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INTERNET LAW 2013

Bennet Kelley
CDA IMMUNITY
The Law
 No provider or user of an
interactive computer service
shall be treated as the
publisher or speaker of any
information provided by
another content providers.
 “By its plain language § 230
creates a federal immunity to
any cause of action that would
make service providers liable
for information originating with
a third-party user of the
service.”
Zeran v. American Online, Inc., 129 F.3d
3 2 7 , 3 3 0 ( 4 th C i r . 1 9 9 7 ) , c e r t . d e n i e d , 2 4
U.S. 937 (1998).
EXCEPTIONS
 Roommates.com
Site developing questionnaire that
elicited potentially discriminatory
information from users rendered site
an internet content provider.
F a i r H o u s i n g v . R o o m a t e s . c o m , 4 8 9 F . 3 d 9 2 1 ( 9 th
Cir. 2007).

 TheDirty.com
“the manner in which it is managed,
and the personal comments of
defendant . . ., the defendants have
specifically encouraged development
of what is offensive about the
content of the site.”
Jones v. Dirty World Entertainment, 840 F.
Supp.2d 1008 (E.D. Ky. 2012)

47 State Attorneys
General petitioned
Congress to exempt
state criminal laws from
Section 230
ABSOLUTE
NOT-SO ABSOLUTE
FTC UPDATES DOTCOM
DISCLOSURES

Hey @InternetLawCent check out our new
.com Disclosure Guides. Its Free*!
THE FOUR P S

P ROMINENCE
I s i t b i g e n o u g h f o r c o n s um ers t o
n o t i ce?

P RESENTATION
I s wo r d i n g a n d f o r m a t e a s y f o r
c o n s um ers t o u n d e rstan d?

P LACEMENT
I s i t wh e r e c o n s u m e r s wi l l l o o k ?

P ROXIMITY
Is it close to the claim it qualifies?
MULTI-PLATFORMS

WEB

MOBILE
EXPLAIN
HYPERLINKS
THE CURSE OF 140 CHARACTERS
UOANHO
SYNDROME
“ J u l i e B r o wn –
PS”

Use
Of
Acronym
Nobody’s
Heard
Of
THE AMAZON
TAX
GOES TO
WASHINGTON
AMAZON TAX
 Quill v North Dakota:
Adopts Bright Line Rule
under Due Process and
Commerce Clause: Need
Physical Presence in State
to Be Required to Collect
Sales Taxes
504 U.S. 298 (1992)

 New York “Amazon Tax”.
Deemed to have in-state
presence if
 Affiliate Marketers who
receive commissions
 generate gross receipts in
excess of $10,000 during
preceding four quarters
AMAZON TAX
ALL EYES ON WASHINGTON
 NEW YORK COURT PUNTS
UPHOLDS LAW
 The world has changed dramatically in the last
two decades, and it may be that the physical
presence test is outdated. An entity may now
have a profound impact upon a foreign
jurisdiction solely through its virtual projection
via the Internet. That question, however, would
be for the United States Supreme Court to
consider.
 Amazon has filed petition for cert.
Overstock.com v. New York, 20 NY3d 586 (2013).

 ILLINOIS SUPREME COURT
STRIKES DOWN LAW
 Violates Internet Tax Fairness Act (47 USC
Section 151) by imposing discriminatory
obligations.
 Performance Marketing Ass’n v Hamer, 2013 IL
114496 (2013).
AMAZON TAX
ALL EYES ON WASHINGTON
 MARKETPLACE FAIRNESS
ACT STALLS IN THE HOUSE
 Allow states to collect online sales
tax if they are part of Streamlined
Sales and Use Tax Agreement
 Small Business Exemption
 Passed Senate 69-27
 Stalled in the House
CASES TO WATCH
VERIZON & WYNDHAM
NET NEUTRALITY
 Verizon v FCC
 Challenge to 2010 Open
Internet Order
 Argued September 9 th
 Verizon Communications Inc. v. Federal
Communications Commission, D.C. Cir., No.
11-1355

WYNDHAM HOTELS
 Challenge to FTC Consent
Decree over Data Breach
.
 Wyndham Moves to Dismiss:
The FTC has not published any rules
o r r e g u l a t i o n s t h a t m i g h t p r o vi d e t h e
b u s i n e s s c o m m u n i t y wi t h . . . n o t i c e
o f wh a t d a t a - s e c u r i t y p r o t e c t i o n s a
company must employ to comply
wi t h S e c t i o n 5 . . . .

