Reputation Management — FTC Lawsuit

The situation

A popular social networking site was the subject of a Federal Trade Commission lawsuit alleging the company knowingly violated a law that protects the safety and privacy of children on the Internet. The company's commitment to safety was also being obscured in a national discussion that failed to differentiate among the various networking sites. With one dominant player in the young industry making headlines for inadequate safety policies, the registration practices and the safety policies of all of the sites were under the Congressional microscope.

Public Strategies' solution

In order to mitigate the damage to its reputation that both a large settlement with the FTC and Congressional hearings on child safety might cause, we sought to position the company as the model for self-regulation and distinguish it from others in the industry for its comprehensive approach to safety and privacy.

Our communications strategy for the FTC's lawsuit settlement announcement centered on ensuring that the company's industry-leading safety and privacy policies were outlined in each story. We facilitated a pre-announcement outreach campaign to educate the media about the company's use of advanced technology to protect the safety of its network members, as well as its prohibition of instant chat applications that had opened the door for abuse on other sites.

We also led the company's outreach to government decision-makers to create a healthy dialogue about the company's commitment to compliance and the safety and privacy of its members. We facilitated meetings on Capitol Hill, enabling the company to tell its story to members of Congress and the senior staff of a House subcommittee investigating the industry. In addition, we prepared the company's CEO for his appearance before the House Energy and Commerce Committee, which was considering punitive legislation or regulation.

Client benefits

Our work positioned the company favorably among the news media and members of Congress, mitigating potential damage the FTC settlement could have caused and enabling the company to contribute to the creation of a more favorable public environment for the entire industry. A new law requiring schools and libraries to restrict minors from accessing social networking sites passed during the 109th Congress with support from the company. No regulation harmful to the company was passed.