Orbitz 2010 Annual Report Download - page 22

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that offers customers the ability to book air travel in the U.S., we are also subject to regulation by the
Department of Transportation, which has authority to enforce economic regulations and may assess civil
penalties or challenge our operating authority.
Our failure to comply with these laws and regulations may subject us to fines, penalties and potential
criminal violations. Any changes to these laws or regulations or any new laws or regulations may make it
more difficult for us to operate our businesses and may have a material adverse effect on our operations.
Our processing, storage, use and disclosure of personal data could give rise to liabilities as a result of gov-
ernmental regulation, conflicting legal requirements, differing views of personal privacy rights or security
breaches.
In the processing of customer transactions, we receive and store a large volume of personally identifiable
information. This information is increasingly subject to legislation and regulations in numerous jurisdictions
around the world. This legislation and regulation is generally intended to protect the privacy and security of
personal information, including credit card information, that is collected, processed and transmitted in or from
the governing jurisdiction. We could be adversely affected if domestic or international legislation or regulations
are expanded to require changes in our business practices, or if governing jurisdictions interpret or implement
their legislation or regulations in ways that negatively affect our business.
Travel companies have also been subjected to investigations, lawsuits and adverse publicity due to
allegedly improper disclosure of passenger information. As privacy and data protection have become more
sensitive issues, we may also become exposed to potential liabilities as a result of differing views on the
privacy of travel data. These and other privacy concerns, including security breaches, could adversely impact
our business, financial condition and results of operations.
We are exposed to risks associated with online commerce security and credit card fraud.
The secure transmission of confidential information over the Internet is essential in maintaining customer
and supplier confidence in our services. Substantial or ongoing security breaches, whether instigated internally
or externally on our system or other Internet-based systems, could significantly harm our business. We
currently require customers to guarantee their transactions with their credit cards online. We rely on licensed
encryption and authentication technology to effect secure transmission of confidential customer information,
including credit card numbers. It is possible that advances in computer capabilities, new discoveries or other
developments could result in a compromise or breach of the technology that we use to protect customer
transaction data.
We incur substantial expense to protect against and remedy security breaches and their consequences.
However, our security measures may not prevent security breaches. We may be unsuccessful in implementing
our remediation plan to address these potential exposures. A party (whether internal, external, an affiliate or
unrelated third party) that is able to circumvent our security systems could steal proprietary information or
cause significant interruptions in our operations. Security breaches also could damage our reputation and
expose us to a risk of loss or litigation and possible liability. Security breaches could also cause customers and
potential customers to lose confidence in our security, which would have a negative effect on the demand for
our products and services.
Moreover, public perception concerning security and privacy on the Internet could adversely affect
customers’ willingness to use our websites. A publicized breach of security, even if it only affects other
companies conducting business over the Internet, could inhibit the growth of the Internet and, therefore, our
services as a means of conducting commercial transactions.
We are involved in various legal proceedings and may experience unfavorable outcomes, which could harm
us.
We are involved in various legal proceedings, including, but not limited to, actions relating to intellectual
property, in particular patent infringement claims against us, tax matters, employment law and other
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