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Business online presence: legal perspectives from domain names to social commerce

Published in: Intellectual Property
by Arlo Canella
Home > Business online presence: legal perspectives from domain names to social commerce

In the modern commercial context, business is no longer confined to the physical walls of a company but extends into the vast realm of the Web. A company’s online presence — from domain names to social commerce — has become essential for growth and brand recognition in the digital marketplace. Let us explore the various legal and operational aspects associated with this evolution.

What are domain names?

Domain names can be regarded as the digital address of an online property, similar to how a street address identifies the location of a home or business. They serve as user-friendly translations of technical IP addresses, enabling users to navigate the web more intuitively. Beyond their navigational function, domain names are crucial for identifying entities and businesses in the expansive online ecosystem.

While a trademark is a distinctive sign used to identify goods or services offered by a business, a domain name is an online address. However, the line between the two can become blurred when a company registers a domain name that mirrors its trademark. This overlap may lead to disputes, especially if a third party attempts to register a domain name that is identical or confusingly similar to an existing trademark.

The Internet Corporation for Assigned Names and Numbers (ICANN) oversees the global domain name registration system. There are two primary types of domains: Country Code Top-Level Domains (ccTLDs), which correspond to specific countries (e.g., .it for Italy, .de for Germany), and Generic Top-Level Domains (gTLDs), such as .com, .org, .net, and many others, which are often associated with specific categories or themes. Choosing between a ccTLD and a gTLD can have strategic implications in terms of visibility and branding.

Companies may sometimes find themselves in disputes over domain name ownership or usage. The Uniform Domain-Name Dispute-Resolution Policy (UDRP) was established to resolve such conflicts efficiently and at a lower cost than traditional litigation. The UDRP enables parties to settle disputes through arbitration, reducing both time and legal expenses.

Domain names are therefore a fundamental component of a company’s online presence. They serve not only as a reference point for clients and stakeholders, but also play a central role in shaping and safeguarding a business’s digital identity. Accordingly, it is critical for businesses to understand the challenges and opportunities associated with managing their domain portfolio.

Social media accounts and the right to digital identity

Social media accounts have become digital storefronts for companies in the modern era. Through platforms such as Facebook, Instagram, LinkedIn, X (formerly Twitter), and others, companies can interact directly with customers, promote their products and services, gather feedback, and build an online reputation. These profiles not only serve as marketing channels but often represent the first touchpoint between a business and a potential customer.

As social media continues to gain relevance, so do the risks associated with it. Identity theft — where third parties create fake accounts or impersonate business profiles — is a significant concern. Such fraudulent activity can harm a company’s reputation, mislead customers, and in some cases, infringe on intellectual property rights. Companies must take a proactive approach by monitoring for fake accounts and seeking official verification whenever possible to promote and safeguard their digital identity.

Each platform maintains its own policies and procedures for handling account disputes and verifications. For example, Instagram and X offer verification badges for authentic accounts belonging to public figures, businesses, or well-known brands. In the event of a dispute, businesses may report fake or infringing accounts, and platforms can take appropriate action — from account suspension to permanent removal.

The “blue checkmark” badge on X, for instance, is a blue icon with a check mark that confirms the authenticity of an account, whether personal or corporate. Why is this important for businesses? It reassures followers and potential customers that the account is genuine, thereby reducing the risk of fraud or misinformation. It fosters trust between the business and its audience and helps validate the authenticity of the communication. Moreover, verified accounts may enjoy increased visibility within X’s algorithm, potentially allowing businesses to reach a broader audience.

Dopo l’acquisizione di Twitter da parte di Elon Musk nel 2022, fiutato il business, la spunta blu può essere ottenuta sottoscrivendo l’abbonamento a “Twitter Blue“. Tuttavia, gli account che avevano già ottenuto la spunta con le vecchie regole conservano il loro status verificato. Musk, inoltre, ha introdotto la Spunta Dorata per le aziende, che contraddistingue un livello ancora superiore di verifica e si ottiene attraverso un piano d’abbonamento più costoso rispetto a “Twitter Blue”.

Following Elon Musk’s acquisition of X (formerly Twitter) in 2022, the verification badge became available through the “Twitter Blue” subscription. However, accounts previously verified under the old system retained their verified status. Musk also introduced the Gold Check for businesses, which denotes a higher level of verification, available through a more expensive subscription plan than “Twitter Blue”.

In an increasingly digital world, a company’s online identity is just as valuable as its physical one. Maintaining, protecting, and enhancing that identity requires a thorough understanding of the risks and platform-specific policies. Businesses must therefore invest time and resources to ensure that their social media presence is secure, optimized, and aligned with their branding and communication objectives.

Privacy and data protection on social media

The General Data Protection Regulation (GDPR) is an European regulation governing the processing of personal data of EU citizens. Even though most social media platforms are based outside of Europe, they must comply with GDPR if they offer services to EU residents. This means that companies using social media to engage with customers must ensure their activities meet privacy compliance requirements— including obtaining consent for data collection and use, being transparent about how data is processed, and allowing users to access, rectify, or delete their data.

