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  • 1. Facebook Marketing Legal and Regulatory ComplianceSocialize Toronto: Monetizing Social Media January 27, 2012 Presenters: Fazila Nurani, PrivaTech Consulting David M. Adler, Leavens Strand, Glover & Adler, LLC
  • 2. Objectives• Understanding the legal framework and regulator outlook on Facebook in Canada and the U.S.• Key questions from participants.• New developments in Canada and the U.S.
  • 3. Context • Facebook boasts over 800 million active users. • About 17 million Canadian and 150 million American “monthly active users” • Default privacy settings only changed by 15- 20% of users.
  • 4. Canada’s Privacy Laws• Privacy laws apply to personal information collected, used and disclosed in the course of commercial activities.• Mix of federal and provincial laws: • Personal Information Protection and Electronic Documents Act, 2001– federally regulated businesses, and provinces without their own private sector privacy law. • B.C. Personal Information Protection Act, 2004 • Alberta Personal Information Protection Act, 2004 • Quebec Act Respecting the Protection of Personal Information in the Private Sector, 1994 • Health privacy laws: Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Newfoundland
  • 5. OPCC’s Take on Facebook• The Office of the Privacy Commissioner of Canada investigated Facebook’s practices in August of 2009. Key findings:  Sharing of personal information with third-party developers creating Facebook applications raises serious privacy risks.  Distinction between account deactivation and deletion not clear.  Lack of transparency in Facebook’s privacy policy.• September 2010 – OPCC stated the issues raised have been resolved to her satisfaction, and at the same time announced her investigation of the “Like” button.• Stoddart: “Facebook is one of several rapidly growing and evolving Internet giants that are presenting ongoing challenges to privacy regulators around the globe.”
  • 6. Social Media Court Cases in CanadaGeneral Trends:• Blurring the divide between public and private life.• The more friends/fans you have, the less the “expectation of privacy”.• Stretching the law to fit the social media context.• Focus on fairness.• Courts are turning to international cases for guidance.
  • 7. Privacy in The United StatesGeneral Observations:• US: No Privacy Framework in place• FTC: Federal Agency Safeguarding Consumer Privacy• Internet’s “Implicit Bargain” = “Free” Content in exchange for Marketing• Online Behavioral Advertising (OBA)• Industry Self Regulation / “Do Not Track”
  • 8. Social Media CasesConsumer Deception/Privacy Risks • Twitter (2010-2011) • First FTC Social Media Case • Charges: hackers gained unauthorized admin control • Result: • 20 yr ban on misleading consumers • Info Security Program subject to audit for 10 yrs
  • 9. Social Media Cases, Cont.Consumer Deception/Privacy Risks • Facebook (2011) • Charges: deceived consumers about public availability of private info • Result: • Bar on misrepresenting privacy and security • Affirmative Consent Required for Privacy Overrides • 30 Day access limit for deleted accounts • Create & maintain comprehensive privacy program • Third-party audits every 2 yrs for next 20 yrs
  • 10. Social Media Cases, Cont.Consumer Deception/Privacy Risks • Data Breach Notification Laws • Federal: Data Accountability and Trust Act (DATA) • State: • provides a comprehensive state-by-state list of data breach notification statutes • CA: Consumers can request copy of a Web Site’s Data Breach Notification Policy
  • 11. New Developments and Path Forward• Ongoing class action lawsuit against Facebook launched in a Manitoba court claiming the social media site misled users into letting their personal information be sold for a profit.• December 6, 2011 – OPCC released Guidelines for online behavioural advertising.• Coming into force soon – Canada’s new anti-spam law, the Fighting Internet and Wireless Spam Act (“FISA”) • Opt-in model for commercial electronic messages. • New definitions for “family” and “personal” relationships may pose cost implications for social media marketers.
  • 12. Privacy Trends in the U.S.• Federal Privacy Legislation • “Do Not Track” bill from Sen. John D Rockefeller (D-W.Va.) • “privacy bill of rights” from Sens. John McCain (R-Ariz.) and John Kerry (D-Mass.)• FTC Guidelines • Online Behavioral Advertising Principals •• Industry Initiatives • WOMMA
  • 13. Summary• Privacy Rights • Will continue to evolve in the U.S. • Will be subject to new federal (and possibly state) regulation• Action Items • Develop a Social Media Policy • Review/Update your Firm’s Privacy Policy • Conduct Due Diligence on digital marketing partners to understand how consumer information is: 1) gathered, 2) stored, & 3) shared
  • 14. Questions…? Fazila Nurani, B.A.Sc.(E.Eng.), LL.B, CIPP/C Senior Counsel and Lead Trainer PrivaTech Consulting Phone: 1-905-886-0751 Fax: 1-905-886-9974 _____________David M. Adler | Leavens, Strand, Glover & Adler, LLC 203 North LaSalle Street, Suite 2550 Chicago, Illinois 60601 Direct: (866) 734-2568 Fax: (312) 275-7534 @adlerlaw