has been in business over 10 years selling consumer home products over the Internet. A year ago, the firm gained much negative publicity when it was uncovered that the personal data it gathered was being sold, unknown to its customers, to third parties. The result was over a 15 percent drop in sales. At this time, the firm has no privacy policy and is debating whether to create such a policy, and if so, what terms it should include. Review Questions What is the purpose and intent of a privacy policy? What are the key elements that need to be included in an effective privacy policy? Submit the assignment to Dropbox. Critical Thinking Questions What obligations and potential issues are raised by creating a privacy policy? What measures should be taken to avoid potential litigation over any new privacy policy? Submit the assignment to Dropbox.

Explanation / Answer

- Whether to create such a policy, and if so, what terms it should include.
Yes a privacy policy should be created which should include terms on how data collected by the organization can be used/processed and by whom.

- What is the purpose and intent of a privacy policy?
Privacy policies are designed to ensure that all collected, stored and disclosed personal information should be in an appropriate manner complying both with legislative requirements and ethical obligations. It is a document explaining how an organization handles customer data.

- What are the key elements that need to be included in an effective privacy policy?
Owner of the privacy policy
What, why and how data is collected
What 3rd parties have access to the data
User's data rights
Process of user notification
Effectie date for policy implementation

- What obligations and potential issues are raised by creating a privacy policy?
Privacy and data collection
Intellectual property issues
Copyright issues
Advertising
Anti-spam Law
Trademarks
Doamin names

- What measures should be taken to avoid potential litigation over any new privacy policy?
Consumer protection litigation
Take care of contract elements while contracting online
Taxation
Follow good Internet advertising practices
Website development and hsoting agreements

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