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Today I testified at a hearing by Massachusetts Attorney General Martha Coakley on commercial sexual exploitation and the Internet. When I first learned about it, I feared the worst: time to demonize the Internet. After all, the hearing announcement openly targeted Craigslist and websites generally. But this was not the case at all—as we heard, NGOs, law enforcement, and industry all have roles to play.

Instead of Internet-bashing, the hearing was a constructive dialogue. We learned why children are forced into prostitution and how classified ads on the Internet can promote this illegal activity. I was there to learn how we can help.

Commercial sexual exploitation is big business. Over 100,000 women are in the illegal sex trade. Often these women are actually teenage girls, vulnerable and with no place to go. Their lives are run by pimps, they cater to “johns,” and their lives are a living hell – except that these women become so desensitized that they eventually have no life at all.

These child prostitutes show up in advertisements for “escort services” or “adult services.” Traditionally, these ads were in the yellow pages. Now they exist on the Internet, and these listings can often be graphic. But it’s hard to tell whether these ads involve women against their will or underage girls. That’s why there are folks who would like to see all these ads disappear. And they’ll blame Internet classifieds—indeed, one witness called sites like Craigslist and Backpage “electronic pimps.”

Unfortunately, there are those that think it is better to force the shut down of the adult services section of these sites. But as we heard from danah boyd of Microsoft and a fellow at the Harvard Berkman Center, merely shutting down the listed supply of adult services is superficial. Continue reading →

Chalk up another victim to unwarranted political intimidation by state attorneys general. On Friday evening, Craigslist, which has long been under intense pressure to crack down on sex crimes, replaced its adult services section in the U.S. with a black censor bar. This move comes on the heels of a scathing letter sent to Craigslist by seventeen state AGs insinuating that Craigslist is culpable for the “victimization of children.” While the state attorneys general are likely celebrating victory this holiday weekend, all they’ve really done is to stifle free speech online and complicate efforts by law enforcement authorities to go after the real bad guys — you know, the ones who are forcing kids into sex slavery.

This isn’t the first time states have publicly attacked Craigslist for its involvement in sex crimes. Various AGs been trying to intimidate the site into eliminating avenues of adult content for years, as Alex Harris and Jim Harper have chronicled on these pages. In response to state AGs’ relentless saber-rattling, Craigslist made several major changes last year aimed at curbing illegal postings. The site shut down its notorious “erotic services” section and began charging $10 for every posting made to the adult services section. Craigslist even began manually screening all posts submitted to the adult services section. Since May 2009, over 700,000 postings have been rejected.

Apparently none of these concessions were enough for state AGs, always eager to score political points. Despite the safeguards Craigslist implemented last year, users continued to use the site in the commission of sex crimes. This is hardly surprising; given the sheer volume of user submissions and the increasingly complex measures taken by criminals to obfuscate their unlawful solicitations, some illegal postings are bound to circumvent any filtering regime. Now that Craigslist has censored its adult services section, former users of the section will invariably flock to other sites, as has happened every single time a major Bittorrent site has been taken offline or crippled by litigation. Craigslist is just one of many, many websites on the Internet that’s frequented by criminals, after all. From popular sites like Google and Yahoo! to small blogs that accept user comments, nearly any site that allows user submissions can be used to break the law.

Such websites generally aren’t legally liable for crimes committed by their users, as courts across the country have held time and time again (1,2,3,4). That’s because when Congress overhauled America’s telecom laws in 1996, it enacted the Communications Decency Act, which grants “providers” of “interactive computer service” immunity from state criminal prosecution for illegal content posted by users. Thus, while prosecutors can and do pursue criminal charges against individuals who post illegal content to Craigslist, they can’t go after Craigslist itself, as long as the site complies with enforceable governmental requests and promptly removes content it knows to be illegal.

Continue reading →

Be prepared next week for a cacophony of hand-wringing and prognosticating about retail sales figures reported on “Black Friday.” Retailers traditionally count on holiday shoppers to put them “in the black” for the year with a surge of purchases on the Friday after Thanksgiving.

But if you really want to understand this year’s retail sales picture, wait til the Monday after Thanksgiving. “Black Monday” is day a lot of people return to work, fire up the computer, and begin their online holiday shopping. 

