Due to multiple U.S. Supreme Court decisions made over the past year, many industries and employers are seeing changes in how they approach employment practices issues, directors and officers insurance claims, and professional liability. The advertising industry is no exception; according to AdAge.com, there are five particular legal trends that advertisers should pay attention as we progress into 2015.
Consumer Data Privacy
The Federal Trade Commission, in addition to the state attorneys general, has privacy and data security at the top of their enforcement lists across the country. This is due in great part to the high-profile data breaches we’ve seen in the last couple of years. Experts believe that 2015 could be the year that Congress enacts privacy legislation, affecting the use of consumer data for marketing purposes.
Social Media Restrictions
In 2014, Facebook changed its policy, prohibiting advertisers from “like-gating” a page to gain access to content or enter a contest, which has been a common method for marketers for many years. As we progress into the year, it will be interesting to see how marketers are able to property conduct promotions over social-media platforms with new restrictions.
Rise in False-Advertising Lawsuits
Due to high-profile false-advertising lawsuits over the past year, such as the case between POM Wonderful and Coca-Cola, advertisers will need to enact stricter protocols when it comes to packaging and labeling. Experts say advertisers shouldn’t be surprised if they see an increase in litigation over “all-natural” claims on packaging and labels for food and drinks.
Celebrity Endorsements
A long-time favorite marketing tactic by small companies as well as large national brands, social media has changed the relationship between celebrities and brands. Advertisers need to keep a close look on the FTC’s Guides concerning the Use of Endorsements and Testimonials in Advertising. Brands must be careful with issues such as using celebrity photos on social media without the celebrity’s permission.
The FTC
It’s no secret that in 2015, the FTC is strengthening their focus on issues such as marketing to children, mobile advertising, data security and privacy, and ensuring advertisements contain adequate disclosures. It’s imperative that advertisers ensure they are following protocol when implementing any of the above marketing strategies.
At PLRisk Advisors, we understand the unique Professional Liability Risks, or Errors and Omissions exposures, that your clients face on a daily basis. While being prepared and diligent can help your clients reduce their risks, it’s vital that they be financially protected with the right insurance policy. For more information about our products and the professions we serve, please contact us today at (855) 403-5982.
