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Legal Risks in Social Media
            Lori Krafte
      Wood Herron & Evans LLP
Social Media Environment

 Web-based and mobile technology that
 allows you to interact with your clients
 (and lets them interact with each other).
 •Facebook/YouTube/Twitter/Pinterest
 •Blogging
 •Foursquare and other mobile apps
Social media means
opportunities…
 • Drive traffic to get your message out

 • Increase engagement with the BBB

 • Hear from your clients

 • Be where your clients live!
… but there are risks, too.

 You have less control over your message:
 • Because the BBB’s own speech is more
   spontaneous and less likely to be vetted
 • Because client-generated speech might
   become your own
Before posting, blogging, tweeting,
collecting, you’ll want to understand…

• Privacy and data security concerns

• Copyrights in the social media environment

• Criticizing without defaming – and when you
  can host (not post!) defamatory comments
Do’s and Don’ts of Privacy and
Data Security
Know what laws/standards apply to your BBB

• FTC jurisdiction – it’s complicated

• state laws

• best practices
Personal Information –The Definition Is
Expanding
  • PI has always included first and last
    name, address, email, telephone number,
    SSN, etc.
  • now, probably includes IP addresses,
    customer numbers held in cookies, linking
    of information across websites, and
    geolocation information.
  • photographs alone are also now PI
Personal Information

  • don’t collect it if you don’t need it

  • limit access to it, and store it properly

  • think about physical and logical
    security
Privacy Policy

Website privacy policies used to be voluntary; now
 you may be required to have one

• your site is almost certainly interactive now
• how are you collecting information from
  consumers?
• how are you sharing information collected online
  or through mobile? with whom?
Privacy Policy (continued)
•   how will users interact with you? passive viewing? contributing
    content?

•   what information will they provide? what will be passively collected?

•   will there be any community forums?

•   how long will info collected online be kept?

•   will personal info collected online be shared with any third party?
Data Collection

  • don’t collect it if you don’t need it

  • think about how you will interact with
    consumers
    •   will you need to contact them?
    •   if so, will you use email? phone? postal
        address? if not all of these, you don’t need the
        info
Data Security

  • limit access to it, and store it properly

  • think about physical and logical security

  • pay attention to how you move it

  • treat it as you would treat hazardous waste
Data Retention and Destruction

  •   don’t keep it longer than you need it

  •   dispose of it properly
      •   liability for identity theft should not be sitting in your
          dumpster – shred, shred, shred!
      •   clean hard drives before discarding

  •   know the state laws regulating disposal of personal data
CAN-SPAM Act of 2003

Purpose was to regulate unsolicited bulk commercial
email

      • but it applies to ALL commercial messages,
        bulk or not

      • including B2B messages for any product or
        service
CAN-SPAM (continued)

 • clearly and conspicuously identify the
   email as an advertisement

 • make sure all header info is correct

 • include a valid physical postal address
CAN-SPAM (continued)

 • create an easy opt-out with clear notice
   – and honor it quickly

 • don’t forget that your email service may
   have policies even more restrictive than
   CAN-SPAM!
Sharing Mailing Lists

  • Outgoing:
    • movement toward opt-in or permission-based
      marketing
    • e.g., SB27 – California’s “Shine the Light” law
      requires certain information-sharing disclosures
      and consumer choice
  • Incoming: scrub for DNE
Special Considerations for Mobile

  • just because compliance is more
    difficult doesn’t mean the rules are
    different!
  • truth in advertising…dealing with the
    fine print
  • geolocation data
What Do You Do When Something Breaks?

  • have a plan – don’t wait till disaster
    happens

       •   investigate
       •   stop the bleeding
       •   remediate
       •   educate
       •   communicate
Do’s & Don’ts of Criticizing
without Defaming
The defamation issue arises in different
contexts:
•tweeting/blogging/posting about others
•hosting third party comments on your site
Defamation ≠ Disparagement

• disparaging a company’s product or
  service is not illegal
• the government’s view is: disparage away,
  as long as it’s true
• truthful information, even if unflattering,
  is important for consumers
Even Some False Speech Is Protected

• proving defamation is intentionally
  difficult

• understand why we tolerate some false
  speech (and why you should be careful
  anyway)
What is defamation?

