Social media represents opportunity for companies facing product liability claims

Social networking sites can amplify product liability risks, but they also offer an opportunity for a company facing a product recall to take control of communication around the recall, reported Lloyd’s.
Even a small derogatory statement on a social networking site can spark global damage to a brand or reputation, Ed Mitchell, global product recall manager at XL Insurance, told Lloyd’s. “As a result, any recall has to be outlined and explained consistently and transparently around the globe,” he says. “This requires a new, fast and coherent communication across different continents and languages.”
When things go wrong, or appear to go wrong, social media users can spring into action and form Facebook groups with thousands of followers calling for a recall or boycott, Lloyd’s reported. Members of these groups forward, post, or re-tweet unfiltered information and comments with little to no fact checking or verification.
In order to exert some control over the situation, companies need to incorporate social media into their crisis response plans, Mitchell continued.
“By pro-actively engaging with these users, companies can present their messages first hand and stay on the front foot.”
Mitchell pointed to Plum Organics, a baby food manufacturer that faced a voluntary recall of its apple and carrot baby food. In its response to the recall, Plum Organics used Facebook and Twitter to engage with and reassure consumers, Mitchell told Lloyd’s.
The company drew Facebook users to its official site where they could respond to questions, concerns or rumours.