...identities stolen or data breached. Legislation in place to prevent and prosecute identity theft will be discussed. How to report identity theft is also explained. Defining Identity Theft The U.S. Department of Justice defines identity theft, also called identity fraud, as “all types of crime in which someone wrongfully obtains and uses another person’s personal data in some way that involves fraud or deception, typically for economic gain” (U.S. Department of Justice, 2015). Identity thieves use personal data such as Social Security numbers, bank account or credit card numbers to personally profit at the victim’s expense. These breaches allow thieves to take funds out of bank accounts or in the worst cases, take over a victim’s identity completely, running up huge debts and committing crimes using the victim’s name. Victims not only suffer the out-of-pocket financial losses, but they may have to rebuild their reputation in the community due to the perpetrator’s actions (U.S. Department of Justice, 2015). Identity theft is expected to surpass traditional theft as the leading form of property crime. Security analysts state everyone should prepare to be a victim of identity theft at some time in their lives (Anderson, 2013). Identity theft is a three stage process: acquisition, use, and discovery (Office of Justice Programs,...
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...Speed, was a sharp critic of the Federal Trade Commission for its lack of consumer protection. Specifically, the FTC was criticized because it relied too heavily on consumer complaints and brought enforcement actions only on a case-by-case basis. The consumer protection movement wanted the FTC to proceed against entire industries rather than individual businesses. The Federal Trade Commission felt it did not have the power to regulate an entire industry. So Congress in the late 60’s and early 70’s gave the FTC trade regulation rulemaking powers. This enabled the FTC to enact regulations that would bind an entire industry. With this power, the FTC set out to transform itself as the nation’s consumer protection watchdog. It hired a group of liberal young lawyers and charged them with identifying industries that were ripe for regulation. Using this power, the FTC enacted trade regulation rules on hearing aids, used cars, eyeglasses, vocational schools, children’s advertising, and funeral service. In early 1972, during an FTC Staff meeting, it was suggested by a staffer who had read Jessica Midford’s book, The American Way of Death, that the FTC should proceed against the funeral industry. In December of 1972, the FTC Funeral Rule investigation started. The FTC Staff gathered material on the funeral industry and did a price survey of local funeral homes in the District of Columbia. After reviewing that data, the Federal Trade Commission decided to conduct a full rulemaking...
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...The level of said protection depends on the ad’s copy’s truthfulness. (Cornell University Law School, n.d.) If an ad’s claims are false, then the ad can be removed, this is one of the FTC’s roles. (Federal Trade Commission, n.d.) Spin and puffery are tools that should not be abused. While they might help create a certain image in the consumer’s mind, but in the end, spin is as good as its product. (Bachman, 2013) Is lying about a product’s attributes possible? A company might try to go down this road, although consumers will raise their voices and the authorities will pay attention. Marketers prefer to mislead rather than boldly lie because of the strong ethical objections to said practice. (International Charter, 2012) Not all products are made equal, and thus not all applicable regulations might be the same; but the baseline principles are the same: all advertisements must be truthful and non-deceptive and cannot be unfair. (Federal Trade Commission, n.d.) Companies are required to be honest with the public, their reputation and long-term survival depend on it. (Diermeier, 2011) Not even omission is acceptable. According to the FTC, omitting information that is likely to mislead a consumer is a deceptive practice. (Federal Trade Commission,...
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...ASSESSMENT 3: Evaluation of business case The case study presents a successful vehicle manufacturing company, Toyota Australia (Toyota), as it evaluates radical strategic options in light of contracting sales and no sign of improvement in future. Established in 1958 in Port Melbourne, Australia (Toyota Australia n.d.), Toyota became very successful locally and started to look for opportunities overseas. It made its first shipment abroad in 1986. By 2011, Toyota became the largest exporter of manufactured automobiles in Australia, exporting 73% of vehicles overseas. However, in 2013, as GM-Holden, a competing Australian vehicle manufacturer, announced complete shutdown of its operations by 2017, Toyota was facing existential threats both at home and abroad. In 2013, there were only three vehicle manufacturers in Australia. However, Toyota’s main competitors were not the Australian, but overseas car producers. Starting in 2005, Australia embarked on signing the Free Trade Agreements (FTA) with Thailand, the ASEAN counties, and New Zealand (Australian Trade Commission n.d.), as a result exposing local manufacturers to significant competition. Increased competition from the overseas car manufacturers eroded the revenues of all local producers. Toyota also had to reduce its production volume and operate at an unprofitably low capacity utilisation rate. In an effort to improve its competitiveness in 2012, Toyota launched a Toyota Australia Future Business Transformation, a cost-cutting...
