Week Five – Legal Risks on Social Media Policy
One of the main aspects to consider on implementing web 2.0 at workplace is the privacy of personal information. ITG (Research company) argues that social applications should display a confidentiality policy which clearly states the reason for sharing personal information. The policy should also advise users against copyright infringement (legal risks)
Malcolm Burrows has posted a classification of legal risks for companies who have been implementing enterprise 2.0 solutions. The following list introduce some of these risks:
- Loss of confidential information.
- Trademark infringement and loss of brand reputation.
- Copyright infringement.
- Discrimination.
- Misleading and deceptive conduct.
- Passing off.
- Organisational reputation risk.
- Breach of continuous disclosure obligations for public companies.
- Defamation.
- Privacy.
- Vicarious liability.
- Negligent misstatement.
- Occupation and industry specific risks as they are embodied in organisation specific legislation.
In June 2005, Jeff Jarvis purchased a laptop and an extended warranty for the next 4 years. After few months the customer had many problems related with the hardware and the bad services of support. Jarvis posted in DELL´s blog a complaint titled “DELL Sucks” where he added some suggestions to Michael Dell, the owner of the company, to read and participate more frequently with their customers in a friendly environment.
Google spread the keyword “sucks” through the internet and two days after of the blog post, thousands of frustrated customers made the same complaints as Jarvis about the company. The New York Times and the magazine Business Week called this event as “Dell Hell”, because it had a catastrophic impact on their sales. Dell was one of the huge companies who experienced the impact of these new socially world connected. After this experience Dell learnt the lesson about social networks.
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Victor's Blog 
August 22, 2010 at 7:22 am
Hi Victor,
You made a good point. Copyright always is major risk for Enterprise2.0. I think the time will slove the issue. Just give some time. The rule or legal will make sense.
August 22, 2010 at 11:42 am
That’s terrible how Dell had to go through such experience. I’m sure it was not their first and it will not be their last. But Jarvis does have a point, Dell should be more active with it’s customers. After all they are the ones who buy their laptops!
September 1, 2010 at 2:11 pm
Hi Victor:
1) I fully agree with the issue of confidentiality. This is critical. In Brazil, where I come from, enterprise privacy law is in its infancy.
2) Going over your blog, I also noticed you are Peruvian from Chosica. I visited this place twice in 1992-4. I have a Peruvian friend from Chosica who studied with me in Campinas (Unicamp, 1979-84), Sao Paulo. My friend (Wilder Robles) is currently living in Canada.http://umanitoba.ca/faculties/human_ecology/staff/fs_sciences/140.html
Chosicanos are wonderful people!
Paulo.
September 13, 2010 at 3:22 pm
Hi paulo, thanks for your participation in my Blog. In fact, I assume that in Peru has been happening the same situation. In our countries there are not yet enough policies which protect the privacy of users. Althought Enterprise 2.0 has been spread for everywhere, there is still a lack of legal mechanisms to protect confidentially of the information.
About my peruvian background, I appreciatte your opinion about us. As you know, many peruvians also travel to Brazil to study different carreers that we cannot study in Peru. What do you think about Chosica, is that true that Chosica looks in many ways different than Lima?
Keep in touch.