Website Legal Compliance - Congress Struggles With Protect Ip And Sopa Legislation By: Chip Cooper | - Website legal compliance is now under serious consideration by lawmakers in Washington. The U.S. Congress is now considering two proposed bills, which if enacted into law, would provide ground-breaking weapons for law enforcement and content owners to enforce intellectual property rights. If you're a content owner that provides content on the Internet, you have an important stake in the current legislative process.
However, if you're a SaaS or Internet marketer, your best-laid plans for 2012 may hit the skids if you fail to avoid new website legal compliance gotcha's that emerged in 2011.
So, It's highly recommended that you add to your personal resolutions the requirement to review the checklist of critical developments and related gotcha's in these 2 categories: privacy and Internet marketing.
Ftc Ramps Up Coppa Enforcement And Regulations For Sites That Are Directed To Children By: Chip Cooper | - The Federal Trade Commission (FTC) recently delivered strong messages to mobile application developers and to operators of websites and other online services directed to children that the FTC is ever vigilant in protecting children from inappropriate collection and use of their personal information, including taking into account new technological changes.
Internet Marketers - Proposed Legislation Wants To Appoint You As Tax Collector By: Chip Cooper | - Proposed legislation in the U.S. Congress, if passed, will essentially make online merchants tax collectors, forcing them to collect sales taxes for all purchasers. This is the latest attempt by cash-strapped states to collect sales tax revenues from online sales.
The Main Street Fairness Act (MSFA), introduced by Senator Dick Durban (D-IL), would change the current law which requires merchants to collect sales tax only when the merchant has a physical presence in the state. The eff ... Tags:website legal documents, website legal forms, Chip Cooper
The Website Legal Regulation Tsunami Continues - Are You Above Water? By: Chip Cooper | - Surfers know that the waves come in periodic sets which are separated by relative lulls. Beginning in 2009, there's been a tsunami of new and complex legal regulations for websites that also seems to be coming in sets.
We're now in a temporary lull, but the next set is on the horizon, and rapidly heading our way. If you're an Internet marketer or operate a SaaS business, now is a good time to quickly review the following checklist of the set just passed, as well as the set that's fa ... Tags:website legal documents, Chip Cooper
The Ftc Begins Crackdown On Behavioral Ads - Is Your Site In The Cross Hairs? By: Chip Cooper | - On March 14, 2011, the Federal Trade Commission (FTC) announced its first behavioral advertising settlement. If your website collects behavioral data or serves behavioral ads - either directly or indirectly through the use of behavioral ad vendors - you need to understand and comply with the FTC's notice and choice principles, or suffer the consequences.
How The Current Sales Tax War Involving Amazon May Affect All Ecommerce Websites By: Chip Cooper | - Amazon.com and big box retailers such as Wal-Mart and Target are locked in an all-out war over the collection of sales taxes. And cash-strapped states are also backing changes in sales tax laws in more than a dozen states.
While small ecommerce websites are relegated to observe the struggle from the sidelines, the impact of these changes on them could be huge.
Saas Webmasters - What To Do When Law Enforcement Demands Archived Email? By: Chip Cooper | - If you're a SaaS webmaster, it's not a question of if, but when, a law enforcement official wants a copy of one of your user's email archived on your SaaS website. You're caught between the proverbial rock and a hard place. Critical questions arise: What are your legal obligations, and what are your rights? How do you protect yourself from liability?
What Every Saas Website Should Know About Net Neutrality By: Chip Cooper | - If you operate a SaaS website that provides streaming content, or if you're a consumer who is concerned about price levels and availability of streamed content, then you should be tuned in to the debate over net neutrality. The outcome may substantially affect your business and your pocket book.
Are you a little confused about what net neutrality is all about? Welcome to the club. Issues in the net neutrality debate are complex and somewhat obscure.
Does Your Saas Agreement Violate The New Restore Online Shopper's Confidence Act? By: Chip Cooper | - On December 29, 2010, President Obama signed the Restore Online Shopper's Confidence Act (ROSCA) that regulates credit and debit card data pass transactions, online post-transaction third party sales, and negative option billing plans. If your site markets to consumers under a SaaS agreement (software as a service), you should review your agreement and marketing practices immediately or risk legal action for unfair business practices by the Federal Trade Commission (FTC) or state Attorneys Gener ... Tags:SaaS Agreement, SaaS Reseller Agreement, Chip Cooper
2011 Resolution - Review Your Website Privacy Policy Before It's Too Late By: Chip Cooper | - Typical New Year's resolutions include improving physical fitness… or taming the bulge. These are all worthwhile. However, if you operate a SaaS or ecommerce website, you'd better move a review of your privacy policy to the top of your list.
