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In-House Counsel Masterclass Navigating the Social Network Thursday, 7 March 2013 1

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Page 1: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

In-House Counsel Masterclass Navigating the Social Network

Thursday, 7 March 2013

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Page 2: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

Welcome

Emer Gilvarry Managing PartnerMason Hayes & Curran

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Page 3: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

Philip Nolan Partner and Head of Commercial Mason Hayes & Curran

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Page 4: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

Overview

� The “Balancing Act”:

→ Risk v reward

→ Privacy v business interests

� Key Issues

→ Employee pre-screening

→ Optimising SM technology for business

→ Use and misuse

� Implementing a social media policy

� The Horizon

→ Industry trends

→ General Data Protection Regulation

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Page 5: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

Opportunity v. Risk

� Business benefits of social media:

→ Access to information

→ Building contacts

→ Identifying potential leads

→ Engaging with consumers

→ Dealing with complaints

→ Advertising 2.0

→ Information on potential hires

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Page 6: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

Opportunity v. Risk

� Social Media involves “opening up” the business and

allowing free flow of knowledge. Creates risks:

→ Defamation

→ Confidentiality

→ Harassment

→ Misrepresentation of company position

� Business Challenge = Identify the benefits, measure the

risks, and create a policy that best balances the two to

create value

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Page 7: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

Business Interests v Privacy

� Exercising control over personnel

� Copland v UK (2008)

→ European Court of Human Rights

→ Employees have an expectation of privacy in

communications from work equipment (Article 8 EHCR)

→ Employer violated this right by monitoring email, phone

and internet usage

� Risks to company

→ Loss of time

→ Confidential Information

→ Damaging statements

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Page 8: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

Business Interests v Privacy

� How to resolve?

→ Employee Notice (key in Copland)

→ Proportionality

� Consent is helpful, but not decisive

Business Challenge = Adopt a proportionate approach to

monitoring, reflecting the risks

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Page 9: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

Key Issues

� Three typical areas where advice is usually required:

→ Can we use social media to screen employees?

→ Can we use social media to build the business?

→ How do we prevent social media misuse?

� Formulating SM policy = forming a view on these issues.

� Remember to seek internal advice

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Page 10: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

Issue 1: Employee Pre-Screening

� Question = Can we run background checks?

� Online presence → key indicator of suitability for the role

� Key legislation = Data Protection Acts 1988 and 2003

� Public Information: LinkedIn, Twitter etc…

→ Generally permissible (Section 2A)

→ Fair Processing Notice (Section 2D)

→ Separate issue = using the data

� Private Information: e.g. Facebook profile

→ Common in the US

→ Legislative response (at least 28 states)

→ e.g. California Social Media Privacy Act

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Page 11: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

Issue 1: Employee Pre-Screening

� Can it be done in Ireland?

� Not expressly forbidden, first principles

� Obtain candidate consent (Section 2A Data Protection

Acts)

� Consent must be specific, freely given, and informed.

� Risks

� Disproportionate processing? (Section 2)

� Likely regulator hostility

� Breach of Contract

� PR / reputational risk

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Page 12: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

Issue 2: Business use of Social Media

� Question = Can employees use social media to build the

business

� What social media use are we concerned about?

→ Not all social media created the same

→ LinkedIn vs. Instagram

� Different policies for different staff?

→ Marketing may require work access to Twitter

→ Sales staff could rely on LinkedIn to find leads

� Who is entitled to speak for the company on social media?

→ Marketing?

→ Executive Staff?

→ Internal pre-approvals through Legal?

� These decisions should be reflected in policy document

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Page 13: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

Issue 3: “Improper” Use of social media

Question = How do we prevent employees from abusing social

media

� What can we actually monitor and control?

→ “Philip Nolan visited Facebook.com”

→ Logs do not generally disclose what an employee said

on a site.

→ Discuss this with IT

� Are we concerned about timewasting?

→ Limit personal use outside of set times (e.g. lunchtime)

� What issues should be we prohibit altogether?

→ References to business/clients

→ Critical references to fellow employees

→ Defamatory speech

→ Discussion of company operations?

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Page 14: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

Issue 3: “Improper” Use of Social Media

� Exercise care to ensure that any restrictions on employees

discussing the company do not inadvertently prevent

activities that may benefit the firm, e.g. employees

promoting favourable news stories.

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Page 15: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

Implementing the “Social Media Policy”

� Once position adopted on SM use; need to design rules.

� Avoid undue focus on the idea of a “social media policy;”

what matters is having effective, understandable and

proportionate rules. Could be contained in:

→ Contracts

→ An existing “acceptable use policy”

→ On an intranet

→ A dedicated social media policy

→ Information updates

� Consequences for non-compliance should be clear

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Page 16: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

The Horizon: Key Trends

� Employee IT issues will become increasingly more important over

coming years.

