In the fast-paced age of social media, a business’s reputation is vital in generating income. It’s a double-edged sword. One content can either “cancel” a brand or make it viral and have a product or service flying off the shelves. But business reputation goes beyond public relations. Little does everyone know that it intersects with […]
In the fast-paced age of social media, a business’s reputation is vital in generating income. It’s a double-edged sword. One content can either “cancel” a brand or make it viral and have a product or service flying off the shelves. But business reputation goes beyond public relations. Little does everyone know that it intersects with the field of law, especially in how it deals with the public. In this article, we’ll be equipping business owners like you with how to protect your business reputation using the law anywhere in the world.
While business reputation management usually focuses on a brand’s image and customer perception, it quickly crosses the legal territory when responding to negative, false, or misleading statements. It also becomes legal when a business tries to remove online content through unethical means, processes customer data without consent, or even makes unsubstantiated claims in their advertising paraphernalia. These instances often expose the business to lawsuits and regulatory penalties. Consumer protection laws worldwide are designed to ensure that customers are treated fairly. Thus, compliance with these laws is vital in business reputation management. Without proper reputation management, a business risks lawsuits and penalties. Now, we’ll tackle a compliance snapshot of consumer protection laws in key regions worldwide that you can use in business reputation management.
In Europe, Article 17 of the General Data Protection Regulation (GDPR) gives a business the right to erasure or be forgotten. It states, “The data subject shall have the right to obtain from the controller the erasure of personal data concerning him or her without undue delay and the controller shall have the obligation to erase personal data without undue delay.” Undue delay is considered a month, and the business must also take reasonable steps to verify that the person requesting deletion is the data subject. In a business case, it allows them to request the removal of personal information from social media platforms, for instance. Otherwise, it can result in severe fines and reputational harm for the non-compliant party.
In the United States, the Federal Trade Commission focuses on protecting consumers from deceptive or unfair business practices, such as those in online reviews or testimonials. They implement the Consumer Reviews and Testimonials Rule, which prohibits creating, purchasing, or spreading fake reviews and prevents businesses from suppressing negative reviews based on ratings or sentiment. This rule also prevents misleading review displays, such as using fake social media indicators, such as the number of likes or views of a post, or followers of an account, primarily when generated by bots or artificial means. The Commission strictly implements these standards, and businesses are warned to be careful with any public statement or content they will release.
Business reputation management has also been constantly evolving in Asian countries with the rise of consumer rights and data protection laws enacted in these countries. The trend has been to strengthen data privacy, such as introducing content correction or removal systems and enforcing strict rules on misleading advertising. For instance, data privacy and protection laws have been enacted to address how businesses process personal information. In Singapore, the Personal Data Protection Act requires companies to obtain the consent of the data subjects and ensure that the data collected is true and accurate. The Data Privacy Act of 2012 in the Philippines and the Personal Information Protection Act in South Korea require strong data collection and processing and implement penalties for violations. Some countries, like Singapore and the Philippines, echoed the “right to be forgotten” in European jurisdiction. Under the Data Privacy Act of 2012, a data subject can request the correction or removal of inaccurate or harmful information taken from him or her. Singapore’s Protection from Online Falsehoods and Manipulation Act of 2019 targets the spread of false statements online. Under this act, the government can order the correction or removal of any false online content, whether it affects businesses or consumers.
Every business’s reputation is a vital asset. It’s like a tool in a box that can make or break your business. But with proper legal knowledge, you can navigate every reputation problem smoothly, from lawsuits to other legal risks. All it takes is understanding the legal landscape of where your business is thriving and staying informed with its consumer protection and other data privacy laws. This way, you can safeguard your brand and respond effectively to threats against your business. You’ve already taken that proactive step today by just reading this guide. It’s a great starting point to help you avoid costly lawsuits and build lasting trust relationships with your customers, clients, partners, and investors. So, stay vigilant and seek legal advice when needed. After all, your reputation is always worth protecting, and let your commitment to integrity and quality set you apart.
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