We are in the midst of a communications revolution. Use of social media for communication purposes continues to grow, while "old school" messaging media like email is on the decline. Facebook reportedly has reached 700 million users worldwide and is putatively valued at $50 billion dollars. Advertising revenue expected to be generated from social media is estimated to reach $8.3 billion dollars annually by 2015. Significantly, according to one survey, 81% of companies have implemented (or plan to implement) social networking in order to enhance their exposure. Seventy-three percent of small and medium businesses reportedly employ social media for marketing purposes.
Much like the “Cloud computing revolution" there is an almost frenzied excitement around social media, and many companies are stampeding to exploit social networking. The promise of increased intimate customer interactions, input and loyalty, and enhanced sales and expanded market share can result in some organizations overlooking the thorny issues arising out of social networking. Many of these issues are legal in nature and could increase the legal risk and liability potential of an organization employing a social media strategy.
Coming on the heels of a white paper we wrote with ACE USA, in this multi-part series the InfoLawGroup will identify and explore the legal implications of social media. This series will help organizations begin to identify some of the legal risks associated with social media so that they may start addressing and mitigating these risks while maximizing their social media strategy.
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By: David Navetta