Recent reports suggest that the recession has boosted rather than harmed electronic commerce, for one simple reason: the Internet makes it a lot easier to find the best price for many common purchases. Numerous recent posts tell this story:

Harsh Economy Can’t Shake Love for Online Retailers

Internet Supermaket Booms in Bad Times

Is Online Shopping Affected by a Recession?

The most popular online sites on STORES Magazine’s list include those of established merchants, such as Walmart, Best Buy, JC. Penney, and Target. They also include the pure online plays, such as Amazon.com, eBay, and Overstock.com.  Craigslist — the site where I hunt for used and free stuff — made Stores’ “Top 50” list for the first time this year.  That’s surely a sign that the recession has been a boon to online shopping!

by Berin Szoka & Adam Thierer, Progress Snapshot 5.11 (PDF)

Ten years ago, Nobel Prize-winning economist Milton Friedman lamented the “Business Community’s Suicidal Impulse:” the persistent propensity to persecute one’s competitors through regulation or the threat thereof. Friedman asked: “Is it really in the self-interest of Silicon Valley to set the government on Microsoft?” After yesterday’s FCC vote’s to open a formal “Net Neutrality” rule-making, we must ask whether the high-tech industry—or consumers—will benefit from inviting government regulation of the Internet under the mantra of “neutrality.”

The hatred directed at Microsoft in the 1990s has more recently been focused on the industry that has brought broadband to Americans’ homes (Internet Service Providers) and the company that has done more than any other to make the web useful (Google). Both have been attacked for exercising supposed “gatekeeper” control over the Internet in one fashion or another. They are now turning their guns on each other—the first strikes in what threatens to become an all-out, thermonuclear war in the tech industry over increasingly broad neutrality mandates. Unless we find a way to achieve “Digital Détente,” the consequences of this increasing regulatory brinkmanship will be “mutually assured destruction” (MAD) for industry and consumers.

New Fronts in the Neutrality Wars

The FCC’s proposed rules would apply to all broadband providers, including wireless, but not to Google or many other players operating in other layers of the Net who favor such broadband-specific rules. With this rulemaking looming, AT&T came after Google with letters to the FCC in late September and then another last week accusing the company of violating neutrality principles in their business practices and arguing that any neutrality rules that apply to ISPs should apply equally to Google’s panoply of popular services. In particular, AT&T accused Google of “search engine bias,” suggesting that only government-enforced neutrality mandates could protect consumers from Google’s supposed “monopolist” control.

The promise made yesterday by the FCC—to only apply neutrality principles to the infrastructure layer of the Net—is hollow and will ultimately prove unenforceable. Continue reading →

Last night, thanks to Craig’s List and a Web-enabled cell phone, I unloaded two extra tickets to tonight’s World Cup qualifying game between the U.S. and Costa Rica in under an hour. (8:00, ESPN2 “USA! USA! USA!”)

Wanting to avoid the hassle of selling the tickets at RFK, I placed an ad on Craig’s List offering them at cost, figuring I might find a taker and arrange to hand them off downtown today or at the stadium tonight. Checking email as I walked to the gym, I found an inquiry about the tickets and phoned the guy, who happened to live 100 feet from where I was walking. A few minutes later, he had the tickets and I had the cash.

This quaint story is a single data point in a trend line—the high-tech version of It’s Getting Better All the Time. Everyone living a connected life enjoys hundreds, or even thousands, of conveniences every day because of information technology. Through billions of transactions across the society, technology improves our lives in ways unimaginable two decades ago.

Before 1995, nobody ever traded spare soccer tickets in under an hour, on a Tuesday night, without even changing his evening routine. If soccer tickets are too trivial (you must not understand the game), the same dynamics deliver incremental, but massive improvements in material wealth, awareness, education, and social and political empowerment to everyone—even those who don’t live “online.”

Sometimes debates about technology regulation are cast in doom and gloom terms like the Malthusian arguments about material wealth. But the benefits we already enjoy thanks to technology are not going away, and they will continue to accrue. We are arguing about the pace of progress, not its existence.

This is no reason to let up in our quest to give technologists and investors the freedom to produce more innovations that enhance everyone’s well-being even more. But it does counsel us to be optimistic and to teach this optimism to our ideological opponents, many of whom seem to look ahead and see only calamity.

