Trade association proposed to represent ratings websites

When a Washington D.C. homeowner became disgruntled with a contractor who turned a remodel into a costly nightmare, she posted a complaint on a review site called Angie’s List. As Washington Post Metro columnist John Kelly chronicles in a recent post, it wasn’t long before the contractor caught wind of his negative review. The retaliation? A $6 million lawsuit against the homeowner.

Kelly’s column notes that the contractor wanted to sue Angie’s List, but that his lawyer told him it was protected. The statute most likely being referenced is Section 230 of the Communications Decency Act, which essentially protects Web publishers from comments posted by users on their sites.

But the negative impact for review sites as a result of this sort of incident is exactly what concerns Bob Nicholson, vice president of marketing and business development for Ratingz.net, a company whose umbrella of review and ratings sites includes RateMyProfessors.com, RateMDs.com and RealEstateRatingz.com.

Nicholson says the company’s sites continually receive threatening phone calls and letters in reaction to the negative reviews garnered by its members.

Armed with marketing budget and media contacts, Nicholson says professionals can take an aggressive stance against review and ratings sites. That’s why he’s spearheading an effort to organize these sites by forming a trade association for ratings and reviews websites.

OJR spoke to Nicholson about the legal issues and cases brought against the publishers of these sites, the need for codes of conduct and why ratings sites deserve a positive spin in the press.

Online Journalism Review: Comments and ratings posted on review sites are usually anonymous. Is that crucial to a successful review site?

Bob Nicholson: People are hesitant to share their opinions precisely because of retributions, so I think it’s important for people to share their opinions with some confidence that they’re not going to be sued for what they say.

OJR: To play devil’s advocate, if people are saying that something that’s true, then why be afraid to put a name behind it?

Nicholson: In our system of justice, you can be accused of anything. Even if your defense in court is the truth, being sued can still cost thousands of dollars in legal defense, even if you ultimately win the case. Many people don’t want to deal with that.

So we’d see a real chilling effect if people are afraid to post their opinions. If RateMyProfessor.com hadn’t allowed anonymous postings, students certainly wouldn’t have shared opinions about professors because of fear of retribution.

OJR: Have any lawsuits been filed against your company?

Nicholson: None of the [sites] has actually been sued. We regularly get threatening letters and phone calls. But we have quite strong legal protection in the form of Section 230 of the Communications Decency Act, which basically says that we are immune from the liability for content posted by third parties on our website.

If someone wants to sue the person who posted the content, they have to go through a two-step process. First, they have to get information from our company about who posted the content, and really all we can give them is an IP address and time of posting because that’s all we have. And they need to get a court order in order to have us divulge that information, which we have done on a couple of occasions. Then they need to get another court order to go to the Internet service provider and find out who was using that IP address at that time.

Sometimes a person who posts a negative review will post enough information in the review that it’s kind of self-identifying, and there’s a reasonable cause of action. In that case, the party who objects to the review can bypass all of these steps and file a John Doe lawsuit claiming that they believe this person is responsible for these postings.

OJR: How should reviews be monitored?

Nicholson: We tend to air on the side of letting posts go through. We do remove posts that have derogatory racial or sexual comments. We also remove posts that include personal identifying information about the poster or third party.

If a post includes specific allegations of illegal actions, we delete that too. Our position there is if you have knowledge of specific legal actions, a ratings and review site is not the place to post that information.

For example, if someone posts something that says, ‘this auto mechanic says that he fixed my carburetor and he didn’t fix it at all. He didn’t do what he said he was going to do,’ that’s a complaint about service. On the other hand, if he posts something that says, ‘this auto mechanic gave me a written quote and then before he would give me my car, he gave me a bill for another item which does not match the quote,’ that’s an illegal action.

OJR: But as a reader of review sites, boy, would I want to know about that mechanic before I took my car there. So do you allow some of those posts or how does it work?

Nicholson: We do and it’s subjective and difficult because we have moderators and we provide guidelines for them, but sometimes the moderator may interpret the rule differently in a particular case than I would interpret the rule. So we have guidelines that we try to apply on the sites that we manage, and it’s by no means universal and other sites have different guidelines or standards.

