Social media sites are transforming not only the daily lives of consumers, but also how companies interact with consumers. Here at Morrison Foerster, across all of our practice groups, we are seeing complex, cutting-edge legal issues arising out of social media. As with the Internet boom during the mid-to-late 1990s, social media is generating new legal questions at a far faster pace than the law’s ability to provide answers to such questions. In an effort to stay on top of these emerging issues, and to keep our clients and friends informed of new developments, Morrison Foerster publishes this blog devoted to the law and business of social media.<h2>ABOUT MORRISON FOERSTER</h2>Morrison Foerster is a leading global law firm that transforms complexity into advantage for its clients. Our clients include some of the largest financial institutions, banks, consulting and accounting firms, and Fortune 100, technology, and life sciences companies. Highlighting the firm’s commitment to client service, leadership in market-changing deals and impact litigation, and values-based culture, Morrison Foerster has been repeatedly recognized as one of the top 10 firms on The American Lawyer’s A-List. Year after year, the firm receives significant recognition from Chambers and The Legal 500 across their various guides, including Global, USA, Asia‑Pacific, Europe, UK, Latin America, and FinTech Legal. Our lawyers passionately care about delivering legal excellence while living our values. Morrison Foerster has a long-standing commitment to creating a culture that respects and celebrates differences, while providing an inclusive environment. The firm has achieved Mansfield Certification Plus since 2018 as a result of successfully reaching at least 30 percent women, communities of color, and LGBTQ+ lawyer representation in a notable number of current leadership roles and committees. The firm also has a long history of commitment to the community and society through providing pro bono legal services, including litigating for civil rights and civil liberties, improving public education and fostering the wellbeing of children, advocating for veterans, promoting international human rights, enforcing the right to asylum, and safeguarding the environment.

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Aaron is the chair of the firm’s Technology Transactions Group and co-chair of the Interactive + Digital Media Group. He advises clients on a wide range of complex transactions involving intellectual property and technology, including structuring and negotiating strategic licensing, development, collaboration, procurement, and distribution deals.Aaron’s practice focuses on advising both established and emerging companies in a variety of data- and technology-intensive sectors, including software, SaaS, cloud-based technology, digital media (social media, AR/VR, gaming, streaming media, AdTech), AI, healthcare, consumer electronics, e-commerce, other online business models, and mobile applications. He also maintains an active practice counseling companies on branding and marketing, trademark licensing, and content-related transactions, as well as the intellectual property aspects of mergers, acquisitions, asset spin-offs, and private equity investments.He has represented clients such as Autodesk, Meta, OpenAI, Splunk, Konami, Kaiser Permanente, SoftBank, Visa, and Yahoo, among others.Aaron has been recognized by numerous publications for his work on market-defining technology transactions. He is currently ranked by Chambers USA for “Technology Transactions.”Aaron also serves as co-editor of Socially Aware, the firm’s award-winning newsletter and blog devoted to the law and business of social media, and regularly publishes on various IP and technology-related topics. Aaron is also a sought-after speaker on new and emerging areas of law, and is a frequent presenter and panelist at conferences and legal services programs. In addition to his active practice, Aaron regularly provides pro bono assistance to various nonprofit and charitable organizations such as Common Sense Media and the Starlight Children’s Foundation. He is a member of the board of directors of California Lawyers for the Arts.While in law school at the University of California, Berkeley, Boalt Hall School of Law, Aaron served as executive editor of the California Law Review and was elected to the Order of the Coif. Following law school, Aaron served as law clerk to the Honorable William H. Orrick and the Honorable Martin J. Jenkins, both United States District Judges for the Northern District of California.

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Aaron is the chair of our Technology Transactions Group. He advises clients on a wide range of complex transactions involving intellectual property and technology, including structuring and negotiating strategic licensing, development, collaboration, procurement, and distribution deals. Aaron’s practice focuses on advising both established and emerging companies in a variety of data– and technology–intensive sectors, including software, SaaS, cloud computing, AR/VR, AI, gaming, healthcare, consumer electronics, social media, e–commerce, other online business models, and mobile applications. He also maintains an active practice counseling companies on the intellectual property aspects of mergers, acquisitions, asset spin–offs, and private equity investments.

