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Facebook Ads At Legal Crossroads

Somewhat lost in the hype surrounding Facebook, is the fact that the company stands at an important crossroads: Tts future almost completely hinges on the success of Facebook Ads. If the hyper-targeted advertising and social recommendation system doesn't deliver as promised, Facebook will go down as the biggest bomb in Web 2.0 history.

However, it would really be a shame if the program turned out to be a non-starter. At present, legal concerns loom over Facebook Ads. New York privacy law requires written consent before a company can use the name and likeness of another person in endorsing their product. Facebook wants to give users the option of endorsing brands after purchasing or using their products and services by letting them click on a button. Clicking a button isn't exactly written authorization.

And "it's not just a New York law," says lawyer Brian Murphy. "Most states have statutes that protect this. Sometimes it's called a right of publicity, sometimes it's called commercial appropriation, sometimes it's a right to privacy." However, a University of Minnesota Law professor points out that these laws were written with print in mind. Courts have yet to take a look at them in a digital context--it may be that the laws need to be revised or rewritten.

Read the whole story at CNET News.com »

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