Articles Posted in Social Media Policies

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2475_artid_2475.jpgThe Federal Financial Institutions Examination Council (FFIEC) has released proposed guidance on the applicability of consumer protection and compliance laws, regulations, and policies to activities conducted via social media by banks, savings associations, and credit unions, as well as nonbank entities supervised by the Consumer Financial Protection Bureau and state regulators. In a press release announcing the guidelines, the FFIEC stated: “The FFIEC expects financial institutions to take steps to manage potential risks associated with social media, as they would with any new process or product channel.”

All companies should develop and implement an effective social media policy. For financial institutions, the social media policy should take into account these guidelines. If you have not taken steps to focus on this now is a good time to do so. If you have not taken steps to focus on this now is a good time to do so.

Pillsbury’s industry leading social media team offers social media audits and helps companies develop social media policies.

Click here for a full copy of the guidelines.

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twitter phone dog.jpgWe previously reported on the lawsuit over ownership of Twitter followers, when an employee left PhoneDog and changed the twitter handle of an account that had been used to tweet to PhoneDog customers. That case has now settled on confidential terms, but it appears the employee came out ahead. According to a statement from the employee, Noah Kravitz: “I’m very glad to have worked this out between us,” Kravitz said in a statement. “If anything good has come of this, I hope it’s that other employers and employees can recognize the importance of social media … good contracts and specific work agreements are important, and the responsibility for constructing them lies with both parties.”

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Binary world A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

 

 

Beyonce Still Can’t Nix Video Game Suit, Appeals Court Says
A New York intermediate appeals court on Thursday affirmed a lower court ruling that pop singer Beyonce could not nix a suit alleging she violated a contract by abruptly pulling the plug on a multimillion-dollar video game development deal.

Video Game Co.’s Award Doubled To Over $9M In IP Battle
A North Carolina federal judge on Wednesday more than doubled a $4.5 million jury award Epic Games Inc. won against another video game developer, finding Silicon Knights Inc. deliberately copied code for Epic’s game engine and then initiated “a prolonged coverup.”

Consumers find social media increasingly trustworthy
In line with ING’s ambition to be at the forefront of developments in social media, ING is today presenting the study ‘Impact of social media 2012 (#SMING12)’ based on a survey among 1,500 Dutch consumers. The survey shows that consumers find social media increasingly trustworthy. 65% said they find the information posted on online media to be trustworthy. 40% of consumers find posts made on social media to be trustworthy.

HoneyBaked Granted Social Media Discovery in EEOC Suit
A magistrate judge in Colorado has granted HoneyBaked Ham Co.’s request for discovery of social media accounts, text messages and emails of a class of women in the U.S. Equal Employment Opportunity Commission’s’ sexual harassment suit against the company.

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In a series of important rulings, the National Labor Relations Board (“NLRB”) has provided guidance regarding the extent to which private employers may regulate aspects of an employee’s social media activities consistent with the National Labor Relations Act (“NLRA”).  The NLRA protects employees’ rights to engage in “concerted activity” for the purpose of collective bargaining, or for other mutual aid or protection, and prohibits employers from interfering with, restraining, or coercing employees who are exercising rights guaranteed under the NLRA. In light of this recent guidance, in addition to recent judicial and legislative developments, it is imperative to have social media policies that clearly define what employees can and cannot do when using social media for both professional and personal purposes. But as the NLRB rulings make clear, a company’s policy must also respect certain employee rights or it may be deemed at least partially unenforceable.

NLRB Rulings

In their first two rulings, the NLRB found that the two at-issue social media policies contained overly broad language regarding the type of social media activity that was regulated by the employer and failed to carve out an exclusion for communications protected under the National Labor Relations Act (“NLRA”).  One policy, in relevant part, stated that employees should be aware that statements posted electronically (such as to online message boards or discussion groups) that damage the company, defame any individual or damage any person’s reputation or violate the policies outlines in company’s employee agreement, may be subject to discipline, up to and including termination of employment. Because the policies could reasonably be construed to prohibit activity protected under Section 7 of the NRLA (e.g., concerted communications) and “would reasonably tend to chill employees” in the exercise of their rights to engage in “concerted activity” as set forth in Section 7 of the NLRA., the policies were deemed unlawful.

In a separate ruling, the NLRB opined that an employee may be terminated for activity that is regulated by an employer’s lawful social media policy, including posting an entry on the employee’s Facebook page.  The at issue Facebook post was not part of any communication with another employee, and it did not have a connection to any of the employee’s terms and conditions of employment.  As such, the NLRB found that the post did not fall under the umbrella of protected activity set forth in the NLRA. 

