All businesses, including web businesses, must comply with laws and regulations. Internet businesses can encounter a wider base of laws more quickly when crossing traditional boundaries. Some online businesses have faced legal troubles for committing a crime, breach of contract, and engaging in a tortious action. For example, Ninjavideo.net faced criminal charges for providing users the access to illegally download infringing copies of copyrighted movies and television programs. This is an example of online business crime since the items were copyrighted and it is against the law to reproduce copyrighted items without permission. A breach of contract occurs when one party of a business contract fails to uphold the agreement made. Facebook.com was under investigation for breach of contract when it was found out that personal information was being transmitted to third party companies via apps even when users had set their privacy settings to strict. This is a breach of contract since it breaks Facebook.com rule of keeping user privacy secure. Tortious interference of business happens when someone causes intentional interference to another business or an individual 's reputation in order to drive business away. An example of a business being accused of tort was when America Online (AOL) was sued by its users and competitor internet service providers alleging that AOL caused damage to the users’ computers and blocked utilization of competitors’ software. This is an example of tort since AOL intentionally interfered with another business’ customers.
References:
Cybercrime, Ninjavideo case, http://www.cybercrime.gov/evansPlea.pdf , 25 Oct 2011
“Facebook in Privacy Breach” http://online.wsj.com/article/SB10001424052702304772804575558484075236968.html 18 Oct 2010
“Prosecuting Computer Crimes”, http://www.justice.gov/criminal/cybercrime/ccmanual/ccmanual.pdf
“Tortuous Interference”
References: Cybercrime, Ninjavideo case, http://www.cybercrime.gov/evansPlea.pdf , 25 Oct 2011 “Facebook in Privacy Breach” http://online.wsj.com/article/SB10001424052702304772804575558484075236968.html 18 Oct 2010 “Prosecuting Computer Crimes”, http://www.justice.gov/criminal/cybercrime/ccmanual/ccmanual.pdf “Tortuous Interference” http://en.wikipedia.org/wiki/Tortious_interference