Aaron P. Rubin

Lawrence Gallick is of counsel in the firm’s Austin office and a member of the Technology Transactions Group.Lawrence focuses his practice on technology transactions and licensing matters. His diverse experience includes advising on SaaS agreements, cross-licensing agreements, research and collaboration agreements, development agreements, and distribution agreements. He counsels a broad range of companies across the software, hardware, life sciences, biotech and FinTech spaces, as well as other entities including universities.He advises clients in connection with general corporate matters including contract negotiations, and leasing and technology placement agreements.Lawrence also serves as co-editor of <a href="https://www.sociallyawareblog.com/" target="_blank">Socially Aware</a>, the firm’s award-winning newsletter and blog devoted to the law and business of social media, and regularly publishes on various IP and technology-related topics.Prior to joining the firm, Lawrence was counsel at another major law firm. Before earning his law degree, Lawrence was a web consultant, project manager, and web developer in Portland, Oregon, where he managed and consulted on projects using industry methodologies and performed custom development and integration of content management systems.Lawrence was named a Super Lawyers “Rising Star” in 2015 and 2018–2022, and is licensed in both California and New York. Lawrence earned his J.D. from the University at Buffalo School of Law, where he was the electronic systems editor for the Buffalo Law Review and awarded the ABA-BNA Award for Excellence in the Study of Intellectual Property Law.

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Lawrence Gallick

Anthony Ramirez is a partner in the Technology Transactions Group in the New York office of Morrison Foerster.Anthony advises clients on general commercial and transactional matters. He regularly advises companies on the IP aspects of their M&A transactions. His clients include technology, digital media and content for television and music, financial services, and communications companies with diverse intellectual property assets and issues.His practice focuses on the legal aspects of developing, licensing, and commercializing technology and intellectual property, as well as negotiating general commercial contracts, including outsourcing transactions, as well as content and data licenses. He regularly assists clients with legal issues relating to licensing and commercialization of digital media and content, digital content that is distributed over the Internet or streamed, mobile applications and social media, as well as the licensing of recorded music for distribution via digital platforms. Anthony is also experienced with issues relating to open-source software, software development, artificial intelligence and machine learning, cloud-based technology, and protection of proprietary information.Anthony has extensive experience working on matters involving disruptive technologies, such as blockchain. He has helped fintech clients with general intellectual property issues in connection with terms of service for online financial products and services.Anthony is an integral part of the outside pro bono legal team for nonprofit organizations based in New York, including advising clients on legal issues regarding entertainment, social media, privacy rights, and the negotiation of outsourcing and service agreements. Anthony received his J.D. from the University of Michigan Law School in 2009. He received his B.S. from Cornell University in 2004.

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Anthony Ramirez is a partner in the Technology Transactions Group in the New York office of Morrison Foerster. He advises clients on general commercial and transactional matters. His clients include technology, media, and communications companies with considerable intellectual property assets. His practice focuses on the legal aspects of licensing and commercializing technology and intellectual property, as well as negotiating general commercial contracts. He also regularly assists clients with legal issues relating to mobile applications and social media.

Anthony M. Ramirez

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Socially Aware is devoted to the law and business of social media, proactively addressing emerging issues and keeping our clients informed of new developments. We cover fields such as artificial intelligence, privacy and data security, Section 230, intellectual property, and much more.

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The Federal Trade Commission (FTC) recently reached an $800,000 settlement with the data broker Spokeo, Inc. (“Spokeo”).  The FTC’s complaint alleged violations

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The FTC’s Spokeo Settlement Highlights Social Media-Related Legal Risks

The FTC’s Spokeo Settlement Highlights Social Media-Related Legal Risks | Socially Aware