OJR: How would a trade organization unite ratings sites?

Nicholson: One of the things that we want to do is provide a source of information the press can turn to for the other side of the story, which is that individuals really need a voice. They need a place to share their opinion, and where they can hear about what other people have experienced. They need to have something that balances the marketing power of professional associations by giving individual consumers the ability to express themselves and learn from other consumers.

OJR:What would a professional code of conduct for ratings sites include?

Nicholson: That’s really premature to talk about. I think one of the things we need to do is as we build the organization is to get the various companies involved in deciding that.

OJR: How do you draw guidelines for posts?

Nicholson: Well that comes down to the individual company and site philosophy, and I do think that it’s important that sites be open and public about what their standards are so you can understand how posts are being filtered.

In our case we’re very careful about deleting things because we don’t want to bias the ratings with our feelings. People express themselves differently. We see a very different review and type of language on our nightclub site than on our camp ratings site. If we try to apply our biases, I might filter out a lot of the ratings on our nightclub ratings site because of the language, but for that audience it’s valid discourse–

OJR: So you don’t want to disrupt the culture of whatever the product or the service is–

Nicholson: Yes. We also put a lot of faith in people as readers. When you’re reading reviews that people have posted, their language will influence you and you’ll interpret what they’re saying partly based on how they’re saying it. Do they seem like they’re crazy and vindictive or do they seem reasonable and are giving a balanced review?

We don’t prefilter the content because you can form your opinions just as well as a moderator will make any decision as to what to let you say.

OJR: How does a user trust that reviews are legit?

Nicholson: Through a combination of software filters and instructions to our human moderators, we do try to filter out that type of abuse. We give our moderators instructions to look for patterns that computer software would have a difficult time seeing. For example, do I see the same phrases being used? Do I see the same language used over and over again? Do I see reviews submitted for five different Realtors within the same geographical region that uses very similar language to say this Realtor’s terrible? Then the suspicion is that maybe a realtor in that area is systematically slamming his competitors.

We also have faith in the site visitor to look at the reviews and say, you know all these reviews are just too glowing, or they’re all just too awful and I don’t really believe them. We also emphasize this is just one source of information and if it’s an important decision, it certainly shouldn’t be your only source of information.

To contact Bob Nicholson about his proposed trade association, e-mail bob [at] ratingz.net.

Legal and business advice for online publishers and bloggers

Over the months that I’ve been writing about legal issues for OJR, the consistent issue that has emerged is that online publishers need good legal representation. But that imperative has been matched by an equally vexing question: how does a small publisher get the right legal advice at an affordable price? Fortunately, there’s a host of good resources available, and some fairly clear guidelines on when legal advice is needed. Here’s what I learned from talking to the experts and scouring the Web.

Consider your legal exposure when choosing a structure for your business. Mark Anderson, an intellectual property attorney at Masur & Associates, says that, “Especially in terms of copyright infringement claims, damages can be very high, and if you’re not insulated by a corporate entity… then, your personal assets are potentially at stake. If somebody sues you for something that you wrote on your website, they’d be suing you personally, then you could lose your house; you could lose your car. But if you’ve got a business set up, that’s separate from you, it’s the business that would be sued, and the most you could lose from that is what you put into the business.”

According to Anderson, many small publishers find that a limited liability company, or LLC, provides the right combination of tax and legal advantages. Because an LLC is a corporation, its assets and liabilities are separate from those of its principals. However, some corporate structures have a disadvantage, because both the corporation and the individuals deriving income from them pay taxes. Owners of LLCs, along with S Corporations, can avoid this double taxation when their revenues are small, but they can change the way they are taxed if they start to make more money. LLCs have other additional advantages – for example, the ownership rules are more flexible.

An ethics policy or code of conduct may help protect you from libel or defamation charges. Ethics codes have their own virtues, and they don’t protect a publisher from legal action by themselves, but they can help to set the tone for an online community and clarify the publishers’ intent.

