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EMPLOYEES’ ONLINE ENDORSEMENTS CAN RESULT IN EMPLOYER LIABILITY

The Federal Trade Commission (“FTC”) recently issued guidelines on product endorsements that raise concerns about employer liability for misleading advertising stemming from online statements that employees make about their employers’ goods and services.  The guidelines suggest that an employer can be charged with a violation of the FTC Act if an employee posts an endorsement of the employer’s goods or services on his or her personal blog or social networking website without disclosing the employment relationship in the posting.  The FTC has indicated, however, that it probably would not pursue an enforcement action based on the conduct of a single “rogue” employee when the employer has in place an adequate policy addressing web-based employee endorsements.  These issues are addressed more fully in the Kilpatrick Stockton Legal Alert that can be accessed at http://www.kilpatrickstockton.com/publications/legal-alert.aspx?ID=411.

Posted on Friday, January 8, 2010 at 04:35PM by Registered Commenterworkplacehorizons.com | Comments Off

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