dysfunctional aspects of the "New Economy"

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What, if any, are the dysfunctional aspects of the "New Economy" promoted by e-Business?

One of the most important dysfunctional aspect of the new economy promoted by ebusiness is that it is increasing the gap between the companies and the consumer by making everything virtual. The one to one interaction in traditional brick and mortar form of business is absent in the ebusinesses. Even though the new age virtual or ecommerce companies are trying to eliminate the middleman by reaching consumers "virtually"or directly, it is eliminating the personal interaction and closeness with the consumer which is an inherent part of traditional brick and mortar businesses. By providing a low cost structure of doing business, the new economy has posed a serious threat to traditional businesses and middleman whose value added services at the retail level to consumers are losing their value in the eyes of the consumers. More and more consumers are ignoring the value provided by such physical businesses are conducting transactions over the web.

Further, immense security and privacy issues have emerged in this new economy promoted by ebusinesses. Since the laws pertaining to the cyber businesses are relatively and a farily large number of small companies are ignoring or breaking them in one way or the other, increasing threats to the consumer privacy and security have been observed.

Today the ebusiness realities emerging around us have both positive and negative implications. On the positive side are cost reductions, improved customer service and time-to-market improvements offered by transforming business to ebusiness. On the negative side companies all over the world are grappling with the rate of business and social changes dictated and thrust upon them by ebusiness.
source: http://dev.witi.com/wire/feature/keriksson/ebusiness2.shtml
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Identify any legal, ethical, regulatory and social issues that might negatively impact people, organizations and/or society.

Some of the legal, ethical and regulatory issues that might negatively impact people, organizations and society are those related to security of transactions conducted over the web, privacy of consumer information sold to third parties by companies and vendors, spamming and hacking, viruses, increasing dependency on electronic information and neglecting physical records, ecommerce frauds, cyber crimes such as sexual harrassment, etc. would negatively impact people, organizations and society. Further, as more and more percentage of young generation people are addicted to the internet and gaining easy access to materials ...