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Internet Laws
By David Fishman

Over the passed year the US state and federal houses of Representatives and Congress have been filled with what I will call Anti – online bills. Technology and marketing dollars along with political influence over the passed year has prompted law makers to create various State and Federal regulations in the hope that it will begin to shape the way commerce is completed by online advertisers and consumers alike.


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A few of the most important and perhaps inhibiting laws are:

“ A US House subcommittee on Thursday (17 May) approved what would be the first federal law to specifically target Internet spyware. The SPY Act, for "Securely Protect Yourself Against Cyber Trespass," would oblige companies and individuals to conspicuously warn consumers before giving them a program capable of automatically transmitting information gathered from a user's computer. Though the bill carries no criminal penalties, and doesn't allows users to sue spyware merchants, anyone in the US caught uploading such a program without obtaining the consumer's consent could face civil prosecution by the Federal Trade Commission (FTC).” This does not carry much weight, however there are other State laws that have been put on the books and challenged that come with much more meatier punishments for violators. For example: the law that was written, although never adopted, in the State of Utah had jail time and very hefty fines associated with its violations.

There are other such laws, like the most well known Can Spam Act, which is a direct result of the Virginia law which was recently challenged. “ Virginia's anti-spam statute--the first in the country to make spamming a felony--is constitutional, a trial court judge ruled Aug. 11, freeing prosecutors to proceed against three defendants accused of being prolific spammers in the key Internet traffic state of Virginia. Commonwealth of Virginia v. Jaynes, 2004 ILRWeb (P&F) 2423 [Va Cir Ct, 2004].

The ruling is significant because it is the first court challenge to the Virginia law. The law applies to any e-mail that passes through Virginia-based service providers, such as the Dulles-based America Online, Inc., meaning the physical address of spammers is irrelevant in enforcing the law. Some 36 states have anti-spam laws on the books, according to the National Conference of State Legislatures, but almost all are civil, not criminal.

These laws have prompted networks and advertisers alike to continually update their codes of conduct and rules for publishers and affiliates. For example one of the largest affiliate networks in the online space recently adjusted it rules to include language such as: “….the updated Publisher Code of Conduct now specifically addresses inappropriate "forced clicks" and "non end-user initiated events". This is obviously a clear way to stop fraud, to inhibit advertisers with the ability to generate income through affiliate networks without contacting a customer directly, but it is also a way for a network to begin to comply with laws such as those mentioned above.

It is impossible for these laws to be completely enforced. It would take too high an expense to monitor and an outrageous amount of funding to prosecute. However, as we have seen there will be companies singled out as examples in the hope that by prosecuting a few it will deter the rest.

The only other solution available to an affiliate company is to withhold commissions so that it shows it will not sanction activity that, while not illegal, is on the brink of fraud and slowly stepping over the bounds of ethical business practices. It is important that we work as a community to create laws that allow for online commerce to grow positively, yet we do not inhibit our growth because we are scared of consumer reaction. For sure this will be a tough job to figure out how to be on the cutting edge of business strategy and yet balance ethics, morality and justice while still focusing on marketing and business goals.

http://www.internetnews.com/ec-news/article.php/3347941

http://www.spamlaws.com/state/va.html

David Fishman
dfishman@ileadmedia.com

 

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