Yahoo 2008 Annual Report Download - page 21

of the Communications Decency Act (“CDA”) are intended to provide statutory protections to online service
providers who distribute third-party content. Yahoo! relies on the protections provided by both the DMCA and
CDA in conducting its business. Any changes in these laws or judicial interpretations narrowing their protections
will subject us to greater risk of liability and may increase our costs of compliance with these regulations or limit
our ability to operate certain lines of business. The Children’s Online Protection Act and the Children’s Online
Privacy Protection Act are intended to restrict the distribution of certain materials deemed harmful to children
and impose additional restrictions on the ability of online services to collect user information from minors. In
addition, the Protection of Children From Sexual Predators Act of 1998 requires online service providers to
report evidence of violations of federal child pornography laws under certain circumstances. U.S. export control
laws and regulations impose requirements and restrictions on exports to certain nations and persons and on our
business. The costs of compliance with these regulations may increase in the future as a result of changes in the
regulations or the interpretation of them. Further, any failure on our part to comply with these regulations may
subject us to significant liabilities.
Changes in regulations or user concerns regarding privacy and protection of user data, or any failure to
comply with such laws, could adversely affect our business.
Federal, state and international laws and regulations govern the collection, use, retention, sharing and security of
data that we receive from and about our users. We have posted on our and many of our Affiliates’ Websites our
own privacy policies and practices concerning the collection, use, and disclosure of user data. 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 proceedings or actions
against us by governmental entities or others, which could potentially have an adverse effect on our business.
Further, failure or perceived failure by us to comply with our policies, applicable requirements, or industry self-
regulatory principles related to the collection, use, sharing or security of personal information, or other privacy or
data protection-related matters could result in a loss of user confidence in us, damage to the Yahoo! brands, and
ultimately in a loss of users, advertising partners, or Affiliates which could adversely affect our business.
In addition, various federal, state and foreign legislative or regulatory bodies may enact new or additional laws
and regulations concerning data privacy and retention issues which could adversely impact our business. The
interpretation and application of privacy, data protection and data retention laws and regulations are currently
unsettled in the U.S. and internationally. These laws may be interpreted and applied inconsistently from country
to country and inconsistently with our current data protection policies and practices. Complying with these
varying international requirements could cause us to incur substantial costs or require us to change our business
practices in a manner adverse to our business.
We may be subject to legal liability for online services.
We host a wide variety of services and technology products that enable individuals and businesses to exchange
information, generate content, advertise products and services, conduct business, and engage in various online
activities on a domestic and an international basis. The law relating to the liability of providers of these online
services and products for activities of their users is currently unsettled both within the U.S. and internationally.
Claims have been threatened and have been brought against us for defamation, negligence, copyright or
trademark infringement, unfair competition, unlawful activity, tort, including personal injury, fraud, or other
theories based on the nature and content of information to which we provide links or that may be posted online or
generated by our users. In addition, Yahoo! has been and may again in the future be subject to domestic or
international actions alleging that the availability of certain content within our services violates laws in domestic
and international jurisdictions. Defense of any such actions could be costly and involve significant time and
attention of our management and other resources and may require us to change our business in a manner adverse
to our business.
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