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Bloggers Must Know Laws & Regulations Stay Informed

April 22, 2009 By 4 Comments

ABC News reported the FTC is considering Raising the Bar for Online Product Reviews by Parents and featured Colleen Padilla from ClassyMommy. It should read Mom Bloggers, as the entire article focusus on The Mommy Bloggers out there posting product reviews. You can find the entire article here. 

Also, FoxNews interviwed Colleen Padilla from ClassyMommy to get her point of view. You can watch the interview below.

ABC News:

“A regulatory review process is underway to determine whetherreviews by bloggers like Padilla may be in violation of good business practices, said Richard Cleland, a spokesman for the Federal Trade Commission. 

“The proposed revisions signal that the commission will apply existing principles of advertising law to new forms of media, like blogs,” Cleland said, adding that a decision on the proposal is expected sometime this summer.

“These types of communications that appear to be just one mom to another mom are pretty effective,” he said. “Consumer endorsements and testimonials have always been viewed as extremely effective types of marketing.

“But the concern is about those instances when [testimonials] are delivered and it is not made obvious that it’s an advertisement for a company.” ……………………

“Cleland said the punishment a blogger might face could be comparable to that for those who are found to be engaging in false advertising, which ranges from cease-and-desist orders to reimbursement to consumers who believe they bought the product under false pretenses……………………………………..

Basically they are looking for full disclosure of the reviews. They are not against bloggers making money off the reviews; they are simply asking that you disclose to the readers that you are being paid for the review. I was considering doing a review of Paper Shredders as I have gone through so many. My review(s) would be from my own pocket.

It all comes down to running your blog as a business, reporting income received from reviews in your taxes and most importantly not misleading the public. Many start blogs as a place to express opinions or feelings; somewhere along the way you gain readers and you morph into a Professional blogger in your community and/or when companies are contacting you for reviews; that is a good sing that you should look into the legalities of turning your blog into a real business.  Check the FTC regularly for any news Regulations that can have an impact in your “Blogging Business”. Ultimately, if the law is passed you might get sued. It is best now to take a look at the steps you can take to be in compliance.

You can view the interview here:



Filed Under: blogging, Laws, My View, Product Reviews Tagged With: , , , , ,

Online Auction Sellers Require License

February 1, 2009 By 15 Comments

Online auction sellers may be required to have license to sell. eBay recently emailed out a request to join Ebay Main Street site. The site is a membership based program. Looks like eBay wants to keep us informed on the Laws Governing online auctions. Recently, government officials have passed and are hoping to pass laws that will change the way we run our online business.

As I previously informed you, one site that may have the largest impact could be Etsy . Recently, The CPSIA Mandatory Test & Certification announced they will suspend the proposition for One Year. This is great news for all on Etsy (details will follow). However, there are many other regulations that can affect your online business now.

eBay always staying ahead of the game created a site called eBay Main Street Member Program.

eBay description of eBay Main Street Program and what it means to you:


“eBay’s Government Relations team invites you to join the eBay Main Street Member program. We’ll keep you informed and help you take action on government regulations affecting your ability to trade on eBay.

What is it?

eBay Main Street is a grassroots network that allows eBay to keep you informed of legislative matters that may affect your ability to buy and sell on eBay. In order for you to receive Main Street notifications, eBay needs your permission.

What issues does eBay Main Street monitor?

eBay wants to make you aware of legislative threats in your state and in Washington, D.C. We currently monitor and are involved with many issues relevant to the eBay community, including:

  • Auctioneering License Requirements – Some states are attempting to require eBay sellers to become licensed “auctioneers.” Some states require up to $1000 in annual licensing fees and time-consuming auctioneering schools, where you will learn important online skills such as “voice modulation.” Without a license you could be subject to thousands of dollars in fines for selling on eBay.
  • Distant State Sales Tax - There are 45 states and the District of Columbia that have sales taxes on goods. These states have sought for years to make out-of-state sellers collect sales taxes on their distant sales. The states have proposed a new scheme that will be debated in Congress to require eBay sellers to collect and pay these taxes to the states (with thousands of local jurisdictions) where your customers are located. Without your help, you could be required to file and pay a monthly tax bill in each state and be subject to yearly audits in each state.
  • And more: Including pawnbrokering licenses, auto dealer requirements, event ticket restrictions, etc!

What does the eBay Main Street program do to protect me?

eBay spends countless time, energy and money working to protect you. Our government relations teams and eBay executives speak on your behalf with state and federal government officials every day. As effective as we are, our voices with policymakers pale in comparison to yours. Simply put, government officials listen best when they talk to you – their constituents – real eBay users. We may ask you to write letters, send emails or call your elected officials on crucial issues. At other times, we may ask you to join us in your state capitol or Washington DC to educate and speak to your legislators in person!”

Running any business online or not; brings with a lot of responsibility. Ignorance of the law is no excuse. It is your responsibility to learn all you can of your local regulations and Federal Laws that apply to you.

If you have questions take notes on who you contact, when and where. In the event you ever have any issues you can offer proof of your diligence.

Filed Under: eBay, Laws, Selling online Tagged With: , , , , ,

Say NO to Pirate Software

December 11, 2008 By Leave a Comment

For anyone selling software online; you must read this. I also recommend that you visit the Software & Information Industry Association (SIIA) to provide you with guidance and up to date regulations in the industry.

In an effort to lift up consumers confidence the SIIA has announced they have taken action against 40 online sellers of illegal software in 2008. What is breaking news about this lawsuit; it is the First ever lawsuit against sellers on Amazon.com and iOffer.com.

