Could BugMeNot face legal action?

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An Australian website that allows users to bypass registration details on other websites using communal usernames and passwords could be shut down for breaching terms and conditions of other sites, a law expert says.

Deacons partner Nick Abrahams says BugMeNot.com, which was created by former realestate.com.au employees Guy King and Bevan Clark (King spoke to SmartCompany in depth yesterday) has put safeguards on its site but could still face legal action.

"They've clearly designed a strategy to avoid legal problems, as they will allow sites to come on and block the use of BugMeNot. Provided the site satisfies a couple of criteria, one being if the site allows users to edit content on the site itself, so Wikipedia for example. The site must also be free, as you could imagine a paid site would be unhappy with people sharing passwords and usernames."

"However, what BugMeNot probably does is constitute a breach of the relevant website's user terms and conditions. Now I haven't looked at every single website's terms, but there's probably a way you could say what's happening with sharing passwords is contrary to the conditions of some."

BugMeNot provides users with communal usernames and passwords to access content on other websites, negating the need to fill out lengthy registration forms.

Abrahams says while the affected sites aren't losing any money - only free sites can be circumvented using the BugMeNot.com system - the use of communal registration details could rob sites of important demographic data.

"The question is really, what is the damage? It's not like people are circumventing legal obligations, so the only real issue left is the information that is being lost that could be used for marketing materials."

"If this was a big enough issue, you could look at how much financial value could be ascribed to that data. If it was a massively popular site, then they could do something about it. It would require a degree of expense...but it is certainly achievable."

But despite the legal avenues for sites to take down BugMeNot, Abrahams says it isn't likely as the site is more of an "annoyance" than a major problem.

"I think it's the sort of thing which the big sites regard as an annoyance, yet probably not worth chasing. But they certainly could if they wanted to."

But Guy King says he isn't convinced sites would take legal action, arguing they would have to sue every person who has ever given fake registration details.

"The first thing that comes to mind is that users who give false registration details are probably in breach of those terms of service as well. Are they going to sue everyone? On Facebook, they say users must keep their details accurate and up-to-date, which is fairly ridiculous when you think about it."

King also denies sites could ascribe financial value to demographic data lost through members using communal registration details.

"Would they take legal action against every user who has logged in to their site using false details? I'm no lawyer but I'd argue they weren't going to make that money anyway. I think it's a grey area in terms of the law."

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Comments (10)Add Comment
bugmenot
...
written by Guy King, July 09, 2009
Thanks for opening some interesting dialogue on the topic Patrick.

I just hope you and Nick Abrahams are wearing your happy pants today:
http://www.bugmenot.com/terms.php
LegalTender
...
written by Emily Peterson - Legal Tender, July 09, 2009
The loss that circumvented websites may suffer extends beyond the collection of demographic data. If a website uses, for example, Google Adwords, the relevant site may see a reduction in revenue from that income stream because illegitimate users click through say, only 2 screens, instead of say, 5. A website such as mine, Legal Tender, would also suffer loss. Legal Tender is a lawyer - client matching service. It is free for consumers, but lawyers pay a flat fee if they win a tender. If clients are bypassing the registration process, they won’t be able to post cases. If client don’t post cases, law firms don’t pay referral fees, and we suffer loss from that revenue stream as well. Further, I think the company needs to look into whether it could be aiding and abetting (1) the original user who provided the login details and/or (2) clients of bugmenot.com who use fake login details - to breach the websites’ terms and conditions. (This is not to be taken as legal advice as I am no longer a practicing solicitor).
bugmenot
...
written by Guy King, July 09, 2009
Emily: interesting points.

Scenario 1, a user accesses a site via a bugmenot login and clicks around versus a user who hits a registration wall and goes somewhere else. I could argue bugmenot in fact results in more ad impressions. Services such as RSS and Google News in theory are reducing page/ad impressions too right?

Scenario 2, without knowing all the details around Legal Tender I'd say you're losing a lot of potential clients and search engine traffic by having all your content behind a registration wall. Why not ask for user details when the client wishes to have a law firm *contact them*? This way there's some actual *incentive* for the user to hand over their personal details. Many large, successful sites use this model (e.g. realestate).
LegalTender
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written by Emily Peterson, July 09, 2009
Hi Guy

In response to scenario 2: before a law firm can submit a tender, they need to conduct a conflict search, based on the parties’ name, other parties to the matter and the type of matters. If the firm does not have a conflict, they can indicate as such and can proceed to view the full case information. The client's contact details are then handed over to the firm that wins the tender. The legal profession is regulated differently to the real estate industry. It is therefore essential that clients register.
bugmenot
...
written by Guy King, July 09, 2009
Emily- so it sound to me like there's no incentive here for someone to use bugmenot to access your service? i.e. if they don't give real details then they won't get tender applications
LegalTender
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written by Emily Peterson, July 09, 2009
I would like to hope so Guy!
LegalTender
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written by Emily Peterson, July 09, 2009
If you do need legal advice, you know where to go :)
gaz
...
written by Garry Clarke, July 09, 2009
Hi Guy,

Just curious but how many false usernames and passwords do you have on your site for P2P type sites (IE Pirate Bay) that are used by people to steal music, movies, tv programs and non Open Source software.

And what are your thoughts on the probability that your site is being used by people to hide their identity (IE put a stocking over their head) while they commit a crime?

Cheers
pstafford
...
written by Patrick Stafford, July 09, 2009
Garry, I believe you will find sites such as The Pirate Bay do not require user names and passwords.
bugmenot
...
written by Guy King, July 09, 2009
Garry:

1. I don't know. I have strong hunch that VHS recorders and mix tapes will eventually destroy these industries however.

2. Quite likely as it's impossible to enter fake information into these forms without bugmenot.

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