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...Abstract The Federal Trade Commission considers identity theft to be the fastest growing crime in the country. The Internet has become a hot zone for attracting identity theft thieves to steal personal information. Identity theft is divided into four basic areas – financial identity theft, criminal identity theft, identity cloning and business and commercial identity theft. Criminals obtain our personal information through methods such as using an insider, dumpster diving, computer hacking, war driving, phishing and pre-texting. The Department of Justice prosecutes identity theft under federal statutes. Congress passed the Identity Theft and Assumption Deterrence Act, Title 18 United States Code 1028 in 1998. One of the most noted identity theft cases was USA v. Cummings. The largest hacking and identity theft case ever prosecuted by the Department of Justice involved eleven people who stole more than forty million credit and debit card numbers. To severely curtail on identity theft, President Bush mandated Executive Order 13402 called the Identity Theft Task Force. Identity theft causes immeasurable damage to peoples’ names and reputations. Greater awareness and education will help us to combat identity theft. Identity Theft It’s a nightmare that can leave an unsuspecting person feeling violated and vulnerable. It doesn’t care who you are or where you live. Gender, race and age are totally irrelevant. In this modern technological age, it is a crime that can realistically...
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...“Identity theft occurs when someone uses your personally identifying information (PII), like your name, Social Security number, or credit card number, without your permission, to commit fraud or other crimes.” (Fighting Back Against Identity Theft: Federal Trade Commission). According to the Federal Trade Commission, identity theft complaints have decreased since year 2008 (314,521 to 250,854). It is estimated by the FTC that as many as 9 million Americans have their identities stolen each year. As information technology progresses along with society, there is always an increased risk of having one’s identity stolen. “Identity theft was the number one complaint category in the CSN for calendar year 2010 with 19% of the overall complaints, followed by Debt Collection (11%); Internet Services (5%); Prizes, Sweepstakes and Lotteries (5%); Shop-at-Home and Catalog Sales (4%); Imposter Scams (4%); Internet Auction (4%); Foreign Money Offers and Counterfeit Check Scams (3%); Telephone and Mobile Services (3%); and Credit Cards (2%).” (Consumer Sentinel Network Data Book: For January - December 2010, 2011). Although the numbers have slightly decreased, overall, identity theft is on the rise. “According to a February 2012 Javelin Study, identity theft rose 13% from 2010 to 2011. More than 11.6 million adults became a victim of identity theft in the United States during 2011.” (Coping with Identity Theft: Reducing the Risk of Fraud, 2012). How do perpetrators steal the identities...
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...associated legal considerations. As an example, you consider legal considerations such as discrimination in the workplace. You also study regulatory compliance issues for an organization, as well as the associated business consequences. The readings focus on workers’ compensation, occupational safety, and other worker protection laws, with a specific attention to the Family and Medical Leave Act. This week also covers the collective bargaining agreements and labor law, as well as several laws and decisions a company must make regarding these labor law issues. In addition, you examine equal opportunity in employment and Title VII, including what comprises this significant law. You review regulatory laws, environmental protection and global warning, as well as antitrust laws and unfair trade practices. The readings focus on introductory concepts and the laws that support these concepts. Employment and Regulatory Risk OBJECTIVE: Differentiate between types of employment relationships and the associated legal considerations. Resources: Ch. 31 & 32 of Business Law: Legal Environment, Online Commerce, Business Ethics, and International Issues Content • Ch. 31: Employment, Worker Protection, and Immigration Laws o Introduction to Employment, Worker Protection, and Immigration Laws o Worker’s Compensation • Case 31.1 Workers’ Compensation: Medrano v. Marshall Electrical Contracting Inc. o Occupational Safety • Ethics Spotlight:...
