Chegg 2013 Annual Report Download - page 57

• The Credit Card Accountability Responsibility and Disclosure Act of 2009, or CARD Act and other state
laws and regulations that relate to credit card and gift certificate use fairness, including expiration dates and
fees. Our business also requires that we comply with payment card industry data security and other
standards. In particular, we are subject to payment card association operating rules, certification
requirements and rules governing electronic funds transfers, which could change or be reinterpreted to make
it difficult or impossible for us to comply. If we fail to comply with these rules or requirements, or if our
data security systems are breached or compromised, we may be liable for card issuing banks’ costs, subject
to fines and higher transaction fees and lose our ability to accept credit and debit card payments from our
customers, process electronic funds transfers or facilitate other types of online payments, and our business
and operating results could be adversely affected.
• Regulations relating to the Program Participation Agreement of the U.S. Department of Education and other
laws and regulations relating to the recruitment of students to colleges and other institutions of higher
learning.
• The Children’s Online Privacy Protection Act, which imposes additional restrictions on the ability of online
services to collect information from minors. In addition, certain states, including Utah and Massachusetts,
have laws that impose criminal penalties on the production and distribution of content that is “harmful to a
minor.”
• The DMCA, which provides relief for claims of circumvention of copyright protected technologies and
includes a safe harbor intended to reduce the liability of online service providers for hosting, listing or
linking to third-party content that infringes copyrights of others.
• The Communications Decency Act, which provides that online service providers will not be considered the
publisher or speaker of content provided by others, such as individuals who post content on an online
service provider’s website.
Employees
As of December 31, 2013, we had 639 full-time employees. We also engage temporary, seasonal employees
and consultants. None of our employees are represented by labor unions or covered by a collective bargaining
agreement. We have not experienced any work stoppages and we consider our relations with our employees to be
good.
Seasonality
Information about seasonality is set forth in the section “—Seasonality of Our Business” in Part II, Item 7 of
this Annual Report on Form 10-K.
Information about Segment and Geographic Revenue
Information about segment and geographic revenue is set forth in Notes 1 and 18 of the Notes to
Consolidated Financial Statements included in Part II, Item 8, “Financial Statements and Supplementary Data” of
this Annual Report on Form 10-K.
Corporate History
We were incorporated in Delaware in July 2005. We launched our online print textbook rental business in
2007. We hired our current Chief Executive Officer in 2010, who implemented our current business strategy to
build the Student Hub and create the leading connected learning platform for students to help them save time,
save money and get smarter. Beginning in 2010, we made a series of strategic acquisitions to expand our
portfolio of non-print products and digital services, including Courserank in 2010 to add our Courses service,
Cramster in 2010 to add our Chegg Study service and Zinch in 2011 to add our College Admissions and
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