On November 11, 2021, fitness-tech company iFIT, Inc. (“iFIT”) filed a complaint in the U.S. District Court for the district of Utah, claiming that lingerie and beauty retailer Victoria’s Secret infringed upon its registered SWEAT trademarks by prominently using “SWEAT” in its social media promotions for its fitness apparel and services.
In November of 2021, the Board of Governors of the Federal Reserve (the “Fed”) issued its Federal Reserve Financial Stability Report, a biannual report focused on potential risks to the financial system. In this issue, the Fed highlighted the role of social media and retail investors in equity market volatility.
There is momentum to reform part of the 1996 Communications Decency Act that shields social media platforms from liability for third-party posts.
Big changes are coming to social media. No, we are not referring to the rise of “super apps” or Facebook’s retreat from the facial recognition space. This time, changes are coming from the top-down in Canada and businesses would be wise to take note.
On November 2, 2021, a federal trial court in New York issued an opinion that combined breakfast restaurants, social media, trademarks, and COVID. The judge ultimately ruled against the registered trademark owner’s request for a default judgment, in part based upon the defendant’s lack of social media advertising. BYC, Inc. v. Broken Yolk, civ. no. 21-CV-6203-FPG (W.D.N.Y. Nov. 2, 2021) (2021 WL 5074720).
In late June of 2021, Members of Canada’s Parliament passed Bill C-10: An Act to amend the Broadcasting Act and to make related and consequential amendments to other Acts. The Bill proposes to subject social media platforms and streaming services, collectively described in the Bill as ‘online undertakings’, to requirements similar to those imposed on traditional television and radio broadcasting companies in Canada. For example, this proposal could include requiring these companies to contribute financially to the production of Canadian cultural industries. The proposed changes aim to harness the explosive popularity of social media and streaming sites to support Canadian content online.
In the last week of March 2021, a bill was introduced in the California assembly that would require social media platforms to publicly disclose the specific user conduct that will get users temporarily or permanently banned from those sites—including online hate, disinformation, extremism, harassment, and foreign interference.
On March 4, 2021, a federal trial court in New York issued a preliminary injunction that halted a bridal gown designer and social media influencer from using her social media accounts without her former employer’s permission. JLM Couture, Inc. v. Gutman, No. 20 CV 10575-LTS-SLC (S.D.N.Y. March 4, 2021) (2021 WL 827749).
Across the world, as digital companies’ advertising revenues climb, traditional news organizations’ revenues fall. As a result, many traditional news organizations, like broadcasters and newspapers, are going out of business. The public’s appetite for journalism, however, has not waned. If anything, the public needs reliable news sources more than ever in this era of “fake news” and internet-borne misinformation. Often it is the very digital platforms that share news organizations’ content that are perceived as putting news organizations out of business.
Governments around the world are contemplating various policies and legislation to save struggling traditional news organizations. Many of these solutions contemplate tying the fortunes of ailing news organizations to those of thriving digital platforms like social media companies. For example, Australia has been in long-standing disputes with large tech companies about its proposed law that would require big tech companies to pay news organizations for use of their content.
Recently, the first proposed legislation to tackle this problem in Canada was tabled in the Senate in the form of a private members bill, Bill S-225.
Sharing information and reaching consumers is even easier today thanks to the prevalence of social media.