Time to redefine free speech?

The monstrous comments appearing on some social media websites following the murder of two police women in Greater Manchester is unacceptable. The laws are not tough enough to deal with the sick idiots who are causing so much distress not only for the victims' family friends and colleagues, but for any decent-minded person that reads them.

We now need to have a rigorous debate on what constitutes 'freedom of speech' and to strengthen our laws to protect the innocent. But, I don't believe this should include arming every police officer, as some have called for. The debate is not about personal freedoms but about having respect for other people and contributing to the greater good of society, including the online information society in which we now all live. Only this morning I heard that the Crown Prosecution Service will not take any further action against the Twitter troll who made disparaging remarks about Olympic diver Tom Daley. The reason given was that the troll didn't intend Tom Daley to see the remarks he made. For goodness sake, he made the remarks on Twitter, one of the world's leading social media websites and where Tom has a very popular following! What did he expect?

I don't like laws for the sake of laws, and I certainly don't believe in governments meddling in our private lives. But I do believe that we are reaching a tipping point where we need to redefine who we are and what we are trying to achieve as a society. Social media seems to trade all that is good and is bad within us, self therapy without the consultant's fees but where we still need to face up facts.

People will find it uncomfortable to challenge precious-held rights, but we do live in a world where laws do exist to protect the innocent. Maybe the real role of social media is to act as catalyst to change.

Further information

• Director of Public Prosecution's Statement on Social Media Prosecutions

Fair Warning - 7 Legal Risks of the Online Auction

Online auctions (or e auctions) is a growing market and can catapult the regional auction house onto an international stage with access to new and dynamic global customers.

eBay and other similar companies have added many different auction capabilities to their websites to attract users and add excitement. But running an online auction - an auction which is held over the Internet - raises many legal issues both for the seller and the buyer.

This article looks at ways to mitigate the company's legal risks which come from adding an auction to a corporate website. The information does not constitute legal advice and organisations considering an online auction should always seek expert opinion.

1. What kind of auction?

An auction is a sale where buyers bid the highest price for an item and the fall of the auctioneer's hammer confirms the deal. This English auction is the most common type, but there are others and each carry their own legal risks and responsibilities, including:

• Vickrey auctions - the highest bidder obtains the item at the price offered by the second highest bidder;

• Dutch and Yankee auctions  - auctions formatted to handle a situation in which a seller wishes to sell multiple, identical items;

• First-price sealed-bid auction - a single bid is made by all bidding parties and the single highest bidder wins, and pays what they bid. The main difference between this and English auctions is that bids are not openly viewable or announced as apposed to the competitive nature which is generated by public bids;

• Reverse auction - where the roles of buyer and seller are reversed. Multiple sellers compete to obtain the buyer's business and prices typically decrease over time as new offers are made. They do not follow the typical auction format in that the buyer can see all the offers and may choose which they would prefer. Reverse auctions are used predominantly in a business context for Procurement.

• Bidding fee auction, or penny auction requires customers to pay for bids, which they can increment an auction price one unit of currency at a time

2. Bidder terms and conditions

Sophisticated auction websites such as eBay publish several policies that cover the variety of goods intended for auction. Less sophisticated sites will still need to carry bidder terms and conditions which include:

• the method by which bids will be processed;
• how winning bids will be handled;
• how winning bidders will be notified;
• the use of “reserve” prices (a secret price below which no bid is accepted); how disputes between bidders will be addressed;
• how merchandise and payments will be shipped;
• refund and return policies;
• information on fees, membership eligibility requirements, and feedback mechanisms;
• which country's jurisdiction and laws will apply.

The rules may also include a list of prohibited items due to their potentially hazardous or unlawful nature (e.g., firearms, chemicals, or fireworks). Some countries may also prohibit certain products, such as France's ban on the sale of Nazi memorabilia.

The European Distance Selling Directive does not apply to online auctions so bidders acting in a private (rather than a business) capacity do not have the right to a cooling of period, as consumers generally do when purchasing products 'at a distance'.

