The Laws and Regulations Impacting Commercial Transactions on Social Media

2141 Words9 Pages
Social Media "…By 2011, approximately 83% of Fortune 500 companies were using some form of social media to connect with consumers. Furthermore, surveys suggest that consumers are increasingly relying on social media to learn about unfamiliar brands…" (Naylor, et. Al, 2012). Introduction. As of March, 2013, Facebook has a reported 1.13 billion users each month, and each day up to 665 million people log on to Facebook (AP, 2012). And according to attorney Brian Socolow, with Loeb & Loeb, seventy-two percent of online users are part of "…at least one social network"; and the "most credible source" for details about a particular brand or item on a social networking site doesn't come from the marketing people, it comes from "other consumers" (Socolow, 2011). This paper delves into the most popular social media site, Facebook, to explain why consumers are helping marketers promote products and serves, and answer questions about the impact of social media in terms of legal and marketing aspects. ONE: The 4 components of a legally astute social media marketing manager; how does each component mitigate the risk involved in doing business in cyberspace. The University of Dayton Law Review points out that there has been a "…paradigm shift in the way advertisers communicate with customers," and unlike the old way (messages are "controlled and disseminated by the advertiser or an agent"), there is a new way (through social media sites) (Wright, 2010, 68). Within the social media
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