Legal Question in Technology Law in Florida
Internet Law - & Travel
Our company will be offering large .com companies a 3 day 2 night mini-vacation to their members as an incentive for specific "actions." We sign a distribution agreement with the .com's, and enter into an agreement with various resorts and certificate companies to fulfill the traveler's stay. Our web site provides the vehicle for the traveler to request their reservation (as given to them by the .com companies). If we were distributing such a vacation "certificate" offline, we would need a Seller of Travel in many states, along with registration in all other states where the promotion will be offered. But if we are entirely online, must we register in every state? Can we locate our server somewhere such as the Bahamas (or other location) and avoid state to state registration? We want to comply across the board, but we are hoping that there is an easier and less expensive route than that of a normal certificate company.
1 Answer from Attorneys
Re: Internet Law - & Travel
As you might expect, both the states and the federal government are currently grappling with how to appropriately regulate commerce conducted
over the Internet. One of the most debated issues concerns which jurisdiction's laws apply to transactions over the Internet. This issue was
discussed at length at a seminar attended by David Greber, of our firm, which was held on Monday, Oct. 2, 2000, entitled "Managing the Legal Risks in E-Commerce." In general, those who do business over the Internet potentially subject themselves to the jurisdiction of not only the several states, but also foreign countries. It is not necessarily enough to comply
with the laws of the state (or country) in which the server is located.
There are several cases in which American companies have been sued in Europe for failure to comply with European law, even though the American companies had no presence in Europe other than the ability of Europeans to access the American web site.
In your case, you should assume that the fact that these travel certificates will be distributed over the Internet does not change your obligations under state law to obtain a "Seller of Travel". You may wish to seek opinions from the attorneys general of the various states in question to determine what the positions of the state regulators are, but it would not be advisable to test the waters by launching this venture without such opinions. If you are permitted to offer these certificates in some states, but not others, then an appropriately drafted and positioned "Terms of Service" Agreement on your web site may be sufficient to protect you from liability in the states where offering these services would not be permitted.
We would be glad to assist you, in the event that you need legal counsel.
Please call David Greber at (301) 696-9396 in the event that you have questions about how we may be of service to you.