Recent legal developments regarding privacy and data security have added new requirements, and the failure to comply could result in substantial liability.
2 Cardinal Rules Regarding Privacy and Data Security
Ftc's "do Not Track" Initiative Portends Major Impact On Online Advertising By: Chip Cooper | - The Federal Trade Commission's (FTC) publication earlier this month of a proposed framework for protecting online privacy portends a major impact on online advertising. If your website's business model depends on advertising revenue, either directly from the site itself or via a smart, mobile device, you have a big stake in the outcome of the dialogue kicked off by the FTC report.
Unfulfilled promises by blog site personnel to remove objectionable materials from blogs continue to create headaches - and increased legal exposure - for blog site operators. A recent case involving craigslist.org teaches a critical lesson for blog site operators: be very careful what you and your personnel promise; be very, very careful.
3 Can-spam Gotcha's That Every Email Marketer Should Avoid By: Chip Cooper | - Experienced email marketers often operate under the misconception that the CAN-SPAM Act doesn't apply to most routine business communications. With CAN-SPAM Act fines of up to $16,000 per violation, this misconception could add up to a big number.
That's why email marketers should avoid 3 gotcha's that are CAN-SPAM traps for the unwary.
The Federal Trade Commission's recent settlement with Reverb Communications is the FTC's first case targeting deceptive advertising on the Internet since the FTC Guides were announced late in 2009.
If you use online endorsements or testimonials from others, you should review your internal marketing policies and your FTC website forms to avoid substantial liability for deceptive advertising.
The use of Flash cookies capable of re-installing browser tracking cookies - that users have previously deleted - has triggered the filing of multiple privacy lawsuits against some of the Web's largest media companies. At issue is a user's fundamental right to control how their tracking information is harvested and shared.
Membership programs that incorporate a recurring billing model - where customers' credit cards are charged periodically - have been under intense scrutiny by Congress and various courts.
In a recent opinion affirming the enforceability of an of an online contract for recurring billing, the 5th Circuit Court of Appeals analyzed the facts and applicable law for two critical requirements for enforceability.
On May 19, 2010, the U.S. Senate Commerce Committee released proposed legislation - the "Restore Online Shoppers' Confidence Act" - aimed at regulating sites that transmit or receive consumer data for post-transaction sales and sites that sell products or services with recurring charges.
It didn't take the Federal Trade Commission (FTC) long to show Internet advertisers and blogger-endorsers that they mean business regarding the FTC Guides Concerning the Use of Endorsements and Testimonials in Advertising (16 CFR, Part 255) that went into effect in December, 2009.
Website privacy and data security violations continue to be the most critical legal concern for webmasters of software-as-a-service (SaaS) websites and ecommerce websites.
Just think about it - most marketing practices involve capturing data, including personal information about prospects, and using this data to market products or services.
Website legal contracts, website legal forms, and website documents as positioning statements for marketing purposes? You've got to be kidding, right?
That's the typical reply I get when I advise clients regarding website legal compliance. They're aware of the critical need to manage their legal exposure, particularly after the Federal Trade Commission (FTC) Guides went into effect on December 1, 2009.
If you recruit and manage an affiliate network, you're probably aware that under the CAN-SPAM Act of 2003 (CAN-SPAM) you can be held liable for your affiliates' spam. Consequently, your affiliate agreement should address the spam issue. Should you simply require strict compliance with CAN-SPAM, or should you require a more restrictive approach?
We all make New Year's resolutions - some are personal, some are business or professional in nature. Even if we don't actually make New Year's resolutions, we engage in formal and informal "planning" as we look ahead to the new year.
If you operate a website, you're probably aware that your website operations are now highly regulated. And the pace of legal regulations continues to accelerate.
If you offer software as a service (SaaS), your choices among contracting approaches for users include an electronic, click-wrapped agreement or a more traditional paper-based, signed agreement - or even a hybrid of these two approaches.
How do you decide which approach is right for you? What are the factors to consider?
You've successfully started up or converted to the SaaS model, and now you'd like to leverage your success by setting up a reseller channel for your SaaS offering. Or, you'd like to offer functionality using the SaaS model to your existing customers, and you'd like to start by offering a SaaS service provided by another service provider.
There's been a lot of buzz in the blogosphere about the 81-page Guides for the use of Endorsements and Testimonials in Advertising issued by the Federal Trade Commission (FTC). Most of the debate and discussion has centered on the rules (and potential liability) facing bloggers who write testimonials and endorsements.
If you've already read - and clearly understand - the 81-page Guides for the use of Endorsements and Testimonials in Advertising issued by the FTC on October 5, 2009, then read no further.
