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PR Exam 3 part 1
Exam covering PR and the law (chapter 7)
Term | Definition |
---|---|
Major example of battle between PR and the law | Justice Department’s attempt to block a proposed $85.4 billion merger between AT&T and media colossus Time Warner, owner of, among other properties, HBO and CNN. |
Legal advice | Lawyers correctly advise clients on what they must do, within the letter of legal requirements, to defend themselves in a court of law |
Public Relations advice | Public relations advisors counsel clients not on what they must do but what they should do to defend themselves in a different court—the court of public opinion. |
First Amendment of the Constitution | The First Amendment provides that Congress protects freedom of speech, the press, assembly, and the right to petition the Government for a redress of grievances (guarantees freedom of speech.) |
Questions about freedom... | Where does one’s freedom start and another’s end? How much freedom of speech is appropriate—or advisable—in any given situation? How does the freedom of the internet impact on communications rights and responsibilities? |
Public relations practitioners must always understand the legal implications of any issue with which they become involved, and a firm’s legal position must always be the first consideration. | true. |
“Congress shall make no law … abridging the freedom of speech … or of the press" | The First Amendment is the cornerstone of free speech in our society. This is what distinguishes democratic nations from many others. |
Examples of challenges to the First Amendment: | Wikileaks working with U.S. state department, Charlie Hebdo cartoons about Muhammad, New York Times reporter James Risen subpoena by CIA, Trump Administration calling out journalists |
Because the First Amendment lies at the heart of the communications business, defending it is a front-line responsibility of the public relations profession. | true. |
Defamation | umbrella term used to describe libel—a printed falsehood—and slander—an oral falsehood. For defamation to be proved, a plaintiff must convince the court that certain requirements have been met. |
Court requirements to prove defamation: | Falsehood was communicated through print, broadcast/ other electronic means; person who is subject of the falsehood was identified/ easily identifiable; identified person has suffered injury (monetary losses, reputational loss, or mental suffering) |
Actual malice in a public figure slander case... | means that statements have been published with the knowledge that they were false or with reckless disregard for whether the statements were false (must be proven during a charge) |
Proving actual malice is a difficult task | true. |
The 21st century proliferation of blogs, tweets, Facebook posts, and cable and radio talk shows, where hosts and guests say what they want regardless of factual accuracy or impact on a person’s life, has resulted in.. | the definition of “defamation” becoming more complex and more global. |
Care must be the watchword in such public speech. | true; Public relations practitioners must be aware of situations involving libel and slander |
Nowhere in public relations practice is an understanding of the law more important than in the area of securities law | true; this constitutes Insider Trading Law |
Every public company has an obligation to deal frankly, comprehensively, and immediately with any information that is considered material. | true; A material announcement is one that might cause an investor to buy, hold, or sell a stock. |
The Securities and Exchange Commission (SEC)—through a series of court cases, consent decrees, complaints, and comments over the years... | has painted a general portrait of disclosure requirements for practitioners, with which all practitioners in public companies should be familiar. |
The SEC’s mandate stems from... | the Securities Act of 1933 and the Securities Exchange Act of 1934, which attempted to protect the public from abuses in the issuance and sale of securities. |
Ideally, public relations counselors and lawyers work together. Lawyers have increasingly pursued publicity in recent years. | true. |
Popular saying by lawyers: | “Say nothing, and say it slowly!” Public relations: Go public early |
Examples of complicated relationship with lawyers and PR: | Jason Derulo is accused of inappropriate behavior and he makes a video to debunk it; Martha stewart stayed silent with lying to federal prosecutors and ultimately went to jail |
Law and ethics are interrelated | Public relations professionals must analyze legal ramifications and ethical considerations; Public Relations Society of America’s Code of Professional Standards – many unethical activities are also illegal. |
The first amendment = | cornerstone of free speech in our society; interpreting the first amendment is a challenge; defending the first amendment is a frontline responsibility of PR professionals |
PR and defamation law components | - Privacy of ordinary citizen is protected. - More difficult if in limelight, e.g. celebrities, famous people. - Must show the publisher acted with actual malice - reckless with truth |
Historic libel cases: | 1986, Israeli General Ariel Sharon brought a $50 million libel suit against Time magazine; 1992, The Wall Street Journal and its reporter served $50 million libel suit; 1996, Atlanta security guard Richard A. Jewell sued NBC News /Atlanta journal |
Popular defamation case | In 2008, a businessman sued for defamation against actor Sacha Baron Cohen. “Borat” chased him down Fifth Avenue, pretending to be a documentary producer. |
Key component of insider trading law: | Public companies must deal frankly, comprehensively, and immediately with material information; All investors should have an opportunity to learn about material information as promptly as possible. |
Securities and Exchange Act (SEC) states: | Companies cannot disseminate false or misleading information to investors. Insiders cannot trade securities on the basis of material information that is not available to the public. |
Insider trading cases: | ImClone Systems’ CEO Sam Waksal; Hedge fund manager Raj Rajaratnam; SAC Capital and Stephen A. Cohen settlement; The Wall Street Journal columnist gave favorable opinions about stocks to help friends. |
Public Relations Confidentiality | Public relations people are privy to all manner of confidential information. When they violate that confidentiality, they risk not only losing clients but also violating the law. |
Important attributes of PR officials should include: | Knowledge of disclosure law, a sensitivity to disclosure requirements, and a bias toward disclosing rather than withholding material information. |
