- Introduce Company
- Explain the case
- Show legal risks and risk mitigation strategies
Introduce company:
Company name: Sheng yuan
Producer: It is a leading infant formula Chinese company and and a producer, marketer and seller of nutritional products for infants, children and adults.
The company website: http://www.shengyuan.com.cn/web/index.jsp
Case:
Ten days ago, on the internet, there was a surprising news which reported milk powder had caused baby girls to show signs of premature sexual development. Shen yuan was this milk powder company and these baby girls were in the totally different cities.
Last Sunday, China's health ministry said that it had found no evidence to proof it and these milk powder should be totally safe.
The news link: http://www.theprovince.com/health/China+says+evidence+contamination+milk/3401555/story.html
Analyze:
This blog does not judge this case. we only analyze legal risks and risk mitigation strategies.
For the risks:
1）Defamation:
If the investigation is true, then this company was defamation by publish media. Before August 16th, most of social media reported these news. If users searched internet, they will find thousands of news about it. The reputation of this company was totally tarnished and they lost thousands of customers.
2)Misleading and deceptive conduct:
This company only use internet to promote their milk powder is totally safe. However, as older customer, they do not use internet very often. so they may not know this news and still refuse to buy milk powder.
3）Cyber-bullying:
Until now no one do not know the truth, so in lots of popular web sites people still write harassing or exclusionary comments about this company.Then when people read these comments, they will totally believe milk powder from this company should be dangerous.
Maybe...
4)Termination generally:
If leaders search the internet and find some employees' comments, they may fire these employees. They will lost lots of good staffs.
5)Confidential information
In this case, everyday there are hundreds of hackers attract company's network. If one of them was successful, then it means customers data and trade secret would be stolen.
6) Trademark infringement:
Now the sheng yuan company is a popular name on the internet. In next future days, some people like to use its trademark to attract more people to read their web sites.
7)Privacy
Because of this case, more and more people do not trust this company and even some of them hate the leaders. They try to find leaders' information, put them on the internet and leave harassing comment. Then leaders' personal safety could not be guaranteed.
8)Negligent misstatements
On the internet, the third party and former employees joined on-line discussing and argued about the truth. They may reveal trade secret and make company lost more money.
Risk mitigation strategies
1)Social media policy
Company should ban all of their employees have communication with media or write relational information on the internet.
2) Promoting latest investigation
According to latest investigation, company should contact with social media and make sure more people know this news.
3)Decrease harassing comments
Company should send e-mails to public web sites and ask them delete false articles.
4)Improve network system
Company should spend more money and improve the network security. They must make sure the customer data and trade secret are totally safe.
Reference:
Reuter (2010) China says no evidence of contamination in milk Retrieved August 18,2010 fromhttp://www.theprovince.com/health/China+says+evidence+contamination+milk/3401555/story.html
没有评论:
发表评论