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He is an adjunct professor at Fordham University School of Law teaching E-Commerce Law and the co-author of two books, “Doing Business on the Internet” and “Emerging Technologies and the Law.” He also co-writes the New Media & Technology Law Blog.

Despite its occasionally troubled history, including fraud, lawsuits and zealous government regulators, Pay Pal now boasts over 100 million active accounts in 190 markets worldwide [source: Pay Pal].

Infostream is the operator of two sites that “cater to adults looking for a non-traditional dating experience.” For a fee, Seeking facilitates “mutually beneficial relationships” between members who refer to themselves as either a “sugar daddy,” “sugar mommy” or “sugar baby.” Whats Your charges a fee to allow members to “buy and sell the opportunity of going out on a first date.”When Pay Pay moved to dismiss Infostream’s complaint, it was quick to point to media sources that have associated the Infostream sites with purveying sexual services (see Pay Pal memorandum in support of motion to dismiss, n. One of the cited articles included alleged accounts of sex-for-pay encounters arranged through the Seeking site by graduates seeking to pay off student loans. As to Pay Pal’s argument that it had reserved the right to terminate any account “at its sole discretion,” and “for any reason at any time,” the court found that the contract included, by implication, an implied covenant of good faith and fair dealing.

Infostream responded with the allegation that Pay Pal was invoking its unfairly, because the company continues to provide services to competitor sites that are similar to its own, such as Ashley Madison.com, which urges users to “have an affair,” and Arrangement Finders.com, which promotes “mutually beneficial arrangements” between men and women. Infostream had adequately alleged that obligation had been breached, the court said, if it could show that Pay Pal terminated the account in order to benefit Infostream’s competitors.

Adult services such as prostitution have followed their customers online, closely followed by law enforcement authorities.

In one case, authorities sought to charge the Craigslist site for promotion of prostitution, and sustained pressure from state attorneys general succeeded in getting the site to drop its adult services section. 28, 2012), United States District Judge Susan Illston dismissed some, but not all, of Infostream’s legal claims.

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