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The dominant issue for a social networking site is user privacy. Each major jurisdiction has laws governing such (though to call US privacy 'laws' is giving them more credence than creed). For example, Europe has Data Protection Directive where any private information of an EU citizen is not permitted to travel beyond its borders unless the matching ...
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You really can't battle widespread, systemic ethical issues. I suggest you visit a good law college close to the city you work in and seek advice from the professors there. You may get referrals to better legal services. Who knows one of them may even be willing to consult for you once in a while.
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