The debate over codes of conduct has become more intense because of the recent controversy surrounding threatening comments and pictures posted about prominent technology blogger Kathy Sierra. Sierra told readers that safety concerns led her to cancel speaking engagements and hide out in her home, awaiting the results of a police investigation. What followed was a vigorous, ongoing debate including efforts to create a bloggers’ code of conduct. [Full disclosure: I am a contributing editor for BlogHer one of the groups that figures prominently in both the Sierra controversy and the debate over blogging guidelines. BlogHer’s community guidelines inspired a proposed code of conduct proposed by well-known web writer Tim O’Reilly. Both codes pledge that online publishers will ban “unacceptable content” — content that might be libelous, abusive, or that might infringe on a copyright or trademark.

Anderson says it’s “tough to say” how a bloggers’ code of conduct might affect a legal proceeding. “There are certain protections under the law for journalists, and now it’s getting tougher and tougher to define who, exactly is a journalist. Potentially, adhering to one of these codes might be a factor that weighs in favor of somebody being treated as a journalist under certain laws.”

Small publishers doing journalism have to think carefully about the risks they are willing to take, especially since the legal definition of a journalist is subject to debate. Of course, freelancers and small publishers who commit acts of journalism have to understand that courts may not be willing, for example, to extend state shield laws protections to them. It’s also important to understand that federal prosecutors have broad subpoena powers when it comes to forcing the disclosure of information they deem important for a criminal investigation.

Nothing better illustrates the risks small publishers take than the case of videoblogger Josh Wolf, who was released from federal prison in early April after serving 8 months for refusing to turn over video outtakes from a July 2005 demonstration to a grand jury. Wolf claimed that, as a journalist, he was entitled to withhold the information under California’s shield law. However, the court rejected his claim because Wolf was not employed by a news organization at the time that he shot the video.

Be clear about your purpose. It’s because of Wolf and other citizen-journalists that Christine Tatum, president of the Society of Professional Journalists, thinks that the definition of a journalist should be expanded beyond those who are paid to report the news. “We want to define journalists as people who are gathering information with the purposes of distributing it,” Tatum says. “Rather than question for me being, ‘was that person a journalist?’ the question for me is, ‘was that person practicing journalism?'”

That view of journalists was part of the reason SPJ donated $31,000 to Wolf’s legal defense and helped him obtain the services of top-notch legal counsel. But Tatum acknowledges that the law has not embraced that definition, and neither do many bloggers. Noting that many bloggers say they aren’t journalists but want the legal protections afforded to journalists, she said, “I encourage people to really take a long and hard look at what is it you are, really?”

Take advantage of the growing number of educational resources and training opportunities made available by advocacy groups and professional organizations. Small business attorney Nina Kaufman notes that the Electronic Frontiers Foundation has a plethora of free resources, including legal guides for bloggers. The Media Bloggers Association is just one of several organizations that offers training in journalistic practices and legal issues. They have also taken the lead in advocating for press credentials for its members, most notably in the recent trial of Lewis “Scooter” Libby.

The MBA’s success echoes Anderson’s argument that, “the more professionally you run your blog site, the more you act like a traditional journalist, the more you are going to be treated as a real journalist. That would include adhering to a code of ethics.”

Be smart about copyrights. Anderson quips, “For starters, don’t use anything that belongs to any one else.” Seriously, Anderson urges publishers to educate themselves about fair use guidelines, which permit the use of small portions of copyrighted material for comment, criticism, parody or educational purposes. It’s a serious matter: Anderson warns that copyright judgments come with statutory damages that can be as high as $150,000 per violation. For that reason, Anderson urges publishers to think carefully before choosing to defy a request to remove material that someone claims is infringing on a copyright or trademark.

EFF maintains that major copyright holders such as entertainment companies often make abusive use of copyright laws — combating that abuse is one of their major areas of advocacy.

But online publishers are also copyright holders, and sometimes they, too, have to take action to protect themselves. Blogger Elise Bauer warns that there are some people who use RSS feeds to aggregate others’ content without their permission, forming their own revenue-generating website. Bauer urges using the Digital Millennium Copyright Act against them, either by filing a complaint with Google for content scrapers who use its AdSense program, or by complaining directly to the DMCA office itself.

