Legal Niches

More states are considering forcing e-commerce sites to collect sales tax.  Since we last addressed the issue, Maryland legislators have taken testimony relevant to a bill that would require websites who employ local marketing affiliates to collect sales tax in the state.  Last month, Colorado passed a law that requires e-commerce sites to either collect sales tax or share information with the state about purchases made by residents.

The Federal Bureau of Investigation reports that the cost of Internet fraud doubled in 2009 to $560 million.  In related news, a recent report indicates that data breaches are heaviest in the hotel industry.

A recent report has named China, Cuba, Iran , North Korea, and Saudi Arabia among the "enemies of the Internet."

MySpace is selling users' information to third parties ranging from academics to marketers.  "The data will include any activity or information that is attached to an account. That includes blog posts, location, photos, reviews, and status updates-among others. . . .Of course, MySpace is perfectly within its rights to [do so], because it legally owns the data and the server logs. Users wave their right to privacy in exchange for free Web hosting and access to its social features."

A new virus designed to steal banking passwords is targeting Facebook's 400 million users.

The Obama administration has considered sending federal law enforcement agencies undercover on social networking sites, including Facebook MySpace, and Twitter.

Each weekend, E-Commerce Law Briefs provides a brief summary and commentary on recent legal news affecting e-commerce businesses.

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