Recommendations Regarding a Corporate Social Media Policy

The recent NLRB rulings, in addition to recent judicial and legislative developments, highlight the need for companies to utilize social media policies with clear, narrowly tailored language to demarcate the boundary between acceptable and unacceptable use of social media forums.  When constructing a social media policy, it is also important to balance numerous factors including, for example, protecting concerted employee activity under the NLRA, applying anti-violence, harassment and discrimination policies, protecting company confidential information, and avoiding undue responsibility for an employee’s own statements.    

Employers are encouraged to explicitly set forth exceptions in their social media policies for activities protected under the NLRA.  These exceptions may be included directly in a social media policy or in another employee communication in which the policy is included or incorporated by reference (e.g., an employee handbook). 

Further, prohibiting an overly broad range of activities in a social media policy may raise red flags with the NLRB.  Examples of such broad activity include “talking badly” about an employer, posting information that “damages” or “disparages” the employer, disclosing “inappropriate” information about an employer, etc.  It is currently unclear if an explicit exception for protected activity may allow for broader employer regulation of social media activity.  Even when including an explicit exception for protected activity, employers should still aim to avoid such broad language and provide examples in their policies to give context to what kinds of social media activity fall under a company social media policy.  

Employers are also encouraged to apply anti-violence, harassment, and discrimination policies to social media activity via their social media policies.  A thorough social media policy should include confidentiality and proprietary information restrictions as well.  Further, social media policies should require employees to state that their opinions are their own (and not the opinions of their employers) when disclosing their professional identity via social media participation. As mentioned above, these employee regulations may be included directly in a social media policy or in another employee communication in which the policy is included (e.g., an employee handbook).

For a more detailed discussion of the NLRB rulings and best practices, please see our client alert entitled First NLRB Decisions on Social Media Give Employers Cause to Update Policies, Practices posted October 10, 2012. For additional information on recent judicial and legislative developments, please see our client alert entitled Drawing the Line Online: Employers’ Rights to Employees’ Social Media Accounts posted October 16, 2012.

The legal requirements related to employer regulation of employee social media activity are continually changing.  For help drafting a social media policy contact a knowledgeable attorney.

 

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Binary world  A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

 

 

Zynga loses more execs, gains lottery partnership with Scientific Games
Social game developer and online poker hopeful Zynga made waves last month with its hiring of former 888.com exec Maytal Ginzburg, but more top execs continue to flee Zynga’s floundering ship.

Social casino game market worth $1.6bn, doubled since 2010
Yesterday, analyst firm SuperData released a report stating that the worldwide social casino game market will be worth $1.6bn in 2012, and projects it to grow to $2.4bn by 2015. This shows that not only is there a sizable market for casino games in the social space, but that it should continue to grow rapidly as more players look online to play casino-style games.

Proposed US online poker legislation revealed
In the United States, a summary of The Internet Gambling Prohibition, Poker Consumer Protection and Strengthening UIGEA Act of 2012 legislation has been released outlining what future federal online gaming regulation could look like.

NYPD Releases Guidelines for Social Media Use in Investigations: Report
The NYPD has released a memo that lays out rules for using social media during investigations, but critics say the new guidelines raise questions about privacy issues, according to a report.

Friendster Founder Jonathan Abrams Launches Nuzzel: A Fast, Simple, Social News Reader
Jonathan Abrams, whose resume as a founder or co-founder includes the Founders Den startup workspace, event service Socializr, social bookmarking service HotLinks, and Friendster  is launching his latest startup today: Nuzzel, a site for browsing the news that your friends have shared on social networks.

Game on: new technology just the ticket
The internet is changing everything, including the wait in line to buy tickets.

 

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Binary world  A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

 

 

 

PokerStars Pays $731M, Acquires Full Tilt In DOJ Settlement
PokerStars will pay a total of $731 million and absorb fellow online gaming site Full Tilt Poker in order to settle the government’s wide-ranging fraud allegations against the poker site, the company said on Tuesday.

FSU focuses on social media, university updates its policies
Florida State administrators want to make sure their student-athletes understand the importance of protecting their brand and the university’s image each time they click into a social-networking page.

UK to Start Legally Enforcing Video Game Ratings
Europe’s PEGI rating system this week became the single system for video game ratings in the United Kingdom. The change means customers shopping for video games in the UK will no longer see the government’s BBFC ratings on titles. Instead, all games will carry a PEGI (Pan-European Game Information) rating designed to help consumers make informed decisions about which games they’re buying.

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A weekly wrap up of interesting news about virtual worlds, virtual goods and other social media.