Defamation occurs when a false and
 defamatory statement of fact about an
 identifiable person or company is
 published to a third party, causing injury
 to the person or company’s reputation.
Elements of a Defamation Claim:

1.   the publication
2.   of a defamatory statement of fact
3.   that is false
4.   that is of or concerning the person/business
5.   and that causes damage to the
     person/business’s reputation
6.   with the requisite degree of fault
Defenses to a Defamation Claim

   •Truth
   •Opinion
   •Consent
   •CDA § 230
CDA § 230 is your friend!

• for BBBs using social media, this part of
  the Communications Decency Act is a
  critical development in defamation law
• immunity for providers with respect to
  third party content
Two-fold Immunity

• for hosting a site where someone else
  posts a defamatory statement

• for screening and editing objectionable
  materials someone else posts on your site
CDA § 230(c)(1). Treatment of a
publisher or speaker.


“No provider or user of an interactive
  computer service shall be treated as the
  publisher or speaker of any information
  provided by another information content
  provider.”
CDA § 230(c)(2). Civil liability.

“No provider or user of an interactive computer
  service shall be held liable on account of…any
  action voluntarily taken in good faith to
  restrict access to or availability of material
  that the provider or user considers to be
  obscene, lewd, lascivious, filthy, violent,
  harassing, or otherwise objectionable,
  whether or not such material is
  constitutionally protected.”
Practical Steps to Avoid Liability
for Defamation in BBB’s Own Speech
  • check and re-check your facts

  • don’t rely on a single source; get
    corroboration

  • conduct appropriate research and
    investigation
Keeping CDA Immunity

• don’t become part of the conversation
  • be especially careful when moderating
    discussions
• don’t suggest anything specific that would
  invite false and defamatory statements
Keeping CDA Immunity

• but don’t worry about editing, monitoring,
  screening
  • you don’t become a speaker just by these
    editorial acts
• so feel free to delete objectionable posts,
  and to set community standards for
  posting
Copyrights in the
Social Media Environment

• understand and protect the assets you’re
  creating when you design a site, when you blog,
  even when you tweet!

• pay attention to what you can and cannot use of
  others – copyright damages can be steep
What is a Copyright?

• a limited monopoly that protects:
  • original works of authorship
  • that are fixed in a tangible medium of
    expression
• easiest intellectual property right to obtain
  • it’s automatic (though registration has
    advantages)
What does the copyright monopoly
get you?
• the right to control the reproduction,
  distribution, and adaptation of your creative
  expression
  • others may copy your facts and ideas, but not
    your expression of them
  • and, while copyright doesn’t protect titles and
    short phrases, blog entries and websites are
    covered
Protecting Copyright Assets

• think broadly of all the collateral assets you have
  that are copyrightable
• take formal steps to protect your copyrights as
  appropriate
• put notice on your copyrighted work:
      Copyright © 2012 by Cincinnati BBB.
Copyright Infringement in Social Media


• rules are the same, but ease of infringing in the
  online environment makes it a huge problem

• and the online environment poses additional
  risks: the digital copy is as good as the original
Don’t think that you can…
• copy whatever’s on the internet, even if it says you may

• copy a certain amount of expression without infringing

• copy something just because it doesn’t have the ©
  symbol or it isn’t registered with the Copyright Office

• own the copyright just because you paid for the work
Elements of Copyright Infringement

• plaintiff owns a valid copyright

• defendant copied from plaintiff’s work

• the copying was of the protectible portion
  (not facts, public domain, ideas)
Infringement and the Internet

• the internet functions by linking and making
  multiple copies and derivative works
• lots of copying is unauthorized, but not all
• lots of derivative works are unauthorized, but
  not all
• be sure to look at the site’s policies!
Infringement and the Internet (continued)

