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In case you missed it, on June 21 the Supreme Court of the United States passed a judgment that states were now allowed to impose taxes on online sales.  This overrules its previous decision to rule out tax collection on stores that did not have a physical presence in that state.

So what does this law means and how is this going to look for your online business?

Before we go further into the South Dakota vs. Wayfair Inc. ruling, it is important to be familiar with how sales tax on online purchases used to work until now. The previous verdict from 1992, also known as Quill Corp. vs. North Dakota ruling, set forth that online retail merchants only had to impose taxes on their online sales in states where they had a physical presence or a “nexus.”   This means that the customers were required to pay the tax on the purchase to their home state directly.

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self-driving-uber-300x165The recent deaths of a motorist and a pedestrian in separate incidents in California and Arizona, respectively, both of which are under National Transportation Safety Board investigation, raise the question of whether autonomous driving technology has become safe enough for day-to-day roadway use.

A man from Peninsula, California, died when his Tesla Model X, which data from the vehicle log showed was in autopilot mode at the time, crashed into a concrete barrier on Highway 101 in nearby Mountain View.

Other Tesla drivers reported similar experiences near this same reeway barrier and others, corroborating accounts of the overall unreliability of the autopilot system near such dividers. At least one Tesla owner who drove near the barrier in question posted several videos showing autopilot steering to the left—straight toward the divider.

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bitcoin-1056983-300x169Cryptocurrencies like Bitcoin have been spreading like cyber-kudzu during the past couple of years in certain corners of the online investing world. More cautious investors still might be hanging back to make sure they’re not a crypto-bubble. And now all investors have a reason to hesitate: a series of legal and regulatory investigations that call into question their stability as investments.

Among the recent developments that could give would-be investors pause:

  • The U.S Securities and Exchange Commission in May announced that it had secured injunctive relief to halt alleged “ongoing fraud” by an unregistered, non-exempt Initial Coin Offering (ICO) that had raised as much as $21 million in cryptoassets. Titanium Blockchain Infrastructure Services, Inc., EHI Internetwork and Systems Management, Inc., and Michael Stollery, a self-described “block chain evangelist,” were collectively accused of fraud in connection with purchase, offer or sale of securities under both the Securities Exchange Act and the Securities Act. The SEC alleged that the defendants created a digital asset known as BAR and TBAR tokens, orchestrated a social media campaign based on false corporate relationships—including, most egregiously, a supposed link with the Federal Reserve Bank—and false testimonials to show their supposed expertise. The complaint further alleged that the group of defendants had generated demand by offering various incentives and creating a sense of urgency, then inflated the price of the tokens on the secondary market in a “pump and dump,” or “create and inflate” scheme. Such schemes are seen as a widespread problem on crypto-exchanges.
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By: Jillian Tattersall

George Bellas Business AttorneyWill the #MeToo era herald a new day in court for women who file gender discrimination or sexual harassment lawsuits against prominent people or institutions?

The 2017 deposition of a former vice president of investment banking for a major Australian bank operating in 34 countries including the U.S., illustrates what women can face.  The woman, who worked in the bank’s New York office for two years, was one of two women in her department and one of four black people in the 100-person office. She sued for race and sex discrimination in federal court in 2016, two years after being let go. Her lawsuit alleges that her male colleagues constantly commented about the size of women’s breasts and their own physical assets in addition to asking the woman about her sex life. The woman also alleges that a former manager called her a “monkey” on numerous occasions.

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Pot in the Workplace?

Illinois legalized the use of marijuana for more than three-dozen medical conditions starting in 2016, and by the end of 2017, nearly 35,000 people had applied for the program. Earlier this month, the legislature voted to allow the use of marijuana in lieu of prescription painkillers, to help avoid opioid addiction, which Governor Bruce Rauner is considering whether to sign.

