Falsely Shouting Fire

What can you do when someone spreads lies on social media about your company’s product?

KFC: Eight-Legged Chickens a Lie,” The Wall Street Journal, June 2, 2015 B3.  KFC sues three companies in China, alleging they used Chinese social media to spread rumors about 8-legged chickens to damage KFC’s business.

Commercial defamation is actionable in China. But would a rumor spread by a private citizen be equally problematic? How does a company protect itself against somebody falsely shouting fire in crowded theater? The word “falsely” is an oft-omitted modifier in “quotations” from the O.W. Holmes opinion on free speech.

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Filed under Board, Business Case, Controls, Oversight, