Facebook Flips Then Flops Terms of Service; Modicum of Emotions from Confusion to Rage to Happiness Ensue

by Ellis Watts, Manager

Have you heard the latest out of Palo Alto?

Recently, Facebook decided to edit a line of legalese in their Terms of Service. They cut a line that stated: “You may remove your User Content from the Site at any time. If you choose to remove your User Content, the license granted above will automatically expire, however you acknowledge that the Company may retain archived copies of your User Content.” Essentially, if you close your account, your posts on friends’ walls will remain and Facebook retains the right to use your information, which they always have had. And be honest, when was the last time you actually read a TOS agreement?

This has been met by a smattering of negative reactions. The Consumerist was quick to lash out for the people (as they often do on their noble crusade of consumer protection), and user groups have popped up across Facebook protesting this change. But let’s face it, anytime Facebook makes a TOS change, new feature, or redesign, protest groups catch on and start making demands. Usually the story fizzles out in a week or so after Facebook issues an official statement saying either “hey, it’s cool, you’ll like it, just give it some time,” or “deal with it”. In this case, Facebook decided to revert to the old TOS understanding the sensitivity of the matter, regardless of how justified it may or may not be. Furthermore, as of Thursday they created the Facebook Principles and Statement of Rights and Responsibilities. These two documents define user rights and provide the framework for user feedback for any future policy changes.

The last time Facebook was met with such heightened criticism was following the launch of its Beacon advertising platform. Brands were excited by the opportunity to integrate their message or, more importantly, a consumer’s interaction with their brand into the daily social network conversation. What may have seemed like an interesting idea to consumers at first was then met with some static in execution. I can integrate my Blockbuster.com account my profile to show everyone what movies I am currently renting. But maybe I don’t want my friends finding out that I rented The Women last Tuesday, or find out that I LOVED IT.

No, just kidding. That movie was terrible. I mean, there wasn’t a single male actor (or extra, for that matter) in the entire movie.

But I digress. The fact is, Facebook may still have a few risky (but profitable) propositions up their virtual sleeve. As they continue to further evolve as a revolutionary media vehicle (and eventually work toward an IPO…any day now…whenever you’re ready, Mark), it will be interesting to gauge the user reactions with each step along the way. Facebook walks a very fine line between user privacy, content ownership and distribution. When there is an adaptation to the terms, user perceptions do change. It seems as though Facebook will escape this latest debacle relatively unscathed, and may have even gained some credibility and trust in the process.

Facebook still remains a very viable place for brands to play but they need to be cognizant that this particular property is still developing. Audience perception of the actual property itself (and not always the content within it) is still somewhat malleable. This is very much unlike most other platforms and media. That would be like a car radio that suddenly has the ability to use the conversations you have with yourself in traffic for future commercials. Man, that would be creepy.

During a time of confusion, brands need trusted advisors who are aware of not only the conditions of current social networking sites but their respective audiences and attitudes within each. In the event of a cataclysmic fallout from a controversial TOS change, is your brand prepared to be caught in the crossfire?

Rest assured, our clients have the security of knowing that the AMP Interactive team keeps an ear to the ground, a finger on the pulse, and various other appendages applied to measurable sources, just in case situations like this should arise.