Social media : Marketing tool or legal nightmare?

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21 July 2011

There are numerous internet-based interactive platforms that may be referred to as social media outlets, for example Facebook, Linkedin or Twitter.

It is hard to spend any time online without coming across some form of social media platform. Many retail websites will have a section for user feedback and reviews, such message boards are themselves a form of social media.

Social media is an effective means of marketing products and services. Out of every hundred people who walk past a billboard or watch a television advertisement, very few may have any interest in it. With social media, however, it is possible to target your brand at consumers who have a particular interest in your offering. This means that money spent developing a targeted online presence can be more effectively spent than money invested in more traditional advertising media.

With online forums and blogs you can get your employees and customers involved too. Word of mouth is a powerful marketing tool when that word can be disseminated to thousands of interested people at the touch of a button.

So what are the risks?

Inviting users to comment upon your products, or letting employees blog freely, may lead to problems. If you have a problem with a service or product line it will be virtually impossible to keep this confidential once it has been mentioned online. Brands can be damaged by bad publicity and you need to ensure that your employees know what they cannot say about competitors. You could be on the receiving end of negative publicity campaigns from rivals in the market place.

It is important to be aware of:

• Online defamation – beware what you say about your competitors online – if you or an employee make any factual or semi-factual statement make sure you could prove it in court.
• Watch out for what people say about you – the sooner you act on defamatory or damaging material, the more effective you will be at reducing the damage.
• If you run a message board or forum beware – the more you moderate it, the more you accept responsibility for other people’s comments. You should always have a way of reporting illegal or abusive comments but it may be better to operate a (well publicised) hands-off policy instead of monitoring every remark.
• Don’t forget the Advertising Standards Authority – this now has increased powers to monitor online marketing. Don’t fall foul of them with misleading campaigns, but do consider making a complaint to them if a competitor has done so – it will probably be cheaper than taking formal legal action (but seek legal advice first).
• Confidentiality breaches – if you give your employees permission to blog about your products make sure they know exactly what they can and cannot say.
• The Data Protection Act – if you or an employee accidentally (or even deliberately) disseminates certain information, you can be held liable for having breached the Data Protection Act, with potentially very serious consequences including a financial penalty of up to £500,000 which can be imposed by the Information Commissioner.
• All businesses possess confidential information (such as trade secrets, customer lists and staff records), and if this information is deliberately or accidentally leaked, there is the potential to cause loss of business, reputational damage, or providing competitors with an advantage.
• If someone breaches your confidence you may need to act swiftly so it is important to maintain a watchful eye over what is said about you online.
• Trade mark infringement – be extremely cautious about using another party’s trade marks online, even just to identify them. You can refer to your competitors by name and comparative advertising is perfectly acceptable but be cautious and consider taking legal advice first. It’s important to be aware that a company can be liable if an employee infringes another company’s intellectual property rights.
• If someone else uses your trade marks without your permission – seek legal advice straight away.

So what should I do?

There are numerous steps to achieving maximum benefit from your online presence:

• Have a clear policy which covers social media interaction for staff.
• Train staff regularly and ensure they sign to confirm they have read and understood your policy relating to social media interaction.
• Set up Google alerts so that you know when you are being talked about, or hire media monitoring companies to do this for you.
• Monitor your online presence carefully and do not delay to seek legal advice if you are concerned at all.
• Remember that the internet encourages anonymity and you cannot stop people from speaking their minds. Although vigilance is crucial, when it comes to social media sometimes you may have to accept the good with the bad.

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