America Online 2009 Annual Report Download - page 27

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Table of Contents
defamation, child protection, advertising to and collecting information from children, taxation and billing. These laws and regulations and the interpretation or
application of these laws and regulations could change. In addition, new laws or regulations affecting our business could be enacted. These laws and
regulations are frequently costly to comply with and may divert a significant portion of management's attention. If we fail to comply with these applicable
laws or regulations, we could be subject to significant liabilities which could adversely affect our business.
There are several federal laws that specifically affect our business, including the following:
• The Children's Online Privacy Protection Act of 1998 and the Federal Trade Commission's related implementing regulations, which prohibit the
collection of personal information from users under the age of 13 without parental consent. In addition, there has been an international movement
to provide additional protections to minors who are online which, if enacted, could result in substantial compliance costs.
• The Digital Millennium Copyright Act of 1998, parts of which limit the liability of certain eligible online service providers for listing or linking
to third-party websites that include materials which infringe copyrights or other intellectual property rights of others.
• The Communications Decency Act of 1996, sections of which provide certain statutory protections to online service providers who distribute
third-party content.
• The PROTECT Our Children Act of 2008, which requires online services to report and preserve evidence of violations of federal child
pornography laws under certain circumstances.
• The Electronic Communications Privacy Act of 1986, which sets forth the provisions for access, use, disclosure and interception and privacy
protections of electronic communications.
In addition, many states have enacted legislation governing the breach of data security in which sensitive consumer information is released or accessed.
If we fail to comply with these applicable laws or regulations we could be subject to significant liabilities which could adversely affect our business.
Many of our advertising partners are subject to industry specific laws and regulations or licensing requirements, including advertisers in the following
industries: pharmaceuticals, online gaming, alcohol, adult content, tobacco, firearms, insurance, securities brokerage, real estate, sweepstakes, free trial offers,
automatic renewal services and legal services. If any of our advertising partners fail to comply with any of these licensing requirements or other applicable
laws or regulations, or if such laws and regulations or licensing requirements become more stringent or are otherwise expanded, our business could be
adversely affected.
Failure to comply with federal, state or international privacy laws or regulations, or the expansion of current or the enactment of new privacy laws or
regulations, could adversely affect our business.
A variety of federal, state and international laws and regulations govern the collection, use, retention, sharing and security of consumer data. The
existing privacy-related laws and regulations are evolving and subject to potentially differing interpretations. In addition, various federal, state and foreign
legislative and regulatory bodies may expand current or enact new laws regarding privacy matters. We have posted privacy policies and practices concerning
the collection, use and disclosure of user data on our websites. Any failure, or perceived failure, by us to comply with our posted privacy policies or with any
data-related consent orders, Federal Trade Commission requirements or orders or other federal, state or international privacy or consumer protection-related
laws, regulations or industry self-regulatory principles could result in claims, proceedings or actions against us by governmental entities or others or other
liabilities, which could adversely affect our business. In addition, a failure or perceived failure to comply with industry standards or with our own privacy
policies and procedures could result in a loss of consumers or advertisers and adversely affect our business.
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