10 19-vega


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10 19-vega

  1. 1. BOLO 2010Social Media: Compliance Considerations<br />
  2. 2. Amanda Vega<br />20 years online experience<br />Service agencies and clients alike<br />MBA, Columbia<br />NY, Phoenix, Dallas, Shanghai<br />PR, social media, compliance, web<br />www.amandavega.com<br />www.PRinaJar.com<br />www.mommybloggerseminars.com<br />Pink Porsche owner, pug lover, red bottom shoe zealot<br />
  3. 3. Amanda Vega Cont…<br />
  4. 4. The Social Media Bible - contributor<br />
  5. 5. Some of Our Clients<br />
  6. 6. Some Key Points<br />No other agencies have internal compliance department<br />Licensing requires sponsorship (Series 7, 63 needs a broker dealer)<br />Very expensive to maintain internally<br />Compliance spans social as well as print, etc.<br />Everyone has some regulation – FTC at the least<br />Crackdowns happening NOW<br />
  7. 7. Regulatory Bodies<br />FTC: all communication, advertising, marketing<br />FDA: pharmaceuticals, nutraceuticals, some supplements, cosmetics, etc.<br />FINRA: publicly traded companies, broker dealers, financial services companies AND individuals<br />HIPAA: hospitals, physicians (and groups)<br />GLBA<br />UK Laws<br />Internal risk controls (internal auditing, risk to data)<br />
  8. 8. FTC<br />October 2009 Changes<br />Celebrity endorsements, testimonials, social media endorsements<br />Must disclose relationship to product/client<br />Must disclose if product was free<br />Doesn’t have to be in each post<br />Put in profile<br />Celebs have to disclose they are paid<br />Twitter wasn’t covered so no case on this YET<br />Some employment considerations<br />
  9. 9. FTC Continued<br />No more safe harbor with “results not typical”<br />Actual results have to be accessible<br />Disclosing of material connections<br />If blogger gets paid you have to disclose<br />No false and misleading claims<br />Disclosure of use of company sponsored research<br />Liability for affiliates and other resellers is now on company<br />
  10. 10. FTC Violations<br />Banana Republic<br />Internal “intern” was posting “ad heavy commentary” on fashion blogs<br />Did not disclose she worked for BR<br />Fine: $5,000 (pending)<br />
  11. 11. FDA<br />Disease claims<br />Cannot say cure, treat, mitigate, or prevent<br />Say “alleviate the symptoms of…”<br />Adequate substantiation of structure/function claims<br />If you say an ingredient does X, you have to have studies proving that<br />Adequate substantiation of other statements<br />If you say “few or no side effects” have proof<br />If you say this online, you are open for product liability and personal injury claims<br />
  12. 12. FDA Continued<br />Use of Testimonials<br />When you allow testimonials you accept liability of that person’s claims, period<br />Link to third-party literature<br />For anything you link to, you adopt all of the claims<br />
  13. 13. FDA Violations<br />First Juice and 3 other small juice companies asked to change all labels saying “half sugar”<br />Big brands were not attacked – more lobbyists<br />All brands had links to research/tests proving claims<br />FJ fought back and won the claim<br />Pharmaceutical company fined for fake testimonials posted in social media by their PR firm<br />Use REAL people with disclosure instead<br />
  14. 14. FINRA<br />October 2010 changes – VERY SEVERE<br />Record keeping and reporting<br />You must archive/save all social/email for 3 years<br />Communication online is considered same as in person<br />Advertisement versus correspondence<br />Tweets and blogposts on your blog are considered advertisements<br />DM’s/email considered correspondence<br />Ads need pre-approval, correspondence needs review<br />
  15. 15. FINRA Continued<br />Oversight into activities<br />Compliance can regulate any offerings as part of oversight<br />They cannot regulate your personal hobbies unles industry related<br />Customer service<br />Try not to handle full issues back and forth on Twitter – chain leads to harder protection<br />Cannot help with account specifics online<br />
  16. 16. FINRA Violations<br />Coca-Cola<br />Assistant posted to Twitter “it’s a great day. Boss in meeting with XYZ all day. Quiet.”<br />XYZ = competitor COO<br />Day traders went crazy thinking there was going to be a merger<br />SEC came in and filed compliance violation<br />Keep in mind – her actions were NOT in violation of their internal policy OR any regulation<br />
  17. 17. HIPAA<br />About 500 of 6,000 hospitals are using social<br />Do not ever list a patients name or picture anywhere<br />Friending patients on Facebook puts you into grey area – interaction can be confirmation of relationship which is violation<br />You can help people, but make disclosure in profile and posts<br />
  18. 18. HIPAA Violations<br />Medical resident twitpic’d photo of his first set of stitches<br />A part of a tattoo was showing – therefore showing identity which is a violation<br />$10K fine to hospital<br />Social media wasn’t included in their training<br />
  19. 19. Internal Risks<br /><ul><li>Social networking sites are the most vulnerable category of Web sites
  20. 20. 82% of social networking sites have an urgent, critical or high severity vulnerability - May 2009 WhiteHat Security</li></ul>“ It is not a risk that someone will do something dumb someday. Actually, it’s a certainty.”<br />
  21. 21. Long Tail is Forgotten<br />
  22. 22. It’s NOT Locked Down!<br />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<br />PCI data and monitoring is NOT enough<br />There are too many sites created daily for the crawlers and enforcers to keep with <br />
  23. 23. Reputation Risk<br /><ul><li>Reputation Risk
  24. 24. 74% of employed Americans believe it is easy to damage a brand’s reputation via sites such as Facebook,Twitter, and YouTube.
  25. 25. 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.
  26. 26. Only 22% of companies have policies on how employees can use social networking tools
  27. 27. 53% of employees think their social networking pages are none of their employers business</li></ul>(Deloitte LLP 2009 Ethics & Workplace Survey results)<br />
  28. 28. Bottom Line…<br /><ul><li>Risk vs. Reward – you have to evaluate
  29. 29. A good policy is your strongest asset
  30. 30. 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</li>