Social Media Inthe Food IndustryM!"!#$"# %&#!% r'( )* !v*$+

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Carolyn Elefant, LawOfficesofCarolynElefant.com February 5, 2013

Why social media inregulated industriesis like alcohol at anetworking event

A catalyst for facilitatingconversation, connectionand fun…

…or a recipe for disaster?

The Formula:User-generated content + 3rd party platform =

LOSS OF CONTROL

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•S*.r1, *f !.)0*r$)-

•T!(&!w!-/ f*r S.11,/

LINKED IN

Facebook

TWITTER

PINTEREST

INSTAGRAM

What’s driving the acceleration ofsocial media?

•Global/mobile

•Rise of the digital natives

•Movement from search to discovery

LawRegulatory/Codes of

Conduct

Platform TOS

Social Media Policy

NETIQUETTE

5 sources of Authority Governing SocialMedia in Regulated Industries

LAW TRENDS

Employment Law

• Employee SM background checks

• Access to employee passwords/monitoring

• Right to organize v. right to organization:NLRB/Costco case - September 7, 2012 - social mediapolicy goes too far) “be aware that statements posted electronically(such as to online message boards or discussion groups) that damage thecompany, defame any individual or damage any person’s reputation or violatethe policies outlined in the Costco Employee Agreement, may be subject todiscipline, up to and including termination of employment.”

• Mobile liability (overtime and off-site negligenceon the job)

LAW TRENDS

Copyright/IP

• Who owns the accounts?

•Phonedog v. Kravitz (settled - Twitter)

•Eagle v. Edcomm (LI contacts not trade secrets)

•Maremont v. Fredman Designs (employer postspromos on employees FB account andimpersonates her)

• Liability/infringement

•DCMA - safe harbor for hosts w/appropriatetakedown notices

LAW TRENDS

ADVERTISING

• FTC regulation re: blogging disclosures

•FTC guidance on mobile use (August 2012)

•FTC amends Child Online Privacy Protection Rule(parents gain more control) (December 2012).

LAW TRENDS

E-DISCOVERY AND RECORDS

• Courts beginning to clarify what is discoverable insocial media

•Records maintenance - new complications throughmobility, SEC regulations on retention if communicationsare through social media

REGULATORY

FDA Rules, largely for pharmaceuticalissued 12/2011

General disclosures for regulated, publiclytraded entities (SEC, Sarbanes Oxley,etc…)

Emerging issue: duty to report food virusetransmissions raised on social media?

REGULATORY

•Issues regarding platform TOS

• Importance of notifying users ofplatform TOS

•Familiarity with platform TOS to avoidliability

•Special rules on contests

•Prohibitions on spam (Twitter suingspammers)

Platform terms ofservice

REGULATORY

•Significant for risk management, BUT•Must comply with applicable law (e.g., NLRB)

•Should not reinvent the wheel (tie in existing codes ofconduct and records management practices; don’t re-write)

•Broad principles with examples better than platformspecific regulation (since platforms are always changing)

•Be updated regularly for new developments (e.g.,mobile)

•Must be accompanied by adequate training, reputationmonitoring and cyber-insurance if no existing coverage

Platform terms ofservice

Social MediaPOlicy

NETIQUETTE

Best summarizedas don’t be this

5 Take-AwAysF*r /*1$!% 2&+$! ./& $" )0&

f**+ $"+./)r-•Transparency, authenticity andrespect are paramount and betterthan platform-specific regulation.

•Social media policy is importantare critical, but only 1 piece of thepuzzle.

•Ounce of prevention = pound ofcure; humor is better medicinethan litigation (if possible)

•Changing parameters requireconstant updating. Nothing static.

•Risks can be managed butrewards can’t be recaptured

CONTACT:Carolyn Elefant

Washington DC

202-297-6100

www.carolynelefant.com@carolynelefant, @nxtgenenergylaw

www.linkedin.com/in/Carolynelefant

http://pinterest.com/myshingle/