Minimizing the Risks in Cyberspace - Essay Example

? SOCIAL MEDIA MARKETING (Minimizing the Risks in Cyberspace) of Introduction The Internet today has become ubiquitous in people's lives; they go on-line for a variety of purposes, such as for communications through electronic mail (e-mail), shopping for fashion, shoes, groceries, services, and products, doing banking transactions on-line, search for news, or do some research on any topic or subject that interests them. The popularity of social networks has gained traction since their introduction because people are thirsty for news and updates from their friends, colleagues, and acquaintances. Although originally intended and designed for the military to communicate in times of war, the Internet (the World Wide Web or WWW) has many redundant connections to ensure communications are maintained even if one line is cut. This is a basic principle in the Internet, and the advent of social networking sites operate on the same idea. People can get connected with each other no matter what because lines are redundant. The Internet has since been given away by the military for civilian uses, for free and it is now a highly-evolved network. Businesses previously reluctant to put up a digital presence had been encouraged to put their own Web sites because of vast improvements in Internet technology primarily those dealing with secure on-line financial transactions. The introduction of the SSL or secure socket layer technology enabled people and business firms to conduct transactions in safe and secure manner, and this in turn gave birth to electronic commerce (e-commerce). A potential buyer can browse a Web site, and see high-definition graphics or video of a product or service. The latest phenomenon on the Web today is the new way of marketing to people, who can be reached anywhere. This vast potential customer base gave birth to social media marketing (SMM). This paper examines some of the relevant issues associated with the rise of SMM. Discussion Social media marketing is simply the practice of applying the principles of marketing or advertising to the digital world or cyberspace. In other words, advertising and marketing in those traditional media like print, television, and radio have been adapted to the social networking sites in which potential buyers and existing consumers of a product or service can interact with each other through that site, by registering as members of the site and using their comments, opinions, recommendations, and referrals give everyone on the site additional information to make buying decisions intelligently, like offering product choices or other alternative services. Social media marketing (SMM) is not to be confused with social marketing. The latter is using marketing techniques to promote desired behaviors or highlight a social advocacy, such as anti-smoking campaigns, the dangers of alcohol abuse, environmental protection, promote a proper diet through better nutrition, reduction of waste, mitigate the effects of climate change, or other social changes to encourage healthy living. SMM, on the other hand, is a powerful tool for marketeers and advertisers if done correctly. In the proper hands, social media marketing helps to build up a brand and encourage customer loyalty over a much wider potential consumer base. It is a main reason why big and reputable multinational corporations, especially those in fast-moving consumer goods, engage in SMM today. It is cost-effective in terms of ad spending, it is interactive by which customers can exchange their views with the seller or manufacturer, it can easily be updated to reflect the latest product developments, and it provides a better content and context for what is being sold in that Web site. SMM provides many advantages or benefits, but on the other hand, there are also legal pitfalls for those who are not careful on its use. In this regard, a legally-astute social media marketing managers takes cognizance of the four components necessary to engage in e-commerce but mitigates the risks of on-line deals. The components are vital to a hassle-free marketing campaign that builds up consumer awareness of a product or service, engages the consumers in a wonderful way that promotes loyalty, and in the ability of any business firm (big or small) to connect, communicate, and collaborate with clients. In the final analysis, it provides the company with a new way to compete more effectively. 1. The four legal components of a good social media marketing site are the following: a. Contractual obligations and other related concerns – this pertains to the terms, use of, and conditions for joining or membership in a company's social media site. This may include the use of usernames (anonymous handles), the prohibition on using foul or offensive language, posting of derogatory or libelous comments, and on-line community guidelines for all members. Those wanting to join should agree to the terms and conditions as valid and enforceable contract. Further, those who fail to comply can be banned or blocked from the site without any liability. It is established in jurisprudence that membership in any organization, whether on-line or not, is a mere tolerance; it is not a right but just a privilege which can be revoked any time. b. Compliance requirements of laws and regulations – these requirements can include a relevant marketing law or related advertising statute which mandates the Web site to comply. An example is to desist from engaging in unfair trade practices as mandated by the Federal Trade Commission (FTC) or a law which requires truth and honesty with regards to any advertising. Engaging in unfair or deceptive practices (even if unintended or merely an oversight ) is strictly prohibited, as e-commerce can provide anonymity without any corresponding responsibility. c. Privacy rights and confidentiality concerns – the social media site administrator must be vigilant with regards to the privacy rights of its users and members. An inadvertent, mistaken, or unintentional disclosure of confidential data of members can have legal repercussions. Most of all, it is also bad marketing strategy, as it will antagonize the users, and any negative comments as a result can easily go viral, with adverse publicity to the company as a result. The site collects only the necessary, basic information when a member joins the site, and requires nothing more. It must also be aware of any Internet security breaches, such as in cases of hacking. Administrators must respect the privacy of its users by not disclosing any confidential information to anybody. d. Publisher's potential liabilities – if the business firm decides to operate and put up its own Web site, then it is considered as a publisher in the legal sense of the word, similar to those in the traditional media. In this regard, the company is liable for any postings, comments, blogs, data feeds, or on-line forums connected or linked to its site. Company liability arises if postings are libelous, wrongful, hateful, defamatory, or infringes on the copyright of other people and the company did not take any appropriate action, such as removing the offending post or blocking it. In other words, the company is considered as an on-line publisher and also an Internet service provider (ISP) if it decides to host its own Web site, and subject to the laws of infringement. 2. Links via social media sites – the consumers who buy from sites that are linked to the company Web site must be forewarned, in clear language, that the company itself has no legal or any obligations because it merely provides the site as host but without any corresponding checks on those third-party providers. It is a “passive publisher” as defined by law, and just transmits all user-generated content but has no part in creating that content. This frees it from any liabilities. 3. Control by the federal government – the government can control these digital sites by requiring all Internet Service Providers (ISP) or hosts to submit a list of all the business sites it is hosting. The relevant law on this aspect was a court case decided way back in 1992 that involved mail-order sales, which is in many ways similar to the present digital Web sites except that mail-order companies before were actually holding a physical office in a certain location. A good way to control these transactions is to monitor them through the ISP and impose a sales tax. 4. The three branches of government – among the three co-equal branches which are the Congress, the POTUS (office of the President of the United States) and lastly, the judiciary, it is Congress which is in the best position to regulate on-line consumer transactions, similar to what the laws it had passed on credit card transactions, mail-order sales, and other business deals. It is mandated to pass laws that will regulate all new technologies, like the evolving Web 2.0 now. 5. Agency relationship between social media sites and hosted business sites – a normal legal principle in this type of relationship is termed as vicarious liability, in which the employer answers for the negligence of an employee. It is also called as imputed negligence or in Latin, it is respondeat superior (“let the master answer”) but in the case of Internet sites, the law allows for an exception where companies engaged in social media are immune from any unlawful acts resulting from user-generated content, as long as the operator removes it once made aware. Conclusion E-commerce will continue to grow, and is expected to reach about $30 billion by 2015 (Murphy, 2012, para. 1) and all giant food companies like Kraft Foods, General Foods, Cadbury, and Nestle were among the first to pioneer social media marketing because it is a wonderful new way to engage with their customers, especially on global scale as the Internet offers worldwide and easy access for customers to get updates on product information. Moreover, like in the case of Nestle, they found it to be effective in terms of the four Rs which are the following, namely: recommendations, ratings, reviews, and referrals. However, the FTC cautions that people who write on social media sites with their claims, testimonials, and endorsements must make sure these are truthful and substantiated, especially when it concerns product performance or safety (Wright, 2010, p. 70) because they can be made liable too. In the case of Nestle, it has more than 1,500 product lines and about 72 brands (Nestle, 2011, para. 5) and provides greater access. References Murphy, S. (2012, November 2). “50% of Web sales to occur via social media by 2015.” Retrieved April 28, 2013 from http://mashable.com/category/social-commerce/ Nestle (2011, September 01). “Good food. Good life: Nestle pilots social commerce with new interactive site for German consumers.” Retrieved April 30, 2013 from http://www.nestle.com/Media/NewsAndFeatures/Pages/Nestle-pilots-social-commerce-with-new-interactive-site-for-German-consumers.aspx Wright, B. D. (2010). “Social media and marketing: Exploring the legal pitfalls of user-generated content.” University of Dayton Law Review, 36(1), 67-86. Read More