Internet Stories: August - October 1998

SEC Cracks Down on Internet Stock Fraud. (10/29/98)  The Securities and Exchange Commission announced yesterday that it has brought 23 enforcement actions against 44 individuals and companies for committing fraud over the Internet.  All of the cases involve alleged illegal touting of securities in violation of Section 17(b) of the 1933 Securities Act.  The SEC also promised that it would be filing more actions.

ACLU Files Suit Over Child Online Protection Act. (10/23/98)  The American Civil Liberties Union, and others, filed a lawsuit in U.S. District Court in Philadelphia on Thursday, October 22, challenging the constitutionality of the Child Online Protection Act (COPA).  The bill was a part of the Omnibus Appropriations Act for FY 1999 which President Clinton signed on Wednesday, October 21. See, COPA, and ACLU's Complaint.

Death of Anti Slamming Bill Shifts Initiative to FCC. (10/22/98)  Negotiations over the anti-slamming bill failed to produce a compromise in the final days of the 105th Congress.  However, the FCC has authority under the Telecom Act of 1996 to enact and enforce regulations dealing with the problem of slamming -- the unauthorized switching of long distance phone companies.

Judge Rules § 230 Blocks the Livermore Library Suit. (10/21/98)  The California State Judge presiding in the case Kathleen R. v. City of Livermore ruled on Tuesday, October 20, and reaffirmed in a hearing on Wednesday, that the Plaintiffs' claims that the Livermore Library must install blocking software on computers used by children is barred by Section 230 of the Telecommunications Act of 1996.  The Plaintiffs plan to appeal.

Florida Court Upholds § 230 Immunity in Doe v. AOL. (10/17/98)  The Florida Fourth District Court of Appeals affirmed a trial court decision which held, under Section 230 of the Telecommunications Act of 1996, that AOL is not liable for the statements made by a subscriber in an AOL chat room.  The Plaintiffs plan to appeal to the Florida Supreme Court.  See, copy of Opinion.

Net Porn Bill to Be Included in Omnibus Bill. (10/16/98 9:00 AM ET)  The "Child Online Protection Act," known to its critics as "CDA II," will be included in the omnibus appropriations bill, which is likely to approved by both the House on Senate late today.

Gore Promotes Universal Access to the GII. (10/15/98)  Vice President Al Gore addressed the International Communications Union in Minneapolis, Minnesota, on Monday, October 12.  He primarily addressed ways to further the development of the Internet and telecommunications, and ways to expand access for people around the world.   However, he also addressed the Year 2000 conversion problem. See, Complete Text of Gore's Speech to ITU.

Senate Approves ITFA.  Summary of Contents. (10/9/98)  The Senate approved S 442, the "Internet Tax Freedom Act," yesterday by a vote of 96 to 2.  The bill establishes a three year moratorium on new discriminatory state and local taxes on the Internet and Internet access, and creates a commission to study the subject of Internet taxes.  See, Complete Copy of S 442, as adopted.

House Passes Child Online Protection Act and Children's Online Privacy Protection Act. (10/8/98 7:00 AM EDT)  The House passed the "Child Online Protection Act" late on Wednesday October 7 by a voice vote.  The bill bans sending to minors over the web material that is harmful to minors.  It is intended to replace the much more broadly worded Communications Decency Act, which was held unconstitutional by the Supreme Court last year.  The House also passed S 2326, the "Child Online Privacy Protection Act," which requires that website operators and online services that operate websites directed to children obtain parental consent before collecting information from children under the age of thirteen.

Senate Amends Internet Tax Freedom Act. (10/7/98 11:00 PM EDT)  The Senate today continued its on again, off again, consideration of S 442, the "Internet Tax Freedom Act."  In a series of votes held over about ten hours, the Senate attached an amendment offered by Sen. Coats allowing taxation of net porn, set the moratorium at three years, grandfathered existing net taxes, and expanded the scope of the study to be conducted.  The Senate is scheduled to resume consideration Thurday morning.

