ReadyPulse Webinar: Display With Confidence, How to Avoid Legal Risk Using UGC
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UGC is proven to increase online conversions, revenue and deliver an ROI of 10X or more, but with big reward also comes big risk if you are not careful. This webinar covers the rules and regulations for displaying UGC in your marketing. Dennis O’Malley, ReadyPulse CEO will moderate this session as Sal Orofino, ReadyPulse Chief Privacy Officer, shares his expertise around the subject. Webinar Covers: 1. “The Big 3” of legal risks 2. FTC regulations 3. What brands and retailers need to know 4. How to leverage minor’s content 5. How involved your legal team should be. and more! Video Recording: http://vimeo.com/95915023 Transcript: http://ww2.readypulse.com/wp-content/uploads/2014/07/ReadyPulse-Webinar-Display-With-Confidence-How-to-Avoid-Legal-Risks-in-Using-UGC-Transcript.docx
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ReadyPulse Webinar: Display With Confidence, How to Avoid Legal Risk Using UGC
- 1. How to Avoid Legal Risk in Using UGC in Marketing Dennis O’Malley CEO & Co-Founder Salvador Orofino Chief Privacy Officer #LegalUGC
- 2. #LegalUGC What’s The Big Deal? Cool Hunters 1B Social Influencers Content 500 Social Photos Daily Commerce $1B In Online Sales Daily (US)
- 4. #LegalUGC
- 6. #LegalUGC Social UGC Landscape Social Networks Brand Websites E-Commerce Sites Product Reviews Blog sites UGC Compliance
- 7. #LegalUGC The Big 3 for UGC Legal Risk Promotions Law Intellectual Property Deceptive Advertising
- 8. #LegalUGC 1. No undisclosed endorsements where a material connection exists 2. Not preventing cyber-hacking with reasonable security measures 3. Sharing data beyond consumers (3rd party advertisers and apps) 4. Using information beyond the scope of what told to consumers The 800 Pound Privacy Guerilla Section 5(a) – Updated Endorsements and Testimonials
- 9. #LegalUGC How FTC Enforces Section 5(a) Federal Remedy 3 Categories of Enforcement: • Investigation (generally non-public) • Enforcement (public) • Litigation Disputes Settled by Consent Order Measures No Private Rights of Action under Section 5 for Consumers
- 10. #LegalUGC Types of FTC Awards “The record setting penalty in this matter sends a clear message to all companies under an FTC privacy order. No matter how big or small, all companies must abide by FTC orders against them and keep their privacy promises to consumers, or they will end up paying many times what it would have cost to comply in the first place.” Jon Leibowitz, Former Chairman of the FTC Investigation/Settlement of violation of Endorsement and Testimonials in incentivized campaign Section 5(a) settlement for not following through on its E.U/U.S.- Swiss Safe Harbor Framework per Privacy Policy $ 22.5 M USD Privacy Settlement 20 Year Privacy Monitoring
- 11. #LegalUGC It is not just the FTC California – Unfair Competition Law, California Business and Professions Code §§ 17200 Allows for a private right action Illinois/Maine/Nebraska Uniform Deceptive Trade Practices Act Deceptive to “represent that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities that they do not have” All 50 states have enacted consumer protection laws that provide a cause of action for false or misleading advertising. Important State Laws to Watch Out For
- 12. #LegalUGC Best Practices – Team Philosophy How to Design Compliance and Success? Starts with Choice. Assemble your team (Exec, Marketing, IT). Decide together. 1 Make Compliance necessary by making it unavoidable 2 Compliance and Transparency by Design 3 Monitor throughout the campaign 4
- 13. #LegalUGC Best Practices – Programming Compliance Pre-execution review of “material connection” Mandatory Ambassador training – webinars, contracts Hashtag compliance Badge posting Social media usage guidelines 1 2 3 4 5
- 14. #LegalUGC Best Practices - Drafting Opt-in Vs. Opt-out Require Explicit Opt-in acceptance of TOS for each ambassador/campaign Moderation Reserve the right to remove content from your site Disclaimers Explicitly disclaim users from posting infringing or illegal content DMCA Have a DMCA “Notice and Take- Down Policy and enforce it vigorously TOS Choice of Law Understand your TOS choice of law and dispute resolution clauses 1 2 3 4 5
- 15. Best Practices - Permissions
- 16. #LegalUGC Best Practices - Disclosures
- 17. #LegalUGC • Hyundai hired out to run an incentivized campaign with Bloggers for Super Bowl • No enforcement – Hyundai wasn’t aware of practices – Some bloggers disclosed being incentivized – Infringing acts done by an employee of PR agency Case Study – A Vendor Getting a Company into Hot Water A Cautionary Tale about Vendors Running Social media Campaigns
- 18. #LegalUGC • Internal controls for privacy and compliance – Is there an internal team in charge? • Indemnification language – metes and bounds of each party’s exposure • Scope of limitation of liability • Vendor company location • Does the team have training on key legal issues? and know how to spot and resolve them? Question to Ask Vendor Partners
- 19. #LegalUGC Conclusion Make sure all stakeholders know the issues Train, Train, and Train Implement Proper Controls Monitor performance throughout the campaign Ensure integration of policy documents drafted to each campaign
- 20. #LegalUGC Q & A
- 21. How to Avoid Legal Risk in Using UGC in Marketing #LegalUGC Contact ReadyPulse For More Information readypulse.com contact@readypulse.com @readypulse.com +1-888-998-7412
Editor's Notes
- UGC Compliance is related to all UGC collected on Social Outlets and Brand Web Sites/E-Commerce