Find the Media Release

In quote from SIIA

“The lawsuit are part of the SIIA’s continued aggressive pursuit of online software pirates through both the civil and criminal processes”, Kupferschmid said………….

Thanks to AuctionBytes for posting

Filed Under: Laws Tagged With: , , , ,

Internet Fraud

December 8, 2008 By 23 Comments

E-Commerce law encompasses laws of the sale, supply of goods and services, consumer protection, credit card fraud and over various methods of digital communication. In addition, there are special laws about electronic signatures and the interception of communications.

I highly recommend that you have at least the names of Attorney handy and interview with them. It is to your benefit to always have the guidance of legal counsel in the event any issue may arise. Being ignorant of the law is NO Excuse.

Proper legal counsel can assist you with:

  • Patents, copyrights, trademarks, trade secrets, service marks and other intellectual property, especially Web sites and computer software.
  • Domain name registration, protection and defense.
  • Drafting, interpretation, enforcement of contracts.
  • Formation, governance and dissolution of corporations, partnerships, limited liability companies (LLCs) and other legal entities.
  • Internet crime matters such as such as credit card fraud, identity theft, unauthorized access to computer systems, child pornography, software piracy, cyberstalking, copyright theft, intellectual property theft, Internet fraud, political cyberfraud or cybersquatting, and denial of service attacks that cause electronic commerce sites to lose money
  • Cyberspace law issues, including privacy and electronic mail (e-mail), privacy and the World Wide Web, privacy and search mechanisms, protection of personal privacy on-line, public information.
  • Libel and slander matters.
  • Tax issues, including federal and state taxation of electronic commerce (e-commerce).
  • International considerations, including export controls and transactions conducted with other countries.
  • Legal implications of Web linking (hyperlinking) including methods, liability, and infringement of unauthorized linking and framing.
  • Employment law, background checks, Policies and Benefits
  • Sales Policies and Terms
  • Other Internet law issues.

There are many blogs out there by Legitimate Attorneys and Professors that you can use as a guide in the event you have a questions. Remember, set money aside for those rainy days. All it takes is one buyer with not much to do; to get the pot stirring.

**Read your own policy and if you have employees ensure that they are following your Company Policy and making your customers feel as valuable as you know they are.

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Former CEO of ubid.com in Prison

October 11, 2008 By 2 Comments

Former CEO of ubid.com is in Prison. He stands accused of defrauding investors out of $3 Billion over the past 14 years.

On October 8th, a federal judge ordered Tom J. Petters, to be held behind bars. Court docs allege Petters began a scheme in order to commit Fraud to “Support his Extravagant Lifestyle” For the copy of the FBI affidavit filed in connection with the Peters indictment visit Washington Post

Bail has been denied and his assets of more than $1 Billion have been frozen by the Feds.

Full story at Washington Post

 

The whistleblower is Deanna Coleman, the former VP of Operations of a financing unit within Petters Group.Deanna Coleman was paid $300k a year and received hefty bonuses. Coleman did work out a deal for the information provided. No indication of any of the other employees receiving any deals.

According to the Affidavit. The special Agents on the case uncovered an elaborate scheme between Petters and employees. It provides the time line, the creating of false documents, the Bank Wires and Petters plan to flea in the event his fraud scheme was discovered.

Petters had no limits, defrauding investors by creating False PO’s (Purchase Orders), illegal Mortgage deductions and of course allegedly defrauding the IRS.  

This scheme is claimed to be motivated by Greed. This scheme has had an impact on so many Investors and Institutions.

The makings of a Hollywood Movie! I invite you to read the affidavit.

The Full Affidavit

 

I will take this time to remind you to govern yourself according to the law. Not understanding or knowledge of the laws is no excuse for breaking them. Build a relationship with a reputable White Collar Crime Law firm. Educate yourself and always seek counsel for any financial moves or contracts. Keep close eye on your employees. As your business grows so does the amount of liability and responsibility you have as an employer. Have Confidentiality Agreements drawn up and No Compete Contracts as well as a Liability Clause.

I do have these for our employee in place. At first I created a set myself, with the use of the Internet and my law books. Invest in your own set of Business and US Federal Law Books. You cannot ever just relay on the word of your attorney, no matter how experienced and reputable he/she may be. No one will care for you if you end up in a predicament.

Greed is an ugly partner. Regardless of what you do in life, take pride and honor yourself.

 

I plan on following this case and report to you as it unfolds. I have many interesting stories to share with. Several Power Sellers on eBay failed as sellers but make millions promoting eBay and promoting their downfall.

You may find it useful to have the link to:

 Title 18, United State Section 1341 and 1343

Search of the United States Code

 

More to come……

Filed Under: Laws, Need to Know Tagged With: , , , ,

SEC Ruling over Website & Blogs

August 3, 2008 By 4 Comments
The word is out the SEC (Securities and Exchange Commission ) “voted unanimously to provide new guidance to public companies about how to comply with the securities laws while developing their Web sites to serve as an effective means for disseminating important information to investors.”

Note: Due to so many people (small business owners) that are selling and are new to the e-commerce I will be launching for you a page all bout “White Collar Crime”. I cannot emphasize the importance of knowing the law, respecting it and having counsel handy.

Yes, this includes your blog. Of course all this is being enforced due to the growth in blogs and social networks and such media that was non-existent a few years back.  Below is a direct link to U.S. Securities and Exchange Commission: For details from the source you can find them here at they also provide you a video  http://www.sec.gov/news/press/2008/2008-158.htm

 

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