The establishment of 'TRUST' in the electronic commerce environment

Adrian McCullagh

Gadens Lawyers

E-mail: AMcCullagh@exchange.gadens.com.au

Abstract

Trust is a necessary but unfortunately misunderstood concept. Confidence in electronic commerce will not arise until there is established "TRUST". The commercial life cycle for a product may involve 4 stages. These stages are:

TRUST in the product
confidence in the product
societal reliance on the product
societal dependence on the product.

Very few products actually reach the last stage. Most successful products only ever reach stage 2 . One product that has reached stage 4 is the telephone. An example of a product that has reached stage 3 but not stage 4 is the television.

But note that all products must reach stage 1 concerning "TRUST" in order to be successful.

Within the electronic commerce environment "Trust" consists of 3 major components, namely:

behavioural trust
business trust
technology trust.

My paper will expand on and explain the importance of each these components and their inter-relationship. My paper will draw upon the US Dept of commerce report on electronic commerce dated 15 April 1998 and the US Federal Trade Commissions Report on "Privacy issues in Electronic Commerce" dated 4 June 1998.

I will also deal with the various European Commission Reports on Electronic Commerce.

From this material I will setout the core elements for Electronic commerce and how the Business community and Governments can assist each other in achieving "TRUST".

There is not general panacea to establish "TRUST". It will require a substantial commitment from Government and the business community.

Speaker

Position	DIRECTOR ELECTRONIC COMMERCE Commercial and Technology Division
Date admitted to practise	2 February 1988
Expertise	Intellectual Property Computer Law International Commercial Law Joint Ventures
Academic background	Bachelor of Laws, Queensland University of Technology, Honours Bachelor of Applied Science in Computing Currently PhD student at QUT Thesis entitled "The Incorporation of Trust Strategies in Digital Signature Regimes for Electronic Commerce"
Professional affiliations	Member of the Australian Computing Society Member of the Australian Intellectual Property Society Member of the Australian Information Industry Association (firm) Member of the Australian Institute of Taxation Member of the Computers and the Law Society
Committees	Currently member of:- Standards Australia working group IT/12/4/1. This working group is developing the appropriate standards for the establishment of a Public Key Authorisation Framework for digital signatures Federal Attorney Generals Expert Legal Group - to advise on digital signature legislation Participant in the NPKI report for Senator Alston
Professional speaking	Papers: Valuation of Intellectual Property EDI and the Law Outsourcing for Computer Managers The Law of Confidentiality Arrangements Current issue in Software Development Moral Rights 'Did Paul Anka have a Cause of Action Against Sid Viscious' Computer Audits - Beware of the BSAA "The GITC" - where to now Electronic Commerce on the Internet Digital signatures - what the future holds Electronic Signatures Understand the Past to Develop the Future
General background	Adrian acts for a number of Government Agencies including Queensland Rail, Tarong Energy Corporation Limited, Stanwell Limited, and CS Energy Limited. He also acts for a number of multinational software houses including Hitachi Data Systems and TIBCO and SPYRUS. He has for the last 4 year concentrated on electronic commerce and has particular knowledge about Internet gambling and the legislative regimes that have emerged in the USA and other jurisdictions.

The 1998 Information Industry Outlook Conference

8:30am - 5:00pm Saturday 7 November 1998 - Canberra