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PA e-Comm News
December 12

ADVERTISERS OF THE WEEK

Register Today for the PA Technology Showcase
Attend this FREE event to learn of the latest technologies to improve business processes Thurday, December 18, Wildwood Conference Center, Harrisburg, PA
8 a.m. to noon
Brunch sponsored by Microsoft and DataReturn


Attorney General John Ashcroft recently reported that 125 suspects have been arrested in a crackdown on Internet crimes ranging from hacking to fraud to selling stolen goods. The seven-week sweep involved police from Ghana to Southern California and uncovered 125,000 victims who had lost more than $100 million. Those arrested stand charged with a variety of crimes that highlight the innumerable scams and criminal acts that now take place online. Many are accused of selling stolen or nonexistent goods online, having fenced stolen goods through online auction sites like eBay, set up phony escrow services to handle payments and touted fraudulent investment clubs through slick Web sites, according to a Department of Justice summary of the cases. Some suspects allegedly stole classified files from government computers, hacked into business computers to steal customers' credit card numbers, disabled computers running child abuse hotlines and sold counterfeit software or computer memory chips, the Justice Department said.

Federal agents said they had not yet found the perpetrators of the Blaster worm that disabled millions of computers this summer, but had gained some valuable leads, thanks to a reward program offered by Microsoft.

As expected, the U.S. House of Representatives on Monday unanimously approved legislation impacting unsolicited commercial emails (spam).  The President is expected to sign the bill within the next 10 days. The legislation pre-empts all current state spam laws, including the pending California anti-spam law. Since the House was unable to push through its own bill in the Energy And Commerce Committee and chose to instead work with the Senate's bill, there were no committee or conference reports issued.  While the bill's effective date is January 1, 2004, the Federal Trade Commission will now begin to promulgate regulations.  This is an important step in the process and should not be overlooked. Specifically, the FTC has one year to codify its definition of "unsolicited commercial emails."  The FTC also has nine months to establish its rules concerning mobile (wireless) unsolicited commercial emails, and within six months is authorized, though not required, to create a do-not-spam registry, similar to the popular do-not-call registry.

America Online recently announced that it will launch a service allowing video game players to enter tournaments to compete for bragging rights and prizes. The new AOL Ladders service, a partnership with Case's Ladder, is to be offered for games on Sony's PlayStation 2 console. Support for Nintendo's GameCube is planned for next year. The service, which is free to AOL subscribers, comes as game publishers and console makers take steps toward launching their own game leagues. With the industry entering a slower growth phase, pay-for-play events and other subscription services have been seen as a way for publishers and service providers to stem declines in revenue and extend the financial life of games beyond the point of sale. In gaming ladders, players sign up to compete in a particular game on a particular platform. After finding an opponent, players play and then report their statistics. As players improve they rise up the "rungs" of the ladder. AOL also said it would expand the service next year by allowing subscribers to form leagues and manage tournaments.

According to a Forrester Research study, a growing number of broadband subscribers are choosing price, not speed, when it comes to picking a provider. That's good news for digital subscriber line (DSL) providers that have introduced access services that are cheaper, but slower, than cable providers. However, an increase in consumer interest for less-expensive broadband will not significantly bridge the market share gap between cable's nearly 2-to-1 lead over DSL.

Keynote Systems has reported that, according to The Keynote E-Commerce Transaction Performance Index, major e-commerce sites took a severe performance beating on Black Friday. During peak shopping time on Black Friday (noon - 3 p.m.) the Index revealed that consumers could only complete a transaction 80 % of the time; Therefore, almost one in five transactions attempted to be completed on the major holiday shopping sites failed. The Index reported that on the day before Thanksgiving the average success rate was 98.4 %. According to Keynote, the 20 % failure rate was an indication that e-commerce sites were not adequately prepared to deal with the level of increase in online shopping activity experienced on Black Friday. It has been shown that negative online shopping experience translates directly into lost revenue. Therefore, what small business owners can learn from the failures of the big players is that businesses must continually monitor transaction quality as experienced by actual end users. Not being adequately prepared for a significant increase in transactions can lead to lost revenues — not just in the short term, but in the long run as well, as customers might refuse to return to a site after a poor shopping experience.

NEWS & NOTES is a service of the PA e-Commerce Association. Please forward this e-mail to anyone else who might be interested in the content or in learning more about the Association. Remember to visit our website @ www.paecomm.org. or give us a call at 800-497-0809.

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