Brand owners on Facebook could be forced to vet comments posted on their pages, after the ad watchdog in Australia ruled that posts fall under advertising legislation.
The judgment, by the Advertising Standards Board, ruled that posts on Smirnoff’s Facebook page are effectively advertising, regardless of whether they were made by the company or a member of the public, and should therefore comply with advertising laws.
It threatens to undermine Facebook’s advertising on a worldwide basis, as posts made by users in any country can appear on companies’ Facebook pages.
Observers believe the move could spark mayhem. Advertisers will have to factor in the cost of vetting user comments into their plans for advertising on Facebook, while constant policing could also undermine the power of Facebook as an advertising platform.
“There used to be no downside to advertising on Facebook,” said Chris Watson, a partner at law firm CMS Cameron McKenna. “Now the free lunch is over and reality has intervened. Companies have to take responsibility.”
Any posts that make false claims about a product, or include racist or sexist language, will leave companies vulnerable to being sued unless they are removed.
But there is also the added problem of different global advertising laws. For example, it is legal to market certain prescription drugs to consumers in the US; but illegal to do so in many other countries.
