Monthly Archives: October 2015

ATTN BUSINESS OWNERS: THE FTC NOW FINES FOR BEING HACKED!

FTC can fine for being hacked
Yep. The FTC can fine for being hacked. Not the hackers, but the businesses that are breached.

Is your online security house in order? If not, stop what you’re doing and contact a digital security guru, pronto – especially if you collect and store customers’ personal and financial information. Why? A U.S. court recently ruled that the Federal Trade Commission can pursue companies that fail to sufficiently protect consumer data.

In other words: If someone hacks into your business, YOU could be held responsible and fined into submission. Yes, the FTC can now fine for being hacked!

Wyndham Hotel Hack

The Appeals Court ruling was a result of Wyndham Hotels and Resorts’ data breach from a few years back. The high-profile hack exposed approximately 619,000 records and allegedly resulted in $10.6 million in “fraudulent charges.”

FTC’s Argument In Hacking Case: Company Did Not Do Enough To Protect Consumer Data

When pursuing the case, FTC staffers identified four points of protest. According to available reports, Wyndham allegedly:

  • Wasn’t using an appropriate firewall at the time of the breach;
  • Didn’t encrypt customers’ credit card information;
  • “Failed to address known vulnerabilities”;
  • Maintained a poorly managed network – so much so that staffers weren’t aware which computers were connected to it.

The FTC Can Now Fine For Being Hacked

Though the FTC has been granted new leeway in regards to punishing companies that are hacked, the agency is still murky on what constitutes the “reasonable steps” a company should follow to prevent a security breach.

It’s wise to work with an attorney who handles online privacy and security issues. The mere act of working with a firm looks good in the eyes of the law.

“But, Wait! It’s Not The Company’s Fault!” The FTC Doesn’t Care

In its defense, Wyndham argued that the company “does not treat its customers in an ‘unfair’ manner when the business itself is victimized by criminals.” But the court disagreed, reasoning:

“A company does not act equitably when it publishes a privacy policy to attract customers who are concerned about data privacy, fails to make good on that promise by investing inadequate resources in cybersecurity, exposes its unsuspecting customers to substantial financial injury, and retains the profits of their business.”

The court determined that lack of a privacy policy doesn’t preclude lax security. FTC chairperson, Edith Ramirez further explained:

“It is not only appropriate, but critical, that the FTC has the ability to take action on behalf of consumers when companies fail to take reasonable steps to secure sensitive consumer information.”

Get An Online Privacy Lawyer, Who Deals With Hacking Incidents, On Speed Dial

Some business owners may be peeved about the FTC’s new authority regarding hacks. Understandably. But as they say: there’s no use crying over spilled milk the long arm of the Federal Trade Commission. Instead, it’s best to get your digital security house in order and have a hacking lawyer on speed dial, in the event of a breach.

Contact Kelly Warner’s Internet Law Aficionados

Lawyers Daniel Warner, Aaron Kelly and Raees Mohamed are partners at Kelly Warner Law. A firm that focuses on 21st-century legal issues, Kelly Warner has grown to become one of the preeminent Internet law practices in the country, helping clients with issues related to online privacy and hacking.

To learn more about the firm, please click here. To read more about Kelly Warner’s lawyers, head here. If you’re interested in further reading regarding FTC legalities, please peruse the Federal Trade Commission section of our blog.

If you’re ready to speak with an attorney well versed in online privacy and hacking law, please get in touch. We look forward to sorting any legal challenges you may be facing.

And remember, the FTC can now fine for being hacked, so make sure you have an online privacy lawyer on speed dial.

Article Sources

Bloomberg, J. (2015, August 25). Company Breached By Hackers? You’re Being Deceptive, According to FTC And The Court. Retrieved October 19, 2015, from http://www.forbes.com/sites/jasonbloomberg/2015/08/25/company-breached-by-hackers-youre-being-deceptive-according-to-ftc-and-the-court/

Criminal Defamation in the United States: A 2015 Update

criminal defamation
2015 US Criminal Defamation Update

Georgia Erased Its Criminal Defamation Statute

During the 2014-2015 legislative session, via House Bill 252, Georgia representatives finally axed several statutes that have little businesses existing in the 21st century – and one of those decrees was the State’s criminal defamation law.

It’s been a Long Time since Georgia Threw Anyone in Jail for Defamation in Georgia

Though the criminal defamation law has remained on Georgia’s law books, it has not been used since the 1982 case, Williamson v. Georgia. At that time, the Georgia Supreme Court ruled that felonious slander and libel laws contradicted the state constitution. But despite the Williamson ruling, the laws stayed on the books.

Criminal Slander and Libel across the United States

Colorado

Colorado also repealed its criminal defamation statute in 2012. Officials in the Centennial State quickly erased the law after the District Attorney’s office was forced to shell out about $425,000 on account of a criminal libel warrant gone terribly wrong.

SCOTUS’ Take on Criminal Defamation

Though the Supreme Court of the United States has not banned criminal defamation statutes on a federal level, in its Garrison v. Louisiana, the court strongly suggested that those types of slander and libel laws had no place in modern society.

States that Still Have Criminal Defamation Laws

Several states continue to keep criminal defamation laws on the books including Florida, Idaho, Kansas, Louisiana, Colorado, Michigan, Montana, New Hampshire, New Mexico and North Carolina. That said, having such statutes on the books doesn’t mean they’re evoked. It’s been a long, long time since someone has been successfully charged with criminal slander or libel in the United States.

