Bill could kill ISP safe harbor in cases of financial fraud: Via Law & Disorder Section - Ars Technica.

In the wake of the collapse of many a 401k and a Ponzi scheme or three, it's no surprise that a bill called the Investor Protection Act of 2009 has attracted significant support in Congress. In 60 sections over 113 pages, the Act clarifies existing legislation and provides new oversight powers to the Securities Exchange Commission. But, buried on page 92, there's language that would remove the safe harbor protections that keep ISPs from being liable for information transmitted over their networks, at least when that information involves a specific form of financial fraud.

The bill, HR 3817, was introduced in October, and it recently was approved by the relevant Committee on a 41 to 28 vote, which should send it along to the full House for consideration. Most of the bill involves a laundry list of provisions intended to improve the policing of investments, via things like increased whistleblower protections and the ability to reject binding arbitration for disputes. An Investor Advisory Committee would be established, and the SEC would gain additional surveillance authorities.

Read Original Article:(Via Law & Disorder Section - Ars Technica.)