 

App Makers’ Privacy Policies Leave Users In The Dark: Panel

Several software developers and privacy advocates at a Federal Trade Commission workshop Wednesday shot down the notion that traditional privacy policies are enough to adequately inform mobile application users of how their information is being collected, stored and used.

Social Media Policies At GM, Target, DISH Network Deemed Unlawful By Labor Official

In an effort to control employees’ activities on Facebook and Twitter, some U.S. companies have instituted social media policies that run afoul of labor law and infringe on workers’ rights, according to a memo issued Wednesday by the general counsel of the National Labor Relations Board.

Social Gaming and Gambling Converging

Maybe the most social of popular casual games is breeding a new competitor in the social gaming space as bwin.party sets its sights on this growing part of the market. The company is more known for poker, a game played with friends around dining room tables around the world, but it has set aside $50 million to develop a new game studio called Win that will develop social games.

The video games you play with your mind

The gaming controller of the future won’t have joysticks or buttons; it’ll wrap around your head. A number of companies like San Jose-based NeuroSky are developing affordable, consumer-ready controllers that takes cues from the electrical signals in a wearer’s brain to dictate onscreen action. Here, a concise guide to the new smart technology.

Social media: Bill would limit employers’ and schools’ access to your Facebook, Twitter account information

The House Energy and Technology Committee on Tuesday took testimony on legislation that would create the Social Network Account Privacy Act. The bill as introduced generally would prohibit employers and schools from requesting that employees and students provide access information related to their social media accounts.

Google Augmented Reality Glasses To Go On Sale Next Year

According to specialists, after the Google Project Glass will hit the market, the manufacturers will start building a wide range of gadgets based on the new technology, from smartphones to tablets featuring transparent displays.

 

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Back in January, we reported that the SEC released a National Examination Risk Alert addressing investment adviser use of social media.

Now, the SEC’s guidance could be particularly important given the “crowdfunding” legislation Congress is currently considering. Crowdfunding is a method of capital formation where groups of people
pool money, typically by use of very small individual contributions, in
order to support the organizers that seek to accomplish a specific goal.

The Senate currently is considering its own version of a crowdfunding
bill, the Democratizing Access to Capital Act of 2011 (S. 1791). S. 1791 provides for registration exemptions for certain crowdfunded securities if the aggregate amount raised through the issuance is $1 million or
less each year and each individual who invests in the security does not
invest more than $1,000. The Senate Committee on Banking, Housing and
Urban Affairs held hearings on December 1 and 14, 2011, regarding this
legislation, but a vote on the bill has not yet occurred.

For more information on this, please see Pillsbury’s recently released Client Alert.

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MP900395954.JPGSocial Media usage in the financial services industry is on the rise, which is now putting many registered investment advisers (RIAs) under the microscope for potential federal securities laws violations. RIAs that have not taken the time to review and update their social media policies and procedures may soon find the Securities and Exchange Commission (SEC) knocking on their door. Just recently, the SEC charged
an Illinois-based investment adviser with offering to sell fictitious securities on LinkedIn.

On January 4, 2012, the SEC also released a National Examination Risk Alert addressing investment adviser use of social media. This alert outlines the specific factors that need to be addressed by RIAs who wish to remain in compliance with federal securities laws. The SEC’s guidance could be particularly important given the “crowdfunding” legislation Congress is currently considering.

For a full breakdown and analysis of the SEC’s alert, please click here.

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PhoneDog LLC filed a lawsuit last July against a now former employee,
Noah Kravitz. PhoneDog, which reviews mobile devices, including phones and tablets, is claiming ownership of Kravitz’s Twitter followers. They claim he owes them $340,000 based on an assumed value of $2.50 per follower per month.

The dispute arose when Kravitz resigned and allegedly changed his Twitter name from PhoneDog_Noah to noahkravitz, to keep the 17,000 followers that he built up since 2006 when he started with the company. The company is alleging that the followers should be treated like a customer list, and therefore PhoneDog’s property. The fact that Mr. Kravitz used the company name in his Twitter handle likely will not help him. However, the company probably could have done more to ensure that they owned the account and followers.The outcome of this case will likely be based on the specific facts here.

But regardless of the outcome, companies should take away a very important lesson from this case. The lesson is that it is critical to address employee social media issues. Lawsuits and their costs and uncertain outcomes can be avoided by having well thought out and clear policies and agreements with employees who use social media in connection with company activities. Don’t wait until an issue like this is upon you to focus on a social media policy.

Companies that do not have a social media policy need to fix that as soon as possible. Those that have cobbled one together but without expert advice, need to have the policies reviewed to plug the holes. In short, all companies using social media would benefit from spending a little time having their social media policies and agreements reviewed by an attorney who spends time everyday on social media issues.