Have Legislators Run Amock with Internet Advertising Restrictions?

Have national and state legislators run amock with Internet advertising restrictions?  Well, it depends on who you ask.  Indeed, it seems that there are compelling arguments for:  a.) Protecting consumers from unreasonable culling, collection, and misuse of private/confidential information;  b.) Allowing a free market economy driven by the need for information on what products and services are available to each of us;  c.) Taking a balanced approach that acknowledges that the Internet has become a primary means of advertising for all businesses and professionals.

Before jumping to conclusions about all of the bad advertisers, helpless consumers, and knee-jerk reactions to the issue, it seems that a little bit of careful analysis is required.  EsquireTech views this as a very complicated question because of the First Amendment and principles underlying a competitive marketplace.

Not only is the risk for consumer information release and abuse an issue, data breaches are already costing companies millions of dollars per instance.  In fact, one can apparently calculate the total exposure to a breach of data security.  Knowing this to be the case, should legislation be treated as more of a temporary mitigation effort until data security protocols can be more objectively injected into the marketplace?

NetChoice.org has released its hitlist of questionable internet legislative efforts.  The list (the Iawful list) primarily focuses on laws designed to limit the culling of private consumer information.

More specifically, opt-in and opt-out provisions are proposed for advertisers, limits are proposed on targeted marketing from social websites, and the imposition of additional disclosure requirements is contemplated.

For obvious reasons, the issue of First Amendment rights permeates this entire process.  Consumers should have a right to evaluate information on products and services.  Companies should have the right to collect basic information in the open where that information will help them survive in a tough economy and to better their products and services.

It is also noteworthy that social website advertising is a good method for attorneys to reach potential clients.  As long as any advertising is generalized and not targeted at specific victims (ambulance chasing) or making promises of litigation results, the First Amendment interest in being able to communicate with potential clients is obvious.  “Networking” with others in the Internet Agora is the new form of meeting up at the public square, having a chat over the telephone, or hanging out at a social gathering.

These otherwise ‘traditional’ sources of potential clients have been concentrated in the new social media and it would be draconian to just assume that none of it can be good. Rather, it seems, that a balanced approach needs to be taken as to which advertisers are capable of culling information in the first place.

The average attorney Facebook advertiser, for example, is simply looking for general characteristics of users and trying to reduce overall expense for advertising where forcing a general distribution would be cost prohibitive and to sporadic to even be effective.  While the natural tendency for lawyers, Libertarians, and market participants might be to say that we really need to put the brakes on internet advertising, be careful — it might just be that if you stop the train too quickly, everything moves forward and and is crushed under the weight of itself.

Whether or not any of this legislation will come up against the commercial free speech rights of advertisers is an open question.

While there are arguments to be had about culling personal information as defined by law, it does not follow that geo-specific advertising to a DNS area is per se’ bad.  Anyway, here’s the list:

The iAWFUL Top Ten: Click On Any Item To Learn More About the Laws that Threaten Your Use of the Internet

The March 2011 iAWFUL Top Ten

  1. Congressional Do Not Track Privacy Bill – Do Not Track is an unjustified restriction on targeted advertising, which helps pay for free online services and content.
  2. Social Network Micro Managing These bills would prevent teenagers from sharing their address and phone numbers on social networking sites and further limit their online interactions.
  3. Affiliate Nexus Bills – An unconstitutional expansion of sales tax burdens to out-of-state businesses.
  4. Recurring Offer Restrictions – Restricting consumers’ ability to use convenient automatic renewals.
  5. Child Online Registry and Do-Not-Market Mandate – Dangerously exposes children’s email addresses while drastically restricting US advertisers’ ability to market to children.
  1. Behavioral Advertising Restrictions – Severe restrictions on websites’ ability to collect user information that enables websites to provide free services and content.
  2. Telemarketing Restrictions on Online Marketing – Sorry, but Do Not Call just Does Not Work for the Internet.
  3. Adolescents’ Online Privacy Protection Act – Strips teenagers’ access to any website collecting information without first obtaining parental consent.
  4. Remote Purchaser Reporting Mandate – Requires out-of-state companies to report consumers’ purchasing information to the state’s Department of Revenue.
  5. Restrictions and Liability for Geo-Location Tracking – Requires repeated consumer consent for the collection of geographical information.

