I'm about to create a business web site. I can't get into details of
what the web site does, but basically, as part of the service, people
can leave feedback on other people's attitude and behavior. You do not
need a membership to be able to leave feedback on someone but no
comments can be entered anonymously on the site (strict ID
verification, however, is not trivial online.) Anyone can be given
feedback and basically anything can be said about a person on this web
site. We will control abuse, but we can't control the veracity of the
contents.

For example, say you want to write about someone and you decide to say
he or she is a drug addict. Now here is my question: If our web site
publishes this information, regardless of it being true or not with a
disclaimer informing readers that the contents of the review are
unverified and could be a fraudulent entry in the system, can my web
site be sued for slander? Am I responsible for verifying every single
entry about people's feedback? And if so, is there any disclaimer
message that can be displayed that would prevent me and my company
from being found guilty of slander?

I think I shouldn't be responsible for other people's opinions and
comments much in the same way a paid ad in a newspaper won't get the
newspaper in trouble, but might get the advertiser in trouble. The
only difference is that there will be no fee for someone to submit a
review to my web site.

---

Clarification of Question by edpin-ga on 15 Jul 2002 11:01 PDT

To clarify, the web site is to be a .COM, therefore, in the US domain.
I can host the website somewhere else if necessary, but the intention
is to host it in the US (and if it matters, I can change states in the
US, but I already have a service agreement with a provider in
Michigan.)

---

Request for Question Clarification by mvguy-ga on 15 Jul 2002 12:14 PDT

Weisstho-ga has summarized things quite well.  The law on such matters
isn't totally decided, and there are numerous legal issues raised in
your question. In my opinion, for planning purposes you'd be best off
assuming that yes, you would be liable for anything that is
electronically published on a bulletin board you sponsor.  It doesn't
really matter where you host the bulletin board; you still could be
sued for what you're responsible for.

With all due respect, you're wrong about one thing: a newspaper can be
held liable for the content of an ad, just as it can held liable for
the contents of letters to the editor (which is more analogous to your
situation).

I'm not sure there is a definitive answer to your question (assuming
that what you really want to know is not whether you can be sued, but
whether you could be sued successfully), as there are countless
variables involved.  (If your question is can you be sued, the answer
is a definitive yes.)  Instead of having your question answered
directly, would you accept references to actual legal cases that have
raised similar issues?

---

Clarification of Question by edpin-ga on 15 Jul 2002 13:26 PDT

I guess my question is almost entirely answered at this point. I was
looking for a good reason to keep me away of this entrepeneurial idea.
I figured I don't want to risk going to court for AT LEAST $50,000 as
Weisstho stated. I was also pretty impressed with the Demon law suit
that Lot pointed me to. Even though I might never be convicted of any
crime, I might still have to face lots of law suits if indeed users
abuse the web site's initial intention.

Since the other two readers posted comments rather than answers and I
feel my question at this point is pretty much answered, I'll take your
online references to libel cases. Please point me to a few related
cases, especially if they do contain the costs paid by the defendant
involved in a libel case.

Thanks.

Depends where you are, in the UK Demon internet were sued.
Even though it is true or not and regardless if you have a disclaimer,
you are publishing it and will be held repsonsible in the UK courts.
(to Demon Internets dismay)
http://www.wired.com/news/politics/0,1283,18764,00.html

I was going to answer the question, but have thought better of it.
This is a very difficult area, and the law is of Supreme Court
dimension.

Clearly advice of competent counsel familiar with First Amendment
Speech issues is required to adequately assess the risks that you
face, as well as to lay out the protections that you will necessarily
need to install to protect yourself.

Remember that ANYONE can bring a law suit, for the mere cost of a
filing fee. You could be named as a defendant in an action in another
state - let's suppose you are a New York resident, and someone alleges
that they were defamed by material appearing on your web site. You
would be placed in a position of having to defend that law suit in
California, and expend money there to handle the action.  A cheap
defense (through trial) will cost in the neighborhood of $50,000 (a
very nice neighborhood), and although defendants (you) tend to win
Libel actions, when a plaintiff does prevail, it is usually for BIG
bucks.

Here is a good site for starters:
http://publishing.about.com/library/bl_libel.htm

You should be very interested in the Blumenthal case:  White House
Advisor Sidney Blumenthal’s libel suit against Matt Drudge is an
interesting case for you to look at. The basics are outlined in this
excellent article by Stephanie Miles of CNet:
http://news.com.com/2100-1023-202854.html?tag=bplst

You may find the Libel Defense Resource Center to be a useful
resource: http://www.ldrc.com/LDRC_Info/libelfaqs.html

Please be very careful. This sort of activity is playing with (legal)
fire - it can be a very complex area of the law.

Good luck,
weisstho-ga

You need to look at the safe harbor provisions of the 1996
Communications Decency Act, and the 1998 Digital Millennium Copyright
Act. There's lots of info available which you can find by searching
for those acts and "defamation" on... you guessed it... Google.