FTC Endorsement Guides FAQ Updated
Several years ago, I wrote about the FTC Endorsement Guides. (These are known more formally as the Federal Trade Commission Guides Concerning the Use of Endorsements and Testimonials in Advertising.) This post discusses a recent update to the FAQ for the FTC Endorsement Guides.
Scope of the FTC Enforcement Guides
The following excerpts from the Introduction to the FAQ provide a succinct overview of the scope of the FTC Endorsement Guides. (more…)
Telling Facebook Friends Means Telling the World
This post explains something that we all should know intuitively. If you disclose information to your Facebook friends, you potentially have disclosed it to the entire world.
Matthew Richard Palmieri was a contractor for the United States. He lost his industrial security clearance after the government investigated certain of his activities.
Palmieri brought suit (without a lawyer) against various government agencies and officials in the United States District Court for the District of Columbia. The suit identified 30 ways in which the defendants allegedly violated his rights. (more…)
Facebook Ads can be Electronic Mail for CAN-SPAM Purposes
When I wrote about the CAN-SPAM Act of 2003 and the effort to limit unsolicited commercial e-mail (Commercial E-mail and CAN-SPAM: What You Need to Know), I noted that “One of the greatest challenges in complying with CAN-SPAM is figuring out exactly which communications are covered.” Much to my surprise, the U.S. District Court for the Northern District of California recently held that that certain Facebook ads were electronic mail for the purposes of CAN-SPAM!
Don’t Use Social Media if You Have Something to Hide
A client sells high-quality collectibles manufactured from authentic sports-related materials (game-used balls, uniforms, arena flooring, stadium seats, etc.). The company ensures that all materials are licensed by the applicable university or professional sports organizations so it can use the organizations’ names and trademarks in promotional activities. Some competitors do not pay for the required licenses, however – and one of these recently was caught as the result of a Groupon promotion.
WSJ: Lots of Money for Social Startups
In an article published yesterday (“Money Rushes Into Social Start-Ups”), the Wall Street Journal reported that VCs are investing in companies that are taking social networking from computers to mobile phones. The rationale, according to the article (emphasis added):
Behind the spurt of new services is also the idea that the phone, carried by people at all times, can reinvent the notion of a social network by sharing more real-time information about where people are, what they’re seeing and even who they’re around.
Other points made in the article: (more…)
WSJ: Web Start-Ups Get Upper Hand Over Investors
In an article published today (“Web Start-Ups Get Upper Hand Over Investors”), the Wall Street Journal reported (emphasis added) that “As venture capitalists scramble to get a piece of Silicon Valley’s new Web boom, entrepreneurs … are finding they have the upper hand.”
Here are some of the points the article makes about the latest Web boom:
- As VCs search for the next Facebook or Twitter, some entrepreneurs are positioned to have a greater say about how much they raise and deal terms.
- Bidding among VCs is driving up the price of many deals.
- Angel investors are driving up the prices of the tiniest early-stage companies.
- Some entrepreneurs are taking advantage of the situation by seeking the best advisors rather than the greatest amount of money.
Dana H. Shultz, Attorney at Law  +1 510 547-0545  dana [at] danashultz [dot] com
This blog does not provide legal advice and does not create an attorney-client relationship. If you need legal advice, please contact a lawyer directly.
Wikileaks and Apple – an Opinion
The following is taken almost verbatim from my answer to a Quora question and the comments that followed. Q. Was the WikiLeaks iPhone app really violating the Apple App Store “Terms of Service”? Apple spokesperson stated that ?Apps must comply with local laws and may not put an individual or group in harm?s way.? Is that actually the case?
A. Yes (in my opinion). Section 3.2(b) of the iPhone Developer Program License Agreement says:
You will not use the Apple Software or any services for any unlawful or illegal activity, nor to develop any Application which would commit or facilitate the commission of a crime, or other tortious, unlawful or illegal act[.]
Lawyers and Social Media: Ten Tips for Online Marketing Success
This post is off-topic – nothing to do with startup or early-stage companies – but that is one of the privileges of having my own blog! (I think of this as a treat for my lawyer friends.)
Next Wednesday evening (April 14), I will participate in a panel discussion on Effective Electronic Marketing for Lawyers sponsored by the Congressman Don Edwards Inn of Court.
My two handouts for the event are available as Free Downloads on the Downloads page:
- Lawyers and Social Media: Ten Tips for Online Marketing Success
- Lawyers, Social Media and Disclaimers: What, Where, When and Why
This blog does not provide legal advice and does not create an attorney-client relationship. If you need legal advice, please contact a lawyer directly.
Failure to Encrypt Passwords Leads to Class Action Lawsuit
On December 28, 2009, RockYou, Inc., a developer of applications for Facebook and other social networks, was sued in the U.S. District Court for the Northern District of California. The class action complaint alleges failure to encrypt users’ e-mail addresses and passwords and was filed shortly after a hacker copied that information for 32 million RockYou users. (more…)
Educate Employees about Online Endorsements – the FTC is Watching!
A few months ago, I posted Does your Employee Handbook address social media? This post discusses a specific social-media issue that is of great importance to every employer: Online endorsements of products or services by employees.
The Federal Trade Commission has published Guides Concerning the Use of Endorsements and Testimonials in Advertising. Actions that are inconsistent with the Guides may result in an FTC enforcement action.
Cyberbully Verdict: Not Guilty
Megan Meier, the victim
Lori Drew is the woman who, using Myspace in 2006, cyberbullied 13-year-old Megan Meier into committing suicide.
Drew’s actions were, without question, reprehensible. The interesting issue for this post, however, is the U.S. government’s decision to bring criminal charges under the Computer Fraud and Abuse Act (CFAA), 18 U.S.C. Section 1030.
Tweet Leads to $50,000 Defamation Suit
An unhappy tenant wrote the following tweet about her landlord: “Who said sleeping in a moldy apartment was bad for you? Horizon realty thinks it’s okay.”
The landlord learned about the tweet and, in response, filed a $50,000 lawsuit stating that the tenant maliciously and wrongfully defamed the landlord.
More details on Avvo.
The moral: When using social media, be very careful about what you write about any company or person. If you would be reluctant to make the statement to its/his/her face, think twice before you post it.
This blog does not provide legal advice and does not create an attorney-client relationship. If you need legal advice, please contact an attorney directly.
