Social Media In the Utility Industry CarolynElefant.com May 2013
SocialMedia In the
UtilityIndustry
CarolynElefant.comMay 2013
Why social media inregulated industriesis like alcohol at anetworking event
A catalyst for facilitatingconversation, connectionand fun…
…or a recipe for disaster?
The Formula:User-generated content + 3rd party platform =
LOSS OF CONTROL
Social Media &Utilities
HOW areutilities usingsocial media?
WHAT legal ®ulatory
considerationsapply?
Do’s, Don’ts &best practicesfor utilities onsocial media.
What’s driving the adoption ofsocial media by utilities?
•Global/mobile
•Rise of the digital natives
•Customer service & connection
Source: LEXIS search social media 2009-2013
Breakdown ofUtility SocialMedia Use InCategories(2009-5/2013)
LINKED IN
You Tube
Mobile Apps
GAMIFICATION
LawRegulatory/Codes of
Conduct
Platform TOS
Social Media Policy
NETIQUETTE
5 sources of Authority Governing SocialMedia in Regulated Industries
LAW TRENDS SPECIFIC TO UTILITIES *
EMPLOYMENT
• Employee SM background checks & accuracy - employers face liability forinaccuracies (potential FCRA violations - Seehttp://www.nytimes.com/2012/06/13/technology/ftc-levies-first-fine-over-internet-data.html
• Access to employee passwords/monitoring (Many states such as MD prohibitemployer from seeking PWs)
• Right to organize v. right to organization: NLRB/Costco case - September 7,2012 - social media policy goes too far) “be aware that statements posted electronically(such as to online message boards or discussion groups) that damage the company,defame any individual or damage any person’s reputation or violate the policies outlined inthe Costco Employee Agreement, may be subject to discipline, up to and includingtermination of employment.”
• Mobile liability (overtime and off-site negligence on the job)Note: Section does not cover copyright, IP, owership of SM accounts or other issues related togeneral business functions. See Power of Soc Media, ELJ article for further details
LAW TRENDS SPECIFIC TO UTILITIES
ADVERTISING/PRIVACY
• FTC GreenGuides (Oct. 2012) re: certifications
•Must disclose connection w/certifying agencies
•Must have substantiation for claims even if certifying agency hasapproved it
•FTC regulation re: blogging and chatroom disclosures
•FTC guidance on mobile use (August 2012) and mobile payments(http://www.ftc.gov/opa/2013/03/mobilepymts.shtm) (includes guidance onprotecting customer data and process for bill dispute resolution. Will PUCsweigh in?)
•FTC amends Child Online Privacy Protection Rule (parents gain morecontrol) (December 2012).
REGULATORYRate recovery - Lobbying/advertising v. education (See Potomac-Appalachian TransmissionHighline, LLC, 140 F.E.R.C. P61,229 (hearing over costs for tmission line challenged asimpermissible lobbying; costs include websites)
Record keeping - Regulatory record keeping requirements (tools for capturing social meeintg)
Crisis communication/safety - Commissions beginning to require social media as part of crisis.What are appropriate metrics? (frequency of tweets, availability of person to respond, utilityresponse to persistent complaints and photos?)
Universal service - Concerns that not all users can access SM (though statistics showotherwise)
Utility liability for employee misuse - 2013 Cal. PUC LEXIS 120 (PGE superior infiltrates anti-smart grid group as “Ralph”)
Privacy - data collection; public responses, online photos of service
Data ownership - big data is a valuable asset. Who owns it? How can big data be used fordemand response and prediction?
REGULATORY
•Issues regarding platform TOS
• Importance of notifying users of platform TOS
•Familiarity with platform TOS to avoid liability
•Special rules on contests
•Prohibitions on spam (Twitter suing spammers)
Platform terms of service
Platform terms of service: Tools TO TRACK TOS CHANGES
REGULATORY
•Significant for risk management, BUT•Must comply with applicable law (e.g., NLRB)
•Must comply with applicable regulatory requirements
•Should not reinvent the wheel (tie in existing codes of conduct andrecords management practices; don’t re-write)
•Broad principles with examples better than platform specific regulation(since platforms are always changing)
•Be updated regularly for new developments (e.g., mobile)
•Must be accompanied by adequate training, reputation monitoring and(potentially) cyber-insurance if no existing coverage
Platform terms ofservice
Social Media POlicy
REGULATORYSocial Media POlicy
Case: Matter of CPUC Investigation of PG&E Re: Anti-SmartMetering Groups, 2013 Cal. PUC LEXIS 120 - cites PG&Esocial media policy as guideline
NETIQUETTE
Best summarizedas don’t be this
TakeAwAysDO be transparent
DON’T reinvent the wheel
DO differentiate between personal& professional use
DO ensure that social mediapolicies apply to vendors
DO remember that SM policy isthe START, not STOP -monitor & revisit policy
DO be an early adopter - risk canbe mitigated, lost opportunitycan’t
CONTACT:Carolyn Elefant
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