Ethical, legal and regulatory issues online in B2B and B2C IntroductionCompanies operating on the Web must be confident in their ability to manage liabilities that may arise as a result of Today's online business environment. This environment includes laws and ethical factors that are sometimes different from those in the physical context. The online environment often forms a network of customers who may have considerable levels of communication with each other. Online companies that break the law or violate ethical standards, therefore, may face swift and harsh reactions from customers and other stakeholders who will quickly learn of the companies' unscrupulous online behaviors. Online customers also have much more interactive and complex relationships with online businesses than they do with traditional businesses. This is because Internet technologies allow companies to create websites that can be customized to meet the specific needs of their B2B or B2C customers (Schneider, 2004). Online businesses can use this property of the online environment to manage the legal and ethical requirements of both corporate and consumer customers. Ethics Ethics are especially important in the B2B framework because companies that sell to other companies treat their customers more like partners and rely on mutual information sharing to develop mutually beneficial partnerships (Pepper, 2004). Since the relationship is more extensive, every time an exchange of information or data takes place, it must be meticulously tracked and labeled as general or confidential business as the case may be (Dada, 2004). B2B merchants must prevent unauthorized access to customer information on their websites and protect the privacy of...... middle of paper ...... relationships can grow. This is especially important for companies that do some or all of their business on the Internet, regardless of which of these two types of customers they serve. It is especially important that building this environment of trust online includes a thorough understanding of the laws, regulations and ethical factors that influence a particular company's ability to meet the needs of its customers. References: Dada, G. (2004, May). Marketingprofs.com. Online: http://www.marketingprofs.com/ea/qst_question.asp?qstid=1401FTC.gov, (2005, December). Made for business. Online: http://www.ftc.gov/bcp/conline/pubs/buspubs/canspam.htmPepper, T (2004, May). Marketingprofs.com. Online: http://www.marketingprofs.com/ea/qst_question.asp?qstid=1401Schneider, G., (2004). Electronic Commerce: The Second Wave (5th ed.). Boston, MA:Thomson Learning