 Proponents Argue Many of
the Harms Net Neutrality
Sought to Prevent Are
Occurring
 Data Caps, Discriminatory
Treatment



FTC v. W yndham W orldwide (No. Case 2:13 cv-01887-ES-SCM ) (D.N.J.)
IN BRIEF
 ICANN gTLDs
 Number of new gTLD applications
received: 1,930
 Active applications: 1,814

 Uber, AirBnB and other emerging
business models v. 20 th Century
Regulatory Regimes

 ISP, Ad Network Copyright
Enforcement
 CAN-SPAM turns 10
BENNET KELLEY
B e n n e t K e l l e y i s t h e f o u n d e r o f t h e I n t e r n e t L a w C e n t e r.
H e p r e vi o u s l y h a d wo r k e d i n - h o u s e wi t h i n t e r n e t m a r k e t i n g
a n d e - c o mm e r c e c o m p a n i e s s u c h a s Va l u e Cl i c k .

Internet Law Center
100 Wilshire #940
Santa Monica, CA 90401
www.internetlawcenter.net
Twitter: InternetLawCent
WPBlog: ILCCyberReport

H e i s t h e p u b l i s h e r o f t h e a wa r d - wi n n i n g n e ws l e t t e r C y b e r
Report and host of Cyber Law and Business Report on
W e b ma s t e r R a d i o . fm .
I n a d d i t i o n t o b e i n g Vi c e - C h a i r o f t h e Te c h n o l o g y, I n t e r n e t
a n d P r i va c y I n t e r e s t G r o u p o f t h e C a l i f o r n i a B a r I P L a w
S e c t i o n , B e n n e t p r e vi o u s l y s e r ve d a s C o - C h a i r o f t h e
B u s i n e s s L a w’s C yb e r s p a c e C o m m i t t e e wh e r e h e l e d t h e
e ff o r t t o c r e a t e a c yb e r s p a c e l a w p r i m e r f o r s t a t e
p o l i c ym a k e r s .
B e n n e t wa s s e l e c te d b y t h e U . S . D e p a r t me n t o f C o m m e r c e
t o p r e s e n t o n e - c o m me r c e i s s u e s a t t h e 1 7 t h U . S . - C h i n a
L e g a l E xc h a n g e i n C h i n a . H e a l s o wa s s e l e c te d b y a
leading NGO to participate in a discussion of internet law
wi t h l e a d i n g C h i n e s e n e t i z e n s .
B e n n e t g r a d u a t e d m a n g a c u m l a u d e f r o m G e o r g e to wn
U n i ve r s i t y L a w C e n t e r a n d i s a d m i t t e d i n C a l i f o r n i a , t h e
D i s t r i c t o f C o l u m b i a a n d M a r yl a n d ( i n a c t i ve ) .

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Internet Law Update Presentation