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... Advertising is the nonpersonal communication of information usually paid for and usually persuasive in nature about products, services or ideas by identified sponsors through the various media."(Bovee, 1992, p. 7). Consumers are greatly influenced by countless advertisements urging them to purchase products that they may or may not need or want. While many of these advertisements honestly inform and educate consumers, some are false, deceptive, and even illegal. An advertisement is considered deceptive if there is a "representation, omission, or practice that is likely to mislead the consumer". The advertisement does not necessarily have to cause actual deception, but, according to the Federal Trade Commission (FTC), the act need only likely mislead the consumer (Federal Trade Commission, 1998 [on-line]). Advertising that makes false claims or misleading statements, as well as advertising that creates a false impression. If retailers systematically advertise merchandise at low prices to get customers into their store and then fail to have the merchandise, they are guilty of deceptive advertising. Deceptive practices can take many other forms as well, such as false promises, unsubstantiated claims, incomplete descriptions, false testimonials or comparisons, small-print qualifications of advertisements, partial disclosure, or visual distortion of products. According to David Gardner (1975) there are three types of deceptive advertising: Fraudulent advertising which is an...
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...CardSystems Solutions break any federal or state laws? • Federal Trade Commission presented a decision order on CardSystems Solutions and its predecessors as a result of negligence and violation of FTC Act 15, U.S.C. 41-58. 2. CardSystems Solutions claim to have a hired an auditor to assess compliance with PCI DSS and other best practices for ensuring the C-I-A of privacy data for credit card transaction processing. Assuming the auditor did indeed perform a PCI DSS security compliance assessment, what is your assessment of the auditor’s findings? • If compliant they would have implemented proper IP s firewalls or maintained their anti-virus program definitions. Also they were required to encrypt all stored sensitive privacy data for research. 3. Can CardSystems sue the auditor for not performing his or her tasks and deliverables with accuracy? Do you recommend that CardSystems Solutions pursue this avenue? • No because they were PCI DSS compliant in 2004 but was not certifiably compliant at the time of attack in June of 2005. 4. Who do you think is negligent in this case study and why? • CardSystems. Given their high profile, they were expected to be in compliance for properly storing and protecting all privacy data including gathered transactions and credit card information of their cliental in an encrypted manner. 5. Do the actions of the CardSystems warrant an “unfair trade practice” designation as stated by the Federal Trade Commission (FTC)? • Yes, because the...
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... The study of government regulation and the competitive environment for business is relevant to all those who study business. All business candidates need to understand how the competitive environment will impact their employers and businesses. Task: Write an essay (suggested length of 2–3 pages) that describes the relationship between regulation and market structures and how regulation affects the market. A. Define industrial (i.e., economic) regulation. Industrial Regulation happens when government commissions regulate the rates or prices of natural monopolies. 1. Explain why industrial regulation exists. In a market structure of perfect competition industrial regulation is not required because there is a lot of competition and this encourages competing industries to make good use of resources, also the price of their goods are determined by the price the market will bear and consumers benefit. Whereas in a monopolistic competition there exists a market structure that could allow competitive monopolies, duopolies, oligopolies, and monopolies to charge higher than competitive prices or the use inefficient use of resources and limited supplies, creating an environment that is not conducive to the benefit of the consumer. . (McConnell, Brue & Flynn, 2012) 2. Explain how industrial regulation affects the market. Industrial regulation affects the market by keeping prices for natural monopolies such as public utility companies economical. In the cases where...
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...Professor Kenneth Pino Law, Ethics, and Corporate Governance – LEG 500 August 21, 2011 1. Betty drove three hours in one-hundred degree heat. Explain if this fact has any bearing on whether or not the dealer must perform in accordance with the published advertisement. The fact that Betty drove three hours in one-hundred degree heat has no bearing on whether or not the dealer must perform in accordance with the published advertisement. Betty chose to drive three hours based on the advertisement because she wanted the truck that was being advertised in the newspaper. According to the video, Betty contacted the dealership and spoke with a man, as she indicated, who said he would give her three thousand dollars firm for her trade in. Betty entered the dealership with the newspaper in hand that showed the advertisement for the truck priced at $11,399 and was determined to purchase the truck. Tony was determined to deter Betty from the advertised truck by describing other trucks that were available at a higher price. Tony's sales tactic is known as bait and switch advertising. According to Wikipedia, bait and switch advertising is a way to lure customers into a business by offering to sell a product or service that the advertiser does not intend or want to sell. Once the customer enters the business the salesperson tries to switch the customer from purchasing the advertised merchandise to purchasing something more expensive. In the video, Tony tried to convince...
