At CLEs around the country, we hear lawyers focus on the costs of investigations and fines that follow a compliance issue. Often, the damage is reputational. For instance, it’s unclear what fines Target Corporation will face (if any) for their massive data breach. But, we’ll bet the next time a shopper aware of the issue slides their plastic credit card to pay for goods at the store, they’ll think: “Am I going to have to cancel this credit card later because of some security issue?” Or they may just decide to shop somewhere else, not because another retailer has better prices or service, but because they’ve lost trust in Target.

Social media immediately reacts to thoughts, events and emotions to reflect current public perception. With a single post on a blog or Facebook, anyone can reach an audience of millions with news (both positive or negative) about a business. Savvy businesses must keep up with the times and have the opportunity to capitalize on social media by advertising on those forums and tracking posts related to their business and industry. These efforts can identify emerging consumer trends as well as potential compliance failures at the outset. Unlike traditional media (radio, print, TV), which requires formal advertising firms and lengthy market research, social media allows businesses to reach their consumers quickly and track consumer trends in real time. For Target, a single blog post by KrebsonSecurity exposed the data breach well ahead of any public statement from Target, leading to hesitant and distrustful consumers for the large retailer.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]