• most unauthorized copying is infringing,
  but not all
• most unauthorized derivative works are
  infringing, but not all
• even if the site does not authorize the use,
  it might be permissible “fair use”
Defenses to Infringement:
  (1) Fair Use
• excuses reasonable unauthorized use that in
  some way advances the public benefit without
  substantially impairing the present or potential
  economic value of the work
• examples: criticism and commentary, news
  reporting, classroom use, research and
  scholarship – sometimes parody
Fair Use (continued)


• is there a difference between retweeting a
  photo, and posting it on your BBB site?
• is there a difference between using
  Pinterest personally and using it for
  business purposes?
Defenses to Infringement:
  (2) The DMCA Safe Harbor

• Congress realized that hosts and service
  providers were worried about liability for
  what was posted by others on their sites

• in 1998, Congress passed the Digital
  Millennium Copyright Act
DMCA Safe Harbor

• places the burden on copyright owners to
  identify and notify “mere conduit” service
  providers of infringement on their systems

• establishes safe harbors for providers who
  take the required steps
Who Is Protected by Safe Harbor

Providers in four categories of conduct:

• transitory communications (routing services)

• system caching (temporary data storage)

• information location (search engines)

• storage of info on system/network at direction of user
Storage at the Direction of the User

You have safe harbor against an infringement claim if you
host a site where someone else posts infringing content, if:

•you have no knowledge of infringement

•on notification, you take down or block the content

•you designate an agent to receive notice

•you comply with take-down and put-back provisions
Why the Safe Harbor Is So Important

• BBBs increasingly permit others to
  provide content on sites the BBBs host

• this loss of control over content exposes a
  BBB to claims (including statutory
  damages of up to $150,000 per work
  infringed, plus attorney’s fees!)
Remember…

• social media provides new opportunities to
  engage your audience, but…

• pay special attention to:
  • -----------
  • Preserving CDA immunity
  • Taking advantage of the DMCA safe harbor
THANK YOU!

Lori Krafte, Esq.
Partner
Wood Herron & Evans LLP
2700 Carew Tower
441 Vine Street
Cincinnati, Ohio 45202
513.241.2324

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Legal Issues In Social Media Oct. 2012