Information that companies disseminate must be accurate | true |
SEC increased focus on private meetings between companies and analysts | true; this is a result of securities being traded beyond the 9:30 - 4:00 pm stock market day, an increase in online trading and the increased responsibilities of PR people |
To combat selective disclosure, the SEC in 2000 adopted Regulation FD, or “fair disclosure" | Fair disclosure = companies are required to widely disseminate any material announcement. If information is shared with analyst, the company is obligated to issue a news release within 24 hours. |
In 2002, Regulation FD was bolstered by the passage of the Sarbanes–Oxley Act: | Sarbanes–Oxley mandated all publicly traded companies to increase financial disclosure and submit an annual report of the effectiveness of their internal accounting controls to the SEC, with criminal and civil penalties for noncompliance. |
Transparency in financial reporting: | Legislators protected investors after formerly solid financial institutions shut down, resulting in the Dodd-Frank Wall Street Reform and Consumer Protection Act; designed to increase transparency of financial reporting. |
In 2013, the SEC declared that companies could use social media outlets, such as Facebook and Twitter, to announce key information in compliance with Regulation FD | true. |
Ethics Law | Federal Regulation of Lobbying Act of 1946; 2018 Trump administration bounced from one high-profile ethical infringement to another; Campaign finance reform; Super PACs (political action committees) |
What can PACS do? | they could accept unlimited contributions from individuals, unions, and corporations for the purpose of making independent expenditures. |
What does copyright law do? | it provides basic, automatic protection for writers, whether a manuscript is registered with the Copyright Office or even published |
Under copyright law.. | Original work of authorship has copyright protection when work is in “fixed” form; Fixed means the work is permanent enough to be perceived, reproduced, or otherwise communicated. |
Copyright owners have exclusive rights to.. | 1. reproduce and authorize others to reproduce the work 2. prepare derivative works 3. perform and/or display the work publicly |
Copyright law is different from trademark law, which refers to a word, symbol, or slogan, used alone or in combination, that identifies a product or its sponsor—for example, the Nike swoosh | true. |
Fair use | News reporting, teaching, scholarship, research use of copyrighted material is not infringement, its fair use. Fair use depends on volume, future market, and heart. |
What works are subject to copyright law? | Literary works, including articles. Songs, including words and music. Plays and choreographed dance performances. Art. Motion pictures and audiovisual works. Sound recordings, and architectural works. |
Copyright theft case | Ed Sheeran settled a $20 million copyright infringement case in 2017. Robin Thicke and Pharrell Williams paid Marvin Gaye’s estate $7.3 million for copyright theft. |
Freelance writers and artists | Freelancers retain the right to copyright what they create. Public relations professionals must document the authorization to use freelance work. |
The internet has changed the rules for the laws affecting free speech. The premise in American law is that “not all speech is created equal. | true; there is a hierarchy of speech, under Supreme Court precedents dating back many decades, that calibrates the degree of First Amendment protection with, among other tests, the particular medium of expression. |
Communications Decency Act (CDA) | passed in 1996; it introduced criminal penalties, including fines of as much as $250,000 and prison terms up to two years, for making “indecent” speech available to “a person under 18 years of age.” was declared unconstitutional |
Children’s Online Privacy Protection Act (COPPA) | details what a website operator must include in a privacy policy, when and how to seek verifiable consent from a parent or guardian, and what responsibilities an operator has to protect children’s privacy online. |
Internet censorship overseas is another ongoing battleground, with countries like China, Iran, Saudi Arabia, and Turkey, among many others, notorious for their internet filters | true. |
Intellectual property (caused SOPA (stop online piracy act)) to get defeated. | 2012, battle was waged in Congress on the piracy of intellectual property; one side was the Hollywood producers of records, books, and movies who fretted that the fruits of their labors were being stolen. On the other side stood firms such as Google. |
Why was SOPA defeated? | it was viewed as a threat to creativity |
Anti-Counterfeiting Trade Agreement | While a number of nations, including the United States, Japan, Canada, South Korea, and Australia, signed the Anti-Counterfeiting Trade Agreement, in July 2012, European legislators rejected the international treaty to crack down on digital piracy. |
E-fraud | internet fraud (scams, fake emails etc.) e-crooks are not only difficult to stop but also difficult to define, at least in legal terms. Often it depends on companies policing the internet themselves, through clear policies |
Click fraud | rank listings by the number of clicks they receive: the more clicks, the higher the ranking. Click fraud occurs when a concerted effort is initiated to register multiple clicks to drive specific listings higher in a search-ranking algorithm |
Social media (internet law) | Legal issues related to employee relations / social media; Illegal to fire an employee who criticizes his/her supervisor on his/her Facebook page? Employers review Internet/social media policies to see if vulnerable to allegations of rights limitations. |
Social media became part of the Trump administration’s initiative to control immigration | true. |
Litigation public relations | is managing the media process during a legal dispute to affect the outcome or its impact on the client’s overall reputation. |
Smart lawyers understand that with social media, the internet, and cable TV, in particular, being so pervasive, they have little choice but to engage in litigation public relations to provide their clients with every advantage. | true. |
Key components of litigation | Plaintiffs and defendants try to influence the verdict outside the courtroom. Affects Sixth Amendment guarantee of an impartial jury. Communication is central to modern litigation. |
Seven keys to litigation visibility: | - Learn the process - Develop a message strategy - Settle fast - Anticipate high-profile variables - Keep the focus positive - Try settling again - Fight nicely |