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Bill Would Force ISPs To Block Financial Scams
And make them liable if they failed to do so...
by Karl Bode Monday 09-Nov-2009 tags: legal · business
According to a report by CNET's official "examine strange early drafts of laws and terrify people by how badly they're written" guy Declan McCullagh, a new bill winding its way through Congress would force ISPs to block consumer access to online financial scams.

The bill, which passed in the House Financial Services Committee last week by a 41 to 28 vote, places liability squarely in the lap of the ISP should they fail to block access to scams invoking the name of the Securities Investor Protection Corporation (SIPC). The precise language of the bill:

Any Internet service provider that, on or through a system or network controlled or operated by the Internet service provider, transmits, routes, provides connections for, or stores any material containing any misrepresentation (of the SIPC) shall be liable for any damages caused thereby, including damages suffered by the SIPC, if the Internet service provider...is aware of facts or circumstances from which it is apparent that the material contains a misrepresentation.

That wording is so broad it could be extended to include illegitimate scam references contained in e-mail or other transmissions like VoIP, something that obviously worries carriers. It looks like that language is already in the process of being removed or modified. It seems unlikely that this bill makes it very far given the muscle most of the major broadband providers have on K Street.

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hootabius

join:2009-02-12

1 edit

??

How the heck would an ISP enforce this anyway? Doesn't Congress have more important things to do?

canesfan2001

join:2003-02-04
Hialeah, FL

Re: ??

Well, with all the law enforcement agencies so busy thanks to the PATRIOT Act, we need to start outsourcing our domestic spying. Who better than ISPs!
--
OASAASLLS

burgerwars

join:2004-09-11
Northridge, CA

2 edits
said by hootabius:

How the heck would an ISP enforce this anyway? Doesn't Congress have more important things to do?
Agree. Uh, how? So some Nigerian scammer puts the initials "SIPC" in one of those "we've got $10,000,000 for you" messages, and an ISP is supposed to block it. There's so much of this junk out there that the only way to block it would be to just shut down the internet.

And if the wording is so broad it could be interpreted to include VOIP, I guess it's also your ISP's fault if a scammer calls you on your VOIP phone service.

Unenforceable. It's just like the "Can Spam" bill, which accomplished nothing.

S_engineer
Premium
join:2007-05-16
Chicago, IL

Re: ??

This may go with the territory. It was the ISPs that refused to be used as dumb pipes. If they didn't expect to be over-regulated they then had their heads in thier arse!
--
BF69~~~Please stop suffocating gerbils!
jjeffeory

join:2002-12-04
USA

Re: ??

You got it.

Also, there goes our internet "privacy", not they we really had any in the first place. This is really scary and will only result in higher costs for the consumer. The intent may be good, but the implementation will not be what was intended. The gov't needs to realize that they can not just waive a magic wand and say, "Make it so" to fix a problem.
jdjbuffalo

join:2004-01-17
Denver, CO

Re: ??

The road to hell is paved with good intentions.

I hope this gets removed from the bill.
gorehound

join:2009-06-19
Portland, ME
good intent but it will never happen and it is stupid to even think of it.
how can you even know what is a scam or not ?
how can you even implement this ?

and how much more money will we the consumers be forced to pay if this bill passes.
Kearnstd
Elf Wizard
Premium
join:2002-01-22
Mullica Hill, NJ
i am awaiting something being spewed by a lawmaker about stopping child porn. i mean all this bill is missing is a "for the children" angle and dont our lawmakers enjoy exploiting that for vote gaining?
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baineschile
2600 ways to live
Premium
join:2008-05-10
Sterling Heights, MI

god fordbid

i am actually looking to re-finance, and doing it via email. i hope these dont get auto-blocked
dforan

join:2000-12-09
Willoughby, OH

Re: god fordbid

If you do not get you financing, then maybe you can get your degree

PToN

join:2001-10-04
Houston, TX

ISPs = PROVIDERS, NOT NANNIES

Do lawmakers have any idea how hard would this be..? This will just add more cost to subscribers.

Plus, Internet Service Providers are PROVIDERS. It's like making the electric company liable for fried electronics due to variations on voltage, or sending my medical bill to the water service for having crappy water that got me sick....

They need to focus on things that really matter.

canesfan2001

join:2003-02-04
Hialeah, FL

1 edit

Re: ISPs = PROVIDERS, NOT NANNIES

No, it's not like either of those. In both of those cases it could actually be argued that the providers were the source of the problem.

It is more like holding UPS or FedEx responsible for you sending someone cocaine in a package.
--
OASAASLLS

TheHelpful1
Premium
join:2002-01-11
Upper Marlboro, MD

Re: ISPs = PROVIDERS, NOT NANNIES

said by canesfan2001:

No, it's not like either of those. In both of those cases it could actually be argued that the providers were the source of the problem.

