A recent story in the Grand Rapids press, (Saturday, October 13,2007) caught my attention. The title of the article by Chris Knape was "Amway Sues Bloggers" with a subtitle that said..."company alleges fired distributor is behind negative web posts, videos."
The paper reports that the suit has been filed by Quixtar, the on line version of Amway also known as Alticor Corporation. Quixtar is asking the court for an injunction and $25,000 in damages against 30 alleged anonymous bloggers classified in court documents as John Doe's.
In addition, the corporation is asking the court to approve subpoenas for IP address from companies such as godaddy and Youtube (owned by Google) to reveal the identities of the alleged offenders.
Apparently, the derogatory posts regarding the company were filed anonymously. But the company alleges that it believes that the posts are a concerted effort by a former disgruntled distributor to undermine a court order in which he agreed not to disparage the company. The article indicates that Amway is not seeking to restrain an individuals right to free speech or criticism. Rather, they are seeking to ferret out any attempts to circumvent restraints imposed by the courts.
This may turn out to be a true battle of the giants vs 30 mini Davids! It will be interesting to watch how this case proceeds. The nature of Web 2.0 platforms creates a real dilemma for corporations. On the one hand, tools such as blogs can greatly enhance the reach of information about products and services. The flip side of the coin is that negative information can be magnified with astonishing speed and pervasiveness as well. Every public relations specialists knows that managing a deluge of negative publicity can be worse than trying to harness the wind.
As blogging encompasses more of the business community, real estate companies will also need to consider the implications for their business models. Managing risk will rise higher on the agenda and insurance companies will eventually consider the potential implications from an Errors and Omissions standpoint. On line posts have a shelf life of...well, you might say...Forever!
Today, certain types of public discussions within the real estate industry are highly regulated. We cannot, for instance, discuss commissions unless we want to run the risk being accused of collusion and price fixing. Federal law and the Code of Ethics subscribed to Realtors® precludes us from discriminating in any medium in a wide variety of ways which include: race, familial status, sex, handicap, marital status, place of origin, etc.
There are no simple solutions here. The reality today is that some of the most effective new mediums of information about homes are not controlled by real estate associations. But, these companies are providing forums which the public wants in the form of quick, readily available complete information which allows for easy interaction between the buyer and the seller on line. This emerging dynamic will impact the discussion in many ways. Organizations such as Google, Zillow and Trulia are not bound by the dictates of NAR.
Within the context of a challenges which have defined the recent real estate market, the knowledge that the competent broker brings to the table with reference to strategic counsel and negotiations remains vitally important. The nature of blogging and other forms of Web 2.0 marketing can greatly enhance the potential impact and reach of intelligent opinion. This will be where the rubber squeals against the pavement. How does one balance this incredible potential with the enormity of the associated risks? AND...live with the knowledge that if you sit this one out...your competitors probably won't!
The challenge for real estate brokers will be figuring out how to manage the risk and create the accessibility which the consumer craves. The problem for NAR will be figuring out a comprehensive policy which adapts to a future wave of such enormous consequence that it is scarcely possible to predict how it will crash against the shoreline. Failure on either count is a high stakes game...perhaps, literally the survival of our industry as we know it.
Picture is courtesy of noizyboy's photostream on flickr.com
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Now this is the information that everyone here needs to read! Bryant and Monika both wrote posts today pertaining to the same subject. You know what Lola? It's all who are abusing the system that are creating havoc and turning focus on our industry as well. I so believe that there needs to be more focus on treating everyone here as if we were "speaking" with the public, peers or whomever.....the same as if we were talking face to face. If people are talking commissions...can you believe they are not doing so out there? If people are mean and stuff here....can you imagine out there? There is so much that can be remedied by just following our ethics and presenting ourselves none other than we would in the office or at the grocery store. With class.
Sally, Very well stated. Thanks for stopping by to read and comment.
So is one of the lessons here don't hide behind a screen?
Slightly off topic, but I though it wasn't called Amway anymore. Didn't they change the name a while back?
Lola- Interesting topic. It will be interesting to see where free speech is not free and what this all leads to. I know you can not defame another person but where is the line of what is defaming and what is expressing your views and opinion. I mean, I do not like Big Pharma and I know of all kinds of horrible things they do to keep people sick and measures they take to keep us from taking natural herbs and supplements. But at what point will come to me and say I am not allowed to say the truth about them? It will be interesting to say the least. Katerina
Lola- it almost sounds like a joke - "blogger sued!" It just says bloggers are now being taken seriously and getting respect; perhaps I should say notoriety. If the blog slanders however, it should not be condoned. Slander is inappropriate in all media.
