Crisis Avoidance – Are Company Blogs A good Prospective Legal Landmine?

It is a expanding trend. Organization employees and even senior executives are contributing to corporate blogs. A recent study confirmed that seventy-six of the Fortune five hundred firms now publish blogs. Hundreds of other smaller corporations do the same. Blogging is a excellent way of humanizing a key company by creating a closer relationship with the buyers and marketing new merchandise. Weblogs also, nonetheless, pose a hidden danger that may not be fully recognized at this early phase.

Lately, I attended a system in which company bloggers have been discussing their roles in corporate advertising and communications. The one factor that raised quick problem was that the bloggers seemed to have small supervision as they positioned 1000’s of words on the Web on a business web site.

In a single occasion, a blogger at a key company mentioned that she was anticipated to know what was proper for the firm site. None of the bloggers indicated that their corporations had any created policy about running a blog or that they had been briefed by the company’s authorized counsel on the prospective legal responsibility problems involving a weblog.

Some of the concerns should be clear. At China telemedicine , bloggers must not be generating forward- looking statements concerning products, solution development, earnings, or the price of the firm’s inventory. Some places could be less distinct. What if a blogger’s enthusiastic feedback about a company’s merchandise show to be deceptive or inaccurate? Can stockholders sue the firm primarily based on individuals remarks if the hugely touted merchandise turns out to be a dud? What if bloggers disparage another firm’s item or use the site to encourage their possess social or political agendas? There is no issue that most bloggers will use very good frequent feeling. But there are a lot of nicely indicating individuals whose steps leave their companies shaking their heads and plaintiff’s counsel leaping for pleasure.

Among the legal issues outlined in a current write-up by the legislation company of Howard, Rice, Nemerovski, Canady, Falk & Rabkin (www.howardrice.com) incorporate:

· Defamation and Privateness Torts
· Mental House Infringement
· Trade Libel
· Trade Tricks
· Securities Fraud
· Gun-Leaping
· Selective Disclosure
· Forward-seeking Statements
· Work Troubles
· Person Privacy
· Discovery

Robert Sprague, an assistant professor in the Department of Management and Marketing and advertising at the College of Wyoming, revealed an post* in the American Business Regulation Journal which gives an superb discussion of regardless of whether bloggers’ perform falls underneath the First Modification or is a lot more tightly controlled industrial speech. We have witnessed cases where aggressive condition regulators have sued companies based on statements made in blogs and on the Net, even in cases the place workers ended up not right creating the solution promises.

A well known plaintiff’s legal professional was just lately quoted as saying that he loves to use business web sites as a foundation to undermine the trustworthiness of company officials during depositions. We have located that it is not unusual for web sites to have data and claims that have not been vetted by legal counsel and can be misleading or taken out of context.

It appears ironic that companies that devote hrs examining every single term in a push launch would allow bloggers to produce content that seems on a firm web site with minor or no overview and only informal tips.

Running a blog is not going away. However, like any kind of corporate communications, it requirements to be controlled and monitored.