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Liability concerns hinder businesses from utilizing the potential of Facebook


With social media raising consumer privacy concerns, the Insurance Information Institute recently published its "Social Media, Liability and Insurance" whitepaper.

U.S. representatives recently wrote to the Federal Trade Commission asking it to look into the way Facebook tracks user activity. Facebook reached an agreement with the FTC that it must obtain consent from users each time it retroactively changes its privacy policy, which the white paper said is one example of the "growing potential liability" that social media enterprises must grapple with moving forward .

Given the reality that businesses are facing more liabilities with the increased use of social media, the paper pointed out that business liability insurance must provide protection in "a new world of privacy, security, intellectual property, employment practices and other risks for businesses and individuals."

In what could be an example of an organization being stifled by liability concerns that in some cases could be put to rest by an appropriate insurance policy, a government agency has been hesitant to enter the world of social media because of legal and liability concerns related to the inability to edit the content that is put up on social media website, according to a blog post on GovLoop.

The privacy policy of the agency in question stated that any users on social sites must not incorporate any logo or intellectual property belonging to the government agency, making it hard for the agency's employees to become active on social networks, said the blog.

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