When in doubt, ask a lawyer Anderson said the published guides and training workshops are great for general knowledge, but it’s best to consult an attorney for really specific questions. And EFF spokeswoman Rebecca Jesschke says that their attorneys have found that some media lawyers are willing to consult with small publishers for a reduced fee, assuming that the matter in question isn’t too involved.

Bottom line: choosing to publish online is an enormous responsibility, and it carries risks. But a professional attitude, self-education and a few proactive steps can go a long way.

Consider liability insurance Anderson says media liability insurance can offer “peace of mind” for online publishers. One leading provider, Media/Professional/Insurance, says the right policy offers much more. M/PI is one of two companies specializing in policies tailored for cyberspace-based businesses.

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In addition: The SPJ, EFF and MBA are just a few of the professional organizations and advocacy groups that offer legal advice and support. Others include:

The 'Libby Effect': Can you still keep your sources secret?

At this writing, the jury has yet to hand down a verdict in the trial of former White House aide Lewis “Scooter” Libby on charges of perjury and obstruction of justice. [Update: Guilty on four of five counts — Ed.] Whatever the verdict, one thing is clear, according Amy Ginensky, a partner at the Philadelphia law firm of Pepper, Hamilton, LLP who has tried many First Amendment cases: the Libby trial is “a subject that all of us who have any thing to do with the media need to do a lot of thinking about.”

Certainly, a lot of people are thinking about it, as evidenced, for example, by the discussion generated by Scooter Libby segment of the PBS Frontline series, News War.

OJR sat down with Ginensky to find out why she says that the Libby trial, “has changed journalism as we know it.”

OJR: You’ve said that “After this trial, even if privilege can be protected in federal and state courts, many may not perceive it.” What did you mean by that?

Ginensky: We all grew up in the “Deep Throat” era and thought that everything is protected and confidential. What we’re going to see, and I’ve already seen it myself, is lawyers – both on the civil and criminal side — thinking, ‘Oh reporters have to testify – that’s what the Libby case is all about. And it’s obvious that while there may be certain instances in certain courts where reporters have to testify, but in many states there are strong protections… shield law or common law protections. In federal courts there are still some protections, and some federal courts have been stronger than the DC court was.

So, I think lawyers’ instincts are going to be to serve a subpoena whenever they think journalists have information about anything – any information, whether or not it’s been published, whether or not it’s confidential, or whatever, they’re going to try to get reporters to testify.

Then I think you’re going to face the fact that sources have seen this group of reporters walk into the Libby trial and testify and be the number one and two and three witnesses against Scooter Libby. That is a position that I think reporters have always tried to avoid, to be a witness against people who are talking to you.

In the Justice Department, I think there has been a great reluctance to serve subpoenas on reporters – I think that’s changing. But… the fact that people think that the protections have been undone [doesn’t mean] that they have been undone.

We need to fight against that to the extent possible.

OJR: One of the extraordinary things about this case is that you have the White House and the prosecutor using the unprecedented tactic of getting sources to sign confidentiality waivers.

Ginensky: It is unprecedented. But what I have argued before is that the privilege is not the source’s; the privilege is the reporter’s. It doesn’t matter if my source is willing to speak, if I’m a reporter. It’s whether or not I will waive the privilege.

And I, as a journalist, have good reasons not to want to waive the privilege in addition to the source’s reasons, because it will chill the next source. I have won on that argument in both Federal and state courts before. Obviously this argument must have been made and did not work in [the Libby] case. If sources believe that their employers can get these waivers out of them, then they’re probably not going to be whistleblowers.

It seems to me that in the face of an attack like this, what we ought to do is to stand up and try to protect [reporters’ privilege] as much as possible, rather than lay down.

OJR: You say that there ought to be a conversation in every newsroom about the rules for granting confidentiality to a source. It’s been suggested that the practice of granting confidentiality has changed over the years from being an incentive that reporters sometimes use to coax reluctant interview subjects to being a privilege that sources expect and use to put out information for their own purposes.

Ginensky: I always understood, both from the dealings with journalists, and also from arguments that I’ve made in court, that it’s…used almost as a matter of last resort. We try to get people on the record, and not just take information off the record, because there are recognized dangers with this type of information.