And if Democratic candidate J.B. Pritzker defeats Rauner in this November’s elections, he has taken the position that he wants to legalize marijuana use in the state for recreational purposes, for the tax revenue it will bring into the state and the law enforcement and prison resources it will save. So where does this leave employers who still want to regulate its use in the workplace?

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Cryptocurrency has been a trending topic of discussion for the last several years. Cryptocurrencies such as Bitcoin and Ethereum have captured the public’s attention with their unstable, and highly fluctuating market values, as well as their promises for quick and easy rewards.

Geo Bellas Chicago Business Lawyer

Currency in the Digital World

But what exactly are cryptocurrencies? And how secure are they as an investment?     Questions such as these are precisely what Federal and State regulators, as well as Congress, are struggling to explore and answer.

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George-Bellas-Business-Attorney-300x195The growth of online paid subscription services that start with either a free trial that converts to automatic payments, or an upfront payment that automatically renews, have led to lawsuits challenging the clarity of such services’ terms of agreement.

A recent settlement that could total close to $2.3 million between several California jurisdictions and eHarmony, Inc., underscores the fact that small businesses offering automatic renewal subscription plans must present clear terms to customers prior to signup, and then obtain clear consent and an opt-in from customers to incur these fees.

The district attorneys of four California counties and the City of Santa Monica collectively filed the suit against eHarmony for allegedly violating state consumer protection laws—the California Business and Professions Code, and the Restore Online Shoppers Confidence Act. The Superior Court for the State of California for the County of Santa Cruz entered final judgment on Jan. 8.

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buscemiA proposed federal rule change that would allow owners of restaurants, bars and other businesses whose employees receive tips to distribute those gratuities as they see fit would add flexibility for employers—but might raise questions in the minds of customers.

Those who agree with the Mr. Pink character from “Reservoir Dogs,” who famously refused on principle to tip a diner waitress in the movie’s opening scene, would have a whole new set of arguments to make about which jobs society deems to be tip-worthy.

Currently, a 2011 Obama-era Department of Labor rule mandates that tipped workers get to keep the 15 percent or 20 percent that’s added to the credit card receipt or stacked under the salt shaker. The rule change would allow management to pool these tips and spread the wealth more evenly, including traditionally non-tipped staffers like dishwashers and cooks.

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data-protection-represents-forbidden-secured-and-wordcloud-266x300Have you thought about or bolstered your cybersecurity lately?

Because while government agencies, corporations and banks might be the top targets of would-be cyber attackers, small businesses need to make sure they’re protected, too, lest hackers succeed in their attempts to intrude and, in some form or fashion, monetize their information and data.

Such efforts start with educating yourself and your employees about malware and phishing attempts, ensuring that everyone knows not to open an attachment or click on a link—whether on their computer, phone or another device—if they don’t recognize the source.  You must regularly remind your employees and family never to open questionable emails or emails from an unknown source.   In particular, never open any attachments from people you don’t know or recognize.

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identity-fingerprint-represents-log-ins-and-brand-300x225The Biometric Information Privacy Act, which the Illinois legislature passed in 2008, has led to a barrage of class action lawsuits in the past six months. Thought to be the nation’s most stringent law protecting biometric identifiers—which include fingerprints, iris or face scans, and voice identification—BIPA has spurred about 30 such suits in Cook County alone.

Filed against employers such as gas stations, restaurants, and retail outlets, mostly stemming from employer time clocks that use fingerprint identification, the cases allege that businesses did not obtain proper informed consent from their employees, or did not maintain or inform employees about the company’s use, storage and destruction of biometric data, as required by the law. Some of the cases also claim the employer improperly shared with time clock vendors the biometric data, and some go so far as name these third parties as defendants.

These local cases follow on the heels of five class-action lawsuits that were filed in 2015, four against Facebook and one against Shutterfly, which allege that these social media companies used facial recognition software without asking for consent or following under procedural requirements under BIPA, which allows an “aggrieved” person to recover $1,000 for each negligent violation and $5,000 for each intentional or reckless violation.

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