Generative AI Certificate Q&A: Ethical issues with how the smartwatch manufacturer is operating?

Question

You recently purchased a new smartwatch. To set up the watch, you had to go to the manufacturer’s website and create a new account. When you create an account, it presents a long license agreement you have to accept to create an account. You were anxious to use your new watch, so you didn’t scroll through the 50-plus pages of the license agreement.

What is one of the ethical issues with how the smartwatch manufacturer is operating?

A. It should have you automatically accept an agreement when you purchase the watch.
B. It should shorten the license agreement.
C. It should always try to keep the private data on the watch itself.
D. They are not sharing a clear and transparent privacy policy.

Answer

D. They are not sharing a clear and transparent privacy policy.

Explanation

The correct answer is D. They are not sharing a clear and transparent privacy policy.

A privacy policy is a document that explains how a company or organization collects, uses, and protects the personal data of its customers or users. A privacy policy is important for ethical reasons, as it informs the users about their rights and choices regarding their data, and it also helps the company or organization comply with the relevant laws and regulations on data protection.

One of the ethical issues with how the smartwatch manufacturer is operating is that they are not sharing a clear and transparent privacy policy with the users. By presenting a long and complex license agreement that users have to accept to create an account, the manufacturer is making it difficult for the users to understand what data they are collecting, how they are using it, and what options they have to control or delete their data.

This can be seen as a form of deception or manipulation, as the manufacturer is taking advantage of the users’ lack of time or attention to obtain their consent without fully disclosing the implications.

According to some sources, some of the key issues in drafting software license agreements are:

• The scope of the license grant, which should precisely define the rights and restrictions of the licensee.
• The protection of the licensor’s intellectual property rights in the software, which may include trademarks, patents, copyrights, trade secrets, etc.
• The warranties and disclaimers of liability, which should clarify the responsibilities and obligations of each party in case of defects, errors, or damages caused by the software.
• The termination and renewal clauses, which should specify the conditions and consequences of ending or extending the license agreement.
• The dispute resolution mechanisms, which should outline how the parties will handle any conflicts or disagreements arising from the license agreement.

A software license agreement should also include a clear and transparent privacy policy that explains how the licensor collects, uses, and protects the personal data of the licensee. A privacy policy should address issues such as:

• The types and sources of data collected, such as name, email, location, device information, usage behavior, etc.
• The purposes and legal bases for data processing, such as providing services, improving products, marketing, analytics, etc.
• The third parties that may access or share the data, such as service providers, partners, affiliates, regulators, etc.
• The rights and choices of the data subjects, such as accessing, correcting, deleting, withdrawing consent, opting out of marketing, etc.
• The security measures and safeguards implemented to protect the data from unauthorized access or disclosure.
• The retention periods and deletion policies for the data.

A privacy policy should be written in a clear and concise language that is easy to understand by the users. It should also be accessible and visible to the users before they agree to the license agreement. A privacy policy should be updated regularly to reflect any changes in the data practices or legal requirements.

By not sharing a clear and transparent privacy policy with the users, the smartwatch manufacturer is violating some of the ethical principles of software engineering, such as:

• Respect for privacy: Software engineers should respect the privacy of those who will be affected by their work. They should only collect personal data that is necessary and relevant for their purposes. They should also inform users about their data practices and obtain their consent before processing their data.
• Honesty: Software engineers should be honest in their professional dealings. They should not make false or misleading claims about their products or services. They should also disclose any potential conflicts of interest or risks associated with their work.
• Social responsibility: Software engineers should act in a manner that is in the best interests of society and public good. They should avoid any actions that may harm people or property. They should also consider the social and environmental impacts of their work.

Therefore, one of the ethical issues with how the smartwatch manufacturer is operating is that they are not sharing a clear and transparent privacy policy with the users.

Reference

• Key issues in drafting software license agreements | Thomson Reuters
• EULAs (ncsu.edu)
• Ethical implications in contracts – Wikipedia
• 3 Pitfalls to Avoid in Licensing Agreements | Entrepreneur
• wipo_pub_903.pdf
• Fossil Group Announces Global Licensing Agreement With BMW For Watches And Smartwatches (prnewswire.com)

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