� Sits at the crux of two distinct trends:

→ Technology Developments: Convergence

→ Legal developments: General Data Protection Regulation

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Page 17: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

The Horizon: Tech Convergence

� Convergence of “personal” employee computing resources and

business IT:

→ Consumer IT devices have leapfrogged Enterprise IT

→ Google docs, Dropbox, iPhones, apps etc…

→ Developing “Bring Your Own Device” culture

→ Netflix Audit recently found that employees were using 496

separate smart phone apps for work

� Key risk = security of company data

� Well meaning employees, but a risk to the business

� Engage with IT department to develop rules

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Page 18: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

The Horizon: General Data Protection Regulation

� Draft Regulation, currently before Parliament and Council

� Greatly strengthens the right to privacy

� Numerous competing drafts

� Key points:

→ High fines, 2% global turnover

→ Possible loss of “legitimate interests” ground for processing

→ Expressly suggests that “consent” will not justify processing in

the employment context

� Will impact on all aspects of operations, but is likely to make

employee monitoring more challenging.

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Page 19: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

Summary

� Social Media = An issue to be tackled, not something to avoided

� Find the risk v. reward trade-off that best suits your business

� Design a bespoke policy

� Communicate it effectively

� Keep an eye on changing trends

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Page 20: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

Jeanne Kelly PartnerMason Hayes & Curran

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Page 21: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

Overview

• Ownership and use of content on SM

• What steps should you take when harmful content is flagged?

• What defences are available?

Page 22: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

Content: Ownership and Use

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• Third party? Interns? Safeguards needed

• Ownership of output

• Responsibility for content

• Transitioning to new provider?

• Responsiveness for breach/harmful content?

• SM Policies and SM own terms of use

• Need to be familiar with both law and internal systems of

the SM page.

Page 23: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

Brand Protection issues

• What can you say about your customer’s experience?

• What can you say about a competitor’s product?

• L’Oreal v Bellure

• Use of UGC?

Page 24: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

Who gets notified?

• In-house counsel expected to be a “helicopter parent”?

• Managing expectations

• Have the numbers stored/reporting path agreed

• External/internal PR/Lawyers/Tech experts/Insurers

Page 25: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

Content Case study

• Content that defames or infringes others rights is flagged to you

• Should it be taken down at all?

• Taking down

• If fails, legal steps

• Unmasking the culprit (Norwich Pharmacal)

Page 26: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

• E-Commerce Regulations Art 18 Defences: Hosting

- No knowledge

• Acting expeditiously: different views of urgency?

• Similar concepts in Copyright Act 2000

• s27 Defamation Act 2009

Defence?

Page 27: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

Risks inherent in monitoring? - Hilton case UK 2010

“The fact that Mr Hilton on a few occasions removed blog postson grounds of bad language, political provocation oroffensiveness falling short of defamation … makes it at leastarguable that the service provided …. consisted of more thanmere storage.”

Page 28: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

Takeaways

• Take ownership of the interaction

• Be proactive for planning but reactive for incidents

• Understand the forum

• Know the SM terms and processes, or outsource

• SM policies

• Staff training

Page 29: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

Elizabeth Ryan PartnerMason Hayes & Curran

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Page 30: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

“Will the Highways on the Internet

become more… few?”

- George W. Bush

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Page 31: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

• Social media to screen candidates

• Ownership of social media contacts

• Disclosure of confidential information

• Cyber slacking

• Social media – harassment and bullying

• Reputational damage

• Discipline and dismissal

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Overview

Page 32: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

Use of Social Media to Screen Candidates

• Discrimination - nine grounds – candidates protected by

Employment Equality Acts – age discrimination

• Gaskell v University of Kentucky – University believed that Mr.

Gaskell’s “creationist views” conflicted with a job application

• Flexman v BG Group- upheld constructive dismissal claim

Page 33: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

Ownership of Social Media Contacts

• 89.5% of employees use LinkedIn

• Hayes Specialist Recruitment v Ions - Court ordered

disclosure of contacts

• Penwell Publishing v Ornstein and Others – Court found

contacts to be property of employer

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Page 34: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

Disclosure of Confidential Information

• NAMA – court injunctions - employee (and wife) to return

confidential information to NAMA

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Page 35: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

Cyber Slacking

• O’Leary v Eagle Star – no negative impact on work targets

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Page 36: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

Social Media - Harassment/Sexual Harassment/Bullying

• Employment Equality Acts 1998 - 2011

• Safety, Health and Welfare at Work Act, 2005

• Employer vicariously liable for acts of employees

• Morse v Future Reality - Complaint of sexual harassment

upheld

• Chevron Oil - €2.2 settlement of sexual harassment charges

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Page 37: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

Reputational Damage

• Vodafone – video brought to attention of Vodafone by

Twitter user

• Dominos Pizza – Fired and faced with felony charges

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Page 38: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

Discipline and Dismissal for use of Social Media

• Emma Kiernan v A-Wear – dismissal unfair

• O’Mahony v PGS Insurance - breach of Trust - dismissal fair

• Preece v JB Weatherspoon - Dismissal fair - freedom of

expression fettered

• Crisp v Apple - Dismissal fair - Image

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Page 39: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

Take Away - Best Practice Guidelines

• Put a policy in place

• Implement a proportional monitoring system

• Ensure that employment contracts and restrictive covenants

are customised to deal with confidential information which

might be disseminated by social media

• Be careful when using social media to recruit employees

• Have a plan to deal with employee contacts generated by

social media on the termination of the employment contract

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Page 40: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

Philip Nolan [email protected]

Jeanne Kelly [email protected]

Elizabeth [email protected]

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Page 41: In-House Counsel Masterclass Navigating the Social Network …€¦ · Issue 2: Business use of Social Media Question = Can employees use social media to build the business What social

Thank you

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