3. Sale of goods 'as seen'

Offline, items are sold in auction 'as seen'. Companies that are auctioning off their own goods (as opposed to merely creating a forum for third party transactions) should be particularly aware of the legal issues that auctioning specific items may pose, such as rare wine which may be subject to pricing or shipping regulations. Similarly, although companies may be tempted to describe their goods for auction with glowing words to encourage bidding, they should bear in mind that all the rules, regulations, and laws which govern the conventional sale of goods still apply.

4. Privacy

Most auction sites require that users, both bidders and sellers, register before participating. The registration process usually involves collecting some user information, including name, address, phone number, etc. The auction site owner should publish and adhere to a “privacy policy” regarding how it collects and utilizes user information online. This includes compliance with the EU cookies rules in EU member states as well as Data Protection.

Auction rules do vary significantly in other countries, so companies may wish to limit participation to their own country. However, if you do allow those in other countries to participate in online auctions, you must be aware of international privacy laws and regulations.

5. User feedback

Following the lead from eBay, many auction sites now provide a feedback mechanism through which registrants can provide post-transaction commentary about other users. This user “feedback” is meant to keep the bidding process open and honest, and to allow customers to communicate their satisfaction or dissatisfaction with the seller and its goods. However, user feedback has already become the basis of at least one libel lawsuit, in which one car retailer sued another, alleging that the defendant had posted false and defamatory feedback.

Companies should incorporate rules concerning the content of user communications in their web site terms and conditions (not the same as bidder terms and conditions) as well as expressly disclaim all responsibility and liability for user-provided content.

6. Website terms and conditions

Website terms and conditions govern visitors' use of your website. It covers issues such as legal notices, ownership of intellectual property, use of hyperlinks and disclaimers.

A “clickwrap” agreement requires the users to view the agreement and click “I Agree” or some similar wording before gaining access to the site or a feature. Terms and conditions are usually accessible through a link at the bottom of the home page of the site and do not require viewing or consent. Although many companies opt to have terms and conditions rather than clickwraps because of their more user-friendly nature, as between the two, clickwraps are more likely to be found to be enforceable in court.

7. Money laundering

In a cash high business, you have to take a zero tolerance attitude towards money laundering. Not only will the regulators come down heavy on an organisation that doesn't have sufficient controls in place to prevent money laundering, but it also doesn't look good from a commercial and professional standing. Knowing who's who is an essential part of the registration process if users are not already known to the auctioneers.

And finally...

Auction companies tend to outsource the online part of their operations to hosting companies such as i-bidder. Not only does this ensure that expertise and service is consistent, but the auction company will also get access to a wider market as well as Internet savvy customers. All in all, professional auction houses will always ensure that customers have a safe and enjoyable browsing experience when bidding online.

Further information

Visit the E RADAR website at www.eradar.eu to find out more about the risks with doing business online.

E RADAR | Smarter business online

The Internet and social media are transforming our lives in ways which were never deemed possible just a decade ago. Today, we are all empowered to write news, influence events, and be part of a growing online community providing rich content to help make our own individual lives that much more fulfilling.

For example, it's truly remarkable that: grandparents can see and talk to their grandchildren thousands of miles away in real time; communities can come together to clean up after local rioting; the 2012 Olympic and Paralympic Games reached an estimated global audience of 4.8 billion; and businesses in the remotest parts of the country get online to find new international markets.

Sure, there is a downside which comes with any social interaction, but the strengths and opportunities from the Internet Age far outweigh the seedy actions of a few. Access to to the super information highway has fast become a human right, a right which I blogged about just a few days ago in The 10 Commandments of the Internet Age.

We've now had over fifteen years of the 'commercial' Internet where organisations have taken up the baton of doing business electronically en masse across open public networks. Today, we have a better idea of the strengths, weaknesses, opportunities and threats from electronic communications, and we now need to get smarter in how we apply this knowledge we have learned.

Why E RADAR?

I set up E RADAR to empower business owners, commercial investors and top managers with straight forward, good quality information about the risks of doing business online. There's plenty of information out there and some excellent websites. But, there's a load of crap information out there too! E RADAR aims to distinguish good from bad and bring the good stuff together onto one website - a 'one-stop shop' for online professionals. E RADAR is about having quality information rather than too much of it. We want to save you time, money and other resources by helping you to prioritise what's important to you and your online business.

