The liberty of the internet as an open public forum certainly provides multiple benefits to users worldwide; however, it also poses many important legal questions when the freedom of the web is used by employees to anonymously make harmful, false claims on their employers and colleagues through their private, individual blogs and websites.
The dangers posed by harmful employee blogs may range from defamatory claims made against the company, harassment claims made towards colleagues/employers, and disclosure of confidential information of the company. These frivolous or intentionally hurtful cyber comments may potentially lead to actual, economic damages to the company. For example, a false, negative claim made by an employee may harm employer and hurt the good will of the company, thereby incurring economic loss to the company. This happened in late 1990s to Southern Pacific Funding Corporation, which filed for bankruptcy after some blog claiming that company executives were covering up multi-million dollar embezzlement. This blog triggered scandal led to devaluation in the Southern Pacific’s stock prices from $17 to $1.
Hence, what is being said and published in the virtual reality may have actual, real-life consequences. The next question we may ponder upon is how can employers in the situation redeem damages done to the company, when the blogger’s identity was hidden? The most widely used method was to subpoena the Internet Service Provider (ISP) through filing a “Doe” case or the Digital Millennium Copyright Act (DMCA). After which the blogger’s identity is revealed, the employer can decide whether to further sue for damages.
This article gives further details on the topic of private employee blogs, and this link provides the actual official document of the DMCA.
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