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Legal Risks and Solutions to E-Marketers’ Data Mining

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Research on Selected China's Legal Issues of E-Business
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Abstract

Nowadays, data mining is popular in the science and mathematical fields but also is utilized increasingly by marketers trying to distill useful consumer data from Web sites. Data mining is a powerful new technology with great potential to help companies focus on the most important information in the data they have collected about the behavior of their customers and potential customers. In addition to e-privacy concern of data mining, other disputes are also becoming more popular for e-marketers. Therefore, this article discusses some legal risks of e-marketers’ data mining imposed by the captioned issues on the net and presents some solutions that enable data mining projects to proceed without violating these constraints.

(Published by “2005 Int’l Conference on Services Systems and Services Management-Proceedings of ICSSSM’05” of IEEE, Inc., June 2005, pp. 1085–1089<EI,ISTP indexed>)

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Notes

  1. 1.

    Mun (2000).

  2. 2.

    Jeffrey Rosen, “The Eroded Self,” New York Times Magazine, April 30, 2000.

  3. 3.

    Acxiom is the largest data mining company in the USA. It has 5,600 employees, and its sales exceed $1 billion annually, cited from Seung-Hwan Mun, supra note 1.

  4. 4.

    Mary J. Cronin, “Privacy and Electronic Commerce”, adapted from Imparato (2000).

  5. 5.

    See Business Week/Harris poll, March, 2001, finding that 35 % were “not at all comfortable” and 28 % were “not very comfortable” with anonymous profiling.

  6. 6.

    Directive 95/46/EC of the European Parliament and of the Council of 24th October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data, OJ No L 281, 23.11.1995, p. 31. The Directive should be transposed into the legislation of the Member States by October 24, 1998, and has now become a legally binding instrument.

  7. 7.

    AIMedia is a European e-commerce Web site which develops a commercial integrated intelligent and secure framework for highly targeted advertising.

  8. 8.

    “Safe Harbor Workbook”, Department of Commerce, http://www.export.gov/safeharbor/sh_workbook.html.

  9. 9.

    Krause (2001).

  10. 10.

    “New Canadian Personal Information Protection Legislation”, STAT-USA, http://www.ad-mkt-review.com/public_html/docs/imi001.html..

  11. 11.

    “Do We Need Legislation to Protect Personal Information?”, Beijing Review, March 24, 2005, Vol. 48, No. 12, at Column 44.

  12. 12.

    Desktop Marketing Systems Pty Ltd v Telstra Corporation Ltd (Hayne and Callinan JJ, 20 June 2003).

  13. 13.

    Copyright Act 1968 (Cth).

  14. 14.

    Section 10(1), id. See also Ladbroke (Football) Ltd v William Hill (Football) Ltd [1964] 1 WLR 273.

  15. 15.

    318 F. 3d 58 (1st Cir. Jan. 28, 2003).

  16. 16.

    274 F. 3d 577 (1st Cir. Dec. 17, 2001).

  17. 17.

    Kenneth (2003).

  18. 18.

    No. 167-194022-02 (67th District court, Texas March 8, 2003).

  19. 19.

    See supra note 17.

  20. 20.

    126 F. Supp. 2d 238 (S.D.N.Y., December 12, 2000) aff'd. 356 F.3d 393 (2d Cir. 2004).

  21. 21.

    The Lanham Act allows lawsuits for false representation of competitors’ services or products.

  22. 22.

    For detail discussion on Verio’s case, visit http://www.phillipsnizer.com/library/cases/lib_case23.cfm.

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Correspondence to Yimeei Guo .

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Guo, Y., Zhang, C. (2015). Legal Risks and Solutions to E-Marketers’ Data Mining. In: Guo, Y. (eds) Research on Selected China's Legal Issues of E-Business. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-44542-6_3

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