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The Dos, Don’ts and Maybes of Social Media

Social mediaIt takes one second to send a Tweet or Instagram post onto the internet for all to see. But for companies active on social media, the legal ramifications of those 140 characters or that one photo can last a whole lot longer.

At a recent seminar in New York, lawyers and communications professionals representing some of the world’s most famous brands learned a lot about the dos and don’ts of social media for companies, specifically companies interested in pushing boundaries but avoiding lawsuits. Perhaps more importantly, they learned a lot about the maybe dos and maybe don’ts through several real-world examples.

“When you get it wrong, it comes with a lot of implications,” said Maggie O’Neill, managing director and partner at strategic communications firm Peppercomm, which recently co-hosted the event with Davis & Gilbert LLP.

Sue Me, Maybe?

O’Neill and her counterpart, Davis & Gilbert marketing and promotions partner Allison Fitzpatrick, brought up one of the more famous “maybe don’ts” in recent memory: Peyton Manning’s proclamation after Super Bowl 50 that his first order of business was to “drink a lot of Budweiser,” setting off a social media firestorm.

“This had the potential to really blow up into something legal,” O’Neill said. After all, Manning isn’t a spokesman for Budweiser, but he does own several Budweiser distributors. The appearance of “free” advertising if, say, an implicit agreement between the two parties was in place, would have been a no-no, and the fact that it’s not common knowledge that Manning owns those distributors makes it a “maybe no-no.” Adeptly, a Budweiser communications pro tweeted that, while the brewer was “surprised and delighted” at Manning’s off-the-cuff endorsement, “Budweiser did not pay Peyton Manning” for it. While that tweet doesn’t guarantee Budweiser’s immunity from a government lawsuit, it certainly represents a skillful handling of the situation.

Know Your Subject

Not all companies have been as adept, O’Neill and Fitzpatrick pointed out. The Duane Reade chain famously got sued by Katherine Heigl after tweeting an unflattering photo of the actress coming out of one of its pharmacies carrying bags. Heigl sued for $6 million, claiming the company violated New York State and federal laws that protect the use of a person’s likeness for trade purposes. She eventually dropped the suit, but it made the kind of headlines Duane Reade – and most companies – never want.

Fast-food chain Arby’s, on the other hand, got universal kudos for its tweet about the hat worn by rapper Pharrell Williams at the 2014 Grammy’s, which looked similar to the one on the Arby’s logo. “Hey @Pharrell, can we have our hat back,” Arby’s tweeted, with the hashtag #GRAMMYs. Pharrell was a good sport about it, and when he eventually put the hat up for charity auction on eBay, Arby’s announced via Twitter that it was the party responsible for the $44,100 winning bid.

“The best part is, Pharrell did not sue,” Fitzpatrick said at the panel. But, she added, “it doesn’t mean there’s no risk.” One quick and easy first step, according to Fitzpatrick, is to do a quick Google search to “see if they’re litigious or not.”

Copyright Law in the 21st Century

For brands active on social media, copyright law is another consideration. Being mindful of trademarks like “Super Bowl” and “NCAA” while tweeting about events can save companies a lot of money from potential legal woes.

For instance, when TGI Friday’s pushed boundaries by petitioning the International Olympic Committee to make bartending an official sport, lawyers were kept in the loop to make sure the campaign garnered media and public interest on traditional and social media but didn’t cross any copyright law lines.

What’s next?

With technology constantly changing and regulators scrambling to adapt to those changes, Fitzpatrick said the next frontier could be regulatory action against celebrity spokespeople. It’s generally known around the world that Nike endorses Tiger Woods, but what if a celebrity whose endorsement deal is lesser-known doesn’t disclose the relationship in a tweet? This could be the next major question the Federal Trade Commission starts asking.

Key Guidelines

Fitzpatrick offered a few general guidelines that companies can follow.

  • When using hashtags, be careful not to suggest an endorsement or association between your brand and the event, unless there actually is one.
  • The more the merrier. See if other brands are tweeting about the event. If they are, chances are your legal risks are lower.
  • There are a lot of work-related reasons to follow, a brand, on social media, so most experts think a simple follow is probably okay. A “like” or a “share” could be a little dicier.
  • When in doubt, research, confirm, and speak to legal.

Life Unlocked

lifelock_ad

If you’ve watched any television in the past few years, you have probably seen commercials for LifeLock, an identity theft protection service that is notable for prominently displaying CEO Todd Davis’ social security number on billboards and promotional material in an effort to demonstrate the effectiveness of his company’s system. Maybe it’s because I work for a risk management magazine and have heard countless horror stories about data theft, but LifeLock’s ad strategy always seemed like a pretty bold move that bordered on lunacy. It turns out my skepticism was justified. According to an article in the Phoenix New Times (by way of Wired), Todd Davis has had his identity stolen at least 13 times.

And it’s not only Davis who has been affected by LifeLock’s campaign. Many companies have been put on the hook for sometimes substantial charges that will likely go unpaid. Identity thieved have opened AT&T cell phone accounts leaving behind more than $2,000 in unpaid charges and obtained a $500 loan from a check-cashing company. And that was just the beginning.

More cell-phone service was fraudulently charged to Davis: Someone opened a Verizon account in New York, leaving behind unpaid bills of at least $186. An account at Centerpoint Energy, a Texas utility, was opened. At least $122 went unpaid. Fake Davises owe $573 to Credit One Bank and $312 to Swiss Colony, a gift-basket company. Two other accounts, one for USA Savings Bank and a Gap credit card, were opened successfully in Davis’ name but showed zero balances as of early 2009. There were also multiple dings by collection agencies: Bay Area Credit, $265; two for Associated Credit Services, $207 and $213; and two for Enhanced Recovery Corporation, $250 and $381.

The fun doesn’t stop there for LifeLock. In March, the Federal Trade Commission fined the company $12 million for deceptive advertising. Evidently, the FTC thought that the company was running a scam and that its claims were bogus. Looks like they were right.

Incidentally, Todd Davis’ social security number, which used to figure so prominently in LifeLock’s ads (like the one above), can no longer be found on the company’s website. I guess someone finally learned his lesson. Too bad it might be a case of too little, too late.