We promote an enabling legal and regulatory environment to support enterprise, competition and innovation across the whole online economy, building trust and confidence for everyone.

What's the problem?

Legal uncertainty

Today's organisations are struggling to understand the complete e-contracting/procurement life-cycle that underpins the basic economic principle of supply and demand. For example, complex issues exist around orchestrating, signing, executing and recording transactions electronically from start to finish while enforcing business rules to reduce errors and ensure full regulatory and audit compliance.

Assurance of information, people, processes and technology is fundamental to the success of the life-cycle. This can only be achieved through the collaboration of all supply and demand chain partners, including government and other non-commercial participants. Use of IT across the organisation plays a leading role in bringing all these concepts together.

Knowledge-gap

Doing business over the Internet or through other online technologies opens onto a world of opportunity but also onto a world of risk. The more online your organisation becomes, the more risks it faces. Laws and regulations should provide certainty around which you can build your online business using governance and compliance tools, but often the reality is very different.

Understanding the online legal and regulatory environment is everybody's business, not just the lawyers. E RADAR provides basic and more advanced governance, risk and compliance tools to suit the needs of everyone in the organisation.

Keeping up-to-date

How do you know what you need to know about laws and regulations? Where do you find the information, how long will it take me, and how much will it cost?

E RADAR monitors public policy, including laws and regulations, standards and best practice to ensure that you get the latest intelligence at a reasonable cost.

Information assurance

Information is plenty and free across the Internet, but can you trust it and how do you measure its value to your business?

E RADAR only sources, collates and analyses information from trusted networks ie. recognised authorities and specialists. We also ensure that information is written down clearly, in plain English for a non-legal, non-technical audience.

Lack of empirical data

We need case studies to illustrate the potential and real impact of laws and regulations upon the business.

E RADAR provides business networking tools and opportunities to share thought-leadership and best practice, as well as opportunities to discuss concerns with policy-makers at the earliest opportunity when dialogue is most valuable.

What does E RADAR do?

E RADAR is a trusted, independent platform where participants can come together to learn, discuss, debate and evaluate as part of their decision-making on governance, compliance and risk. We provide a knowledge vault, interactive business networking channels, consultancy and training services to support all organisations transacting electronically, across every sector.

E RADAR is unique. Our overall aim is to take organisations on a governance and compliance journey that builds certainty and trust which leads to new markets, more customers and a better business.

E RADAR focuses on the legal and regulatory challenges facing the whole online supply and demand chain. E RADAR represents participants who want to come together in order to share thought-leadership and good practice.

Mission

Our mission is to promote global online competitiveness, enterprise, and innovation through good governance and compliance. We are a customer-driven company dedicated to promoting value by developing, maintaining and enhancing working relationships with all stakeholders.

Philosophy

Our philosophy is simple smart

• Be the very best at what we do;

• Customer first, all else will follow;

• Be professional and polite at all times;

• Take pride in and value our work;

• Respect the environment and people around us;

• Have fun

Further information

Check out our new interactive website at www.eradar.eu

E RADAR staying on top of its game!

You will have noticed that until today we haven't been posting many articles on Blogger. In fact, the last one I posted was early 2011.

This changes from today.

From this moment you will see regular updates from team E RADAR on the latest news, views and opinion about doing business electronically. I set up E RADAR two years ago because there is no dedicated website anywhere in the world focused on the legal and regulatory challenges facing entire online business, and written for commercial decision makers. There's a lot of good information out there, from law firms and legal practitioners, through governance and compliance professionals, to risk management and software companies. But it all needs bringing together in a smarter way - for understanding, for learning and for doing better business online.

So, myself and a small team got our heads down and started pulling the threads together. The E RADAR website has been two and a half years in development and now provides you with free business intelligence on many different areas of online trading: online privacy, electronic supply chain, intellectual property, data protection, e-contracting, public sector information, e-invoicing, EU digital single market and much more. We particularly want to help small and medium-sized organisations understand the legal and regulatory risks associated with doing business electronically, and seize the commercial opportunities available from using web-based technologies.

