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Sounds like a complete nightmare to me. The big question I have after reading it is this. I am Canadian, my hosting is in the U.S. By the sounds of it, hosting companies are exempt....so does that mean I do not have to comply with the new regulations?
Mind you, I have a photo of each model holding up their I.D. as well as a copy of their signed release....but all that cross-referencing stuff....and all the URL's etc. will be such a pain in the ass.
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