  • 2. CDA IMMUNITY The Law  No provider or user of an interactive computer service shall be treated as the publisher or speaker of any information provided by another content providers.  “By its plain language § 230 creates a federal immunity to any cause of action that would make service providers liable for information originating with a third-party user of the service.” Zeran v. American Online, Inc., 129 F.3d 3 2 7 , 3 3 0 ( 4 th C i r . 1 9 9 7 ) , c e r t . d e n i e d , 2 4 U.S. 937 (1998).
  • 3. EXCEPTIONS  Roommates.com Site developing questionnaire that elicited potentially discriminatory information from users rendered site an internet content provider. F a i r H o u s i n g v . R o o m a t e s . c o m , 4 8 9 F . 3 d 9 2 1 ( 9 th Cir. 2007).  TheDirty.com “the manner in which it is managed, and the personal comments of defendant . . ., the defendants have specifically encouraged development of what is offensive about the content of the site.” Jones v. Dirty World Entertainment, 840 F. Supp.2d 1008 (E.D. Ky. 2012) 47 State Attorneys General petitioned Congress to exempt state criminal laws from Section 230
  • 6. FTC UPDATES DOTCOM DISCLOSURES Hey @InternetLawCent check out our new .com Disclosure Guides. Its Free*!
  • 7. THE FOUR P S P ROMINENCE I s i t b i g e n o u g h f o r c o n s um ers t o n o t i ce? P RESENTATION I s wo r d i n g a n d f o r m a t e a s y f o r c o n s um ers t o u n d e rstan d? P LACEMENT I s i t wh e r e c o n s u m e r s wi l l l o o k ? P ROXIMITY Is it close to the claim it qualifies?
  • 10. THE CURSE OF 140 CHARACTERS
  • 11. UOANHO SYNDROME “ J u l i e B r o wn – PS” Use Of Acronym Nobody’s Heard Of
  • 13. AMAZON TAX  Quill v North Dakota: Adopts Bright Line Rule under Due Process and Commerce Clause: Need Physical Presence in State to Be Required to Collect Sales Taxes 504 U.S. 298 (1992)  New York “Amazon Tax”. Deemed to have in-state presence if  Affiliate Marketers who receive commissions  generate gross receipts in excess of $10,000 during preceding four quarters
  • 14. AMAZON TAX ALL EYES ON WASHINGTON  NEW YORK COURT PUNTS UPHOLDS LAW  The world has changed dramatically in the last two decades, and it may be that the physical presence test is outdated. An entity may now have a profound impact upon a foreign jurisdiction solely through its virtual projection via the Internet. That question, however, would be for the United States Supreme Court to consider.  Amazon has filed petition for cert. Overstock.com v. New York, 20 NY3d 586 (2013).  ILLINOIS SUPREME COURT STRIKES DOWN LAW  Violates Internet Tax Fairness Act (47 USC Section 151) by imposing discriminatory obligations.  Performance Marketing Ass’n v Hamer, 2013 IL 114496 (2013).
  • 15. AMAZON TAX ALL EYES ON WASHINGTON  MARKETPLACE FAIRNESS ACT STALLS IN THE HOUSE  Allow states to collect online sales tax if they are part of Streamlined Sales and Use Tax Agreement  Small Business Exemption  Passed Senate 69-27  Stalled in the House
  • 17. VERIZON & WYNDHAM NET NEUTRALITY  Verizon v FCC  Challenge to 2010 Open Internet Order  Argued September 9 th  Verizon Communications Inc. v. Federal Communications Commission, D.C. Cir., No. 11-1355 WYNDHAM HOTELS  Challenge to FTC Consent Decree over Data Breach .  Wyndham Moves to Dismiss: The FTC has not published any rules o r r e g u l a t i o n s t h a t m i g h t p r o vi d e t h e b u s i n e s s c o m m u n i t y wi t h . . . n o t i c e o f wh a t d a t a - s e c u r i t y p r o t e c t i o n s a company must employ to comply wi t h S e c t i o n 5 . . . .  Proponents Argue Many of the Harms Net Neutrality Sought to Prevent Are Occurring  Data Caps, Discriminatory Treatment  FTC v. W yndham W orldwide (No. Case 2:13 cv-01887-ES-SCM ) (D.N.J.)
  • 18. IN BRIEF  ICANN gTLDs  Number of new gTLD applications received: 1,930  Active applications: 1,814  Uber, AirBnB and other emerging business models v. 20 th Century Regulatory Regimes  ISP, Ad Network Copyright Enforcement  CAN-SPAM turns 10
  • 19. BENNET KELLEY B e n n e t K e l l e y i s t h e f o u n d e r o f t h e I n t e r n e t L a w C e n t e r. H e p r e vi o u s l y h a d wo r k e d i n - h o u s e wi t h i n t e r n e t m a r k e t i n g a n d e - c o mm e r c e c o m p a n i e s s u c h a s Va l u e Cl i c k . Internet Law Center 100 Wilshire #940 Santa Monica, CA 90401 www.internetlawcenter.net Twitter: InternetLawCent WPBlog: ILCCyberReport H e i s t h e p u b l i s h e r o f t h e a wa r d - wi n n i n g n e ws l e t t e r C y b e r Report and host of Cyber Law and Business Report on W e b ma s t e r R a d i o . fm . I n a d d i t i o n t o b e i n g Vi c e - C h a i r o f t h e Te c h n o l o g y, I n t e r n e t a n d P r i va c y I n t e r e s t G r o u p o f t h e C a l i f o r n i a B a r I P L a w S e c t i o n , B e n n e t p r e vi o u s l y s e r ve d a s C o - C h a i r o f t h e B u s i n e s s L a w’s C yb e r s p a c e C o m m i t t e e wh e r e h e l e d t h e e ff o r t t o c r e a t e a c yb e r s p a c e l a w p r i m e r f o r s t a t e p o l i c ym a k e r s . B e n n e t wa s s e l e c te d b y t h e U . S . D e p a r t me n t o f C o m m e r c e t o p r e s e n t o n e - c o m me r c e i s s u e s a t t h e 1 7 t h U . S . - C h i n a L e g a l E xc h a n g e i n C h i n a . H e a l s o wa s s e l e c te d b y a leading NGO to participate in a discussion of internet law wi t h l e a d i n g C h i n e s e n e t i z e n s . B e n n e t g r a d u a t e d m a n g a c u m l a u d e f r o m G e o r g e to wn U n i ve r s i t y L a w C e n t e r a n d i s a d m i t t e d i n C a l i f o r n i a , t h e D i s t r i c t o f C o l u m b i a a n d M a r yl a n d ( i n a c t i ve ) .