Speak With a Defamation Lawyer

Aaron Kelly, partner at Kelly Warner maintains, a 10-out-of-10 rating on lawyer review website AVVO, in addition to a preeminent rating with venerated attorney ranking group, Martindale-Hubbell.

As one of the first firms to focus on Internet defamation, the libel lawyers at Kelly Warner know exactly how to approach all manners of online defamation cases – involving both businesses and individuals.

Fixing an Internet defamation issue is sometimes a lot easier than you may assume – and a lot less expensive. Get in touch today. Tell us about your situation. We’ll be able to guide you in the right direction, which isn’t always a lawsuit.

Article Sources

Duffy, M. (2015, August 12). Death of Georgia’s criminal defamation law. Retrieved October 12, 2015, from http://www.daltondailycitizen.com/opinion/death-of-georgia-s-criminal-defamation-law/article_518f2a5a-4163-11e5-8023-b7d34b422721.html

The Speak Free Act: Explanation and Analysis

speak free act of 2015
Will the latest online defamation bill in DC be a raw deal for small business owners?

The Speak Free Act is a new bill swirling its way through Capitol Hill’s intern-saturated halls. A bi-partisan proposal endorsed by both the technology lobby and free speech advocates, the proposed law is meant to curtail illegitimate legal threats over online reviews. But will it hurt small businesses?

Is everyone happy about the bill? Of course not. This wouldn’t be America if we could persuade politicians to calmly compromise on behalf of the greater good. That said, there is a higher than usual amount of support for this ballot proposal. And why not: it’s an election year. What better – and let’s face it, safer – topic to champion than free speech? You’d be hard pressed to find a voter opposed to First Amendment rights.

Is the bill a redundant piece of anti-censorship legislation? Or, is it a wolf in bi-partisan, kumbaya clothing?

Will this bill be terrible for small businesses lacking huge budgets to:

  • Maintain a high-profile search engine optimization campaign;
  • Enlist the help of lawyers every time a competitor pelts them with a fake online review?

First Things First: Explanation of a SLAPP Lawsuit

Before delving into the nuts and bolts of the Speak Free Act of 2015, we must discuss Strategic Lawsuits against Public Participation – a.k.a., SLAPP Lawsuits.

What is a SLAPP Lawsuit?

Parties with “deep pockets” usually file SLAPP suits against ostensibly penury parties. What differentiates SLAPP lawsuits from “regular” defamation lawsuits is the typically tenuous nature of the claim. The true purpose of the filing is not legitimate pursuance of legal redress, but instead an intimidation tactic targeting the defendant’s bank account and stress triggers.

The theory goes that defendants in such situations, paralyzed by fears of legal costs and protracted litigation, will fold in the face of “power,” and stand-down from a defamation battle they may have won.

Not All States Have Anti-SLAPP Laws, Which Is Why Some People Are Clamoring For A Federal One

Advocates want a Federal anti-SLAPP law because not all states have one. As a result, sometimes people go “jurisdiction shopping” to file questionable claims in states that either a) don’t have an anti-SLAPP statute or b) a very weak one.

An Increase in SLAPPs since “The Internet”

The Internet allows for greater participation in matters of public concern. Concordantly, the number of SLAPP lawsuits has skyrocketed over the past ten years. As a result, free speech advocates have been pushing politicians to pass a federal law that aims to eradicate weak defamation lawsuits, filed with the primary purpose of intimidation.

Explanation of the 2015 Speak Free Act

Full Title

H.R. 2304: Securing Participation, Engagement, and Knowledge Freedom by Reducing Egregious Efforts Act of 2015. https://www.govtrack.us/congress/bills/114/hr2304

Bill Sponsorship

A bi-partisan effort, Republican Blake Farenthold from Texas and Democrat Anna Eshoo from California are the primary co-sponsors of the 2015 Speak Free Act.

How It Would Work

Anybody who feels they’ve been unjustly hit with a defamation lawsuit could file a special motion protesting the claim. If, in said motion, the aggrieved party can sufficiently argue the likelihood of their success at trial, a judge could dismiss the case “with prejudice – and the defendant would, under provisions of the bill, be able to recoup legal fees from the plaintiff.

A Victory for The Yelp! Lobby?

In 2014, Yelp rooted a lobbying presence on K Street. And it appears that the money was well spent.

Some folks on Capitol Hill credit the “Yelp lobby” for pushing through H.R. 2304. Previously, the issue was exceptionally partisan. Democrats and Republicans could not agree. But once “neutral” Yelp stepped up, opinions shifted; things happened. A D.C.-based policy director, Evan Mascagni, explained:

“Yelp’s involvement has been huge. It has been really tremendous for the cause.”

Defamation Lawyer Contact Information

Did you land on this page because you need some defamation law questions answered? If yes, get in touch with Kelly Warner. We have a dedicated slander and libel practice and our attorneys excel at Internet defamation cases.

Contact us today to begin the conversation.

Article Sources

Eggerton, J. (2015, May 13). SPEAK FREE Act Introduced To Protect Online Criticism. Retrieved September 30, 2015, from http://www.broadcastingcable.com/news/washington/speak-free-act-introduced-protect-online-criticism/140841

SPEAK FREE Act of 2015. (n.d.). Retrieved September 30, 2015, from http://www.anti-slapp.org/speakfreeact/