You Like This: Using Social Media Channels To Reach Consumers

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You Like This: Using Social Media Channels To Reach Consumers Mercedes K. Tunstall, Esquire Of Counsel, Consumer Financial Services Group 202.661.2221 [email protected] February 17, 2011 Steven D. Kim, Esquire Associate, Intellectual Property Department 215.864.8758 [email protected]

Transcript of You Like This: Using Social Media Channels To Reach Consumers

Page 1: You Like This: Using Social Media Channels To Reach Consumers

You Like This:

Using Social Media Channels To Reach Consumers

Mercedes K. Tunstall, EsquireOf Counsel, Consumer Financial Services [email protected]

February 17, 2011

Steven D. Kim, EsquireAssociate, Intellectual Property [email protected]

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What is Social Media?

From OnlineMatters.com: Social media is any form of online publication or presence that allows end users to engage in multi-directional conversations in or around the content on the website.

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What is Social Media?

Social Media is often recognized by its features:• Web or mobile-based tool or platform;• Allows users to not only contribute content, but also to comment

upon posted content;

And, compared to traditional media:• Conversations conducted via social media have increased

visibility;• Publishing via social media has a lower cost;• Social media is extremely scalable.

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Types of Social Media

• Social Networks (e.g., Facebook, MySpace, LinkedIn)

• Online Communities (e.g., BigSoccer.com, BabyCenter.com, SmallBusinessOnlineCommunity.com)

• User-generated content fora (e.g., YouTube, Flickr, Vimeo)

• Twitter

• Blogs (e.g., AbovetheLaw, Bankervision)

• User Ratings and Reviews (e.g., Amazon.com, TripAdvisor)

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Facebook: The 500 lb. Gorilla

• More than 500 million active users

• In August alone, users spent 41.1 million minutes on Facebook

• Facebook COO reported that companies are increasing advertising spending on site at least tenfold

• At the forefront for many social media legal issues, including privacy concerns, ownership of posted content, vulernabilityof minors, etc.

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Online Communities

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YouTube

• 24 hours of video uploaded every minute

• 14 billion videos viewed in May 2010 alone

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Twitter

• Over 100 Million users

• Average of 750 Tweets-Per-Second (“TPS”) 65 Million tweets per day

• Peaked during FIFA World Cup at 3,000 TPS

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Two Flavors of Tweets: Customer Service and Public Relations

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Blogs and User Ratings and Reviews

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Everyone is Doing It . . .

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Twitter

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YouTube

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Facebook

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When Your Clients Want to Use Social Media

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Initial Questions

• How will social media be used?- Marketing, customer service, encourage customer dialogue, public

relations

• What sites do they want to use?- Third-party sites

- Corporate sites

• Do they want to have an active voice in the discussion?

• Just a word about social media listening, or “crowd sourcing”

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Uses of Social Media

• Marketing purposes- Traditional advertising law concepts apply

- Make it clear that the post/content/forum is marketing

- Be careful about how user comments are used

- User-generated content contests

• Customer service- Same rules apply

- Take special care to understand how to use the social media vehicle to protect customer privacy

- Best bet is to use social media as a vehicle for identifying customers with problems and then to direct them to existing channels

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Uses of Social Media (cont.)

• Encouraging Customer Dialogue- Must take the good with the bad

- All or nothing

- Use care in identifying when company is participating in the dialogue

• Public Relations- Commercial speech

- Forward-looking statements

- Allowing executives to have a voice

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Legal Issues to Consider

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Ownership of Content

• Trademark and copyright concerns

• Use of posted content for other purposes- Assert ownership or obtain non-exclusive worldwide license?

• When do you become liable for content?- Are you an editor or a publisher?

- Take any and all steps to remain the publisher

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Facebook: Who owns what?

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IP and Twitter

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Links and links

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Secondary Liability

• You might be liable for the infringing acts of others- copyright

- defamation

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Section 512(c) of DMCA

• Section 512(c) of DMCA creates limited immunity:• “Service provider” is not liable for monetary relief for copyright

infringement by reason of the storage at the direction of a user of material that resides on a system or network controlled by or operated by or for the service provider where there is:

- No knowledge or red flags;

- No financial benefit directly attributable to the infringing activity, in a case in which the service provider has the right and ability to control such activity; and

- Service provider acts quickly to remove or disable access to theinfringing material upon notice.

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North vs. South

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CDA Section 230

• Applies to providers or users of interactive computer services;

• Applicable unless one of three exceptions: - Intellectual Property

- Federal crime

- Electronics Communications Privacy Act

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CDA – Cats and Dentists Act

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Liability for Content

• Protect against common law defamation actions

• The question of moderation- Using third parties

• Terms of Use and Moderation Guidelines

- Pre-submit v. post-submit

- Internal Policies and Policing

• Statutory Methods: - Section 230(c) of the Communications Decency Act

- Digital Millennium Copyright Act

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Terms of Use and Moderation Guidelines

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FTC Endorsement Guides

• Revised Guide effective on December 1, 2009• Place specific requirements on bloggers and companies

whose products or services are reviewed in blogs- Underscores importance of being truthful when something posted

in social media is marketing or sponsored

• Affirm that endorsers can face personal liability for false or misleading advertising

• Eliminate the safe harbor previously afforded by a “results not typical” disclaimer

• Serve as an excellent reminder to be careful about how user ratings and reviews are used.

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It’s not a game . . .

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Twitter: How to Disclose?

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Blogs: How to Disclose

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Other Potential Minefields

• Privacy- Online privacy is hot in 2011

• Minors- Cohen v. Facebook (hearing on March 17, 2011)

• Interaction with mobile applications• Discovery

- Crispin v. Audigier

• Internal use• Screening for employment

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Checklist

• Initial Questions- How will social media be used?

- What sites will be used?

- Will you have an active voice?

• Register DMCA agent

• Decide on appropriate level of moderation

• All of the same rules apply, so pay attention to regulatory issues or concerns just as you normally would

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Thank You