When a user interacts with a company’s social media profile, they leave behind digital footprints. These data points — including demographic information, preferences, browsing behaviors, and more — are valuable assets for companies. However, this data collection also entails a significant responsibility: businesses must ensure data is protected, not shared without consent, and used in a lawful manner. Data breaches may result not only in legal penalties but also in substantial reputational damage.

To maintain customer trust and meet regulatory obligations, businesses must adopt best practices in social media privacy, such as:

  • Informare chiaramente gli utenti su come vengono raccolti e utilizzati i loro dati.
  • Offrire opzioni di opt-out o consenso esplicito per determinate attività di raccolta dati.
  • Utilizzare crittografia e altre misure di sicurezza per proteggere i dati raccolti.
  • Limitare l’accesso ai dati solo al personale autorizzato.
  • Monitorare e aggiornare regolarmente le policy sulla privacy in base alle nuove normative in vigore o alle best practices emergenti.

In today’s digital age, data privacy and protection are central legal concerns. Businesses operating on social media must take a proactive and compliant approach to user data, ensuring their practices remain within legal and ethical boundaries. Responsible data governance fosters stronger, longer-lasting customer relationships.

Corporate responsibility vs. user responsibility

When a company publishes content on social media, it assumes direct responsibility for that content. However, social platforms are also shaped by user-generated content such as comments, reviews, and shares. While a company may not be legally liable for what a user posts, it may still face reputational or legal consequences due to harmful or unlawful user content.

It is critical for businesses to implement clear and robust content moderation policies. This includes using automated filters, appointing moderation teams, or establishing transparent user guidelines. If defamatory, inappropriate, or infringing content is identified, the company must have procedures in place to promptly address and resolve the issue.

Customer reviews are a valuable tool for businesses, helping to build trust and credibility in the marketplace. However, there are instances where competitors or malicious individuals may post false or misleading reviews. Businesses must be equipped to identify and manage these situations, engaging with the platform or — where appropriate — pursuing legal remedies to remove or refute inaccurate information.

Although social media platforms are often seen as spaces for free expression, there are legal limits to what can be said or shared. Companies must balance respect for users’ freedom of speech with the obligation to prevent rights violations.

Navigating the legal and reputational risks of social media interactions requires careful planning and oversight. With a strategic and legally sound approach, businesses can harness the power of social media while mitigating potential liabilities.

E-commerce and online consumer relationships

In the digital era, e-commerce has revolutionized how businesses sell products and services. It is no longer merely about sales, but about delivering a full “user experience” — from product discovery to purchase completion.

E-commerce presents unique legal challenges not found in traditional commerce. Mandatory disclosures include seller identification, terms and conditions, return policies, and warranties.

Nell’Unione Europea, per esempio, i consumatori hanno il diritto di recedere da un contratto online entro 14 giorni senza dover fornire una ragione. Anche nel proprio stesso interesse, le imprese devono assicurarsi di rispettare queste norme, fornendo chiare indicazioni sui loro siti web. Ad esempio, nel caso in cui l’esercente non abbia adempiuto all’obbligo di informare il consumatore sull’esistenza del diritto di recesso (violazione dell’art. 49, comma 1, lett. h del Codice del Consumo), il termine per il suo esercizio è esteso a dodici mesi, ulteriori rispetto ai 14 giorni iniziali.

In the European Union, for example, consumers have the right to withdraw from an online contract within 14 days without providing any justification. Businesses must comply with these rules and clearly present them on their websites. Notably, if a seller fails to inform the consumer of the right of withdrawal — in violation of Article 49(1)(h) of the Italian Consumer Code — the withdrawal period is extended by twelve months beyond the initial 14 days.

Given how easy it is to post online reviews, businesses must actively monitor and manage customer feedback. Negative reviews, if not promptly and professionally addressed, can significantly harm a business’s reputation. At the same time, unfair or defamatory reviews should be handled carefully, through engagement with the author or — in cases of falsehood — through legal avenues.

Online marketing offers countless opportunities, from targeted advertising on social media to email campaigns. However, compliance with data protection and privacy laws is crucial. For instance, under European regulations, marketing emails may only be sent to recipients who have provided their explicit and granular consent. Furthermore, promotional messages must be clearly marked as advertising, and recipients must be able to unsubscribe easily and immediately — with a single click.

E-commerce and digital consumer relationships are now indispensable opportunities for businesses. However, they come with legal and reputational challenges that require diligence and professional expertise in order to avoid risks and penalties. With a solid track record, Canella Camaiora is prepared to support you through these nuanced and potentially high-stakes scenarios.

© Canella Camaiora Sta. All rights reserved.
Publication date: 12 October 2023

Textual reproduction of the article is permitted, even for commercial purposes, within the limit of 15% of its entirety, provided that the source is clearly indicated. In the case of online reproduction, a link to the original article must be included. Unauthorised reproduction or paraphrasing without indication of source will be prosecuted.
Avv. Arlo Cannela

Avvocato Arlo Canella

Managing Partner of the Canella Camaiora Law Firm, member of the Milan Bar Association, passionate about Branding, Communication and Design.
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