Firms Look to Limit Liability for Online Security Breaches

[Dave Farber <dave () farber net>]

-----Original Message-----
From: Tim Finin <finin () cs umbc edu>
Date: Fri, 05 Mar 2004 08:23:43 
To:dave () farber net
Subject: Firms Look to Limit Liability for Online Security Breaches

Today's Washington Post has a long article on the trend
for companies to try to limit liability for security
failures.

--

Firms Look to Limit Liability for Online Security Breaches
By Jonathan Krim, Washington Post, March 5, 2004; Page E01
http://www.washingtonpost.com/wp-dyn/articles/A31874-2004Mar4.html

In the face of ongoing attacks by computer hackers, some
companies that store their customers' personal data are
adopting a new defensive tactic: If your information is
stolen, they're not legally responsible.

Across the Internet, retailers and other service
providers that handle consumer transactions are
requiring customers to agree to waive any right to sue
the companies if the businesses are hacked, regardless
of how secure their systems are.

The waivers are contained in lengthy terms-of-use
agreements that consumers often click to accept without
reading closely.

"You agree to assume all risk and liability arising from
your use of Verizon Wireless's online services,
including the risk of breach in the security" of its
system, according to the mobile-phone giant's use
agreement, if you choose to use its online billing
system.

American Airlines' Web site sports similar language,
warning that it is not liable for break-ins by outsiders
"regardless of whether American Airlines was given
. . . notice that damages were possible."

...


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