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Category Archives: Online Commerce

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CFAA “Unauthorized Access” Web Scraping Claim against Ticket Broker Dismissed Because Revocation of Access Not Expressed in Cease and Desist Letter

A California district court issued an important opinion in a dispute between a ticket sales platform and a ticket broker that employed automated bots to purchase tickets in bulk. (Ticketmaster L.L.C. v. Prestige Entertainment, Inc., No. 17-07232 (C.D. Cal. Jan. 31, 2018)). For those of us who have been following the evolution of the law … Continue Reading

Canadian Court Asserts Jurisdiction over Craigslist Based on Cloud-Based Virtual Presence in Canada

A Canadian appellate court ruled that a lower court had jurisdictional authority to issue a production order to craigslist based upon its virtual (but not physical) presence in British Columbia. The production order requested that Craigslist produce to Canadian officials documents relating to a user post in connection with a criminal investigation. (British Columbia (Attorney … Continue Reading

Google Extends Commitments with the FTC over Crawling of Third-Party Content for Use in Own “Vertical” Sites

In a blog post last month, Google announced that it would extend certain commitments it made to the FTC in 2012 that were set to expire relating to, among other things,  the scraping of third-party content for use on certain Google “vertical search” properties such as Google Shopping.  The announcement came days before the commitments … Continue Reading

No Liability for Self-Publishing Platforms over Author’s Use of Unauthorized Cover Photo

In a brief, unpublished opinion, the Sixth Circuit affirmed the dismissal of right of publicity and privacy claims against a host of self-publishing platforms and service providers for distributing an erotic (and purported “less than tasteful”) book whose cover contained an unauthorized copy of the plaintiffs’ engagement photo because the plaintiffs failed to plead more … Continue Reading

U.S. Court Orders Coinbase to Share Information about Account Holders with the IRS but Limits to Transactions over $20,000

A U.S. federal district court judge on Tuesday, November 29 ordered Coinbase Inc., the largest cryptocurrency exchange and storage platform in the world, to provide information about certain of its account holders to the U.S. Internal Revenue Services (IRS).  Information pertaining to as many as 14,355 account holders and 8.9 million transactions could be covered … Continue Reading

California Court Enjoins Canadian Court’s Global De-listing Order to Google as Contrary to CDA

UPDATE: On April 16, 2018, the British Columbia Supreme Court denied Google’s request to amend the Canadian delisting injunction based on the argument that the injunction would “require it to violate the laws of another jurisdiction, including interfering with freedom of expression.”  (Equustek Solutions Inc. v. Jack, 2018 BCSC 610 (Apr. 16, 2018)).  The Canadian … Continue Reading

Ninth Circuit Rejects Claim That Amazon’s Terms and Conditions Are an Unconscionable Contract

In an unpublished opinion, the Ninth Circuit affirmed a lower court’s ruling that had sent a putative class action against Amazon over its pricing practices to arbitration, as per Amazon’s terms of service. (Wiseley v. Amazon.com, Inc., No. 15-56799 (9th Cir. Sept. 19, 2017) (unpublished)).  In finding that Amazon’s “Conditions of Use” were not unconscionable … Continue Reading

Wow! Illinois Biometric Privacy Suits Proliferate

This month, in one of the many recently-filed Illinois biometric privacy suits, a class action complaint alleging violations of Illinois’s Biometric Information Privacy Act (BIPA) was lodged against Wow Bao, a restaurant chain, over its use of self-order kiosks that allow customers to use faceprints as a method to authenticate purchases. (Morris v. Wow Bao LLC, No. … Continue Reading

Online Vacation Rental Marketplace Sends Claims Packing with Carefully Drafted Terms

UPDATE:  Last month, the First Circuit affirmed the dismissal of the action, holding that there was no language in Homeaway’s “Basic Rental Guarantee” that makes any representation or warranty that Homeaway pre-screened listings before they were posted, as the document, at that time, simply established a process for obtaining a refund of up to $1000 … Continue Reading

Second Circuit Upholds Uber’s Mobile Contracting Process, Establishing Template for Mobile Online Contracting

In recent years, courts have issued varying rulings as to whether online or mobile users adequately consented to user agreements or terms of service when completing an online purchase or registering for a service.  In each case, judges have examined the facts closely, particularly the user interface that presents the terms to the user before … Continue Reading

New York Attorney General Unveils Latest Ticket Bot Enforcement Actions against Ticket Vendors and Software Developer

With summer concerts and music festivals in full swing, many fans will be surprised to find $145 face value tickets reselling online for $3,000 to $11,000. On May 11, 2017, New York Attorney General Eric Schneiderman took the most recent step in dealing with this problem, and announced seven settlements in “ticket bot” enforcement actions, … Continue Reading

Auction House Accused of Scraping Competitor’s Web Listings

Screen scraping is a problem that has vexed website owners since the early days of e-commerce – how to make valuable content available to users and customers, but prevent competitors from accessing such content for commercial purposes.  Even in the advent of social media, mobile commerce, and advanced software, the issue remains relevant to today’s … Continue Reading