Senate Debates Net Taxes Bill. (10/6/98 10:00 PM ET)  The Senate continued its debate of S 442, the "Internet Tax Freedom Act," late today, rejecting two hostile amendments, and postponing further consideration until Wednesday morning.  The fate of other tech bills which are attached to S 442 also rest on its passage before the Congress adjourns at the end of the week.

Senate Debates and Delays Internet Tax Freedom Act. (10/3/98)  The U.S. Senate debated S 442, the "Internet Tax Freedom Act," on Friday, October 2, but postponed further consideration until Tuesday, October 6.  The House passed its version of the bill on June 23.  The bill would impose a temporary moratorium on new discriminatory taxes on the Internet.  While Senators debated and then rejected an amendment offered by Sen. Bumpers, they also negotiated behind closed doors over the scope of the study mandated by the bill, as well as amendments unrelated to the bill.

Judge Cancels Trial  in Net Filtering Case. (10/3/98)  U. S. District Court Judge Leonie Brinkema cancelled an evidentiary hearing set for October 14 in the Loudoun Library filtering software lawsuit.   She stated that she would decide the case based on the cross Motions for Summary Judgment, and supporting pleadings and evidence, which have been filed with the Court.

Senate Committee Passes Children's Net Privacy Bill. (10/2/98)  The Senate Commerce Committee passed an amended version of S 2326, the "Children's Online Privacy Protection Act," by a unanimous voice vote.   The bill would ban operators of websites and online services that are directed to children from collecting information from children under thirteen without parental consent.

Senate Moves Closer to Passing Internet Tax Freedom Act. (9/30/98) The U.S. Senate moved a step closer to passing S 442, the "Internet Tax Freedom Act," on Tuesday, September 29, by voting overwhelming to invoke cloture, clearing the way for a final vote, possibly on Thursday.

House Holds Another Hearing on Spam. (9/29/98)  The House Telecommunications Subcommittee held a hearing on the problem of unsolicited commercial email on Monday, September 28.

Judge Hears Arguments in Loudoun Library Case. (9/28/98)  U.S. District Court Judge Leonie Brinkema heard oral arguments on Friday, September 25, regarding the constitutionality of the Loudoun County Library's use of blocking software on library computers.  Judge Brinkema made no rulings at the hearing, but stated that she would rule by early next week on whether the case would go to trial on October 14.

House Committee Passes Child Online Protection Act.  (9/25/98)  The House Commerce Committee adopted  HR 3783, the "Child Online Protection Act," by a unanimous voice vote yesterday.

Rush Backs CDA II & Condemns Release of Starr Report.  (9/25/98)  As the House Commerce Committee met to approve HR 3783, the "Child Online Protection Act," Committee member Bobby Rush used the occasion to assert that there is an inconsistency between supporting the bill, and releasing the Starr Report.  Neither pornography, nor the Starr Report, should be available to children on the Internet, said Rush.

Senate Holds Hearing on Children's Online Privacy.   (9/24/98)  The Senate Communications Subcommittee held a hearing Wednesday on S 2326, the "Children's Online Privacy Protection Act of 1998."   The bill would require children's websites to obtain parental consent before collecting information from children under thirteen.  See, S 2326 IS.

House Subcommittee Passes Child Online Protection Act.  (9/21/98)  The House Telecommunications Subcommittee approved an amended HR 3783, the "Child Online Protection Act," on Thursday, September 17.  This is the House version of a bill sponsored by Sen. Dan Coats, which passed the Senate in July.  The full Commerce Committee will likely take up the bill on Thursday, September 24.  See, HR 3783, Subcommittee Substitute.

US West to Assess Access Charges for Internet Telephony.  (9/15/98)  On Friday, September 11, US West became the second Regional Bell Operating Company (RBOC) to announce that it would attempt to collect access charges on packet switched, Internet protocol, telephony. On September 2 BellSouth made a similar announcement.  Since "information services" are not regulated by the FCC, and are exempt from access charges, IP telephony providers are likely to challenge the moves in court and/or before the FCC.

