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Social Media Compliance: Businesses Snagged By Social Media Violations
Many businesses today are now using social media accounts to communicate directly with their customers. Facebook, Twitter and company blogs are some of the most common social tools businesses use. While businesses are finding that it’s easy to get started with social media, they also need to be aware of and be able to steer clear of potential compliance risks.
A study by Nexgate found that there are nine different regulations that have triggered social compliance incidents by Fortune 100 companies. These include FINRA Retail Communications, FINRA Customer Response, FFIEC/Regulation Z, FTC Sweepstakes, and SEC Regulation FD.
Some of the findings of the Nexgate study include:
- Fortune 100 firm average 320 social media accounts and 213,539 followers. Employees post an average of 500,000 comments and messages every year.
- Fortune 100 businesses average 69 social compliance issues every year. Employees were responsible for 12 of those and 57 of the incidents were caused by public commenters.
- The 21 financial-service firms in the Fortune 100 had an average of 250 compliance issues per firm.
- Healthcare companies most frequently run into compliance issues with the FDA on reports of reports of adverse drug experience risks
Devin Redmond, VP and general manager of Nexgate, said that “under FDA guidelines, healthcare firms are required to notify the FDA of any report of an adverse drug experience by a consumer. Healthcare organizations must, therefore, monitor social channels for such reports.”
Ragy Thomas, founder and CEO of Sprinklr, said that “It’s hit critical mass now. Ten years ago, most brands had some followers; now you look at a top 1,000 brand, and you can have 40 million people in their social audience. People don’t want to call; they just tweet and want a response.”