  • 1. Legal Risks in Social Media Lori Krafte Wood Herron & Evans LLP
  • 2. Social Media Environment Web-based and mobile technology that allows you to interact with your clients (and lets them interact with each other). •Facebook/YouTube/Twitter/Pinterest •Blogging •Foursquare and other mobile apps
  • 3. Social media means opportunities… • Drive traffic to get your message out • Increase engagement with the BBB • Hear from your clients • Be where your clients live!
  • 4. … but there are risks, too. You have less control over your message: • Because the BBB’s own speech is more spontaneous and less likely to be vetted • Because client-generated speech might become your own
  • 5. Before posting, blogging, tweeting, collecting, you’ll want to understand… • Privacy and data security concerns • Copyrights in the social media environment • Criticizing without defaming – and when you can host (not post!) defamatory comments
  • 6. Do’s and Don’ts of Privacy and Data Security Know what laws/standards apply to your BBB • FTC jurisdiction – it’s complicated • state laws • best practices
  • 7. Personal Information –The Definition Is Expanding • PI has always included first and last name, address, email, telephone number, SSN, etc. • now, probably includes IP addresses, customer numbers held in cookies, linking of information across websites, and geolocation information. • photographs alone are also now PI
  • 8. Personal Information • don’t collect it if you don’t need it • limit access to it, and store it properly • think about physical and logical security
  • 9. Privacy Policy Website privacy policies used to be voluntary; now you may be required to have one • your site is almost certainly interactive now • how are you collecting information from consumers? • how are you sharing information collected online or through mobile? with whom?
  • 10. Privacy Policy (continued) • how will users interact with you? passive viewing? contributing content? • what information will they provide? what will be passively collected? • will there be any community forums? • how long will info collected online be kept? • will personal info collected online be shared with any third party?
  • 11. Data Collection • don’t collect it if you don’t need it • think about how you will interact with consumers • will you need to contact them? • if so, will you use email? phone? postal address? if not all of these, you don’t need the info
  • 12. Data Security • limit access to it, and store it properly • think about physical and logical security • pay attention to how you move it • treat it as you would treat hazardous waste
  • 13. Data Retention and Destruction • don’t keep it longer than you need it • dispose of it properly • liability for identity theft should not be sitting in your dumpster – shred, shred, shred! • clean hard drives before discarding • know the state laws regulating disposal of personal data
  • 14. CAN-SPAM Act of 2003 Purpose was to regulate unsolicited bulk commercial email • but it applies to ALL commercial messages, bulk or not • including B2B messages for any product or service
  • 15. CAN-SPAM (continued) • clearly and conspicuously identify the email as an advertisement • make sure all header info is correct • include a valid physical postal address
  • 16. CAN-SPAM (continued) • create an easy opt-out with clear notice – and honor it quickly • don’t forget that your email service may have policies even more restrictive than CAN-SPAM!
  • 17. Sharing Mailing Lists • Outgoing: • movement toward opt-in or permission-based marketing • e.g., SB27 – California’s “Shine the Light” law requires certain information-sharing disclosures and consumer choice • Incoming: scrub for DNE
  • 18. Special Considerations for Mobile • just because compliance is more difficult doesn’t mean the rules are different! • truth in advertising…dealing with the fine print • geolocation data
  • 19. What Do You Do When Something Breaks? • have a plan – don’t wait till disaster happens • investigate • stop the bleeding • remediate • educate • communicate
  • 20. Do’s & Don’ts of Criticizing without Defaming The defamation issue arises in different contexts: •tweeting/blogging/posting about others •hosting third party comments on your site
  • 21. Defamation ≠ Disparagement • disparaging a company’s product or service is not illegal • the government’s view is: disparage away, as long as it’s true • truthful information, even if unflattering, is important for consumers
  • 22. Even Some False Speech Is Protected • proving defamation is intentionally difficult • understand why we tolerate some false speech (and why you should be careful anyway)
  • 23. What is defamation? Defamation occurs when a false and defamatory statement of fact about an identifiable person or company is published to a third party, causing injury to the person or company’s reputation.
  • 24. Elements of a Defamation Claim: 1. the publication 2. of a defamatory statement of fact 3. that is false 4. that is of or concerning the person/business 5. and that causes damage to the person/business’s reputation 6. with the requisite degree of fault
  • 25. Defenses to a Defamation Claim •Truth •Opinion •Consent •CDA § 230
  • 26. CDA § 230 is your friend! • for BBBs using social media, this part of the Communications Decency Act is a critical development in defamation law • immunity for providers with respect to third party content
  • 27. Two-fold Immunity • for hosting a site where someone else posts a defamatory statement • for screening and editing objectionable materials someone else posts on your site
