By George Anderson
Companies on the Internet need to be on guard around-the-clock against viruses, computer hackers and other potential threats to their business.
According to a Washington Post report, some companies have concluded they simply cannot guarantee their system's security or consumers' personal information. Some have begun requiring customers to waive their right to sue should personal information be stolen.
The Verizon Wireless Web site includes this clause: "You agree to assume all risk and liability arising from your use of Verizon Wireless's online services, including the risk of breach in the security."
The company's general counsel, Steven Tugentman, says Verizon Wireless isn't seeking to shirk its responsibilities to its customers. "Verizon Wireless is very concerned with customer security and privacy. But we are trying to be fiscally responsible to protect the company from lawsuits."
Legal experts do not expect the waivers to hold up in court. Chris Jay Hoofnagle, associate director of the Electronic Privacy Information Center said, "If companies are willing to derive the benefit of information collection, but not the responsibility to secure it . . . it won't be difficult for consumer attorneys to invalidate these provisions as being unfair."
Moderator's Comment: Should businesses online be legally (financially) responsible for protecting consumer information records?
We know of signs in a parking garage saying it does not accept responsibility for our auto's safekeeping don't mean a thing legally. These online waivers won't either. If you're willing to benefit from the transaction, then you also accept the potential downsides. - George Anderson - Moderator