FCC Finally Approves MCI WorldCom Merger.  (9/15/98)  The Federal Communications Commission approved the merger of MCI and WorldCom on Monday, September 14.

ICG May Sue to Stop BellSouth from Collecting Access Charges on Internet Telephony.  (9/10/98)  ICG Communications Inc, a provider of phone-to-phone Internet communications, may bring suit to enjoin BellSouth from trying to collect access charges on Internet telephony.  BellSouth informed IP telephony customers on September 2 that "BellSouth will no longer provide local exchange service to companies providing long distance service via the Internet or IP technology.  Companies providing this type of service should use one of BellSouth's access service offerings."

FCC Moves Closer to Regulating the Internet.   (9/8/98)  The Federal Communications Commission released a lengthy report on Thursday, September 4, which suggests that the FCC ought to regulate Internet access provided by cable operators such as @Home, Road Runner, Cablevision, and MediaOne.  This is the second major policy statement by the FCC this year that seeks to expand its regulatory reach from telecommunications services into computer and Internet services.

Plaintiffs Move for Summary Judgment in Loudoun Case.  (9/6/98)  The plaintiffs filed voluminous papers on Friday, September 4, in their lawsuit against the Loudoun County Library over its use of blocking software.  The suit was brought to establish a legal precedent that it is unconstitutional for a public library to install blocking software on its computers. The Motion for Summary Judgment, and Memorandum in Support, seek to have the matter decided without a trial.  See, Memorandum in Support of Motion for Summary Judgment.

Loudoun Library Moves for Summary Judgment. (9/6/98)  The Loudoun County Library filed a Motion for Summary Judgment in a blocking software case brought in federal court in Alexandria, Virginia.   The Library seeks to have the case dismissed on the grounds that its use of X-STOP blocking software is not unconstitutional, and that the Library has immunity under Section 230 of the Telecommunications Act of 1996.  The Library also seeks to have the Intervening-Plaintiffs dismissed for lack of standing to bring suit.

California Legislature Passes Anti-Spam Bill.   (8/31/98)  The California legislature passed a bill on Thursday that would allow ISPs to sue junk e-mailers who violate their policies.  Gov. Pete Wilson is expected to sign the bill.

Wilson Signs California Internet Tax Freedom Act.   (8/25/98)  California Governor Pete Wilson signed into law the California Internet Tax Freedom Act yesterday.  Similar federal legislation is likely to be passed next month.  See, HTML Copy of California Act.

National Taxpayers Union Seeks End to Gore Tax.  (8/19/98)  The National Taxpayers Union yesterday restated its opposition to the "Gore Tax," the FCC's schools and libraries program.  It also launched a new website committed to ending the Gore Tax.

E-Rate Divide Follows Partisan Lines.   (8/10/98)  The political battle over the future of the e-rate is classic partisan contest which pits Republicans and fiscal conservatives against Democrats and social liberals.  Democrats are digging in to defend the current FCC run program.   Republicans are coalescing around a proposal by Sen. Burns and Rep. Tauzin to limit the e-rate to five years, shift administration from the FCC to the NTIA, and distribute money to the states as block grants.

Subcommittee OKs Anti Slamming and Spamming Bill.  (8/7/98)  The House Telecommunications Subcommittee approved a bill to provide consumers and phone companies further protections against unauthorized switching of long distance carriers, and to limit unsolicited commercial e-mail.

Gore Announces Privacy Initiatives.   (8/1/98)  Vice President Al Gore, Commerce Secretary William Daley, and FTC Chairman Robert Pitofsky held a joint press conference Friday morning to announce a series of initiatives to protect privacy rights in the electronic age.  Gore advocated legislation to prevent web sites from collecting data from children under 13 without parental consent, but stopped short of endorsing any other website restrictions.