Posts Tagged ‘and Cosmetic Act’
Businesses operating in regulated industries (that is, industries subject to rules and regulations promulgated by governmental agencies and departments) are challenged by the use of websites and other online tools which permit users and readers to interact by sharing and distributing information and content (collectively, “Social Media”). While Social Media presents new professional opportunities for building interactive communities and social networks, it also exposes a Company to potential regulatory violations. Recently, incidents in the pharmaceutical and financial services sectors arising from two companies’ impermissible use of Social Media exemplify the potential risks. Together, these incidents illustrate the need for regulated companies to address Social Media use by implementing policies and procedures that are reasonably designed to prevent violations of the statutes under which they operate.