The web has evolved into a giant social networking platform where the physical limitations of the world, including country borders, matter little. If you are considering getting involved in the business side of this movement, it is important to know the legal requirements for social media websites so you can avoid problems.
I would be remiss if I didn’t mention there are different types of social media sites on the web. Facebook is much different than Yelp, which is much different than Twitter. Each works a bit differently and will need to confront unique legal issues. Still, there are a number of common legal requirements all social media sites face, so let’s start there.
Social media sites are user-generated content platforms. These sites and apps allow users to upload content into their accounts for viewing by others. For example, you might upload a funny video off of YouTube to your Facebook account to share it with friends.
Problems arise when users upload copyrighted content without the permission of the copyright owner. Such action leads to legal claims of copyright infringement with each claim carrying potential damages of $150,000. Fortunately, you can protect yourself and your site by complying with the Digital Millennium Copyright Act of 1998.
The “DMCA” provides social media websites with immunity from copyright infringement lawsuits based on content uploaded by a member. For example, Twitter can escape liability from infringing content uploaded by a member who is tweeting.
If you are starting a social media site, comply with the DMCA is an absolute must. There are a number of steps you must take to do so such as selecting a DMCA agent service, and they are complex. Read the rest of this article and then contact me to discuss compliance.
You need to control the conduct of people using your website. Why? Well, ask yourself a few questions. Do you want:
- People coming on and spamming other members with casino offers?
- Members threatening each other?
- People trying to hack your member list?
- Members posting racist attacks?
Privacy policies are required on all social media sites these days. Why? California has passed a law requiring the policies to be created and published on any website capturing personal information from an individual living in California. Since it is highly likely at least one of your members will live in the state, you need to comply.
Think COPPA is a movie director? No, we are talking about the Children’s Online Privacy Protection Act of 1998. Known as “COPPA,” the law details what steps a website must go through if it allows kids under the age of 13 on the site. Fines for failing to comply with the COPPA regulations are $16,000 per child, which adds up quickly.
Determining your COPPA exposure is critical because the penalties for getting it wrong are brutal. Don’t believe me? Artist Arena paid a million dollar fine to the FTC in October 2012 for failing to comply with the law when gathering information from kids under 13 on fan sites for Justin Bieber and Selena Gomez. If your site has just ten kids on it under 13, you could be staring at a $160,000 fan. I bet that isn’t part of your business plan!
Social media sites represent a great way to make money online if you can generate enough interest. After all, the members of the site create nearly all the content and let you use it for free. Still, there are legal considerations. Drop me a note today to discuss your project and learn more about how the legal requirements for social media apply to your site.
Richard A. Chapo, Esq.
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