AN INCREASING NUMBER of people use the Internet at school and work. But many people access the Net from their computers at home as well. These home users represent a new opportunity for businesses to market their goods and services. As businesses rush to greet consumers on-line, a number of important issues have arisen.

On-line users are seeking protection from scams and unwanted advertising. As they learn how much of their personal information is stored in computer databases, many people, on-line or not, are demanding laws to protect their privacy. Finally, attacks by so-called hackers have shown the vulnerability of systems that control communications, the flow of money, health care, and even power and water.

According to Nielsen Media Research, by the end of 1996, about 2.5 million people had bought something over the Internet. In just one business area, music, there were over...