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Your Business in 140 Characters or Less

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Business Use of Social Networks and Legal Issues

Business Use of Social Networks and Legal Issues

Published in: Business, Technology
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  • Transcript

    • 1. Overview of Legal Issues and Business Considerations in Social Networking Jamie Nafziger Melissa Krasnow Gabrielle Mead Your Business in 140 Characters or Less September 2, 2009
    • 2. Use of Social Networks
      • 35% of American adult Internet users have profile on social network site, up from 8% in 2005
      • (December 2008, PEW Internet and American Life Project)
      • 65% of American teen Internet users have profile
      • (May 2008, PEW Internet and American Life Project)
      • Facebook surpassed local social networking sites as leader in most European countries (biggest exceptions – Germany, Russia & Portugal)
    • 3. Use of Social Networks
      • 75% of 18-24 year-olds have a profile.
      • Online Adults Who Have Profile on Social Network
      • (May 2008)
      Source: PEW Internet and American Life Project Percentage Age 75% 18-24 57% 25-34 30% 35-44 19% 45-54 7%
      • & Older
      10% 55-64
    • 4. Use of Social Networks
      • Facebook has 87M unique visitors per month. Twitter has 21M.
      • Number of Unique Visitors
      • (June 2009)
      60M 23M 123M Compete.com (July 2009) N/A 20M 77M Comscore 63M 21M 87M Nielsen MySpace Twitter Facebook
    • 5. Top 10 Companies by # of Fans on Facebook
      • Starbucks
      • Coca-Cola
      • Nutella
      • YouTube
      • Pringles
      • Windows Live Messenger
      • Ferrero Rocher
      • adidas Originals
      • Victoria’s Secret
      • McDonalds
      • Fans
      • 3.7M
      • 3.5M
      • 3.2M
      • 3.2M
      • 2.8M
      • 2.5M
      • 2.4M
      • 2M
      • 2M
      • 1.9M
      Source: ALLfacebook.com As of 8/26/09
    • 6. Top 10 Companies by # of Twitter Followers
      • Whole Foods Market
      • Woot.com
      • Zappos.com
      • Pet Holdings, Inc. – Icanhascheezburger.com
      • Someecards
      • Jet Blue Airways
      • Twt.fm
      • Dell Outlet
      • UStream
      • Threadless
      • Followers
      • 1.2M
      • 1.2M
      • 1.2M
      • 1.2M
      • 1.1M
      • 1.1M
      • 1.1M
      • 1.1M
      • 1M
      • 1M
      Source: Twitterholic.com As of 8/26/09
    • 7. Anatomy of a Facebook Page
      • Target
    • 8.  
    • 9.  
    • 10.  
    • 11.  
    • 12.  
    • 13. Trademark Infringement on Facebook
      • Pages/Usernames
      • Groups
      • Networks
      • Vanity URLs/Usernames
        • www.facebook.com/companyname
      • Register Vanity URLs
      • Monitor Facebook for infringing trademark use
    • 14. Facebook Groups
    • 15. Facebook – Sampling of Issues for Business Use
      • No trademark blocking
      • Need 100 fans to get vanity URL
      • Multiple, independent pages not desirable for company with many brands
      • Pages cannot be transferred
      • Personal accounts to administer pages
      • Can’t have multiple users on same account
      • Self-help customer service
    • 16. Anatomy of a Twitter Account
    • 17. Trademarks on Twitter
      • Handle/Username/Screen name
        • 15 character limit
      • Profile name
        • 20 character limit
      • Register key trademarks as Twitter usernames
      • Monitor Twitter for infringing names
      • Does the Anticybersquatting Consumer Protection Act apply to Twitter (and/or Facebook)?
    • 18. Twitter – Sampling of Issues for Business Use
      • No trademark blocking
      • Only one username per email address
        • CoTweet, Tweetdeck, HootSuite
      • Character limits for handle and profile name
      • Delay in Updating – hard to find accounts
      • Self-help customer service
      • Will hashtags (social tagging) prompt keyword-like trademark infringement lawsuits?
    • 19. User-Generated Content: comments and posts to company wall
    • 20. User-Generated Content: Photos and Videos
      • Attachment A
    • 21. User-Generated Content: Legal Issues
      • Tension – receiving user feedback and enthusiasm v. increased risk
      • Company protected by Facebook’s terms of service?
      • Copyright – Digital Millennium Copyright Act
      • Communications Decency Act
        • Defamation
        • Rights of Publicity
          • Split among courts about whether claims are barred by Communications Decency Act
      • 1-800-Flowers.com approach
    • 22. 1-800-Flowers.com Facebook site
      • Insert picture
      • Attachment C
    • 23. Recent Social Networking Legislation
      • Federal
      • Student Internet Safety Act of 2009
        • (Passed House 6/16/09)
      • Keeping the Internet Devoid of Sexual Predators Act of 2008
        • (Enacted 10/13/08)
      • State
      • Social Networking Safety Act
        • (Proposed New Jersey – passed Assembly in 2009)
    • 24. Endorsement – Blogger Reviews
      • Does it look like paid-for advertising or something else?
        • Payperpost
      • FTC Endorsement Guidelines (proposed)
        • Bloggers must disclose when paid or if get free product
        • Advertiser liable for blogger’s false statements
        • Blogger also liable for false statements
        • If company employee posts about company’s products, fact of employment must be disclosed
      • Consumer Protection from Unfair Trading Regulations (U.K.)
      • National Advertising Review Council
        • 8/12/09 – two decisions involving blogs
        • Urban Nutrition
        • Herbal Groups
    • 25. Endorsement – Blogger Reviews Continued…
      • Word of Mouth Marketing Association (WOMMA)
      • State Attorneys General
        • NY settlement with electronic retailers
        • Fake “consumer testimonials”
        • Cosmetic company employees posting fake positive reviews - fined $300K
    • 26. Marketing Issues
      • Viral Marketing: Examples – Dark Knight; Levi’s “Unbutton Your Beast”; Wizarding World of Harry Potter launch
      • Viral Marketing: FTC Endorsement Guidelines (proposed) – points awarded to street team for referral of product to friends must be disclosed
