Enom 2014 Annual Report Download - page 26

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Changes in regulations or user concerns regarding privacy and protection of user data could diminish the value of our services
and cause us to lose customers and revenue.
When a user visits one of our websites or certain pages of our customers’ websites, we use technologies, including “cookies,” to
collect information related to the user, such as the user’s Internet Protocol, or IP, address, demographic information, and history of the
user’s interactions with content or advertisements previously delivered by us. The information that we collect about our users helps us
deliver appropriate content and targeted advertising to these users. A variety of federal, state and international laws and regulations
govern the collection, use, retention, sharing and security of data that we receive from and about our users. In addition, various
federal, state and foreign legislative and regulatory bodies may expand current or enact new laws regarding privacy matters. Recent
developments related to “instant personalization” and similar technologies potentially provide publishers with broader access to, and
more detailed information about, users. These developments have led to greater scrutiny of industry data collection practices by
regulators and privacy advocates. New laws may be enacted, new industry self-regulation may be promulgated, or existing laws may
be amended or re-interpreted, in a manner that limits our ability to analyze user data. If our access to user data is limited through
legislation or any industry development, we may be unable to provide effective technologies and services to customers and we may
lose customers and revenue.
Certain U.S. and foreign laws and regulations could subject us to claims or otherwise harm our business.
We are subject to a variety of laws and regulations in the U.S. and abroad that may subject us to claims or other remedies. Our
failure to comply with applicable laws and regulations may subject us to additional liabilities, which could adversely affect our
business, financial condition and results of operations. Laws and regulations that are particularly relevant to our business address:
• freedom of expression;
• information security and privacy;
• pricing and fees;
• content and the distribution of content, including liability for user reliance on such content;
• intellectual property rights, including secondary liability for infringement by others;
• taxation, including VAT; and
• online advertising and marketing, including email marketing and unsolicited commercial email.
In the United States, Congress has adopted legislation that regulates certain aspects of the Internet, including the
Communications Decency Act, the Digital Millenium Copyright Act, the Lanham Act and the Anticybersquatting Consumer
Protection Act. Advertising and promotional information presented to visitors on our owned and operated online properties and our
other marketing activities are subject to federal and state consumer protection laws that regulate unfair and deceptive practices. Many
applicable laws were adopted prior to the advent of the Internet and do not contemplate or address the unique issues of the Internet.
Moreover, the applicability and scope of the laws that do address the Internet remain uncertain. For example, the laws relating to the
liability of providers of online services are evolving. Claims have been either threatened or filed against us under both U.S. and
foreign laws for defamation, copyright infringement, patent infringement, privacy violations, cybersquatting and trademark
infringement. In the future, claims may also be brought against us based on tort law liability and other theories based on our content,
products and services or content generated by our users.
We receive, process and store large amounts of personal data from users of our owned and operated online properties and from
our freelance professionals and artists. We post privacy policies on all of our owned and operated websites that set forth our policies
and practices related to the collection, use, sharing, disclosure and protection of personal data. The storing, sharing, use, disclosure and
protection of personal information and user data are subject to federal, state and international privacy laws, the purpose of which is to
protect the privacy of personal information that is collected, processed and transmitted in or from the governing jurisdiction. The
existing privacy-related laws and regulations are evolving and subject to potentially differing interpretations. If requirements regarding
the manner in which certain personal information and other user data are processed and stored change significantly, our business may
be adversely affected, impacting our financial condition and results of operations. In addition, we may be exposed to potential
liabilities as a result of differing views on the level of privacy required for consumer and other user data we collect. We may also need
to expend significant resources to protect against security breaches, including encrypting personal information, or remedy breaches
after they occur, including notifying each person whose personal data may have been compromised. Any failure, or perceived failure,
by us or various third-party vendors and service providers to comply with applicable privacy policies or with industry standards or