As of April 2023, there are an estimated 4.8 billion social media users worldwide, representing 59.9% of the global population and 92.7% of all internet users.1 Social media has become a daily staple in most Americans' lives. Users post daily routines, provide hourly updates on their activities, and detail countless other thoughts, updates, blogs, etc. This also includes references and information regarding their employment and activities related to their job. The average time spent on social media daily is 2 hours and 24 minutes, and the world collectively spends about 11.5 billion hours on social media daily.2 In addition to employee engagement on social media, employers have also become widely involved. According to Forbes, the social media app market in 2022 was valued at $49.09 billion.3 Most major brands and companies today maintain multiple social media accounts and advertise consistently on social media platforms. In fact, the total ad spending on social media platforms is projected to reach $219.8 billion in 2024.4 These staggering numbers show that social media usage is continuing to grow despite the already massive engagement. As such, employee and employer actions on social media will continue to impact the workforce moving forward significantly. This article will discuss some critical considerations for employers and employees to keep in mind while using and interacting on the numerous social media platforms now available to the public.
Legal Impacts: Liability from Corporate Speech on Social Media
As referenced above, most major brands and companies have a social media presence today, advertising and attempting to personify their brand. These posts, however, now provide a unique situation for companies involved in legal disputes. Posts from corporate or brand social media accounts can now be considered a form of corporate
speech and have most if not the same, liability risks as other forms of corporate speech (i.e., press releases, articles, memos, etc.). As such, any post made by an official company or brand's social media account can be used against a company to support claims of libel, defamation, false advertising, etc. For example, if a social media account makes a post that makes specific negative, false, or misleading claims regarding other businesses or individuals, the company could be held liable for defamation of character or libel. Likewise, an employee could potentially be held liable for making false or misleading posts on social media platforms disparaging their employer's name.
There are many real-world examples of employers and employees being sued for libel, defamation, false advertising, etc., for posts made on social media platforms. A very famous example of a lawsuit stemming from a social media post is the current lawsuit between Jimmy "MrBeast" Donaldson and Virtual Dining Concepts (from now on, "VDC"). According to Forbes, Donaldson (known online as "MrBeast) has 174 million YouTube subscribers and 86 million followers on TikTok as of August of 2023. The Donaldson entered into a contract with VDC to create his own "virtual restaurant" called "MrBeast Burgers." MrBeast Burgers only has a limited number of physical locations; primarily, the store is available for order and delivery from many popular delivery apps (e.g., DoorDash, UberEats, GrubHub, etc.). Instead, the food is made and prepared in previous existing restaurants and then picked up and delivered via the delivery apps. In June of 2023, Donaldson deleted his announcement video from the social media platform X, wherein he announced he was partnering with VDC to create MrBeast Burger. In a series of tweets on X, Donaldson explained that he believed he had signed a bad deal with VDC, as he alleged VDC was not concerned with providing high-quality products as he had planned. He further claimed VDC wouldn't let him stop his association with MrBeast Burger, although he alleged it was terrible for his brand. Due to his frustration, Donaldson filed suit against VDC, claiming, amongst other things, that VDC had breached its contract with Donaldson. In response to Donaldson's suit, VDC filed its own counterclaims against Donaldson, requesting damages for the disparaging comments made by Donaldson and seeking an injunction to preclude Donaldson from making further disparaging remarks. The case is currently being litigated in New York federal court.6 This case serves as an example of how both employer and employee can be affected by social media posts, despite the size or relative goodwill of the brand.
Privacy Concerns
In addition to the legal consequences social media posts by employees and employers may create, there are also several practical concerns. As with most online platforms, the number one concern is privacy. Social media platforms inherently require the input of personal information to create and maintain an account. Further, these companies routinely collect, track, and store personal data on user behaviors. Social media platforms use this to better target advertising to their users. They may even share this information with third-party entities. As such, it is essential to remember that when a company or brand, either employee or employer, logs onto a social media platform, it leaves behind data that the platform or third-party entities may collect.
In addition to the platform's data collection, social media also presents potential issues with hackers gaining access to the account. This can present numerous problems, such as posts made by individuals unassociated with the company, data or information leaks, potential access to company hardware and/or software, etc. Specifically, hackers gaining access to hardware containing company-sensitive data, client information, employee information, etc., is a real threat if certain precautions are not maintained. There are several examples wherein social media accounts were hacked, and negative or disparaging posts were made from the official brand's social media account. One example is Burger King's official Twitter account in February of 2013 when an individual hacked the official Twitter account of Burger King and made several disparaging posts, and changed the main page to claim a major competitor, McDonald's, was superior quality. The account was suspended and returned to Burger King the same day, but only after the brand suffered national embarrassment.7 In light of what could have happened, this was a minor impact, as no data or other information was leaked. Again, the potential danger or impact of hackers stealing information from social media is significant.
What Can You Do?
Clearly, brand and company engagement on social media platforms creates many risks for employees and employers. How, then, do employers address these risks? While avoiding the risk by avoiding social media platforms may be a simple answer, there is potential to reach unprecedented numbers of unrealized clients. Avoiding this hugely popular aspect of communication leaves money on the table. As such, all employers should have explicit social media policies regarding the type of content, engagement, advertising, etc., that can be posted on social media platforms, as well as clearly indicating which users are authorized to log on, access, and post from the employer's official account.
Further, specifying which devices can be used and working with an IT representative to ensure proper safeguards are in place regarding information and data on the authorized devices may help prevent some of the potential issues and negative impacts social media can have on employers. Furthermore, regular phishing and internet safeguard training for all employees will help prevent unintended consequences. A thorough social media policy and extensive training regimen are key for employers and employees in navigating this ever-changing online world.