Companies To Be Held Liable For Selling To Online Criminals
from the seems-a-bit-extreme dept
One of the reasons why various safe harbor rules exist is to protect parties who really have nothing to do with any kind of law breaking from being liable for the activities of others. Thus, we don't blame an ISP for the activities of one of its users, even if that user breaks the law. That's both reasonable and fair. Those who want to blame those providers often do so just because it's easier -- or, more commonly, because they somehow think it's better for that service provider to somehow act in the role of the police to make things easier. Something similar seems to be happening with the FTC placing the onus on small businesses to make sure they don't sell to online criminals. Slashdot points us to the news that, starting November 1st, all companies are supposed to compare customer info with a "red flag" list of online identity fraudsters and money launderers. Firms that fail to check may be liable if they end up doing business with "known" criminals. You can understand the reasoning here. It certainly makes it a lot easier for the FTC to try to crack down on these crimes. But it adds significant expense and liability to small businesses for potential crimes in which they were totally uninvolved.Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
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Filed Under: ftc, identity fraud, liability, online criminals, red flag, safe harbors
Companies: ftc
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That being that a small business doesn't necessarily know or care how to even check that stuff, so more small businesses than large businesses will end up selling the stuff to criminals.
Its twisted, and very obviously logic that was the first thing to come to their mind and they didn't bother thinking it all the way through.
If they did the last bit (think it all the way through) they wouldn't a) look like asses b) look like DUMB asses and c) be pushing this law unless it affects everyone.
Oh and it makes sense for it to affect _all_ businesses. Anyone wanting to do a transaction with a credit card (not on the consumer end of course...got to make it EASY to spend your savings) or something had better play along.
If/when Microsoft starts tanking they'll have all that information and we wouldnt' want them selling it to criminals anymore than I want Joe from Joe's Footwear selling mine.
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Umm...
All we could provide you with is the shipping/billing address and that should be on the list already because no way I would declare a match because the names are the same.
I live in a small town surrounded by smaller towns and we have four Vicki Brown's in our customer database. Four of them. We've made sure to get their middle initials so we can tell them apart when they come in to shop.
You could get the IP address that they used when making the purchase, but that would require that I store that information for that purpose and I am very much not okay with that. Also, it would probably end up being a library or otherwise public computer.
Imagine my new Privacy Policy.
Old:
http://www.grahamjewelry.net/yourprivacy.html
New:
We will detect and keep your IP address on file along with with all of the information that you give me just in case your name happens to match that of a criminal, in which case cops will soon be beating down your door because I have to tell them everything like a bitch. So please use a false name and a library computer. Thanks!
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Wouldn't it make more sense to talk to Paypal and other online...
How can they force us to alienate our customers?
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Businees Owner's Compliance Issues - We have A Solution
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Re: Businees Owner's Compliance Issues - We have A Solution
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The republicans aren't against big government in general. They're just against big government that they don't control.
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