        • Rights of Publicity: consents still needed for photos
        • Rights of Publicity: personalities of popular “official tweeters” at company (Scott Monty at Ford)
        • False Advertising
        • Product Liability
    • 27. What’s Coming Next?
      • Facebook buying FriendFeed (competitor of Twitter) after attempt to buy Twitter in 2008 failed
      • Canadian Privacy Commission ruled that Facebook violating Canadian Privacy laws; Facebook changing privacy rules
      • TwitPay and PayPal Adaptive Payment Platform launched – users making and receiving payments through Twitter
      • Users sharing live video on Twitter (Twitcam)
      • Business using tracking services (Nielsen) to get stats on trends and conversations about brands
    • 28. What’s Coming Next? Continued…
      • Companies using Yammer and other intra-company social networking programs
      • Government expanding its use of social networking
        • CDC, National Oceanic and Atmospheric Administration, NASA, Air Force
      • Cyber bully Lori Drew acquitted 8/28/09 when judge overrode jury’s guilty verdict – is cyber bullying legislation next?
      • NFL restricting use of social networking by players, coaches and officials; policy announced 8/31/09
    • 29. Employment Issues
      • Company confidential information; trade secrets
      • Hiring, disciplining, firing
      • Harassment
      • Protected speech: First Amendment; Nat’l Labor Relations Act
      • Lawful activities statutes
      • How information is accessed by employer
      • Employee productivity (on company time)
      • Company reputation
      • Employee privacy
      • Employer duty (negligence actions)
    • 30. Employment Issues: Confidentiality
      • Jason posts to personal Facebook page:
        • Photos
        • Expressions of enthusiasm about a project
        • Complaints about an assignment
    • 31. Employment Issues: Confidentiality
      • Consider
      • Who has access?
      • Is the company’s name mentioned?
      • Is Jason revealing trade secrets?
      • Is Jason revealing non-public information affecting stock prices?
      • Does Jason understand the company’s confidentiality policy?
    • 32. Employment Issues: Disciplining
      • Employee begins sharing thoughts on a personal blog, complaining about her work environment and posting photographs of herself.
    • 33. Employment Issues: Disciplining
      • Consider
      • Is the Company identified?
      • Is the employee participating in lawful activities?
      • Does the blog site limit access?
      • Has there been a violation of Company policy?
      • Do employees understand your policies’ application to on-line communications?
      • Are you applying your policies consistently?
    • 34. Employment Issues: Harassment
      • White police officers are viewing, contributing to, and/or maintaining a website offensive to their African-American co-workers.
    • 35. Employment Issues: Harassment
      • Consider
      • Has an employee complained?
      • Does the employer have knowledge of the conduct?
      • Is the conduct affecting the workplace?
      • Is the email / blog being discussed by employees?
      • Is the email / blog posting being written on Company time?
      • Does the post appear on an employer-sponsored site?
    • 36. Employment Issues: Hiring
      • Jake’s resume looks great;
      • HR decides to search his name using Google.
    • 37. Employment Issues: Hiring
      • Consider
      • Is the information reliable?
      • Is the Fair Credit Reporting Act implicated?
      • Do you have a process in place?
      • What are you doing with the information? Are you using the information for authorized purposes?
        • Protected characteristics
        • Retaliation
        • Lawful activities statutes
      • Are you using background checks and reference checks?
    • 38. Employment Issues: Nat’l Labor Relations Act (NLRA)
      • S arah’s Tweet:
      • Unfair wages at ABC. Union mtg Mon. 10 pkg lot.
    • 39. Employment Issues: Nat’l Labor Relations Act (NLRA)
      • Consider
      • Is the speech considered concerted activity?
      • Does the speech constitute insubordination, disobedience, or disloyalty?
      • Who are Sarah’s followers?
      • Is Sarah tweeting on Company time?
      • Are Sarah’s readers reading on Company time?
      • What do your policies provide?
      • Are you applying your policies consistently?
    • 40. Company Use of Social Media
      • Marketing versus legal / compliance
      • Social media policies increasing
      • Tailored to a particular company
    • 41. Company Use of Social Media
      • Does your company use social media?
      • How does your company use social media?
      • Securities law considerations for public companies – Talking with Investors: Best Practices for Using Social Media to Communicate Material Information (Wednesday, October 7, 2009)
      • Company social media usage is being tracked
      • Global context for social media
    • 42. Company Social Media Policies
      • Often not publicly available
      • Common elements include:
        • Personal liability
        • Compliance with other company policies, codes and guidelines
        • Prohibition on disclosure of company financial information
    • 43. Your Company Policies
      • Review existing company policies
      • Record retention policy issues
    • 44. Overall Recommendations: Company Use of Social Networks
      • Register key trademarks as Twitter usernames and Facebook vanity URLs
      • Monitor social networks for trademark infringement
      • Consider whether need own terms of use for Facebook page
      • Review record retention policies
      • Train marketing, customer service, and human resources employees and others who handle company’s social networking
    • 45. Overall Recommendations: Employee Use of Social Networks
      • Review or add company policy on social networking and integrate with existing company policies
      • Communicate policies to employees
      • Train marketing, customer service, and human resources employees and others who handle company’s social networking
      • Apply policies/practices consistently
    • 46. Questions? 4842-3642-1380/1

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