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Socail Media Marketing: Ethical And Legal Concerns: Case Study

487 Words2 Pages

Socail Media Marketing: Ethical and Legal Concerns When I bussiness elects to participate in social media marketing, the firm must be prepared for both positive and negative feedback. While companies relish in the positive feeback, they can be amiss as to how to properly react to negative feedback. The ways in which a firm addresses negative feedback can have both ethical and legal reprocussions. The Case Of Palmer v. Kleargear.com Consider the 2013 case of Palmer v. Kleargear.com, where a federal lawsuit in which internet retailer Kleargear.com was sued by two of its customers after the company billed the customers for $3,500 following a negative review (Nelson, 2013). To summerize, the plaintiffs made an order through Kleargear.com. After not recieving the order, PayPal automatical cancelled the order on behalf of the plantiffs. Next, the plaintiffs left a negative review of Kleargear.com on Ripoff Report. Following the negative review, the plaintiffs recieved a $3,500 bill from Kleargear.com based on an anti-disparagement clause of their site's terms and conditions unless they agreed to take down the review. …show more content…

Durring litagation it was discovered the anti-disparagement clause was added after the plantiffs had made the review. Ultimately, the case resulted in the plaintiffs being awarded $306,750 in compensatory and punitive damages, in additon to $47,596.86 in attorneys’ fees and expenses. Unfortunately the work for the plaintiffs still had not commenced,as Kleargear.com was refusing to pay. The plaintiffs filed suit in the U.S. District Court for the Central District of California to enforce the judgment by garnishment of Kleargear assets, including levies with credit card companies Discover Bank, American Express Centurion Bank, MasterCard International, and Visa Inc., as well as Paypal, Inc. against accounts held by Kleargear with those companies ("Bad review couple win compensation - BBC News",

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