  • 28. CDA § 230(c)(1). Treatment of a publisher or speaker. “No provider or user of an interactive computer service shall be treated as the publisher or speaker of any information provided by another information content provider.”
  • 29. CDA § 230(c)(2). Civil liability. “No provider or user of an interactive computer service shall be held liable on account of…any action voluntarily taken in good faith to restrict access to or availability of material that the provider or user considers to be obscene, lewd, lascivious, filthy, violent, harassing, or otherwise objectionable, whether or not such material is constitutionally protected.”
  • 30. Practical Steps to Avoid Liability for Defamation in BBB’s Own Speech • check and re-check your facts • don’t rely on a single source; get corroboration • conduct appropriate research and investigation
  • 31. Keeping CDA Immunity • don’t become part of the conversation • be especially careful when moderating discussions • don’t suggest anything specific that would invite false and defamatory statements
  • 32. Keeping CDA Immunity • but don’t worry about editing, monitoring, screening • you don’t become a speaker just by these editorial acts • so feel free to delete objectionable posts, and to set community standards for posting
  • 33. Copyrights in the Social Media Environment • understand and protect the assets you’re creating when you design a site, when you blog, even when you tweet! • pay attention to what you can and cannot use of others – copyright damages can be steep
  • 34. What is a Copyright? • a limited monopoly that protects: • original works of authorship • that are fixed in a tangible medium of expression • easiest intellectual property right to obtain • it’s automatic (though registration has advantages)
  • 35. What does the copyright monopoly get you? • the right to control the reproduction, distribution, and adaptation of your creative expression • others may copy your facts and ideas, but not your expression of them • and, while copyright doesn’t protect titles and short phrases, blog entries and websites are covered
  • 36. Protecting Copyright Assets • think broadly of all the collateral assets you have that are copyrightable • take formal steps to protect your copyrights as appropriate • put notice on your copyrighted work: Copyright © 2012 by Cincinnati BBB.
  • 37. Copyright Infringement in Social Media • rules are the same, but ease of infringing in the online environment makes it a huge problem • and the online environment poses additional risks: the digital copy is as good as the original
  • 38. Don’t think that you can… • copy whatever’s on the internet, even if it says you may • copy a certain amount of expression without infringing • copy something just because it doesn’t have the © symbol or it isn’t registered with the Copyright Office • own the copyright just because you paid for the work
  • 39. Elements of Copyright Infringement • plaintiff owns a valid copyright • defendant copied from plaintiff’s work • the copying was of the protectible portion (not facts, public domain, ideas)
  • 40. Infringement and the Internet • the internet functions by linking and making multiple copies and derivative works • lots of copying is unauthorized, but not all • lots of derivative works are unauthorized, but not all • be sure to look at the site’s policies!
  • 41. Infringement and the Internet (continued) • most unauthorized copying is infringing, but not all • most unauthorized derivative works are infringing, but not all • even if the site does not authorize the use, it might be permissible “fair use”
  • 42. Defenses to Infringement: (1) Fair Use • excuses reasonable unauthorized use that in some way advances the public benefit without substantially impairing the present or potential economic value of the work • examples: criticism and commentary, news reporting, classroom use, research and scholarship – sometimes parody
  • 43. Fair Use (continued) • is there a difference between retweeting a photo, and posting it on your BBB site? • is there a difference between using Pinterest personally and using it for business purposes?
  • 44. Defenses to Infringement: (2) The DMCA Safe Harbor • Congress realized that hosts and service providers were worried about liability for what was posted by others on their sites • in 1998, Congress passed the Digital Millennium Copyright Act
  • 45. DMCA Safe Harbor • places the burden on copyright owners to identify and notify “mere conduit” service providers of infringement on their systems • establishes safe harbors for providers who take the required steps
  • 46. Who Is Protected by Safe Harbor Providers in four categories of conduct: • transitory communications (routing services) • system caching (temporary data storage) • information location (search engines) • storage of info on system/network at direction of user
  • 47. Storage at the Direction of the User You have safe harbor against an infringement claim if you host a site where someone else posts infringing content, if: •you have no knowledge of infringement •on notification, you take down or block the content •you designate an agent to receive notice •you comply with take-down and put-back provisions
  • 48. Why the Safe Harbor Is So Important • BBBs increasingly permit others to provide content on sites the BBBs host • this loss of control over content exposes a BBB to claims (including statutory damages of up to $150,000 per work infringed, plus attorney’s fees!)
  • 49. Remember… • social media provides new opportunities to engage your audience, but… • pay special attention to: • ----------- • Preserving CDA immunity • Taking advantage of the DMCA safe harbor
  • 50. THANK YOU! Lori Krafte, Esq. Partner Wood Herron & Evans LLP 2700 Carew Tower 441 Vine Street Cincinnati, Ohio 45202 513.241.2324