Social Media Law Update : Intellectual Property, Advertising and Video Game Law: Sheppard Mullin Lawyers & Attorneys

California’s Attorney General today issued recommendations for mobile app developers and the mobile industry to safeguard privacy for consumers.

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Pinterest has released new Promotions and Marketing Guidelines for retailers, consumer brands and other companies running promotions on its platforms. Among other things, the new guidelines say don’t run a sweepstakes where each pin, repin or like represents an entry.

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In October we reported that the FTC had issued its proposed updates to COPPA. Today it enacted these new rules.

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By Rachel Tarko Hudson

Mobile app developers must now conspicuously post and follow privacy policies just like websites and other commercial online services according to California Attorney General Kamala Harris. On October 30, the Attorney General’s office began sending warning letters to app developers notifying them that they had 30 days to comply. Time is now up. And the consequences are potentially substantial with the law carrying fines of up to $2,500 per download.

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By Rachel Tarko Hudson

The New York Attorney General’s Charities Bureau recently released “Five Best Practices for Transparent Cause Marketing” which contains general best practices for cause marketing campaigns, including campaigns conducted on social media.  Cause marketing, also known as commercial coventures, is the practice by a for-profit company of donating a portion of the purchase price of an item or service to a charity.  Cause marketing is becoming increasingly popular among companies looking to do good as well as to generate positive publicity for their brand.  Many states regulate cause marketing, however, New York’s Best Practices indicate that greater attention may begin to be focused on campaigns conducted using social media and other newer online platforms for giving.

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The Federal Trade Commission recently proposed several updates to the Children's Online Privacy Protection Act of 1998 (COPPA).

COPPA currently provides that operators of websites and other online services that collect personal information online about children under 13, or whose websites or services are directed at children under 13, must:

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By Elizabeth Berman

Facebook, Inc. was sued in a class action last year over one of its advertising practices called “Sponsored Stories,” which typically consist of a Facebook Friend’s name, profile picture, and an assertion that the person (your Facebook Friend) “likes” an advertiser, coupled with the advertiser’s logo, featured on your Facebook page or News Feed. The idea is that the target of the advertisement (i.e., you) will be more influenced by the company’s advertisement because someone in your network (i.e., your Friend) “likes” that company. The disconnect is that “liking” a page on Facebook does not necessarily mean the user likes that company in the normal sense of the word. For example, one could “like” a page in order to get some promotional benefit from the company or learn more information about the company or its product.

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By Neil Ray

Continuing its focus on privacy issues, the Federal Trade Commission (FTC) reached a settlement earlier this month with social networking service, Myspace, over charges that it misrepresented its protection of users' personal information. The FTC alleged that Myspace allowed advertisers to access personally identifiable information despite previous assurances to its users that it would keep such information private. The settlement requires Myspace to implement a comprehensive privacy program, and calls for regular, independent privacy assessments for the next 20 years.

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By Rachel Tarko Hudson

Pinterest has seen its number of daily visitors increase by 145 percent since the beginning of 2012, now counting 11 million users on its site, according to recent reports. It is a powerful social media tool by any standard, however, in recent months, with its meteoric rise, concerns have also surfaced about potential copyright issues. Needless to say, companies are clamoring to gain access to this vast and ever increasing pool of users, but they should (and can) proceed with caution in order to stay on the right side of the copyright issues.

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