Business Law Ch.9 Internet Law, Social Media, and Privacy

Spam

Unsolicited "junk" e-mails with ads, solicitations, and other messages

State Regulation of Spam

Thirty-seven states have legislation requiring an "opt out" of further e-mail ads.

The Federal CAN-SPAM Act

Permits the sending of unsolicited commercial e-mail, but prohibits certain types of spamming activities

U.S. Safe Web Act

Allows FTC to share information with foreign agencies that investigate and prosecute cyber crimes. It also provides ISPs with immunity from liability for supplying information to FTC.

Domain Names

An Internet address, consisting of:
A "top level domain" to the right of the "dot" (.com, .org, .edu) and
A "second level domain" to the left of the "dot" chosen by entity creating the domain name, e.g., www.cengage.com.

Distribution System

-The Internet Corporation for Assigned Names and Numbers (ICANN) is a nonprofit corporation that oversees the distribution of domain names and operates an online arbitration system.
-Overhauled its system to attempt to stop cybersquatting.

Cybersquatting

The act of registering someone else's name or trademark as a domain name and then offering to sell the registered domain name to that person.

Anti-Cybersquatting Consumer Protection Act (ACPA)

-makes it illegal for a person to "register, traffic in, or use" a domain name if
-the name is identical or confusingly similar to another's trademark, and
-the person registering, trafficking in, or using the domain name does so with the bad faith intent to profit from its similarity to the other's trademark.
-However, frequent changes in domain name ownership facilitates cybersquatting due to the speed at which these changes occur and the difficulty in tracking mass automated registrations.

Typosquatting

-The registration of a name that is a misspelling of a popular brand (such as googl.com).
-Such pages usually have a lot of hits (unique visitors) which generates increased profits for advertisers.

Applicability and Sanctions of ACPA

-The ACPA applies to all domain name registrations of trademarks.
-Successful plaintiffs can collect actual damages and profits, or statutory damages.

Meta Tags

-Key words that give Internet browsers specific information about a Web page and increase the likelihood that a site will be included in search research.
--See Case In Point 9.5: Toyota Motor Sales, U.S.A., Inc. v. Tabari (2011).

Trademark Dilution in the Online World

-Trademark dilution occurs when a trademark is used—without authorization—in a way that diminishes the distinctive quality of the mark.
-Does not require proof consumers would be confused.
--CASE 9.1 Hasbro, Inc. v. Internet Entertainment Group, Ltd. (1996).

Copyright law

is a very important form of intellectual property protection on the Internet because:
-Much of the material on the Internet is copyrighted.
-In order to transfer that material online, it must be "copied."
-Infringement may occur when content is copied or downloaded to a computer.

Digital Millennium Copyright Act

-Provides civil and criminal penalties to circumvent encryption software (like DVD).
-Limits ISP liability for subscriber acts.
-Allows for "fair use" exceptions for libraries, universities, and others.

File-Sharing Technology

-Methods of file-sharing include peer-to-peer (P2P) networking and the use of distributed networks.
-Cloud computing delivers a single application through a browser to multiple users.

Sharing Stored Music and Movies

-When file-sharing is used to download others' stored music or movie files, artists and their labels lose substantial royalties and revenues.
--CASE 9.2 Maverick Recording Co. v. Harper (2010).

Pirated Movies and Television

The motion picture and television industries lose significant revenue annually due to piracy (illegal copying).

Social media

media provides a means to create, share, and exchange ideas and comments via the Internet

Legal Issues

The emergence of social media sites has created a number of legal and ethical issues for businesses.

Impact on Litigation

Social media posts are routinely included in discovery in litigation since they can provide damaging information about a person's intent or what she or he knew at a particular time.

Impact on Settlement Agreements

Social media posts have been used to invalidate settlement agreements that contain confidentiality clauses

Criminal Investigations

Social media is used to detect and prosecute criminals because a surprising number of them boast about their illegal activities on social media.

Administrative Agency Investigations

-Federal regulators use social media posts in their investigations into illegal activities.
--See Case in Point 9.14 In re O'Brien (2013).

Employers' Social Media Policies

Employees can be disciplined or fired for using social media in a way that violates their employer's stated policies

Electronic Communications Privacy Act

Amended federal wiretapping law to cover electronic forms of communication

Exclusions

Communications that an employer authorizes in the "ordinary course" of its business.

Stored Communications Act (SCA)

-Prohibits intentional and unauthorized access to stored electronic communications.
-Also prevents "providers" of communication services from divulging private communications to certain entities and individuals.

Protection of Social Media Passwords

-Some employers and schools will get social media passwords from applicants to see if their accounts include controversial postings.
-By 2017, about half of U.S. states had enacted legislation to protect individuals from having to disclose their social media passwords.

Company-Wide Social Media Networks

-Often referred to as an "intranet," these are online places for employees to discuss company services and products.
-Intranets allow companies to better protect their trade secrets.

Cyber Torts

Online defamation is one of the most prevalent cyber torts.

Identifying the Author of Online Defamation

-A major barrier to online defamation cases is the anonymity of the Internet.
-ISPs can only disclose personal information about its customers when ordered to do so by a court

Liability of ISPs

The Communications Decency Act provides broad protection for ISPs.

General Rule

ISPs are not liable for publishing defamatory statements that come from a third party.

Exceptions

-Some courts have started establishing limits to this immunity.
--See Case in Point 9.19 Fair Housing Council of San Fernando Valley v. Roommate.com (2012).

Other Actions Involving Online Posts

-E-mails, tweets, posts, and other online communications can be the basis for almost any type of tort.
-Suits relating to online conduct may also involve allegations of wrongful interference or infliction of emotional distress.

Privacy

-The right to privacy is guaranteed by the Bill of Rights and some state constitutions.
-Major social media and Internet sites have been accused of violating users' privacy rights.
-People expect privacy when they enter personal financial information online.
-People also expect that online companies will follow their own privacy policies.

reasonable expectation of privacy

But to prevail in an invasion of privacy lawsuit, the plaintiff must have had it

Data Collection and Cookies

Retailers collect detailed information about consumers' behavior and preferences via cookies in order to personalize online services.

Internet Companies' Privacy Policies

-Due to consumer complaints, the Federal Trade Commission (FTC) forced many companies to enter a consent decree that allows the FTC broad power to review their privacy and data practices.
-Companies that violate the terms of the decree can be sued by the FTC.