What follows below is the Press Release from Jackie Speier.  EsquireTech is a bit torn on this one since I just argued a consumer privacy case where electronically maintained real estate loan information was released by a lender to operators of a Ponzi scheme, resulting in some $142,000,000.00 in losses in just one area of the state. (Richter v. Nationstar, et al.).

Just to add to the consumer misery, the victims of the fraud were subjected to a Star Chamber arbitration process where they were literally not allowed to be heard whatsoever and the lender was not required to release any of the electronic information its own employees were allegedly kind enough to share with Ponzi scheme operators.  The disallowance of any material evidence, discovery, or production from the defendants was done regardless of the fact that the ex-employee was convicted on felony fraud, an SEC judgment, a Department of Corporations C&D, CA Department of RE C&D, and a civil injunction won by our office.  How can a consumer fight the collection of and a release of electronic information if they are not even allowed to know how the leak occurred or what information was leaked?

In short, regardless of the overwhelming evidence that consumer information was abused, Nationstar and Centex Home Equity were able to rely on a sneaky arbitration process that quieted the potential exposure to the lender for sharing information without permission.  Then, to boot, the companies who released information are seeking to sanction the consumers for even bringing the issue up.

Again, it seems that a careful balancing act is required in order to weigh the interests of the advertising community with those of reasonable consumers.

Press Release from Representative:

Washington DC – Congresswoman Jackie Speier (D-CA), a longtime consumer advocate, today held a press conference to introduce a package of privacy bills aimed at protecting the personal information of all Americans. The Do Not Track Me Online Act of 2011 (H.R. 654) would give consumers the ability to prevent the collection and use of data on their online activities. The Financial Information Privacy Act of 2011 (H.R. 653) would give consumers control of their own financial information. Consumer Federation of America, Consumers Union, Consumer Action, U.S. PIRG, Consumer Watchdog, World Privacy Forum, the Center for Digital Democracy, and the ACLU all announced their support.

“These two bills send a clear message—privacy over profit,” Speier said. “Consumers have a right to determine what if any of their information is shared with big corporations and the federal government must have the authority and tools to enforce reasonable protections.”

There is no longer any anonymity on the Web. The most personal information about people’s online habits is collected and eventually bought and sold, often instantaneously and invisibly. Data collection practices have become a business in themselves, driven by profits at consumers’ expense. The Wall Street Journal recently highlighted these practices—which included targeting children—in its groundbreaking series “What They Know.”

The Do Not Track Me Online Act of 2011 would direct the Federal Trade Commission to develop standards for a “Do Not Track” mechanism that would allow individuals to choose upfront to opt out of the collection, use or sale of their online activities, and require covered entities to respect the consumer’s choice. Failure to do so would be considered an unfair or deceptive act punishable by law. The covered entity would have to disclose its collection and sharing practices, including with whom the information is shared. The bill would allow the FTC to exempt commonly accepted commercial practices like the collection of information for billing purposes.

A USA Today poll released Tuesday showed that 70% of Facebook members and 52% of Google users say they are either “somewhat” or “very concerned” about their privacy.

“People have a right to surf the web without Big Brother watching their every move and announcing it to the world,” Speier said. “The internet marketplace has matured, and it is time for consumers’ protections to keep pace.”

The Financial Information Privacy Act of 2011 would finally give consumers the ability to control the sharing of their own financial information. The bill mirrors legislation Speier successfully steered to passage in California that prevents financial institutions from sharing or selling personally identifiable nonpublic information with affiliates without an opportunity to opt-out, or in the case of unaffiliated third parties, a requirement that consumers opt-in. This bill gives consumers control of their personal financial information and provides meaningful but workable privacy protection.

“Because of the law we passed in California, consumers now have the clear and simple ability to prevent financial institutions from sharing their personal information,” Speier said. “Every American deserves that right.”