In recognition of the increasing influence of social media online, the Federal Trade Commission (FTC) on October 5, 2009, for the first time since 1980, issued new regulations governing online testimonials and endorsements by bloggers.
Does your website incorporate a blog, forum, or listserv -- where users may post text or files? If so, are you liable if your users post defamatory materials about someone else?
I'm often asked questions about SaaS (Software as a Service) agreements. What I have to prompt SaaS webmasters to ask is - "Is my SaaS agreement the only website legal document I need?"
To most Saas site webmasters, the answer may be surprising.
The law of online contracting has become fairly well settled. This is good news for SaaS sites with online agreements such as Membership Agreements, Subscription Agreements, Content License Agreements, and the like.
Online contracting with click-wrapped agreements -- where the user indicates agreement by clicking on I ACCEPT -- will usually result in an enforceable contract if 5 simple rules are followed:
Safire's New Political Dictionary defines "hot-button" as follows: word or issue that ignites anger, fear, enthusiasm, or other passionate response.
Safire's definition fits two Internet advertising issues - behavioral and keyword ads - perfectly. Two developments in the first few months of 2009 show how these hot-button issues are developing, and how they may ultimately impact Internet advertising in a fundamental way.
It's well settled that website click-wrapped agreements presented on SaaS (Software as a Service) websites and ecommerce sites are enforceable against the clicker -- but what about users who access someone else's account without clicking to agree -- are they bound also?
The answer is critical to SaaS websites and ecommerce seeking to create binding agreements.
On March 20, 2009, the Federal Trade Commission (FTC) published its latest guidelines for the Red Flags Rule entitled "Fighting Fraud with Red Flags Rule: A How-To Guide for Business". These guidelines significantly broadened the scope of the applicability of the Red Flags Rule.
If you've been following legal developments on the Web in the last couple of years, you know that there is significant concern regarding privacy and data security. This concern is driven by consumers' fears over identity theft.
The Life Is Good Case - 5 Data Security Safeguards
What's Behind Google's Requirement For Adsense Users To Modify Privacy Policies? By: Chip Cooper | - In early March 2009, Google notified users of its new AdSense option, "interest-based advertising". With this announcement, Google also stated that "your privacy policy will now need to reflect the use of interest-based advertising".
What's behind this announcement, what is "interest-based" advertising, and what modifications may be required for your privacy policy if you use this advertising option?
Many sites these days are interactive -- they permit site visitors to post to the site.
Forums and blogs would be at the top of most of our lists for types of interactive sites. However, different kinds of sites are also permitting owners to post, such as classified ad sites.
I thought I'd seen and heard it all in my Internet law practice, until a client referred me to an interesting article about a kitty cat named Simba that walked across a keyboard and clicked on an online, click-through agreement (also known as a "click-wrapped" agreement). The article is entitled "The Agreeable Cat", by Ann Loucks, and you can read it at http://www.ohesso.com/essays/essay006.htm.
Recent case law confirms once again: if online agreements are presented properly to end-users, they're legally enforceable.
This continuing trend is good news for websites that contract with registered users though SaaS Agreements, Membership Agreements, Subscription Agreements, Terms of Sale, Content License Agreements, and the like.
If you think that the Children's Online Privacy Protection Act (COPPA) applies only to websites that target children under 13, you're uninformed. Sony found out the hard way, and as a result Sony has agreed to pay a $1 million fine in settlement of a case brought by the Federal Trade Commission (FTC). You can avoid falling into this trap with your general audience site if you follow 3 simple tips.
I talk to clients all the time about not falling into the trap of believing that their privacy policy is really nothing but a lot of fluff, filled with vague, self-serving statements such as "we respect your privacy".
It's actually way more than that; it's viewed as an enforceable contract by the Federal Trade Commission (FTC), and as such it may be construed against you and subject you to substantial liability.
In the last four years or so, cases involving keyword-triggered ads have been hotly litigated. As we begin 2009, it's a good time to look back to see if the law has settled a bit.
The stakes regarding keyword-triggered ads are high-both for trademark owners and their competitors alike, and also for search engines. Companies spend significant sums on Internet advertising -- sums that routinely surpass even optimistic projections.
Online businesses are now highly regulated, and there's substantial liability if you site's not legally compliant. In addition, your customers are becoming more Internet savvy, and a site that's not legally compliant is not going to be trusted.
The reason for the delay is uncertainty over who is covered. Just who is covered (and therefore liable for failure to comply) is still somewhat confusing. However, if you're not sure you're covered, particularly if you're a SaaS site, you'd better check out the rules carefully in order to avoid liability for failure to comply.
