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Facebook MarketingLegal and Regulatory Compliance
Socialize Toronto: Monetizing Social MediaJanuary 27, 2012
Presenters: Fazila Nurani, PrivaTech Consulting David M. Adler, Leavens Strand, Glover & Adler, LLC
Objectives
• Understanding the legal framework and regulator outlook on Facebook in Canada and the U.S.
• Key questions from participants.
• New developments in Canada and the U.S.
Context• Facebook boasts
over 800 million active users.
• About 17 million Canadian and 150 million American “monthly active users”
• Default privacy settings only changed by 15-20% of users.
Canada’s Privacy Laws• Privacy laws apply to personal information
collected, used and disclosed in the course of commercial activities.
• Mix of federal and provincial laws:• Personal Information Protection and Electronic Documents
Act, 2001– federally regulated businesses, and provinces without their own private sector privacy law.
• B.C. Personal Information Protection Act, 2004• Alberta Personal Information Protection Act, 2004• Quebec Act Respecting the Protection of Personal Information
in the Private Sector, 1994• Health privacy laws: Alberta, Saskatchewan, Manitoba,
Ontario, New Brunswick, Newfoundland
OPCC’s Take on Facebook• The Office of the Privacy Commissioner of Canada investigated
Facebook’s practices in August of 2009. Key findings: Sharing of personal information with third-party developers creating
Facebook applications raises serious privacy risks. Distinction between account deactivation and deletion not clear. Lack of transparency in Facebook’s privacy policy.
• September 2010 – OPCC stated the issues raised have been resolved to her satisfaction, and at the same time announced her investigation of the “Like” button.
• Stoddart:
“Facebook is one of several rapidly growing and evolving Internet giants that are presenting ongoing challenges to privacy regulators around the globe.”
Social Media Court Cases in Canada
General Trends:
• Blurring the divide between publicand private life.
• The more friends/fans you have, the less the “expectation of privacy”.
• Stretching the law to fit the social media context.
• Focus on fairness.• Courts are turning to international cases for
guidance.
Privacy in The United States
General Observations:
• US: No Privacy Framework in place
• FTC: Federal Agency Safeguarding Consumer Privacy
• Internet’s “Implicit Bargain” = “Free” Content in exchange for Marketing
• Online Behavioral Advertising (OBA)
• Industry Self Regulation / “Do Not Track”
Social Media Cases
Consumer Deception/Privacy Risks
• Twitter (2010-2011)
• First FTC Social Media Case• Charges: hackers gained unauthorized admin
control• Result:
• 20 yr ban on misleading consumers • Info Security Program subject to audit for 10 yrs
Social Media Cases, Cont.
Consumer Deception/Privacy Risks• Facebook (2011)
• Charges: deceived consumers about public availability of private info
• Result: • Bar on misrepresenting privacy and security• Affirmative Consent Required for Privacy
Overrides• 30 Day access limit for deleted accounts• Create & maintain comprehensive privacy
program• Third-party audits every 2 yrs for next 20 yrs
Social Media Cases, Cont.
Consumer Deception/Privacy Risks• Data Breach Notification Laws
• Federal: Data Accountability and Trust Act (DATA)• State:
• www.ncsl.org provides a comprehensive state-by-state list of data breach notification statutes
• CA: Consumers can request copy of a Web Site’s Data Breach Notification Policy
New Developments and Path Forward• Ongoing class action lawsuit against Facebook launched
in a Manitoba court claiming the social media site misled users into letting their personal information be sold for a profit.
• December 6, 2011 – OPCC released Guidelines for online behavioural advertising.
• Coming into force soon – Canada’s new anti-spam law, the Fighting Internet and Wireless Spam Act (“FISA”)• Opt-in model for commercial electronic messages.• New definitions for “family” and “personal”
relationships may pose cost implications for social media marketers.
Privacy Trends in the U.S.• Federal Privacy Legislation
• “Do Not Track” bill from Sen. John D Rockefeller (D-W.Va.)
• “privacy bill of rights” from Sens. John McCain (R-Ariz.) and John Kerry (D-Mass.)
• FTC Guidelines• Online Behavioral Advertising Principals
• www.ftc.gov/os/2009/02/P085400behavadreport.pdf
• Industry Initiatives• WOMMA http://womma.org/ethics/disclosure/
Summary• Privacy Rights
• Will continue to evolve in the U.S.
• Will be subject to new federal (and possibly state) regulation
• Action Items
• Develop a Social Media Policy
• Review/Update your Firm’s Privacy Policy
• Conduct Due Diligence on digital marketing partners to understand how consumer information is: 1) gathered, 2) stored, & 3) shared
Questions…?Fazila Nurani, B.A.Sc.(E.Eng.), LL.B, CIPP/C
Senior Counsel and Lead TrainerPrivaTech Consulting
Phone: 1-905-886-0751Fax: 1-905-886-9974
_____________David M. Adler | Leavens, Strand, Glover & Adler, LLC
203 North LaSalle Street, Suite 2550Chicago, Illinois 60601Direct: (866) 734-2568Fax: (312) 275-7534
www.ecommerceattorney.com@adlerlaw