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Paul Kanjorski

Investor Protection Act Targets Internet Service Providers

in Broadband Updates/Broadband's Impact by

Legislation introduced last month in Congress to provide the Securities and Exchange Commission with additional authority to protect investors from violations of the securities laws contains a section on Internet service providers. According to the text of the legislation, an Internet service provider would only be held liable if it had “actual knowledge that the material contains a misrepresentation of the kind prohibited in paragraph” or “is aware of facts or circumstances from which it is apparent that the material contains a misrepresentation” and fails to act quickly to remove or disable access to the material.

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