Entries from July 2009 ↓

Everyday, millions of people around the world log on to the Internet to work, to shop, to be entertained, and to connect with others. Unfortunately, only a small percentage know that while they are web surfing, their web habits are being monitored, analyzed, and sold without their consent to companies across the globe. The result is personalized web advertising so precise that two individuals looking at the same website from two different computers will see two different things.

A recent article for the New York Times highlighted why companies absolutely love this kind of marketing, while consumer advocacy groups absolute hate it.

From the article:

For decades, data companies like Experian and Acxiom have compiled reams of information on every American: Acxiom estimates it has 1,500 pieces of data on every American, based on information from warranty cards, bridal and birth registries, magazine subscriptions, public records and even dog registrations with the American Kennel Club.

Patrick Williams, the publisher of the personal finance magazine Worth, recently asked Acxiom to find the names and addresses of 10,000 Americans from each of 11 cities who had houses worth more than $1 million, net worth of over $2 million, lived within a few miles of other rich people and subscribed to business publications.

“They are the scariest data research company around — they know far too much,” said Mr. Williams, who said he was very happy with the amount of information it gave him.

[...]

Paul M. Schwartz, a law professor and privacy expert at the law school of the University of California, Berkeley, said the unwitting participation by consumers makes online marketing different from offline.“Interactive media really gets into this creepy Orwellian thing, where it’s a record of our thoughts on the way to decision-making,” he said. “We’re like the data-input clerks now for the industry.”

In response to criticism from Congress, a consoritum of advertising industry trade groups, sponsored by Google, Microsoft, Yahoo, Disney and Verizon, have recently tightened self-regulatory measures for web tracking. While this is a good step forward for protecting consumers, there is still a long way to go.

Here at ReputationDefender, we take great pride in helping individuals protect their privacy online. To this end, we will continue to be at the forefront of Internet privacy and Reputation Management issues. Make sure to check back to the ReputationDefender Blog, or to follow us on Twitter, for more important news updates.

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Yesterday, we shared an article from the New York Times explaining how businesses can use social media to both hurt and help online reputations, specifically with regard to consumer review sites such as Yelp.  One of the biggest no-no’s from the New York Times piece was falsifying positive reviews, an unsavory marketing practice known as “Astroturfing.”

In an interview with the Associated Press, ReputationDefender CEO Michael Fertik expanded upon how business owners get pressured into Astroturfing and ReputationDefender’s role in the creation of the Online Reputation Management Association (ORMA).

ReputationDefender CEO Michael Fertik (AP)

From the AP article:

Trade associations in the emerging fields of online word-of-mouth marketing and “reputation management” say they’re eager to stamp out tainted testimonials and are circulating ethics codes. But they acknowledge that economic pressures and the Internet’s scant accountability tempt some to bend the rules.

Reputation management company ReputationDefender has been asked , and refused , to concoct both positive buzz and damaging attacks, said CEO Michael B. Fertik, who helped form his industry’s Online Reputation Management Association.

Such requests often come from people who say they are being unfairly maligned online and can’t trace the culprit, he said.

“They’re feeling helpless,” Fertik said. “I don’t think all the people who are asking us to do fake reviews are coming from a place of malice.”

As the need for Online Reputation Management continues to grow among individuals and businesses, there will be a greater need for organizations like ORMA to provide a level of transparency and accountability for the industry. ReputationDefender is proud to be at the forefront of the movement to self-regulate the ORM industry and instill a uniform ethical code for ORM best practices.

For more information on ORMA, follow this link.

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Thanks to consumer review sites like Yelp and Citysearch, it is easier than ever for potential customers to learn more about local businesses. In fact, a survey conducted by the Opinion Research Corporation  showed that 84 percent of Americans allow online reviews to influence their purchasing decisions. Unfortunately, sites such as these do not always offer the most accurate and unbiased information possible.

Whether it is an implacable customer, or an anonymous attack from a competitor, review sites tend to highlight negative information while allowing little recourse for business owners to defend their reputation. This is why, in today’s digital world, businesses must be vigilant in protecting their reputation online. Small business owners must understand how social media tools can work against them, and, more importantly, how they can make social media tools work for them. Recently, the New York Times highlighted some ways to help small businesses do just that.

The article suggests small business owners do several things, such as track online content about your company (using Google Alerts among other tools), reach out to negative reviewers to make sure you understand their concern, and promote the positive aspects of your business using free social media tools such as Twitter, Facebook, and more. For the full article, which offers some excellent real world examples, follow this link.

Obviously, the best thing small businesses can do to make sure they maintain a positive online reputation is to offer quality service to their customers. However, as I alluded to earlier in the post, there are still ways for maliciously-minded individuals to game the system. When that happens, you might think about calling in an expert to help you with the problem.

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The ABA’s annual conference has kicked off in Chicago.  We have Noah, Tom and Rich from the RD team helping talk about the importance of proactive reputation management for legal professionals.  If you’re downtown, you should stop by and tell them we sent you — they’ll hook you up with a limited edition “I look this good online” t-shirt.

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According to a report from Mashable, a Chicago-based apartment management company has filed  a $50,000 lawsuit against a tenant for complaining about the company on Twitter. While the complaint was relatively minor — “Who said sleeping in a moldy apartment was bad for you? Horizon realty thinks it’s okay.” — and was only sent out to approximately 20 followers, it was enough to warrant this response from Horizon Realty spokesperson Jeffrey Michael.

“The statements are obviously false, and it’s our intention to prove that”, adding that Horizon has a good reputation to protect. Bonnen wasn’t contacted before the suit was filed or asked to remove the Tweet, he said: “We’re a sue first, ask questions later kind of an organization”.

Here at ReputationDefender, we pride ourselves on helping individuals and companies defend themselves from slander and libel online. Unfortunately, slander and libel can be very subjective terms. In a traditional legal sense, they are understood in a very specific context. There are legal precedents to abide by and reams of case law to reference. With the mass adoption of Internet technology, however, our understanding of defamation law has changed.

If an individual is critical of a business online, is that libel? If the criticism is patently false, the answer is likely to be yes. Does it matter how inflammatory the criticism is? If it’s truthful, maybe not. Right now, judges and legislators across the country are sorting out these issues, but it will still be some time before any kind of consensus can be reached. In the meanwhile, it is critical for individuals and businesses to take a proactive stance in managing their reputations online.

In the above situation, there are two important takeaways to remember. If you have a problem with a company, try and contact them directly first. Remember to be respectful, honest, and have facts to back up your claims. If you feel you must take your complaints online, understand that there may be consequences. While a $50,000 law suit seems grossly disproportionate to the “damage” caused by the tweet, there is no guarantee that a judge will feel the same way, and it would be a shame to go bankrupt over an offhanded remark on Twitter.

Similarly, if you are managing a business, do everything in your power to assuage a customer’s complaint before turning to your attorneys. Because of this lawsuit, and the “sue  first ask questions later” attitude of the company, Horizon Realty is only gaining more negative publicity. What could have been a small reputation management problem has become a big reputation management problem because the company was quick to play the victim card instead of investigating the legitimacy of a tenant’s complaints. As of the writing of this blog post, Mashable’s article has been retweeted 1648 times.

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