Last year, my PFF colleague Adam Thierer asked whether State AGs + NCMEC = The Net’s New Regulators? Adam noted that NCMEC, the National Center for Missing and Exploited Children, a private non-profit organization, was playing a law enforcement role in regulating child pornography—but without any clear mechanisms for ensuring its accountability and effectiveness. Adam’s point wasn’t just that transparency is a good thing, but that when it comes to a cause as important as protecting children from exploitation, it’s vital to ensuring that we’re that we’re actually doing a good job at it!

Yesterday, Emmanuel Lazaridis commented on that post:

Given the increasing regulatory and investigative powers of the NCMEC, it is no longer clear whether or not the [Freedom of Information Act] applies to NCMEC records. We are about to find out. I am right now bringing a case against the NCMEC in federal court for access to records under the FOIA and, failing that, for discovery under 28 U.S.C. § 1782(a).

Mr. Lazaridis’s complaint in the D.C. District Court claims that Lazaridis (a Greek national) has been unfairly deemed a fugitive from U.S. justice for having taken his daughter to Greece over the objections of the girl’s American mother, Lazaridis’s ex-wife. NCMEC got involved by placing the girl on their MissingKids.com registry of abducted children. Lazaridis wants the court to recognize his custody, deem him not to be a fugitive, and to order NCMEC to turn over all their records on the girl.

This is, of course, just one side of the story (and such cases are usually so complicated as to be indecipherable to outsiders). But even if Lazaridis’s case were wholly without merit, his basic argument would be a sound one: Why shouldn’t NCMEC, in exercising any of its essentially governmental functions, be subject to the same accountability requirements through FOIA as the FBI would be?

When the issue is the Lazaridis family’s trans-Atlantic custody battle, it may seem easy to ignore this question. But when NCMEC is essentially making policy regarding filtering Internet content, blacklisting websites, turning over user logs to law enforcement, or “cleaning up” Craigslist, the question of NCMEC’s accountability under FOIA cannot be avoided as a critical decision about the future of Internet governance. Continue reading →

craigslist has filed a complaint against South Carolina Attorney General Henry McMaster, seeking to enjoin him from prosecuting the site for displaying the solicitations to prostitution that sometimes appear there. The complaint cites section 230 of the Communications Decency Act, the First Amendment, and a few other laws that craigslist believes protect it from liability.

The complaint makes a pretty good case that craigslist has taken reasonable steps, working with law enforcement, to keep prostitution off the site. With that it has done its part. If prosecutors want to go after prostitution, they can use craigslist to do so. They should not attack the messenger if consenting adults are trying to exchange money for sexual services in their local areas.

Over the past year, I have been monitoring a very interesting trend with important ramifications for the future of Internet policy. State Attorneys General (AGs) — often in league with the National Center for Missing and Exploited Children (NCMEC) — have been striking a variety of “voluntary” agreements with various Internet companies that deal with child safety concerns or other online issues. These agreements require the companies involved to take various steps to alter site architecture and functionality, commit to stop certain practices, or take steps to block certain users (ex: predators; escort services) or types of content (ex: child porn; online “discrimination”) altogether.

To begin, let me be very clear about one thing: Some of these activities or types of content warrant a law enforcement response. That is certainly the case with child pornography or predation, for example. However, as I will note down below, there is a legitimate question about whether state officials and a non-profit private organization should be crafting legal or regulatory policies to address such concerns for a global medium like the Internet. Regardless, these agreements are creating a new layer of Internet regulation (almost extra-legal in character) that is worthy of exploration.

First, let me itemize some of these recent “voluntary” agreements between Internet companies and the AGs and/or NCMEC:

Continue reading →

Register here for what looks like a very interesting event:
 In 1995, Internet entrpreneur Craig Newmark started Craigslist — an online community featuring free classified ads. Thirteen years later, Craigslist serves 567 cities in 55 countries and is a good example of how the power, reach and openness of the Internet can help turn a simple idea into a global phenomenon. As part of the ongoing “Google D.C. Talks” series, Craig — who still helps users in a customer service role at Craigslist — will speak about the founding of the future of Craigslist, the future direction of the Internet, and what public policy makers can do to keep the Internet and American democracy free, open and vibrant. For anyone who’s ever bought or sold a used piece of furniture or concert tickets on Craigslist, you won’t want to miss hearing from the man who started it all. Speaker: Craig Newmark, Customer Service Rep & Founder, craigslist Moderator: Alan Davidson, Director, Public Policy and Government Affairs, Google