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December 22nd, 2012
What Facebook and Instagram Changes Mean to Advertisers
The Instagram Storm
This past Monday, Instagram announced a number of changes to its Terms of Use and Privacy Policy that caused some consumers and companies to fear that Instagram could sell posted photos to advertisers and others. Users vehemently voiced their objections, and many reportedly left, or threatened to leave, the photo-sharing website. While a closer reading of the revised Terms of Use and Privacy Policy might have calmed some of these fears, consumers were justifiably confused about Instagram's intentions. By Tuesday, Instagram issued an apologetic blog post clarifying that Instagram will not sell photos, and that users can still control who sees their photos by using the "private" setting. Instagram also promised to clarify the revised Terms of Use and Privacy Policy before implementing the revised terms.
Lost in the frenzy was Instagram's stated intention to develop native forms of advertising for its site, similar to Facebook's ads with social context. If Instagram is unable to regain consumer confidence that it will not infringe on consumers' privacy or other rights, it may lose important revenue opportunities and advertisers may well lose a potentially exciting new medium for their marketing.
Facebook Privacy Enhancements
Avoiding a similar public outrage, earlier this month, Facebook announced a number of changes to its data use policies aimed at helping users better manage their own privacy controls. According to Facebook, these changes (which include a new, easily findable, privacy shortcut toolbar) are intended to minimize unpleasant surprises for Facebook users. While users may be skeptical of Facebook's intentions given past FTC charges against Facebook (settled roughly a year ago), it's hard to argue that these privacy changes are not a step in the right direction for users.
Facebook "Disenfranchises" Users
Unlike Facebook's privacy changes, its removal of user voting on changes to its governing policies met with howls of disapproval. About 650,000 Facebook users voted to try and save their "right to vote," missing the over 300 million voter threshold. So, now, Facebook can make changes to its policies without user voting, although it still promises to provide a notice period for review and comment, as well as new webcasts and other means to communicate privacy concerns.
Lessons For Advertisers
There are at least two takeaways for advertisers from these latest developments: First, contrary to popular belief, users/consumers do sometimes pay attention to what terms and conditions say and mean. Therefore, it's important to understand the implications of your online policies, and to only demand the rights you need. Second, as advertisers formulate their social media plans, it's important to know what limitations the social media platforms are putting on use of consumer data for advertising purposes - as well as any restrictions on how advertising can be disseminated on the social media platforms. The social media platforms are constantly struggling between satisfying users and advertisers. Brands must stay up to date on which way the pendulum is swinging.
If you have any questions about advertising or privacy practices on Facebook, Instagram or other social media properties, or other advertising or marketing law issues, please contact Terri Seligman or any other member of the Frankfurt Kurnit Advertising Group.
Other Advertising Law Alerts
What the Advertising Industry Can Learn from Kim Kardashian’s Settlement with the SEC
On October 3, 2022, the Securities and Exchange Commission (SEC) announced that it entered into a $1.26 million settlement with Kim Kardashian over her social media promotion of the EMAX token without disclosing payment she received from token issuer, EthereumMax. The matter provides important lessons for advertisers. Read more.
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Get Ready for California’s New “Automatic Renewal” Rules
California recently amended its Automatic Purchase Renewals law. The amended statute - effective July 1st -- require marketers to provide consumers of automatic renewal or continuous service offers with more information and easier ways to terminate. Read more.
June 22 2018
“Made in the U.S.A.” Claims Continue to be Scrutinized
In 2016, California amended Section 17533.7 of the California Business and Professions Code ("Section 17533"), liberalizing the standard for selling products labeled "Made in U.S.A" to California consumers. Read more.
June 4 2018