Keep us updated, Lola. If you read Monikas post on NAR, there may be some distubing compliance issues coming down. Since you are a broker and own your own company, would you want to read all the agents posts before they submitted them, would you have time ?
Another reminder that we do need to be careful what we write...it's not a free-for-all and we may someday be accountable for our every single word. We all need to follow some guidelines to keep ourselves out of hot water.
Good thoughts, Lola, as usual. It will be interesting to see what precedents are set.
Actually, I think we're accountable for every single word in our blogs now. People may not be suing me, but they are forming opinions about me with every post and every comment.
Lola, The other posts WooHoo Sally mentioned did not touch on the E&O issue. You got it exactly right. The real threat to blogging is not some edict from NAR but rather a pronouncement from the insurance industry that blogging will invalidate an Errors and Omissions policy or at the very least they won't insure against risks attributed to blogging.
Bill Roberts
It's a good reminder that we need to treat eachother the same online as we would in person. I sure hope this issue is settled without causing too many issues for all of us on AR. I would like to think we are responsible for our actions. However, I've seen a few instances that a broker would be shocked at the things their agents have said and done on here so I do see why it is becoming an issue.
Right Brandon! The Internet is potentially the MOST Transparent medium of all.
Hi Lisa...not off topic at all. Amway Corporation changed it's name to Alticor several years ago. The web page indicated that Alticor is Amway's parent corporation. The on line version of Amway is Quixtar. The on line version of this corporation is the entity which is pursuing the law suit...but they are all essentially the same company.
Katerina, Thanks for your comment. I was intrigued by how careful Amway was to point out that they are not trying to curtail free speech. Right now, this would not be a popular route. But, this could very easily and quickly change. An event like 911 demonstrates how rapidly rights that we believe to be set in stone can be retooled. We're living in very interesting times.
Eloise, Thanks for stopping by to read and comment. Blogging is very serious business! The real estate community is largely still behind the curve on this one. The news media regularly quote bloggers...effective bloggers are a force to be reckoned with. Katerina's comment is indicative of the wider implications...When does my opinion cease to be about me and become slander against someone else? AND...who will eventually make this decision?
Hi Missy, I did read Monika's post and also her first one on this issue. This year NAR launched it's own official blog featuring our current President Pat Combs. We all received an e-mail notification about it. They are aware of the implications of this emerging phenomenon and certainly have access to information resources for advise.
I don't think this issue for the real estate community will be simply about what NAR does. Web 2.0 technology is going to change business everywhere in a multi-faceted way...real estate included. And...the biggest changes may be coming from outside our industry...not within it. I'm struck by the fact that the graphic to enter this comment is quinine. This may be a bitter pill to swallow. :)
With reference to my agents as a broker...I am a firm beliver in the power of knowledge and education.
Kelly, That's right! A good start is simply following the Code of Ethics and the Guidelines that Active Rain already has in place. Thanks for your comment.
Lola,
This is one that will be watched closely, I'm sure. I wonder if there's precedent for trying to get the names of anonymous bloggers. You are so right though, blogging is serious. I imagine there are so many people who believe it's just between the community in which it's written. It's so much more than that and a case like this will surely make that blatently obvious. We are held accountable for what we say, and post it seems. Thanks for the informative post.
Hi Lola: I read that article with great interest, also. Since they don't know for certain who the author of these blogs is, they're thinking of subpoenaing GoDaddy and other's records. I didn't think bloggers were supposed to be anonymous - isn't it about conversation?
I've read comments and posts by members that say "nobody is paying attention to what's written here". I think that's dead wrong. We all preach the benefits of blogging and try to convert others to its value, but the double-edged sword is this: now, all sorts of people are paying attention to what goes on in blogs, including the government, private companies and competitors.
Claiming "Free speech" does not protect you from being sued if a party can somehow prove that they've been harmed monetarily by your comments.
Great post Lola. I read the same article and had some of the same thoughts.
Free speech doesn't mean free from repercussions. That is a mistake many make. They think feel that any time a punishment is meted out for speech that there has been a curtailment of free speech. It simply isn't the case. But, the truth should always be a defense. If I say something that is true, that should be enough to allow me to say it.
Lola this is an excellent article! You stated so eloquently what I was trying to convey in my post yesterday. However, I had not thought of the E & O angle. That could certainly make brokers stand up and listen. NAR can only pass guidelines E &O can hit us in our wallets real quick.
I think one way to balance the risk factor is to make sure we know what we are talking about when we throw it out there for the world to see. We also have to expect and be prepared for criticism. I'm a big fan of transparency. I have nothing to hide. Maybe this new "openness" will help in making the world a better place.
