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Not Doing Your Job

Yahoo Sued Over Child Porn Site

A minor and his parents have filed a $10 million lawsuit against Yahoo Inc. (YHOO.O: Quote, Profile, Research) and a man who once operated a Yahoo Groups site where members traded child pornography.

The lawsuit, filed on May 9 in U.S. District Court for the Eastern District of Texas, charged that Yahoo breached its duties by allowing co-defendant Mark Bates and others to share child pornography on a site, called Candyman, that Bates created and moderated via the Yahoo Groups service.
Ref. https://www.reuters.com/newsArticle.jhtml?t...storyID=8477528

Job Your Not

This is one of those cases in which its going to end bad no matter what. If they win, it will set the precedent that all sites are responsible for the groups and content that all of its registered users put up. Trying to manage that now would not be possible. If they don't win, it gives sites like yahoo the freedom to not care what is put on sites that they give their members. I wonder if there is going be a middle ground, one in which yahoo can be give a fine or something, but not punished like the offender. Enough to say pay attention to what your service is being used for, but not enough to make it worth suing them if it slips past them.

Not Doing Your Job History & Civil Business Politics

Well I think it should not matter if there is a disclaimer or 'report abuse link', but like you said it is difficult. I know companies like Tripos / Lycos regularly police their sites and do warn you if they see something against their terms / policies - I guess it is possible, but when you expand at and increasing rate like Yahoo does you tend to get sloppy.