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Craigslist 'Erotic Services' ads will change

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The privately held Craigslist Internet classifieds will be changing due to the very public eye being focused on it after the much publicized murder of a masseuse by a would-be client who preyed on the unsuspecting.

The change comes as Craigslist has become the whipping boy by Attorney's General in a state near you. The change they seek is a banishment of all services advertised that are of a direct or indirect sexual nature. Instead, what has been volunteered is that Craigslist will be dropping 'Erotic Services' ads.

The company will set up a new "adult services" section that will be closely monitored. New postings in the "adult services" category will cost $10, but once a posting is approved, customers will be eligible for re-posting at $5.

Jim Buckmaster, Craigslist's CEO, said the agreement preserves a place "for legal businesses to advertise" while incorporating suggestions from law enforcement, free speech advocates and Internet law experts. He went on to say, "The record is clear that use of Craigslist classifieds is associated with far lower rates of violent crime than print classifieds, let alone rates of violent crime pertaining to American society as a whole,".

I tend to agree with the company that it is being singled out when the world is blanketed with what has often been referred to as smut, from other online companies, magazines and free newspapers. However, I also believe that Craigslist's popularity and "mainstream status" give a level of legitimacy to businesses, that are often not.

What goes on in the privacy of your home is one thing, but broadcasting it to the neighborhood goes too far. To the degree that Craigslist is broadcasting I think they would only be feigning any concern if they do not find a way to draw the distinction.

From what I have read in the past, Craigslist is a highly profitable enterprise that has turned down repeated buyout offers for billions of dollars because founder Craig Newmark wanted to be a man of the people and not chase every dollar. This issue will continue to make the headlines and it will be interesting to see how the company responds to continued criticism when it makes itself out to be relatively altruistic.

It has contributed to the demise of the newspaper business as it has stripped away much of their classified advertising business. As major newspapers are diminshed or disappear, Craigslist will have growing responsibility as a corporate citizen be it public or private.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money.

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Last updated: November 26, 2009: 05:39 AM

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