Social Media in Regulated Industries

Flack Seeds - An essential source of public relations ideas and trends

Tuesday, June 22

Social media is emotional. It's personal. It functions in real time.

In short, it runs counter to all forms of marketing regulated industries have used for years. The social media guidelines from most regulators (whether FTC, FDA, FINRA, etc.) are still in development. This leads to a lot of:

"The regulators won't let us."

"What if we interpret the guidelines incorrectly?"

"We don't have the time or resources to figure out what is and what isn't allowed."

"We just can't do social media."

Have you said something similar to yourself or your team?

At the same time, you know that social media is a significant part of the present and future. Current and potential clients expect to connect with brands online and are making more and more decisions based on what they learn from online peers . You want to meet your customers where they are.

All hope is not lost. While regulation does pose some restrictions for participating, companies shouldn't use this as an excuse to refrain from social media altogether.

Our firm invited some clients over recently to listen to a Bulldog Reporter audioconference about how companies in regulated industries can participate in social media. Here are the six takeaways I got out of the call:

The company is responsible for adhering to the FTC's disclosure guidelines. If you give bloggers anything (a.k.a. have a "material connection") -- a trip to your HQ, a gift card, donuts, a pen, whatever -- they are supposed to disclose that on their blog when they write about your brand. Bloggers are accountable, but you're also on the hook to make sure they disclose. The FTC guidelines aren't laws, but action can be taken against you if you don't follow them.
When in doubt, disclose, disclose, disclose. It doesn't have to be two paragraphs of copy. A line should do the trick.
Many customers get the information they think they need online without contacting the brand. If heavy regulation keeps companies in the health care and financial services industries from participating online, there will be a void of information for consumers.
Especially in heavily regulated industries, a social media policy is crucial. You need to know what your regulators' guidelines are and create a policy that factors those in.
The FDA's guidelines for social media use should be available late this year or early next year.
FINRA has recognized that it would be cumbersome, if not nearly impossible, to require prior approval of every tweet and Facebook post. However, FINRA-regulated companies still must develop a way to keep records of every communication and implement measures to supervise comments.

Don't let concerns about your industry's regulators hold you back from exploring social media.

The first step is to understand who your regulators are (many companies have several) and then find and read their policies or guidelines. That will help you understand what you can do and how to shape your social media strategy.