Legal Analysis and Commentary from Justia
Toncsi/Shutterstock.com
David O. Klein and

Multilevel Marketing: How to Avoid Building the Pyramid

Attorneys Jonathan E. Turco and David O. Klein comment on how companies can engage in perfectly legal multilevel marketing without running the risk of engaging in an illegal pyramid scheme. Turco and Klein detail how the two differ; explain the rules of the road regarding multilevel marketing; and comment on both state and federal regulations in this area of law, including a set of FTC safeguards. Continue reading →

Posted In: Consumer Law, Technology Law

More Consumer Law Analysis and Commentary

Andrey_Kuzmin/Shutterstock.com

Teens and Tiaras: Virtual Beauty Contests on Instagram, and Why the Company Should Do Something About Them

Justia columnist and U. Washington law professor Anita Ramasastry discusses Instragram’s issue with users’ rating the appearance of young girls in beauty pageants online, and leaving comments both positive and negative. Ramasastry notes that such pageants may raise legal issues and privacy concerns and may trigger issues under COPPA, the Children’s Online Privacy Protection Act. Continue reading →

Posted In: Consumer Law, Privacy, Technology Law

ppart/Shutterstock.com

Will Virtual Money Laundering Rules Stop the Illegal Use of Virtual Currencies? Why Regulators Have More Work to Do to Clarify the Rules of the Virtual Currency Road

Justia columnist and U. Washington law professor Anita Ramasastry comments on the regulation of virtual currencies, such as Bitcoins, that are created by private companies, and that can be used for either legal and illegal transactions, due to their ability to afford anonymity to users. Ramasastry also covers the new rules that the US Treasury will apply to such currencies; and why the rules’ guidance currently may not be sufficient to guide administrators or exchanges of new virtual currencies in a way that will provide law enforcement with the leads they need to tackle virtual money laundering. Continue reading →

Posted In: Consumer Law, Technology Law

and
iQoncept/Shutterstock.com

Running Sweepstakes Promotions: An Endeavor Best Not Left to Chance

Attorneys David O. Klein and Jonathan B. Turco comment on the law regarding sweepstakes, and the risks of failing to abide by that law, which could entail very significant liability. Klein and Turco note key distinctions in this area of law, such as the distinction between games of chance and games of skill, discuss how to remove the element of consideration from a game, and cover some additional sweepstakes complexities. Finally, they make clear the difference between sweepstakes and Internet sweepstakes cafes, which are simply a set of casino-style games. Continue reading →

Posted In: Consumer Law, Technology Law

Stuart Miles/Shutterstock.com

The Federal Trade Commission Takes Aim at Mobile App Privacy: Why It’s About Time

Justia columnist and U. Washington law professor Anita Ramasastry comments on the FTC’s recent focus on privacy protections for mobile applications, and how key players in the rapidly-expanding mobile marketplace can better inform consumers about their data collection and use practices. Ramasastry also discusses the recent FTC enforcement action that led to a settlement with Path, a mobile social network, relating to its mobile privacy practices. Path lets users keep online journals that can be shared with a limited group of family and friends. The FTC fined Path $800,000, charging the company with violating federal statutory privacy protections for children by collecting personal information on underage users. Ramasastry deems the FTC’s scrutiny of mobile apps to be appropriate and timely right now, as more and more Americans rely heavily on mobile devices. Continue reading →

Posted In: Consumer Law, Privacy, Technology Law

Tom Kaye / Shutterstock.com

When a Friend Is Really a Foe: Why U.S. Consumer Protection Bodies Should Regulate Debt Collectors’ Use of Social Media

Justia columnist and U. Washington law professor Anita Ramasastry comments on the legal issues regarding debt collection and social media. As Ramasastry explains, certain debt collectors currently take to social media to harass debtors after first posing as, for example, a Facebook friend. Ramasastry describes the current law regarding how debt collectors may operate, and the alterations in the law that will likely be enacted in the near future, in order to accommodate the technological changes that have occurred since the initial debt-collection laws were put in place, long before the advent of social media. Continue reading →

Posted In: Consumer Law, Technology Law

solarseven/Shutterstock.com

Revenge Porn Returns, with Home Addresses: Why the Site Is Legal and What Legislators Might Do to Fix That

Justia columnist and U. Washington law professor Anita Ramasastry discusses the way in which Section 230 of the Communications Decency Act (CDA) has unintentionally offered a safe harbor to websites on which people’s exes post nude or other intimate photos that were taken during the course of a relationship, and that were intended by the subject of the photo to be forever kept private. Ramasastry notes how adding additional information to the photo, such as a home address, could be a crime, as it aids cyberstalking. In addition, she urges that Congress ought to amend Section 230 in order to prevent unintended negative consequences like these. Continue reading →

Posted In: Consumer Law, Privacy, Technology Law

Nata-Lia/Shutterstock.com

Instagram’s Terms of Service Revision: Why It Strained the Bounds of Fair Contracting

Justia columnist and U. Washington law professor Anita Ramasastry comments on the photo-sharing site Instagram’s controversial change to its Terms of Service (ToS), which has had some users up in arms—mainly because of a term that would allow Instagram to share a user’s photos with Facebook (which owns Instagram) and marketing affiliates for the purpose of creating paid advertisements, with the revenues going to Instagram, and not the photo owner. Due to the controversy, Instagram has a new ToS, but Ramasastry contends that the new ToS is also problematic for its own reasons. Continue reading →

Posted In: Consumer Law, Technology Law

Umberto Shtanzman/Shutterstock.com

Senator Franken Wants Us to Know When Our Apps Are Tracking Us: Why This Is a Sensible Thing for Congress to Require

Justia columnist and U. Washington law professor Anita Ramasastry comments on Senator Al Franken’s proposed legislation that would regulate cyberstalking and geolocation apps—some of which are installed in a given device without notice of their presence being provided to the user. As Ramasastry explains, some of the chief concerns in this area of law include the possible stalking of domestic violence victims, and the safety of children. As Ramasastry explains, this topic not only sparked Franken’s interest, but also is of interest to the FTC, and the Senate Judiciary Committee. Continue reading →

Posted In: Consumer Law, Privacy, Technology Law

Max Griboedov/Shutterstock.com

Facebook’s Mandatory Couples Pages: The Site’s Creating Them May Be Legal, But Is It Wise?

Justia columnist and U. Washington law professor Anita Ramasastry comments on the new couples pages feature on Facebook, which aggregates a Facebook user’s information with that of his or her self-designated significant other. Ramasastry notes that the feature has been controversial, and explains why some users have been upset by it. She notes, too, that Facebook is entering a privacy gray area with the couples pages feature, under which Facebook relies on its privacy policies, but users feel they have lost control. Moreover, Ramasastry suggests that the Electronic Privacy Information Center (EPIC), which previously criticized Facebook’s Timeline feature, may want to scrutinize Facebook’s couples pages feature as well. Finally, Ramasastry questions whether Facebook’s couples pages are permissible under Facebook’s recent settlement with the FTC. Continue reading →

Posted In: Consumer Law, Privacy, Technology Law