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I'm currently building a social networking site (as are droves of other startups) and I was looking for some experienced input on the legal issues that need to be taken into account.

Examples:

  • A lot of sites take user posts/avatars and displays them in a feed on the homepage?
  • What are the best practices to avoid any liability as far as company employees reviewing/using the user's private data?
  • Is it worth working with another companies' API?
  • What are the legal barriers?

And so on.

It'd be fantastic if some folks could thoroughly layout a primer of the legal issues facing entrepreneurs who are starting social networking sites, or at least pinpoint other items that raised headaches for you.

Thanks!

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Sorry, but I'm voting to close. Poll question, see "Don't write a sentence and expect to get a page back" from the FAQ: answers.onstartups.com/faq – Jesper Mortensen♦ Apr 15 '11 at 9:31
Sorry but I don't agree, the entire FAQ is much more accurate and it reads, "Please avoid wide open questions. Don't write a sentence an expect to get a page back" – user9635 Apr 15 '11 at 19:05
This is not a wide open question, it seeks to find answers about legal issues for entrepreneurs starting social networking sites. I imagine there are basic legal issues every social network has to deal and thread where those are outlined would be valuable. I'm sorry if my question going directly to the point and doesn't beat around the bush, making it only a sentence or two. Just for your concern I'll elaborate a tad bit.. – user9635 Apr 15 '11 at 19:12
@dr.strangelove: Great, I'm happy to see that you're taking it so constructively! And welcome aboard. :-) That said, I still consider it a wide open question, because of the large number of different potential legal issues that would need to be covered in a comprehensive answer. – Jesper Mortensen♦ Apr 15 '11 at 20:09
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Rather than addressing the FAQ, I'll address the legal-business reality of the question: With the bullets, "and so on", and desire for someone to "thoroughly layout [sic] a primer", you are seeking thousands of dollars of legal advice for free. Perhaps someone will provide what you are requesting. Good luck! – Dana Shultz Apr 15 '11 at 22:12
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3 Answers

up vote 1 down vote

I'm doing what every one else is doing.

Legal issues are many but to put it as simple as possible you need Insurance.

  • Professional Indemnity
  • Public Liablity

The 1st covers data loss, copy right infringements, server down time, security issues (hacked mmbrs account) and some other things

The 2nd is really just an add on if your just starting the 1st is important. the latter can be put in place if you think the site is making a decent wage. The latter is more about if some one is harmed in anyway by using your site...e.g. a member loses a house due to you advising him that another member is good to pay for it but rippps the other guy off) This policy is not clear cut and designed to be highly understandable nor really something that is needed immediately

The 1st Policy is a MUST. You could get away with it for a wee while, but watch out if all your members get angry because your servers went bust and you lost alot of personal information.

Average qoute for Professional Indemnity is $700 - $1,000 per year.

Good luck

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up vote 1 down vote

ASK A LAWYER. THis is true for most legal question, but if you ask for a CANINICAL answer, then thisis 100 times as true. Voting to close.

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up vote 0 down vote

the common practice is that NOT everyone in the company has access to users data, but ONLY those admins that REALLY NEED TO ACCESS IT for one reason or another (this also means that there is no general DIRECT access to the database itself, but rather only through the admin interface).

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as for the worht of working with other company's api, if you are making a SOCIAL site - it is a must. even Facebook works with other companies' API's (such as twitter for example).

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one more issue is with specific personal / financial data - in certain jurisdictions it is NOT allowed to house or transfer it across borders, but this only applies to such info as telecommunication services used and financial data (there are other examples, surely).

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there are laws, also about communicating via email, snail-mail, telephone, etc... with your customers so you need to abide by those as well.

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another issue is the protection of personal information and how it must be stored, accessed and shared.

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