TEN LAWS INTERNET

BUSINESSES SHOULD CONSIDER

PART II: Laws 6 – 10

Presented by Ryan K. Hew, Attorney at Law, LLLC

A Hawaii Limited Liability Law Company

Last updated: October 23, 2013

DISCLAIMER The information provided in this

presentation is provided as non-specific general legal information, and should not be construed as legal advice for any particular situation. The information provided here should not be relied on for any action or omission by the user.

If you are in need of legal advice or assistance please seek an attorney in your relevant jurisdiction to help you with your specific matter.

Purpose

This presentation is mainly to provide information on laws that may be relevant or applicable to a business that conducts interactions online.

Consider this only a starting point if you are web retailer, a social media marketer/consultant, and/or online service provider.

Limitations on the Purpose The presentation is only a survey, as

every business is unique, and there may be further laws and/or regulations that apply.

This presentation makes no comment about applicability to a law to your specific situation.

Consult an attorney or specialist for implementation/compliance purposes.

Outline Each law will be covered briefly on: (a) what is the law; and (b)

an example of its use/applies or steps to comply. The Ten Laws:

1. Communications Decency Act (CDA)

2. Digital Millennium Copyright Act (DMCA)

3. Children’s Online Privacy Protection Act (COPPA)

4. Section 5 of the Federal Trade Commission Act

5. CAN-SPAM Act

6. Stored Communications Act (SCA)

7. Computer Fraud and Abuse Act (CFAA)

8. State Laws on Security Breach Notification

9. Uniform Electronic Transactions Act (UETA)

10. Electronic Signatures in Global and National Commerce Act (E-Sign)

PART I COVERED

1. Communications Decency Act (CDA)

2. Digital Millennium Copyright Act (DMCA)

3. Children’s Online Privacy Protection Act (COPPA)

4. Section 5 of the Federal Trade Commission Act

5. CAN-SPAM Act

Stored Communications Act (SCA) 18 U.S.C. §§ 2701-11 prevents the

government from gaining access to the contents of electronic communications, unless it obtains a search warrant. The law is mainly concerned with the right of service providers to disclose these communications under their control.

Stored Communications Act (SCA) Businesses should be concerned about

the SCA, as employers may be liable for unauthorized access to their employees/ personal electronic accounts, including email, social media, etc . . . via company-issued devices.

Good tech and social media policies generally protect employers, but overreach by an employer should be a concerned when it comes to personal accounts.

State Laws on Security Breach Notification Hawaii Revised Statute (HRS) § 487N-2

provides that a business that maintains personal information must send a notice when there has been a security breach that may expose personal information to unauthorized access to those affected.

As of the date of this presentation, 45 other states have similar laws.

State Laws on Security Breach Notification The notice has to be clear and conspicuous and

describe the following:1. Incident in general terms;

2. Type of personal info subject to unauthorized access;

3. General acts the business is taking to prevent further unauthorized access;

4. A telephone number that people can call for info and help;

5. Advice that the person should review/monitor account statements and free credit reports.

The law also provides on how notice may be sent to affected individuals.

Computer Fraud and Abuse Act (CFAA) 18 U.S.C. § 1030 makes it a crime to do

specific instructions into another’s computer – the general ypes of intrusions that are illegal include:Intentional unauthorized access; defrauding;

causing damage to another computer; trafficking in passwords; and extortion.

Computer Fraud and Abuse Act (CFAA) Businesses should be aware as the

CFAA can be used from just ordinary snooping to cases of industrial and commercial spying as it gives a private cause of action for persons harmed by a violation of the law.

If the person suffers a loss of $5,000 or certain types of harm are involved.

Uniform Electronic Transactions Act (UETA) UETA and E-Sign (the following side)

are a series of laws that are designed to promote contracting via electronic means.

UETA is a state-enacted law. UETA can be found in the HRS at

Chapter 489E.

Electronic Signatures in Global and National Commerce Act (E-Sign)

E-Sign is the federal law that is meant to also facilitate contracting through electronic methods.

However, E-Sign appleis to transactions in interstate commerce.

Further, for consumer transactions to fall udner E-Sign, there are extensive consumer-consent procedures to follow.

Online Contracting

In the law, prior to UETA and E-Sign agreements could only be contractually binding through signature and if in writing. BUT the internet has no handwritten signatures and no physical writings. Instead, UETA and E-Sign allows “electronic records” as the “writing” and an “electronic signature” to satisfy the “signature” requirement.

Online Contracting

UETA and E-Sign do NOT automatically make an electronic online document an enforceable contract.

All they do is remove the unenforceability due to lack of “signature” and “writing”.

For terms and conditions to be binding in a browsewrap agreement, a business should consult with an expert.

Further Resources

My website: www.hawaiiesquire.com contains further information on some of the laws listed in this presentation.

Draw the Law and Boilerplate Blurb posts on my site cover Contract concepts.

Policies and Contracts Presentation: http://slidesha.re/1ibgjjM

THE END

Mahalo for viewing my presentation.

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