Julie O'Neill

The Federal Trade Commission (FTC) recently reached an $800,000 <a href="http://ftc.gov/os/caselist/1023163/120612spokeoorder.pdf">settlement</a> with the data broker Spokeo, Inc. (“Spokeo”).  The FTC’s complaint alleged violations not normally seen together:  First, that Spokeo distributed personal information for background checks by employers in ways that failed to comply with the Fair Credit Reporting Act (FCRA) and, second, that Spokeo’s employees posted Spokeo product endorsements without revealing their connection to the company, in violation of <a href="http://www.law.cornell.edu/uscode/text/15/45">Section 5</a> of the <a href="http://www.law.cornell.edu/uscode/text/15/chapter-2/subchapter-I">FTC Act</a>, which prohibits “unfair or deceptive acts or practices in or affecting commerce.”The Alleged FCRA ViolationsThe FCRA imposes certain obligations on “consumer reporting agencies,” which are generally defined as businesses that assemble or evaluate certain information about a consumer and furnish it to third parties for their use in determining the consumer’s eligibility for credit, insurance, or employment.  The FCRA requires a consumer reporting agency to follow specified procedures to help protect consumers’ rights, including steps to ensure that each report it sells is used for a purpose specifically permitted by the law and that the information contained in the report is accurate.  The law also requires a consumer reporting agency to inform each recipient of a consumer report of its obligations under the Act, including that it notify a consumer in the event that it takes adverse action against him or her based on information in the report (such as a decision to deny him or her credit or not to hire him or her).Spokeo collects personal information about consumers from hundreds of online and offline sources—including social networks and marketing databases—and combines this information to create profiles on those consumers.  Spokeo then sells access to these profiles.  The FTC alleged that, because Spokeo marketed the profiles to human resources departments and others for use in the hiring process, it was a consumer reporting agency subject to the FCRA.  According to the FTC, Spokeo did not, however, comply with the Act’s requirements.  Moreover, even though Spokeo had changed its website terms of service to state that it was not a consumer reporting agency and to prohibit clients from using its information for purposes protected by the FCRA, Spokeo did not actually enforce those terms, such as by revoking the access of companies that it knew—or should have known—were using its consumer reports for employment purposes.Although this is the FTC’s first FCRA case involving the sale of data collected for employment purposes from social media and other online sources, it should not have come as a complete surprise, as this was not the first time that the agency had weighed in on the subject.  In May 2011, FTC staff <a href="http://ftc.gov/os/closings/110509socialintelligenceletter.pdf">wrote</a> to a company described as “an Internet and social media background screening service used by employers in pre-employment background screening,” reminding it of the FCRA’s applicability.  Even in light of these FTC activities, however, businesses may not appreciate just how broad the law’s definition of a “consumer reporting agency” is.  Companies that compile or evaluate and then distribute consumer data should seek to determine whether they need to comply with the FCRA’s requirements.  Further, companies that receive consumer reports from consumer reporting agencies—whether to make employment decisions or otherwise—are also bound by certain obligations under the FCRA and, potentially, state laws.The Allegedly Deceptive EndorsementsJust a few years ago, the FTC updated its Endorsement Guides (“Guides”) to address issues specific to social media marketing.  Although the Guides do not have the force of law, they provide marketers with guidance from the FTC on avoiding potentially deceptive practices under Section 5 of the FTC Act.  Even prior to this update, however, the Guides made clear that any connection between an endorser and the seller of the advertised product—such as an employment relationship—must be disclosed, as such a connection affects the weight that consumers give to the endorsement.  The message to companies:  Create and enforce a social media policy that requires your employees to disclose the fact of their employment when talking about your products or services.Spokeo allegedly did just the opposite:  The FTC asserted in its <a href="http://ftc.gov/os/caselist/1023163/120612spokeocmpt.pdf">complaint</a> that Spokeo directed its employees to pose as ordinary consumers and post endorsements praising the company’s products.  What’s more, Spokeo managers actually reviewed the endorsements and supplied the accounts that were used to make them—all to give the public the misleading impression that Spokeo had numerous happy customers.  In the FTC’s view, this practice was deceptive because, had consumers known that the endorsements were posted by the seller’s own employees, they would have known that they should probably take the endorsements with a grain of salt.  In its settlement with the FTC, Spokeo agreed not only to comply with the Guides going forward but to also remove all of the fake endorsements already posted.A myth has developed among many companies seeking to exploit social media that the old rules do not apply in this new age.  The Spokeo settlement is a stark reminder that the old rules do in fact apply, and that companies ignore those rules at their peril.