Craigslist Garners $60 Million Judgment against Radpad in Scraping Dispute

For years, craigslist has aggressively used technological and legal methods to prevent unauthorized parties from violating its terms of use by scraping, linking to or accessing user postings for their own commercial purposes.  In its latest judicial victory, on April 13, 2017, craigslist obtained a $60.5 million judgment against Radpad on various claims relating to … Continue Reading

U.S. Copyright Office Rolls Out New Electronic DMCA Agent Designation System

A service provider seeking to take advantage of certain of the safe harbors under the Digital Millennium Copyright Act (DMCA) is required to designate an agent to receive takedown notices. The service provider is required to post the DMCA agent’s contact information on its website and to provide such information to the Copyright Office. On … Continue Reading

Website Design Implicated in Two Rulings on Enforceability of Online Terms – Highlights the Importance of Legal Review of Design Decisions

This past summer, we wrote about two instances in which courts refused to enforce website terms presented in browsewrap agreements.  As we noted, clickthrough agreements are generally more likely to be found to be enforced.  However, even the enforceability of clickthrough agreements is going to depend, in part, on how the user experience leading to … Continue Reading

Claims against Cloud Storage Service Hinge on Grant of Rights Clause

In a dispute that touches on the intersection of copyright, contract law and cloud technology, the Second Circuit affirmed the dismissal of copyright claims against Barnes & Noble (“B&N”) related to ebook samples stored on a user’s B&N-provided cloud-based locker. Notably, the Second Circuit dismissed the case on contractual grounds, declining the opportunity to opine … Continue Reading

Know Thy Software Vendor: Website Operator Cannot Sidestep Copyright Infringement Claims over Link to Allegedly Infringing Software

Last month, a New York district court refused to dismiss most of the copyright infringement claims asserted against a website operator based on an allegation that the website linked to an infringing copy of plaintiff’s software stored on a third-party’s servers. (Live Face on Web, LLC v. Biblio Holdings LLC, 2016 WL 4766344 (S.D.N.Y., September … Continue Reading

Browsewrap Agreement Held Unenforceable – Website Designers Take Note!

In Nghiem v Dick’s Sporting Goods, Inc., No. 16-00097 (C.D. Cal. July 5, 2016), the Central District of California held browsewrap terms to be unenforceable because the hyperlink to the terms was “sandwiched” between two links near the bottom of the third column of links in a website footer.  Website developers – and their lawyers … Continue Reading

FTC Prevails in Action against Amazon for Unlawfully Billing Parents for Children’s Unauthorized In-App Purchases

In the wake of thousands of parental complaints about unauthorized in-app purchases made by their children, resulting in millions of dollars in disputed charges, the Federal Trade Commission (“FTC”) brought suit against Amazon, Inc. (“Amazon”) in July 2014. The FTC sought a court order requiring refunds to consumers for unauthorized charges and permanently banning the … Continue Reading

Self-Publishing Platforms Deemed Distributors, Not Publishers in Privacy Suit over Unauthorized Book Cover

We live in a world that has rapidly redefined and blurred the roles of the “creator” of content, as compared to the roles of the “publisher” and “distributor” of such content.  A recent case touches on some of the important legal issues associated with such change.  Among other things, the case illustrates the importance of … Continue Reading

Website HTML Is Copyrightable, Even If Look and Feel Is Not

In a notable ruling last month, a California district court ruled that the HTML underlying a custom search results page of an online advertising creation platform is copyrightable. In Media.net Advertising FZ-LLC v. Netseer Inc., No. 14-3883, 2016 U.S. Dist. LEXIS 3784 (N.D. Cal. Jan. 12, 2016), the plaintiff, an online contextual-advertising service provider, brought … Continue Reading

FTC Releases Big Data Report Outlining Risks, Benefits and Legal Hurdles

The big data revolution is quietly chugging along:  devices, sensors, websites and networks are collecting and producing significant amounts of data, the cost of data storage continues to plummet, public and private sector interest in data mining is growing, data computational and statistical methods have advanced, and more and more data scientists are using new … Continue Reading

European Court Gives Bitcoin a Tax-Free Boost

In an important ruling for digital currency service providers, EU’s top court, the Court of Justice of the European Union (CJEU), ruled that transactions to exchange a traditional currency for bitcoin virtual currency, or vice versa, were not subject to value added tax (VAT), effectively treating such transactions like an exchange of cash. (Skatteverket v … Continue Reading

Clickwrap Agreement Available Only Through Hyperlink Enforceable Under New York Law

Last week, the Southern District of New York followed a long line of precedent under New York law and upheld the enforceability of a website clickwrap agreement, granting a website operator’s motion to compel arbitration pursuant to a clause contained in the agreement. (Whitt v. Prosper Funding LLC, 2015 WL 4254062 (S.D.N.Y. July 14, 2015)). … Continue Reading
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