The NDP’s decade of dithering on e-commerce

July 9, 2010

Have you ever wondered if an electronic document like an e-mail or a scanned image can be used instead of a paper document to meet a legal requirement? How about using an electronic signature as opposed to a written signature?

Unfortunately, the provincial government’s dithering over the past decade will not help you answer these important questions.

Manitoba’s e-commerce legislation, called The Electronic Commerce and Information Act, was passed in the Manitoba Legislature in 2000. It was then billed as a cutting edge law that would help Manitobans to prosper in the online world.

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Must departing employees “de-friend” connections on LinkedIn?

June 16, 2010

Can the act of connecting with other professionals on social networking websites such as LinkedIn constitute a violation of a non-compete or non-solicitation contractual undertaking? Are departing employees that are subject to such restricted covenants required to disconnect and “de-friend” colleagues and customers of their former employer until the contractual undertaking have expired?

ComputerWorld is reporting today that an IT staffing firm has accused one of its former employees of violating her non-compete undertaking through her conduct on LinkedIn. I’m not aware of any similar lawsuit to date in Canada so it’ll be interesting to see how this particular case evolves in the U.S. This case and others that I’ve previously noted highlight the blurring line between online and offline worlds. Businesses should consider whether or not, and to what extent, they should try to enforce such restrictive covenants in the social networking world. Stay tuned…


Internet hyperlinking case heading to Supreme Court

April 5, 2010

Are website operators presumed to have “published” defamatory materials that they deliberately link to from their websites? If not, what are the circumstances where it can be inferred that a website operator has “published” hyperlinked defamatory materials? We may be about to find out. The Supreme Court of Canada has just granted leave to appeal of Crookes v. Newton, the B.C. decision that I summarized in a previous post last October.

There’s still plenty of  “grey areas” in Internet law. Hopefully, the Supreme Court of Canada will provide more definitive guidance for legal practitioners and website operators in the growing area of online reputation management. In the meantime, website operators should seek legal advice prior to hyperlinking to any potentially defamatory materials on the Internet.


Cloud increasing pressure in U.S. for updated online privacy law

March 30, 2010

It appears that the growing adoption of cloud computing, combined with the outdated Electronic Communications Privacy Act, is adding pressure in the U.S. for an updated online privacy law to help better protect cloud computers.

CNET is reporting today that “a broad coalition of companies including Google, Microsoft, and AT&T, joined by liberal and conservative advocacy groups, will announce a major push [today] to update federal privacy laws to protect mobile and cloud computing users”.

Of course, in Canada cloud computers have the benefit of PIPEDA and – where they exist – substantially similar provincial privacy laws. To learn more about cloud computing, and related privacy law implications, you may want to check out this previous post.


Israeli military ‘unfriends’ soldier after Facebook leak: BBC

March 18, 2010

In what should serve as a valuable reminder of the need to educate employees about what constitutes acceptable postings on social networking websites, BBC is reporting that “the Israeli military cancelled a planned raid on a Palestinian village after one of its soldiers posted details of the operation on Facebook. The unnamed soldier revealed the time and place of the raid and the name of his unit on the social networking site.”

I’ve previously commented on social networking websites and employer-employee relationships.  This BBC report is just one more example of a situation which may have been prevented with better employee training and a clear social networking policy.  Common sense should, and typically does, guide employees in determining what to post online. Yet, if an Israeli soldier can’t think twice before posting the details of a planned operation it’s easy to see how some employees of Canadian businesses – perhaps yours - unintentionally post valuable corporate information online.


No clear cut protection from YouTube

March 5, 2010

Over the past two weeks nearly a million people around the globe have viewed a couple of YouTube videos filmed and posted by Churchill High School students, which show two of their teachers performing a simulated lap dance.

The identities of the teachers have been widely reported. Now the question is: Could the teachers sue the students for violating their privacy?

Read more>>


Canada’s Privacy Commissioner delivers landmark speech on the future of privacy regulation

February 10, 2010

Jennifer Stoddart, Canada’s Privacy Commissioner, delivered a landmark speech today at the 11th Annual Privacy and Security Conference in Victoria, B.C. 

In her remarks, Stoddart discussed the challenge of technology, globalized data flows and social change. While reflecting on her years as Canada’s “village elder” in the privacy community, Stoddart commented:

“When I took over as Privacy Commissioner, Facebook didn’t exist. Neither did Twitter, Flickr, YouTube, Google Street View, Foursquare, iPods and all the many novel ways in which people now routinely connect with the rest of the world. And it’s not just technology that’s different; it’s other drivers of change as well. Like real-time globalization, for instance, and the instantaneous worldwide flow of data. It’s the way people embrace and respond to technology. Their expectations of what the technology can do for them, and at what cost. Is it desirable, for example, to buy greater convenience at the cost of less privacy? In light of these colossal changes over the past decade alone, it would be foolish to try to predict what the next decade will hold. But what we can say for certain is that the regulatory framework we have in place now for the protection of privacy and personal information is already being sorely tested.”

Read the Privacy Commissioner’s full remarks here.


Anti-Spam Bill passed in House of Commons

December 1, 2009

Bill C-27, commonly referred to as the ”Anti-Spam Bill”, passed third reading in the House of Commons yesterday and has been referred to the Senate. I originally posted about the Anti-Spam Bill being introduced back in April, so don’t count on speedy passage through the Senate.

