Craigslist Ads Scandal?

Craigslist, the San Francisco-based community and peer-to-peer advertising site, is involved in a scandal and facing increased scrutiny for the controversial ads that form a major part of the site's revenue.

Because it is so easy to use, Craigslist has essentially taken the place of newspaper ads in real estate, jobs, and personals.

Problem is, the site is so easy to use that it opens the door for crime and controversy.

It was just reported that Craigslist receives one-third of their revenue from prostitution ads.
Since that's illegal. Is Craigslist going to be sued? Is the government going to take action on the Craigslist's scandal?

asked by Markie in Controversy | 2352 views | 04-26-2010 at 08:16 PM

Craigslist has been a top money-making website for years, but a significant—and increasing—portion of the online classified giant's revenues is from prostitution ads, according to new revenue estimates.

Craigslist doesn't have the most revenues of online companies, but it is almost without a doubt the most profitable relative to size.

They have the highest revenues per employee of any blue chip company in the the tech industry.

The ads are expected to bring $36 million this year, according to a new projection of Craigslist’s income. That is three times the revenue in last year’s projection.

Richard Blumenthal, Connecticut's attorney general, has written to Craigslist about the prevalence of prostitution ads on its site. In a private letter, published in part by the New York Times, Mr Blumenthal wrote: "I believe Craigslist acted irresponsibly when it unilaterally decided to keep the profits from these posts."

Although Craigslist has continually argued that it is legally protected by the Communications Decency Act against liability for what its users post — an analysis that judges and legal experts generally agree with — it promised last May to begin manually monitoring these posts for illegal activity.

People use Craigslist for a lot of things, like trying to find a used bike or a sketchy walk-up in Brooklyn. Sometimes a lonely lady or fella may put up an innocent personal add on the site, just looking for companionship. Some people might go so far as to say that a lot of the adds up on Craigslist actually qualify as prostitution. Craigslist doesn’t see it that way, especially since the site looks to take in $36 million this year off of questionable ads.

Law-enforcement officials have been fighting a mostly losing battle to get Craigslist to rein in the controversial ads. At the same time, officials of organizations that oppose human trafficking say the site remains the biggest online hub for selling women against their will.

answered by Omar | 04-26-2010 at 08:21 PM

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