Wednesday, May 06, 2009

Craigslist attorneys talks to state attorneys general about its "business model"

Craigslist lawyers are meeting with attorneys general of a number of states, including Illinois, trying to reach a compromise. Increasingly, the site has been used for arranging prostitution, which has resulted in criminal activity, including the Markoff spree in Boston and in Rhode Island.

States note that the site generates 20 billion page requests per month, in 50 countries, with a staff of only 28 people. And a large portion of these, according to states, are for erotic services or for services that cannot be safely procured from anonymous strangers over the Internet.

With a “staff” of one, I generate some page requests on my sites, but nothing like 20 billion. But it seems as though the low capital requirements for the company and the high leverage is viewed by them as anti-social.

The story by Edith Honan appeared on UK Reuters.

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