Social media is a great way build your business’s
reputation. Interactivity between merchants and customers has helped many
unheard of boutique shops become Internet darlings with maxed out sales.
However, fostering social media on your website or participating in social
media on another’s blog is dangerous.
The danger is Internet Defamation.
What is Internet Defamation?
Defamation is when a person makes false statements about
your business such as you use discriminatory practices in hiring, or you use
dishonest practices dealing with your customers. Making statements like these
and putting them on the Internet for anyone and everyone to see is libel. There
are important elements for a statement on the Internet to earn the label of a
defamatory.
·
The person who published the statement was not
the person defamed
·
The statement is a false statement of fact
·
The false statement was understood to be:
·
About the plaintiff and
·
Designed to harm the reputation of the plaintiff
·
Should the plaintiff be a public figure he or
she must also prove malice.
Businesses with a presence on the Internet, especially if
the Internet site encourages comments and dialogs among visitors need to be
especially vigilant monitoring about what other users post on their site. There
is a powerful federal law known as Section 230 of Title 47 of the United States
Code (47 USC § 230). This federal law is part of the Communication Decency Act
of 1996. This law has precedence over any local or state laws and protects
owners of interactive computer service providers from claims of defamation from
postings made through reader’s comments, entries of guest bloggers if you
support a business blog site. In other words, this law gives you as a web host
protection from claims made from hosting information written by third parties.
Then why should a business watch what third parties say on
their site? is a valid question. You want your site and blogs to promote your
brand, not distract from that purpose by allowing a “flame war” on your sites.
Allowing an offensive statement to stay on your site, even
when written by a third-party is off-putting to potential clients and
customers,
Your own employee gives in to baiting into a discussion and
trying to defend your business engages in Internet Defamation costing you
customers and even cash if a lawsuit against you goes to court.
Insurance for Internet Defamation
Even though the Section 230 language and the truth - if what
you said is true it is not libel - help keep the threat of you being
successfully sued for Internet Defamation lower, it is a risk that your
insurance advisor can cover through your BOP policy, your General Liability
Insurance, or an Umbrella Policy.
Talk with your advisor to understand your risk and the best
way to cover it with insurance.