One of my co-workers has what he calls his three beer rule. If he happens to unwind a little more than usual in an evening, he does not allow himself to answer or make any phone calls. Would be a good rule of thumb for blogging as well. Same if you have a root canel, hold off on blogging until you are no longer under the influence of pain killers :) Beth
Excellent. The third party agitators get their information and sell it back to us. The bloggers get to say and do what they want. Best advise is to follow the code of ethics and standards of practice. You'll survive that way.
Very interesting, free speec h, censorship, being accountable for what one does and says, We will surely have to watch this one.
Hi Karen, Thanks for your comment. It is important to realise that our blogs are read and considered a viable and valuable source of information. That makes blogging something worth doing well!
Lola...Blogs are our words and they live forever yet so many people carelessly post away.
Lola, excellent well-written article. The E&O issue is very thought provoking and as was mentioned, may come into play moreso than any dictates by the NAR. I've always felt that the best way to judge what I put into my articles is how would I feel being faced with the post in front of an arbitration board.
Lola Great post! Makes us more careful with each word we write. Also, makes me want to write more as the time may come when I am no longer allowed to write.
Hi Andrew, Thanks for stopping by to read and comment. Here's a related article in Business Week about Google responding to the Chinese government that you may find interesting.
Hi Ed, it is an interesting case. You're right, most bloggers definitely are doing their best to be "seen." But there are a lot of bloggers/writers online who are posing under pseudonymes. You see this alot in forums like flickr. etc. There's definitely more to this story than meets the idea and it will be a closely watched case as it progresses I'm sure.
Eric, Thanks for your comment. I'm certainly not a lawyer, so I can't comment on how this will eventually be interpreted though the court systems...but, I'm definitely an interested observer. :) The potential impact of this phenomenon is enormous and is rightly being assessed by a variety of concerned/interested parties.
Hi Steve....It caught a lot of people's attention! The Internet can be a very vicious place to air grievances. That's one of the reasons why it's important to have google alerts so that you are aware of what is being said. Being able to identify someone who says it anonymously is...well, an altogether more complex and challenging issue.
Lane, I love this line in your comment, "Free speech doesn't mean free from repercussions." I think that there is always an impact to what we do, it's just that sometimes we don't recognize it. Telling the truth can have some of the most monumental repercussions of all. The history books are full of martyrs and all sorts of individuals who suffered because of their convictions. Some time ago, I posted a blog about people in other countries who are risking jail to blog.
Hi Bryant, Thanks for stopping by to read and comment. I enjoyed reading your post yesterday. It was so timely, as I had just picked up the Grand Rapids Press article over the weekend. The jury's still out on this new "Transparency." I think forums like this allow us to examine it from a number of different angles.
Hi Beth...thanks for your comment...LOL Not a bad rule...at all! :)
Thanks for your comment Jeffery.
Yes, Michael. Thanks for stopping by.
Hi Monika, Thanks for your post! It has sparked a lot of great discussion. Thanks also for stopping by to read and comment.
Wow, Elaine...That's some good solid advice! Thanks for stopping by to read and comment. It's likely that companies will need to develop written policies to provide guidance for their agents online in any fashion. So much of a real estate transaction is influenced or generated online that it will be necessary to be proactive in properly managing the risk AND also enabling the consumer to interact with agents in a manner that is more interactive.
Excellent post, and well written...
all the recent comments regarding how NAR and our brokers will deal with the blogging caught me a little off guard and I was thinking about interference with my right to free speech.
Then today I was at an event hosted by our Multiple Listing Service and was invited to "blog" on a site created and hosted by our Board and MLS.
How refreshing!
Lola,
I agree with the first comment right off the bat! First this is a GREAT! post! Awesome information and about a Michigan Big Boy too. Hay aren't they in your neck of the woods too? :) Way to keep it local and International all the same time!
I think that this has been attempted before but I will have to do some research first. As far as the company I will be watching this very very close. Where they have a difference as I remember is in already standing court orders. I will look around some because now you have me wondering!
I also agree with the fact that it is a company speaking. I try very hard to make sure I really think about what My Company Is Saying before I hid the send button because you are right the shelf life is forever!
Thanks for the post as it really has been one of the better reads this week for me.
Lola- Something has to be done to make sure we are in compliance, therefore staying on the right side of the law. You are right about some of the discussions that could result in large penalties; for example the discussion of commission. My hope is that NAR will not overreact but will come up with a balanced solution.