Have a look, see what you think and why not contact us if you'd like to publish some articles with us. We are looking for quality, not quantity, and are determined to help share knowledge and experience to help the online economy get back on its feet.

Visit us at www.eradar.eu

The 10 Commandments of the Internet Age

Brazil is close to passing the world’s first Internet Bill of Rights. The Marco Civil da Internet aims to guarantee basic protections for internet users, and is considered a major step forward for online law.

In development since 2009, the civil regulatory framework was created through public consultation and has undergone many changes, eventually reaching the Brazilian Chamber this year.

The Bill has catapulted Brazil to a progressive position in digital policymaking, potentially serving as a model for other countries trying to balance user rights against interests of online companies and law enforcement.

The crucial vote will take place in Brazil’s Congress on 19 September. 

With such wide participation from Brazil's population, it is expected that some would criticize and some would support the initiative. Many are in favour of the final version of the Bill of Rights.

Yet, despite such support, the bill still divides opinions. While the majority seems to support passing of the bill, some position themselves against it, because of the broad freedom that Marco Civil brings to the Internet.

The proposal would mean service providers (such as Youtube, LinkedIn, Twitter and Facebook) would not have any responsibility over the content being uploaded by their users, and wouldn't be able to remove content - even if offensive - without a warrant, because such attitude is seen as a violation of freedom of expression. Professor Marcelo Thompson, from the University of Hong Kong, explains:

"If the online service provider knows with certainty it is hosting content crudely offensive to someone’s privacy, sexual orientation, children’s rights, you name it, and does nothing about it — actually, even if the provider explicitly acknowledges the offensive nature of the content, even if it acts out of sheer cruelty in leaving things as they stand –, its conduct will not carry any liability whatsoever."

Criticism

But critics think that the proposed law violates Brazilian rights of security and response of anonymity and defends the exemption of liability providers, thus making the Internet 'lawless'. The Constitution of Brazil establishes that the expression of thought is free and anonymity forbidden.

Telecommunications companies and the copyright industry are also strongly lobbying the Chamber of Representatives to put a hold on the Internet Bill of Rights because the issue of net neutrality is included in the Bill.

US Digital Bill of Rights

Meanwhile in the US, Republican Rep. Darrell Issa, is stoking an online debate on what a potential "Digital Citizens' Bill of Rights" could look like.

He posted his proposed Bill on Madison, a collaborative bill-editing site and users have been  making edits and revisions to it. It's a neat work in progress as people collaborate and try to define those rights that we hold dear online, in a way that can be protected from a potentially over-zealous government.

The US government is responding to entreaties from major corporations (i.e. The Recording Industry Association of America),who are seeking more tools to protect themselves against online users who are peddling counterfeit goods or pirated digital content. But many worry the government powers would be too extensive, allowing law enforcement to shut down websites and blogs that display potentially infringing content.

Issa's Bill sets out ten important rights for online users... and so to our Ten Commandments... 

The 10 Commandments of the Internet Age

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• 1. Freedom - digital citizens have a right to a free, uncensored Internet

• 2. Openness - digital citizens have a right to an open, unobstructed internet

• 3. Equality - all digital citizens are created equal on the internet

• 4. Participation - digital citizens have a right to participate peacefully where and how they choose on the internet

• 5. Creativity - digital citizens have a right to create, grow and collaborate on the internet, and be held accountable for what they create

• 6. Sharing - digital citizens have a right to freely share their ideas, lawful discoveries and opinions on the internet

• 7. Accessibility - digital citizens have a right to access the internet equally, regardless of who they are or where they are

• 8. Association - digital citizens have a right to associate freely on the internet

• 9. Privacy - digital citizens have a right to privacy on the internet

• 10. Property - digital citizens have a right to benefit from what they create, and be secure in their intellectual property on the internet

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 Further information

• Internet Governance Forum

This article was first published on E RADAR | Smarter business online