And then, you may find yourself in a situation like Judith Miller, where you haven’t even published [your information] and you’re faced with having to try to protect somebody who you’ve really never tried to get on the record, and you put yourself, I think, in a bad situation.

OJR: This all comes about when the traditional interpretation of the Branzburg case is being challenged.

Ginensky: We’ve argued for years that the Branzburg case does not mean that there is no protection. But more and more courts – federal courts have found to the contrary. All the efforts to get federal shield laws are really important.

OJR: You’ve also suggested that reporters need to think about their methods and frequency of note-taking.

Ginensky: I think that each journalist needs to think about when they’re taking notes. There are journalists who always take notes – whether it’s on the record or off the record, and then they make a note afterward whether the conversation is on the record. And then they keep the notes, pretty much forever, and then they’ll be like Judy Miller – they’ll find them under desks, in shopping bags.

And that’s not a place you really want to be, because then you’ll have those notes being used to go against the memory of your source… Most sources are not likely to have that accurate a recollection, not because of anything nefarious, but because people just don’t recall the details of conversations. And given any time passage, most of us can’t recall. And so we have the journalists’ notes being used to impeach our source, and that’s a really terrible picture to put out there, and a really terrible position to put your source in.

So I think that people need to think initially, “Am I going to make notes for this conversation with this confidential source where there’s a likelihood I might end up in a battle about my notes?” Maybe you don’t make notes at all. Once you get a subpoena, you can’t get rid of your notes – that’s the destruction of evidence. So you have to think about it, I think, right from the beginning.

OJR: Many journalists hold on to their notes both in case there are questions, and because they might want to re-use the research for another project.

Ginensky: Right. And I’m somebody who defends a lot of libel lawsuits, and sometimes notes can be helpful. Most of the time, they could be helpful, but you’ve got to weigh the possibility of getting a libel lawsuit now against the possibility of a subpoena, and be thinking about these things ahead of time. You can never predict where your libel lawsuit is going to come from, nor predict where every subpoena is going to come from.

But in both instances, you can make some calculated decisions. I mean, I have been more surprised about libel lawsuits, but subpoenas – there are areas where people probably should think about whether they’re likely to get a subpoena. If you’re dealing with a whistleblower in a government agency, think about it ahead of time.

OJR: That gets pretty tricky when it comes to things like e-mail.

Ginensky: Yes, you have to worry about e-mails for your subpoenas; you also have to worry about your phone records, because there have been subpoenas to phone companies where you don’t even have control. Then, the fact that there is this phone record with you and this confidential source could reveal the confidential source. So you might want to think about some way to communicate other than the telephone. Hopefully, it won’t involve getting in the basement or parking garage like Deep Throat!

OJR: You’ve said the credentialing of bloggers to cover this trial is also significant.

Ginensky: The credentialing of bloggers is significant because it places them on a similar level as mainstream journalists. However, this event also raises some questions about the treatment of bloggers. For example, if they are treated as journalists, then will the standard of conduct practices that applies to journalists be applied to them as well in relation to liability issues? If you are considered a journalist, then you’re going to be held to a journalist’s standard of care in a libel lawsuit. I would suspect not all bloggers know much about the standard of care of how other journalists work. On the other hand, if they are considered journalists under shield laws, then, to the extent that they have confidential sources and the statutes that protect them, that’s a good thing.

OJR: Given what you’re saying, anyone who’s going to do journalism really has to have access to quality legal advice. When it comes to solo journalists, bloggers and small publishers, you’re not available.

Ginensky: Right, and I don’t have an answer for that. I would think for a lot of bloggers, it means getting insurance. I worry about risk, and I can’t say I have an answer for that. In terms of how they protect themselves, there should be a lot of reading and discussion. I would think that journalists who are in newsrooms. If they say to somebody, “I’ll protect you and give you confidentiality,” are they really willing to go to jail for that person? That’s a real problem, I would imagine.”

Whatever the verdict, we’ve all been sentenced to deal with a new with a new way of thinking about this, and the recognition that sources are going to think of it differently, and courts of going to think of it differently. In my view, we shouldn’t give up, but we should be proactive in the steps we take.