Many employers understand that a well-drafted social media policy may prevent employees from using Facebook or other networking websites to complain about the company. Yet, few employers realize that an employee’s positive praise for company products or services via social media may violate the Federal Trade Commission’s advertising guidelines, thus putting the company at risk for an enforcement action.
The FTC recently issued guidelines requiring employees to clearly and conspicuously disclose any relationship to a company before promoting or praising the company’s products or services on social networking sites or blogs. If an employee fails to disclose the relationship, the FTC may pursue an action against the employer, even if the employer was unaware of the employee’s endorsement.
Employers can greatly reduce the risk to the business by creating an internal policy that informs employees of the need for disclosure if using social media to discuss or promote company products or services. The comments to the FTC guidelines suggest that the FTC is unlikely to bring an action against an employer who enforces such an internal policy. To learn more about whether your company should have a social media policy, be sure to consult with an experienced employment attorney.
