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Safe Harbors and Liability of a Company

A safe harbor is a condition of a law or a rule that lessens/removes a company's or individual's liability under some form of regulation, providing that the company or individual acts in good faith within the harbor.
For this discussion, go to and review the characteristics of a safe harbor. Briefly discuss what you see as the key benefits and possible drawbacks for e-commerce enterprises that might use such a practice as part of their business model.

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The characteristic of a safe harbor is that it is a statute or a regulation that specifies that a certain conduct will not violate a given rule. Such a safe harbor is created when the overall rule is vague. These standards reduce uncertainty. The EU directives are addressed to member states and are not legally binding on the citizens. Safe harbor principles are related to privacy. Specifically, they address the issues of informing individuals that data is being collected, providing choice to individuals to opt out of the collection and forward transfer of data to third party. Other characteristics of safe harbors are onward transfer of data is restricted, efforts are made to prevent loss of collected information, and data integrity is ...

Solution Summary

The answer to this problem explains safe harbors and their significance to e-commerce businesses . The references related to the answer are also included.