As social media has grown within and outside of enterprises, the question of legal and regulatory liabilities for content has remained in the background. However, we may start seeing more policing by regulators and intrusion by legal departments.

According to a new report in the Financial Times, “revised guidelines on endorsements and testimonials by the Federal Trade Commission, now under review and expected to be adopted, would hold companies liable for untruthful statements made by bloggers and users of social networking sites who receive samples of their products. The guidelines would also hold bloggers liable for the statements they make about products.”

A counter-argument by Richard O’Brien, vice-president of the American Association of Advertising Agencies, said it was premature to regulate blogs or other forms of new media. According to FT, O’Brien rote to the FTC that “regulating these developing media too soon may have a chilling effect on blogs and other forms of viral marketing, as bloggers and other viral marketers will be discouraged from publishing content for fear of being held liable for any potentially misleading claim.”

Over the past decade or so, the legal system caught up to email, which must now be managed and is treated as any other corporate record or statement. That is, companies are liable for the statements made by company representatives within email communications. Even more recently, instant messaging has fallen under the same scrutiny. Both email and IM, in fact, are construed as electronic communication. In fact, the United Nations Commission on International Trade (UNICTRAL) Model Law on Electronic Commerce — which serves as the basis for many national laws — defines a “data message” as “information generated, sent, received, or stored by electronic, optical, or similar means including, but not limited to, electronic data interchange (EDI), electronic mail, telegram, telex, or telecopy.”

The UNICTRAL definition was drafted earlier in the decade, but certainly can be extended to social media.  How liable will organizations be for any and all statements made by employees or representatives in blogs or social media sites? That is a question that inevitably will be hashed out — and hopefully, we can keep the lawyers from quashing the potential of the social media sphere.

In fact, a survey out of the University of Southern California last year found almost of half of organizations may be holding back on social media inittaives due to liability and legal concerns.