Public Policy

1
Public Policy the Internet

• The role of public policy
• Policy issues in the Internet environment

2
Why do we need policy?

• The point of policy
• Free Market Society
• Self-Interest
• Perfect Information
• Many Buyers and Sellers
• Absence of Social Costs
• Create balance and stability in environments
• Example Tango!
• Policy is reactive and proactive
• Reactive when problems occur
• Proactive for consumer education
• Relevant for the central exchange environment?
• Representative issues and new problems
• Marketers digital rights management
• Consumers fraud

3
Making policy happen

• Who is responsible?
• Government agencies
• Legislative bodies
• Industry (self-regulation)
• Consumer groups
• International efforts
• General approaches for policy implementation
• How do policy issues get raised?
• Typically through consumer complaints

4
Raising Policy Issues?
by promoting stereotypes Suc
h as these?
5
Raising Policy Issues?
by using emotion to sell products?
6
Raising Policy Issues?
by using emotion to sell products?
7
Raising Policy Issues?
by using offensive advertising?
8
Raising Policy Issues?
what about questionably ethical advertising?
Religion (or Mortality)
Violence (part 1) (part 2) (alternate) -Reebok
Sex
-Victoria -MGD (Bowling) -Haagen-Dazs and
Fosters (parody)
9
Making policy happen

• Who is responsible?
• Government agencies
• Legislative bodies
• Industry (self-regulation)
• Consumer groups
• International efforts
• General approaches for policy implementation
• How do policy issues get raised?
• How do policy issues get resolved?
• What are the desirable characteristics of
  regulation?

10
Internet Policy Hot Topics

• Consumer issues
• Privacy http//www.truste.org/
• Frauds
• Complex to combat
• Types of frauds
• Sales and transaction-based
• Behavior-based
• Access/Capacity (Digital Divide, broadband)
• Marketer issues
• Taxation
• Jurisdiction and liability
• Identification and authentication issues
• http//www.livegrip.com/
• passive v. interactive
• Digital Rights Management (DRM) Napster, kPIG

11
The Flip Side Freedom of Expression

• Two sided to provide and to get information
• Where do we draw the line?
• When does it go too far?
• Law provides limits
• Defamation (harm to reputation)
• gt Internet increases spread of communication
• gt Who is the affected community on the net?
• gt Thus, the Internet increases the
  consequences!!!
• Fighting words (encourages lawlessness?)

12
Advertising regulation

• Playing by the usual rules
• Product regulation e.g., alcohol and tobacco
• Audience regulation protect vulnerable consumers
• Method regulation dont lie, dont fib (FTC)
• Integrating the Internet
• Advertising issues
• Active v. passive audiences (voluntary
  acquisition)
• 24/7 availability (e.g., branded environments)
• Email solicitations (like mail, or fax?)
• Promotional offers (matching restrictions on
  offers across national borders)