JuicyCampus.com Under Investigation

By Eric Sinrod, 

JuicyCampus.com is an Internet site that allows the anonymous posting of gossip about college students who at times are specifically identified by first and last names, as well as by dormitory. This site has attracted not only the attention of interested college students, but also the attention of law enforcement authorities.

Indeed, JuicyCampus.com recently was subpoenaed by the New Jersey Office of the Attorney General and the Division of Consumer Affairs relating to a State investigation having to do with the site's operations.

The issue being investigated is whether JuicyCampus.com is in violation of the New Jersey Consumer Fraud Act because of potential unconscionable commercial practices and possible misrepresentations to users.

The subpoena was issued to Lime Blue, L.L.C., of Reno, Nevada, the apparent owner of the site, and seeks information relating to how the company selects "supported campuses" identified on its site. The subpoena also demands information about how posters' school affiliations are verified. And, the subpoena requests information as to how its handles the parental consent forms required for posters under the age of 18.

Perhaps one reason JuicyCampus.com came onto the radar screens of governmental authorities is that the site includes unflattering references to race, ethnicity, physical attributes, and even implied sexual experiences of students.

On the other hand, the site's terms of use require posters to agree not to post content that is abusive, obscene, or that might invade privacy rights. JuicyCampus.com informs the public that such offensive content may be removed. The catch, however, is that the site apparently does not have the tools to report or dispute such material.

In addition to the foregoing subpoena, another one was issued by the State of New Jersey to Adbrite, Inc., an online advertising company that has advertised on JuicyCampus.com. The subpoena seeks information going to the business relationship between Adbrite and JuicyCampus.com. The state seeks to find out how JuicyCampus.com represented its operation to Adbrite, including advertising keywords and types of ads requested by JuicyCampus.com.

On top of all of this, the State of New Jersey has sent correspondence to Google, Inc. about its prior business relationship with JuicyCampus.com.

At this point, JuicyCampus.com is on the receiving end of discovery requests. The real question is whether New Jersey enforcement authorities will conclude that there is fire where there is smoke.

Obviously, companies should do their best to make sure that their business models pass legal muster to the point that interest of governmental authorities is not aroused.

Eric Sinrod is a partner in the San Francisco office of Duane Morris LLP (http://www.duanemorris.com) where he focuses on litigation matters of various types, including information technology and intellectual property disputes. His Web site is http://www.sinrodlaw.com and he can be reached at ejsinrod@duanemorris.com. To receive a weekly email link to Mr. Sinrod's columns, please send an email to him with Subscribe in the Subject line.

This column is prepared and published for informational purposes only and should not be construed as legal advice. The views expressed in this column are those of the author and do not necessarily reflect the views of the author's law firm or its individual partners.

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