Social Media MarketingBy: Amanda Moore

The Law of Social Advertising

Social advertising is comprised of any online advertising conducted on social networks

Practitioners who engage in social media promotions and advertising, therefore, need to be award of, and operate within these legal constrains.

The FTC ActProhibits “unfair or deceptive acts or practices” affecting commerce.

Determining whether an advertisement is unfair or deceptive for Section 5 purposes, courts generally consider the following factors:

-whether the representation or omission is likely to mislead the consumer - the reasonableness of the consumer’s reaction to the representation or omission

-the materiality of the representation or omission in terms of whether it is “likely to affect the consumer’s conduct or decision with regard to a product or service.”

Best Practices for Social Media Advertising

be truthful in your social media advertising make sure your social media advertising claims

aren’t unfair or deceptive substantiate your social media advertising claims

(and those made on your behalf)

The CAN-SPAM Act of 2003

Establishes the United States’ first national standards for the sending of commercial e mail, provides recipients the right to opt out of future emails, and imposes tough penalties for violations.

To determine whether an online message is subject to the CAN-SPAM Act, regard must be paid to the primary purpose of the message

CAN-SPAM Act Requirements

Message cannot:-contain header information that is materially false or misleading-contain deceptive subject headings-must clearly identify that the message is an advertisement or solicitation-must provide valid postal address of sender-include a clear explanation of how recipient can opt out of future emails-sender must be able to process opt-out requests for al least 30 days after it sends the message

The Children’s Online Privacy Protection Act (COPPA)

Imposes certain requirements on operators of websites or online services directed to children under 13 years of age, and on operators of other websites or online services that have actual knowledge that they are collecting personal information online from a child under 13

13

Specific Requirements for COPPA

Post a privacy policy Provide notice to parents

Give parents the choice to consent Provide parents with reasonable access

Not condition a child’s participation in a game Establish and maintain reasonable procedures

Social Commerce

Uses social media applications to enable online shoppers to interact and collaborate during the shopping experience

Assists retailers and customers during the process Social commerce leverages social media to aid in the

exchange process between buyers and sellers.

Tools for Purchase Decision Stages

Problem Recognition Social ads on social networking sitesInformation Search Wish lists, gift registriesEvaluation of Alternatives Bar code scanning/price comparisonsPurchase Ship within network optionsPost-Purchase Share opinion posts in activity streams

Encouraging Social Commerce Sharing

Share Tools Recommendation indicators

Reviews and ratings Testimonials

User galleries Pick lists

Popularity filters User forums

Social Proof-Conforming

Culture pressures Fear of deviance

Commitment Group unanimity, size, and expertise

Susceptibility to interpersonal influence

Benefits of Social Commerce

Enables the marketer to monetize the social media

investment by boosting site and store traffic

Solves the dilemma of social media return on Investment

Social commerce applications result in more data about

customer behavior as it relates to the brand

Benefits of Social Commerce Cont.

Social shopping applications enhance the customer experience

Social shopping makes sharing brand impressions easy

Brands can keep up with the completion, and maybe differentiate themselves from others in the e-commerce space

Ignoring the legal issues and lessons surrounding

social media advertising is fraught with peril and can

expose advertisers to significant penalties!