Lisa,
A little while back they kind of sold themselves to themselves. The Q company is an Internet based company that now owns the product producer portion that is Amway. It is kind of confussing but they are the same just a different sales system using direct shipment. The reps could/would not stay on because of the inventory cost so they went with a different system.
Lola -- there are already lots of laws, rules and guidelines. Those STILL apply to the web. So bloggers beware! Just because the internet is a newer medium or blogging is a new way of communicating. one cannot run afoul of the law. Sallys comments were right on point. Thanks Lola for having this important discussion.
Interesting. People really need to think twice about writing things that they would not say in public in person. Hiding behind a screen is not going to work for those who bad-mouth.
Thanks for your comment Tim.
Gail, Your comment made me go to your profile to find out which state you are in! How refreshing...a local Board creating a platform for their agents to blog. That's the first time I've heard of that!
Shane, Appreciate your stopping by. Yes, Amway is right here in Grand Rapids, Michigan. Never thought that we'd have front row seats....
Hi Jennifer, Thanks for your comment. NAR has an interesting and challenging task. It will be interesting to see if they do make recommendations in their meeting in November. We'll have to wait and see...
Joan, You're so right. Sometimes, I think people think that because they are behind a screen, they are not seen. Nothing could be further from the truth. In some ways, the Internet and the digital revolution has enabled the most Transparent environment the world has ever know.
Excellent post. The perspective of a changing Real Estate Industry is the most important part for me. The fact that there are more and more companies providing services, which are not affiliated to NAR and at the same time we are getting closer to actually eliminating the last bastion of the exclusivity (MLS the way we know now) that is heavily protected by NAR, and this is changing the paying field for agents.
Thanks.
Mmmmmm. It appears that the Internet just ran into some - what do we call those things??? Oh, yes, human beings.
I know we've heard it before but it needs to be repeated - again and again - "The more things change, the more they stay the same."
Disgruntled former employees are nothing new, they've simply taken their grievances, committed them to writing and spread them over the waters where their grievances are taken to the four corners of the earth.
No more do folks with real or perceived grievances have to limit their "pay back" to spreading the word one ear at a time. They now have the world at their fingertips. Amway should probably have just ignored the matter and it could have blown over.
You wrote: "Google, Zillow and Trulia are not bound by * * * * " the dictates of the anti-trust constraints as are we agents and brokers. True, but they are simply the virtual paper upon which a live member of the NAR has committed their writings. That live member IS being watched and read by the FTC and the DOJ. '
I do not believe that the average agent understands that discussions of commissions between agents or brokers of different companies is illegal. How to you stop folks who live in their own little world and who don't read and learn from harming themselves and those around them????
Lola,
Many people think they can write ANYTHING and get away with it on the internet. Not necessarily so. Your post was very interesting.
Lola--I agree with Sally on this one...And thanks for posting information on an article that would otherwise been overlooked. Wow...If there weren't so many breaking the rules, realtor ethics rules that is on blogs, there would be less to be concerned about. If you wouldn't say it out loud in public, it shouldn't be said on a blog or comment. The end!....Unfortunately, it won't be the end of this subject.
Bob & Carolin...Thanks for stopping by to read and comment.
Hi Joe, The playing field has already changed for everyone...the dust is not settled yet, so it's difficult to truly understand and comprehend just how much...
Boy Lenn, if we had the answer to this question "How to you stop folks who live in their own little world and who don't read and learn from harming themselves and those around them????" our world would be a much simpler place in which to live and work! Thanks for sharing your insights. Unfortunately, our standards in the real estate industryremain surprisingly low...while the stakes become higher and higher.
Yes, Diane...the Internet can be a suprisingly transparent medium.
Agreed on both points Teri. Thanks for stopping by to read and comment.
Lola - once again you raise some important issues that the industry faces as the on-line world continue to grow and evolve - liability, free speech and so on. Consumers growing demands will continue to inspire other means to provide what they want. Bloggers, I think forget that their writing exists for all to see, whether they like it or not, and any transgressions are in writing...great evidence for attorneys to use in legal proceedings. I expect we will see more issues raised and tested in court as more and more communication, and even transactions, occur on-line.
Jeff
Lola,
YES this will be a VERY interesting case to watch. I have been "bullied" by someone that did not like something I said about the Home Staging industry in general.
Blogs are a unique media? Or are the not media, are they our on-line voices?
Keep us posted.
Me
This is an interesting case and presents quite a dilemna. Bill, makes a good point about E&O insurance. I think it's very important to be honest and always present the facts and be ready to back them up if it comes down to it. I think it would be terrible to have a lot of restrictions placed on blogging. Seems to me that would undermine the concept. Still, we are Realtors and we do need to keep everything we say and do professional.