Originally Posted by Lycanthrope

Technically, no hosting provider should be responsible, paid or free. The arguable issue is of course the "editorial control" the freehost operator has over account holders free hosted sites. Does placing / changing banners (even though you are more than likely using a script) on free hosted sites / pages constitute editorial control? etc.

In a logical world, the freehost operator should be responsible for any banners that are automatically placed on the pages (ie: headers and footers), and the account holders responsible for the actual content of the page. Unfortunately, I don't think logic will come into play much and is one reason why I killed my freehost.

However, the responsible provider of free hosting SHOULD take steps to avoid completely anonymous signups. Email address confirmation, etc.

Should freehosting services be exempt per the regs, freehosts should see good times again. However, should they somehow be deemed responsible for all content, I would expect that US based freehosts close up shop.