 

Where Google Is or Should Be ?

Here’s an article by CNet with observations about what should be focused on by Google in the coming months and year. You can click on the image below for the article and another interesting article can be found on InformationWeek.com.  You might also want to check out the Tope Ten Google Stories of 2010.

Google.com

15 Mobile Apps to Watch Out For

 

PCWorld 15 Apps Show

This is a very basic and brief introduction to upcoming apps, including, Skype for iPhone video-calling, Facebook for iPad, mobile payment platforms for billing, Pandora, Norton mobile, and more Google development.

As jurors go online, U.S. trials go off track

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Image via Wikipedia

updated 12/8/2010 9:43:29 PM ET

ATLANTA — The explosion of blogging, tweeting and other online diversions has reached into U.S. jury boxes, raising serious questions about juror impartiality and the ability of judges to control courtrooms.

A Reuters Legal analysis found that jurors‘ forays on the Internet have resulted in dozens of mistrials, appeals and overturned verdicts in the last two years.

For decades, courts have instructed jurors not to seek information about cases outside of evidence introduced at trial, and jurors are routinely warned not to communicate about a case with anyone before a verdict is reached. But jurors these days can, with a few clicks, look up definitions of legal terms on Wikipedia, view crime scenes via Google Earth, or update their blogs and Facebook pages with snide remarks about the proceedings.

The consequences can be significant. […] See More

Related Articles

Not Sure? Check out the Prizefight Series by CNet.com

Image representing iPad as depicted in CrunchBase

Image via CrunchBase

If you have been left wondering about what tablet to buy this Christmas or for your next year of legal practice, CNet.com provides an excellent source of comparative information on the various features of products now on the market.  Video comparisons of products include the Samsung Galaxy & iPad.  This Prizefight can be found along with information about the MacBook, Acer Timeline, iPod, XBox, Wii, and other various competing products which may be of interest to you or yours.  CNet is an extremely helpful website which provides consumer information that can be easily understood.  They cover a wide range of tech devices, software, phones, and other products used by lawyers and the general public alike.  If you are interested in technology, this is a great place to start looking for information.  Armed with this information should be able to much better gauge which products best suit you and your practice.

Xobni – An Absolute Favorite PC Application

Without a doubt, Xobni is probably one of my favorite software applications.  While incredibly simple in concept, it provides a wealth of information about e-mail communications, social networking, received documents, and other information relating to what’s happening with my e-mail accounts.

Xobni allows you to track e-mail conversations and easily gives you a timeline of how the conversations went down.  With a large database of communications in the thousands, it is very important to be able to look up old client communications.  In fact, I just recently was requested to provide some detail of communications from 2-3 years ago in my capacity as corporate counsel.  The search for the communications, relevant attachments, and shared information took all of about 30 seconds and all of the information I needed was immediately available so that I could determine the content, dates, and to/from information that I needed in order to determine what privileges applied and to be able to print the communications for the requesting party.

Among other things, as you can see from the left image, Xobni also ranks your e-mail according to volume, times of receipt, and other statistical information.  Sometimes, it is critically important to remember who was part of a conversation, the context of the conversation, and what documents were exchanged between counsel and the parties.  Or, it may be that you need to locate an old motion that you wrote and need an alternate way to find it since you know that you e-mailed it to someone in the last year.  Aside from being able to assess of of the data mentioned above, this program also provides immediate contact information, including social network contact information and up to date data on postings.  Xobni works with Hoover’s Business Info, Facebook, Skype, Huddle and LinkedIn.

The limited shortcomings are that there is not an iPad or iPhone version at this time.  Integration between Outlook, Xobni, and my smartphone (iPhone) would make this a nearly perfect program, even though I would already give it a 10 out of 10.  However, should you be so fortunate as to have a Blackberry smartphone, there is more integration.

All in all, I think that this program is a must have for any small law office.  I highly recommend that you check it out.  It is worth noting that there is a free version and you can always upgrade to the premium version, which is what my office uses.  Just excellent all the way around.