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10 19-vega

10 19-vega






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    10 19-vega 10 19-vega Presentation Transcript

    • BOLO 2010Social Media: Compliance Considerations
    • Amanda Vega
      20 years online experience
      Service agencies and clients alike
      MBA, Columbia
      NY, Phoenix, Dallas, Shanghai
      PR, social media, compliance, web
      Pink Porsche owner, pug lover, red bottom shoe zealot
    • Amanda Vega Cont…
    • The Social Media Bible - contributor
    • Some of Our Clients
    • Some Key Points
      No other agencies have internal compliance department
      Licensing requires sponsorship (Series 7, 63 needs a broker dealer)
      Very expensive to maintain internally
      Compliance spans social as well as print, etc.
      Everyone has some regulation – FTC at the least
      Crackdowns happening NOW
    • Regulatory Bodies
      FTC: all communication, advertising, marketing
      FDA: pharmaceuticals, nutraceuticals, some supplements, cosmetics, etc.
      FINRA: publicly traded companies, broker dealers, financial services companies AND individuals
      HIPAA: hospitals, physicians (and groups)
      UK Laws
      Internal risk controls (internal auditing, risk to data)
    • FTC
      October 2009 Changes
      Celebrity endorsements, testimonials, social media endorsements
      Must disclose relationship to product/client
      Must disclose if product was free
      Doesn’t have to be in each post
      Put in profile
      Celebs have to disclose they are paid
      Twitter wasn’t covered so no case on this YET
      Some employment considerations
    • FTC Continued
      No more safe harbor with “results not typical”
      Actual results have to be accessible
      Disclosing of material connections
      If blogger gets paid you have to disclose
      No false and misleading claims
      Disclosure of use of company sponsored research
      Liability for affiliates and other resellers is now on company
    • FTC Violations
      Banana Republic
      Internal “intern” was posting “ad heavy commentary” on fashion blogs
      Did not disclose she worked for BR
      Fine: $5,000 (pending)
    • FDA
      Disease claims
      Cannot say cure, treat, mitigate, or prevent
      Say “alleviate the symptoms of…”
      Adequate substantiation of structure/function claims
      If you say an ingredient does X, you have to have studies proving that
      Adequate substantiation of other statements
      If you say “few or no side effects” have proof
      If you say this online, you are open for product liability and personal injury claims
    • FDA Continued
      Use of Testimonials
      When you allow testimonials you accept liability of that person’s claims, period
      Link to third-party literature
      For anything you link to, you adopt all of the claims
    • FDA Violations
      First Juice and 3 other small juice companies asked to change all labels saying “half sugar”
      Big brands were not attacked – more lobbyists
      All brands had links to research/tests proving claims
      FJ fought back and won the claim
      Pharmaceutical company fined for fake testimonials posted in social media by their PR firm
      Use REAL people with disclosure instead
    • FINRA
      October 2010 changes – VERY SEVERE
      Record keeping and reporting
      You must archive/save all social/email for 3 years
      Communication online is considered same as in person
      Advertisement versus correspondence
      Tweets and blogposts on your blog are considered advertisements
      DM’s/email considered correspondence
      Ads need pre-approval, correspondence needs review
    • FINRA Continued
      Oversight into activities
      Compliance can regulate any offerings as part of oversight
      They cannot regulate your personal hobbies unles industry related
      Customer service
      Try not to handle full issues back and forth on Twitter – chain leads to harder protection
      Cannot help with account specifics online
    • FINRA Violations
      Assistant posted to Twitter “it’s a great day. Boss in meeting with XYZ all day. Quiet.”
      XYZ = competitor COO
      Day traders went crazy thinking there was going to be a merger
      SEC came in and filed compliance violation
      Keep in mind – her actions were NOT in violation of their internal policy OR any regulation
    • HIPAA
      About 500 of 6,000 hospitals are using social
      Do not ever list a patients name or picture anywhere
      Friending patients on Facebook puts you into grey area – interaction can be confirmation of relationship which is violation
      You can help people, but make disclosure in profile and posts
    • HIPAA Violations
      Medical resident twitpic’d photo of his first set of stitches
      A part of a tattoo was showing – therefore showing identity which is a violation
      $10K fine to hospital
      Social media wasn’t included in their training
    • Internal Risks
      • Social networking sites are the most vulnerable category of Web sites
      • 82% of social networking sites have an urgent, critical or high severity vulnerability - May 2009 WhiteHat Security
      “ It is not a risk that someone will do something dumb someday. Actually, it’s a certainty.”
    • Long Tail is Forgotten
    • It’s NOT Locked Down!
      95% of companies have Anti-virus and 85% of companies have URL filters in place, but 30% of companies have bots on their networks and 40% still have viral infections Most financial institutions consider access “locked down” when it isn’t
      PCI data and monitoring is NOT enough
      There are too many sites created daily for the crawlers and enforcers to keep with
    • Reputation Risk
      • Reputation Risk
      • 74% of employed Americans believe it is easy to damage a brand’s reputation via sites such as Facebook,Twitter, and YouTube.
      • Fifty-eight percent of executives agree that reputational risk and social networking should be a board room issue, but only 15% say it actually is.
      • Only 22% of companies have policies on how employees can use social networking tools
      • 53% of employees think their social networking pages are none of their employers business
      (Deloitte LLP 2009 Ethics & Workplace Survey results)
    • Bottom Line…
      • Risk vs. Reward – you have to evaluate
      • A good policy is your strongest asset
      • You MUST have a social media expert AND a compliance, IT, HR, and marketing person involved – the knowledge of each is imperative to be collectively used