New and improved online technologies allow online providers to cater for diverse audiences and enhance interactivity generating new opportunities. Increasing ease of use and access of Social Media and Social Networking Sites also means availability of plethora of information and User-Generated content. This ease of use and availability of information while facilitates the  exchange of information creates a problem with two sides.

On one side, there are the potential problems to which users (as consumers) are increasingly exposed, including:

•  Data Protection and Privacy concerns with particular attention to minors;
• Misuse of Private Information;
•  False or Defamatory Material;
•  Copyright Issues;
• Employment issues;
• Prevention and Detection of Crime;
•  Litigation.

On the other, there are the problems to which companies that allow their employees to use Social Media and Social Networking Sites are exposed to. Companies may consider using Social Networking Sites to:

• Create a Social Media presence;
• Run promotions and contests;
• Get in touch with the consumers of their products and services and receive their feedback;
• Create word-of mouth marketing via blogs;
•  Improve their customer service perception by customers;
•   Disclose information to the public; and
• Gather information for employment purposes.

In either case, the user (whether consumer or company) of the Social Networking Site must make itself aware of the rules (whether website terms of use, privacy policy or content standards) applicable to its use and understand its rights and obligations and also the potential effects that, for example, account privacy settings may have on the information posted and its user.

Of course, in each case the providers of Social Networking Sites face have legal obligations as well.

What do you need to be aware of, if you use or operate a Social Networking Site