It is more like holding UPS or FedEx responsible for you sending someone cocaine in a package.
Funny you should phrase it like that...
»november.org/razorwire/2009-02/SWAT.html
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tubbynet
reminds me of the danse russe
Premium,MVM
join:2008-01-16
Chandler, AZ
said by PToN:

Do lawmakers have any idea how hard would this be..? This will just add more cost to subscribers.

Plus, Internet Service Providers are PROVIDERS. It's like making the electric company liable for fried electronics due to variations on voltage, or sending my medical bill to the water service for having crappy water that got me sick....

They need to focus on things that really matter.
it stems from having people in congress that have no idea about that which they are tasked to regulate and understand. most people in congress are lawyers, though there are some doctors, etc. very few (if any) are engineers or technical people. as such, they are forced to make decisions based on lobbyists, think tanks, and hearings chock full of populist rants - they have no clue about what it really entails to run an isp. they see chris hanson go after peder-asses and nigerian scammers. pedophiles are a big deal, so by association, so must nigerian scammers.

q.
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Harddrive
Proud American and Infidel since 1968.
Premium
join:2000-09-20
Phone Room
kudos:2

ISPs are not IPPolice

wouldn't this law be the same as holding the US Postal Service liable for letting 'chain letters' and 'pyramid schemes' through to our mailboxes?
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PapaMidnight

join:2009-01-13
Baltimore, MD

Re: ISPs are not IPPolice

Exactly.

Van
Premium
join:2009-07-08
New Orleans, LA

I would love to see the ISP's become a

bit more proactive in this area but I am just not sure how they would be able to police this AND how exactly it would work that we hold them liable

JRW2
R.I.P. Mom, Brian, Ziggy, Max and Zen.
Premium
join:2004-12-20
La La Land
kudos:4
Reviews:
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My take..

While poorly written..
I thought their intent was to get ISPs who HOST "scam" sites to disconnect them or face financial penalties.
This would be a law I would LOVE to see enacted...
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PapaMidnight

join:2009-01-13
Baltimore, MD

Re: My take..

I'll second that.
averagedude

join:2002-01-30
San Diego, CA

Re: My take..

Third
jdjbuffalo

join:2004-01-17
Denver, CO
Now that is a law I could get behind (as long as it's narrowly defined as you've stated).
Kearnstd
Elf Wizard
Premium
join:2002-01-22
Mullica Hill, NJ
my guess is that is the intention but since lawmakers are not really capable of knowing about high tech things like the internet and how it works they worded their little law too general.
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[65 Arcanist]Filan(High Elf) Zone: Broadband Reports

John McClane
yippee ki yay
Premium
join:2005-03-19
Reviews:
·Comcast
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·Vonage

ummm

isps have a hard enough time providing service. they don't need to start doing this bullsh*t.

not to mention that this is a slippery slope. if they start doing this then whats next? blocking file sharing sites? oh my.
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Hpower
Roflmao

join:2000-06-08
Glendale, CA

Lame

Seriously, are lawmakers this bored? How the heck would an ISP enforce this?
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The Internet is about to go down....it is actually.

Murdoc
Premium
join:2009-02-08
Manitowoc, WI

1 edit

Will this include riaa and mpaa also?

Since the riaa and mpaa is a financially scamming, with questionable tactics.

well

@sbc.com

on the other hand

Not that I like this idea, but if ISP take it upon themselves to protect the interests of the RIAA et al, why not require them to protect the interests of their customers???

AlexNYC

join:2001-06-02
Edwards, CO

Unpractical

Here's an analogy:

If someone drowns in their bathtub the water company can be held liable ....

Karl Bode
News Guy
join:2000-03-02
kudos:29

(topic offline) censorship?

Moderator Action
This entire topic was removed, either temporarily, or permanently.

stated reason was: Off topic.
SuperWISP

join:2007-04-17
Laramie, WY

And how, exactly, can the ISP recognize fraud?

An ISP can't tell, just from the content of a message, whether it's fraudulent or contains a "misrepresentation" of any kind. About all we could do -- and we might have to, in self defense -- is to flat out block any e-mail message containing the phrase "Securities Investor Protection Corporation" or any abbreviation thereof.
bgraham

join:2001-03-15
Smithtown, NY
Reviews:
·Verizon VoiceWing
·Verizon FiOS
·VOIPo

Re: And how, exactly, can the ISP recognize fraud?

The same way the U S Mail and the phone companies do. They do nothing until the authorities carry out an investigation. When people get scammed, they complain to the police or the FBI and the police and/or the FBI investigate.

Hasn't this happened recently with the so called mortgage adjustment industry and the credit card interest reduction scams where most of them took your money and did nothing. Those industries used phone, email and mail for their scams.

I don't see where this requires a new law. Just another case where politicians have no idea about technology. To the uninitiated and non technical people it looks as if the politicians are actually doing something.
Don't get me going about Andrew Cuomo and Newsgroups.
jsBach

join:2009-11-09
Pasadena, CA

Never happen

I don't think the majority of members of Congress actually understand how the internet works in the first place. I doubt most of them do anything more than check email. It will never fly.

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