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...IRAC Brief: JP Morgan Chase Settles the London Whale This is a case study analysis of a current legal case regarding the governance principles of regulatory compliance and the methods used to manage risk arising. The briefing of this case will utilize the IRAC method of case analysis to give a breakdown on the case of JP Morgan Chase on regulatory violations and risk management. The IRAC method will address I - Issue, R - Rule, A - Analysis, and C - Conclusion which will provide a researched assessment of the trading loss violations on this case. Please read and review this analysis of the case utilizing IRAC method of case analysis. Issue JP Morgan Chase permitted traders in its London office to allocate magnified values to transactions and cover up huge losses as they continued to explode. Two traders could face criminal charges for fabricating records to cover up losses. JP Morgan’s charge to the $6 billion oversight in trading loss is the first for a main company since the Securities and Exchange Commission revised its practice of letting firms pay fines without admitting fault. An admission by JPMorgan could provide a pattern for pursuing other admissions in Wall Street cases. The Justice Department is aggressive in getting JPMorgan to admit that from 2005 to 2007, it sold mortgage securities to investors without fully warning of the risks. By wanting the bank to admit some responsibility, officials hope it will caution other corporations to double check before taking...
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...Derivative Losses at JPMorgan Chase LaVita Rodriguez Business Government and Society Case Study: Derivative Losses at JP Morgan Chase 1. Does this case indicate that JPMorgan and the federal government were in a collaborative partnership or working at arms length? Why do you think so? In a collaborative partnership the government works closely with organizations in efforts to achieve a common objective that is mutually beneficial. Working at arm’s length is the opposite of a collaborative partnership due to the objectives of the organization and government being opposite, creating an adversarial relationship between them. In the case of JP Morgan and the federal government, they demonstrate working at arm’s length. The federal government imposed regulations that would extend government oversight in the trading of derivatives by implementing government rules that required trades involve intermediaries in public “clearing houses” so that regulators could closely inspect transaction (Lawrence, A. T., & Weber, J., 2014). JPMorgan opposed the idea of trading derivatives in public because it would potentially benefit rivals and compromise the profit of the bank (Lawrence, A. T., & Weber, J., 2014). The objectives of the federal government and JPMorgan do not align. The federal government wants to implement regulations that would work to restructure JPMorgan from being able to take excessive risks that would result in large bailouts being forced onto taxpayers who are already...
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...Antitrust September 17, 2009 Tonight’s Agenda Role Call Review of Last Week, Current Events Antitrust Case Study: DeBeers Wrap Up Review of Last Week “People of the same trade seldom meet together, even for merriment and division, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices.” -- Adam Smith “Perfectly Competitive Market” Consumers well-served. Receive goods at lowest price possible. Society able to choose among competing good with maximum efficiency. Firms that do not produce what consumers want at a fair price are quickly eliminated. Highly restrictive model applying stringent standards. Antitrust Perfect competition model is essentially static. Real world markets are extremely dynamic. Perfect competition model is unsuitable as a benchmark. Antitrust Laws Promote a competitive economy by prohibiting actions that restrain, or are likely to restrain, competition and by restricting the forms of market structure that are allowable. Limit the activities of firms that have legally obtained monopoly power. Intended to provide a general statutory framework to give the Justice Department, the FTC, and the courts wide discretion in interpreting and applying them. The Development of Antitrust Laws Trust was a device for pyramiding control over several operating companies. The Sherman Antitrust Act (1890)...
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...responsible competition. Microsoft is even quoted in the case that “it is committed to responsible and sustainable business practices that consider the social and environmental consequences of its actions”, but this after a decade of ethical and legal problems stemming from antitrust issues and several patent infringement complaints. The question is, would Microsoft have such a “positive reputation” today if we didn’t have the Sherman Act 1890, the Clayton Act 1914 and the Federal Trade Commission Act 1914 and if the Federal Trade Commission never began investigation Microsoft back in the early 1990s. Legal Issues Impacting Microsoft In the United States, Courts have held that a market share below 50% precludes finding monopoly power, and the leading treatise suggests that a share of over 70-75% for at least five years is required. While the law in the US allows creation of a monopoly, the courts have interpreted this to mean that monopoly is not unlawful “per se”, but if acquired through what the courts consider prohibited conduct, then it is unlawful. The Supreme Court also says, that a monopoly may engage in practices that any company, regardless of size, could legally employ; however, it cannot use its market power to prevent competition. Competitors, government regulators and I believe that Microsoft was acting as a monopoly power and engaging in unfair and unethical competition. In this case study, the appeals court held that Microsoft went beyond the boundary...
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