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4 Social Media Legal Issues Dealers Can’t Afford to Ignore

4 Social Media Legal Issues Dealers Can’t Afford to Ignore

4 Social Media Legal Issues Dealers Can’t Afford to Ignore

This is sure to happen. control. For example, the Federal Trade Commission recently updated its truth-advertising

guidelines, last revised in 1980, to address the Web’s commercialization. Federal and state

regulators are taking the position that social media is not a loophole for fraudulent marketing

practices and that active implementation and suppression of social media fraud. Proper social

media ethics are now legal, not just personal preference.

Duplicate reviews

Companies must comply with the FTC’s updated Endorsement and Advertising Guidelines to

ensure that their posts are completely accurate and not misleading and that planting or allowing

counterfeit reviews are a violation. The guidelines are very comprehensive and anyone who

4 Social Media Legal Issues Dealers Can’t Afford to Ignore

promotes products through social media sites, including dating sites, websites, or blogs, can

write reviews.

There are many companies on review sites that offer quick and easy ways to improve your

ratings. Beware! A dealership in Texas suffered a devastating loss of reputation due to the review

-posting methods of the company they hired. businesses and dealerships across the country in a single day.

The crash was discovered in October 2010, but news articles continue to appear in search results on the

dealer page.

4 Social Media Legal Issues Dealers Can’t Afford to Ignore

While the above case is an example of a dealer hiring the wrong seller, the real concern is the activity

of the company’s own employees. The FTC recently made fraudulent statements to a California marketing

company after it discovered that company employees were pretending to be regular customers

posting positive reviews online.

Dealers may face liability if employees use social media to comment on their employer’s

services or products without disclosing the employment relationship. The FTC is required to

disclose all “material connections” between the reviewer and the company being reviewed.

These connections can be any relationship between a reviewer and a company, which affects

the credibility that the user gives to reviewer statements such as an employee or business

4 Social Media Legal Issues Dealers Can’t Afford to Ignore

relationship. If employees, friends, family, or vendors post reviews to enhance the dealership’s

online reputation, they should clearly disclose any relationship with the company. In addition,

all reviews should have an honest opinion based on real experience. Reviewers should not

approve a product or service that they themselves have not personally used or created any

other form of false approval. It’s about transparency and full disclosure.

4 Social Media Legal Issues Dealers Can’t Afford to Ignore

Aside from the obvious potential damage to the dealer’s reputation, failure to comply

with these terms can lead to significant penalties. In a recent lawsuit, the New York

Attorney General fined a cosmetic surgery company $ 300,000 for ordering its employees to

write fake reviews of the facelift procedure, and FTC ordered DVDs of the company’s marketing

instructions to pay $ 250,000 for fake reviews posted by affiliate marketers. . The FTC has directed

companies to take full responsibility and accountability for all inappropriate actions of their employees,

their vendors and the lawyers they hire. Reviewers may also be personally responsible for statements

made during their approvals.

Payment for reviews

4 Social Media Legal Issues Dealers Can’t Afford to Ignore

angered manufacturers. Since there are no factory gatekeepers when it comes to online ratings, it

may seem tempting to encourage customers to post a positive review. The good news is you can

do it if you want; The good news is that any reviewer who offers any compensation such as free

reviews, rewards, incentives, promotional items, gifts, designs, or review items must fully disclose

the source and nature. Received compensation.

4 Social Media Legal Issues Dealers Can’t Afford to Ignore

4 Social Media Legal Issues Dealers Can't Afford to Ignore
4 Social Media Legal Issues Dealers Can’t Afford to Ignore

So, if you pay for reviews and reviewers fail to disclose their compensation, you may face liability.

This is an area that can be easily grabbed and apart from the legal risk, your reputation will be a

big hit.

Advertising on social media sites

Trying to “sell” on social media sites by posting inventory, prices, or payments is an ongoing debate

on the relative merits of “whether to sell” on social media, it is important to note the potential

implications of this type of activity.

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