(Hat tip to @privacylawyer David Fraser for the heads-up!)


Website discussion boards: Who’s responsible for defamatory comments?

November 9, 2009

Internet ForumA great feature of website discussion boards is that they allow people to instantly share thoughts on a given topic with others from their community or around the world.  However, they are fraught with complicated legal issues for the businesses, or website operators, who make them available on the Internet.

To prove defamation, a claimant must demonstrate that a defendant “published” defamatory words. Currently in Canada it’s clear that a person who posts defamatory comments about another person or business on a discussion board can be liable for defamation.  It’s also clear, as I’ve mentioned in a previous post, that a person or business may be liable in certain circumstances if they hyperlink to defamatory content on another website.  But what about defamatory comments made by others on your website? The answer is less than clear, primarily because of two generally competing public policy views. One view is that website operators should not be liable for defamatory content posted on their discussion boards because the task of monitoring is too onerous for most businesses; and that website operators aren’t “publishing” the defamatory content but are merely “distributing” (which generally doesn’t attract liability for defamation). The other view is that website operators should be liable because the potential for instantaneous and severe damage to claimant’s reputations caused by online defamation should compel website operators to monitor, and be responsible for, their discussion boards.

After American courts struggled with these competing public policy views, the U.S. Congress passed legislation granting immunity to businesses that operate website discussion boards, regardless of the level of control that website operators may have regarding posted comments.  The case of Finkel v. Facebook is a recent example of the immunity that can be provided to U.S. based companies. There is no similar “immunity” legislation in Canada, and the specific issue has not yet come before a Canadian court.  Of course, each case is decided on its own facts, and one would anticipate that key factors a Canadian court would consider would be a website’s Terms of Use, the degree of control and content monitoring by a website operator, and any actions a website operator took (or didn’t take) in response to a notice from a third party regarding defamatory comments.

This is a rapidly emerging area of law, and businesses should consult a lawyer with relevant expertise to assist in drafting adequate Terms of Use and to discuss potential risks prior to launching, or continuing to host, a website discussion board.


I don’t want ANY spam! Misconceptions and marketing research

November 4, 2009

I’d like to dispel a misconception about Bill C-27, An Act to Promote the Efficiency and Adaptability of the Canadian Economy by Regulating Certain Activities that Discourage Reliance on Electronic Means of Carrying Out Commercial Activities (the “Anti-Spam Bill”), which is working its way right now through the Parliamentary Committee process. When passed, the Anti-Spam Bill will provide much-needed relief from insidious electronic Spam like phishing and spyware. There is, however, an unfortunate misconception that the Anti-Spam Bill might create “loopholes” for spammers.

As originally drafted, the Anti-Spam Bill didn’t clearly define which types of electronic communication would be subject to regulation. While spyware and phishing would clearly be outlawed, questions arose as to whether other decidedly non-Spam and legitimate activities could possibly be caught within the scope of regulation. That’s because the Anti-Spam Bill was drafted to regulate “commercial activity”. Unfortunately, it didn’t clearly explain what this term meant. Here’s where the misconception comes in.

Some think “marketing research” is the same thing as telemarketing. In reality, the two activities have very little in common. Legitimate marketing research organizations do not try to sell products or services (in fact, if they are members of Canada’s Marketing Research and Intelligence Association (the “MRIA”), they are bound by a professional code of conduct which expressly prohibits such activities). Maybe you’ve heard of “mugging” (marketing under the guise of research) and “sugging” (selling under the guise of research). Let’s be clear: legitimate marketing research organizations do neither. If someone is trying to sell you something under the guise of a survey, they are not conducting legitimate marketing research. Nevertheless, comparisons of online marketing research to telemarketing abound, even though the Anti-Spam Bill will regulate online activity, not telephone calls.

Polls tell us that Canadians support the Anti-Spam Bill. How do we know this?  Because members of the MRIA were able to conduct marketing research, quite likely, using an online survey. These surveys are fuel for polls that provide valuable and timely information to Canadian decision-makers. What’s more, online surveys are quick and convenient for participants. I have the privilege of serving as the MRIA’s legal counsel, and am also a member, so I ‘ve seen marketing research activities first hand and know the value they provide to Canadians.

My understanding and reading of the Anti-Spam Bill is that online marketing research is not intended to be caught by the law. But that’s the problem: given the ambiguity of the Anti-Spam Bill, it’s impossible to definitively say that online marketing research would not be regulated. Ambiguity leads to uncertainty, which is good for no one. The Personal Information Protection and Electronic Documents Act, for instance, has been criticized for being far too subjective. We should learn from this experience and cut as much ambiguity as possible from the Anti-Spam Bill. That’s why the Anti-Spam Bill should be clarified to ensure it’s clear that it won’t apply to online marketing research. Doing so would not create loopholes, as some have argued; it would simply ensure that online marketing research is not lumped into the annoying Spam that everyone wants to ban. Bringing clarity to the Anti-Spam Bill would also be consistent with the actions of other countries that have already created specific exemptions for marketing research in their anti-spam laws. 

The bottom line is that no one likes Spam, except perhaps for these guys from Monty Python. Parliament still has an opportunity to clarify misconceptions and introduce a strong, effective law. Marketing research isn’t Spam, however, and the Anti-Spam Bill should clearly reflect this fact.


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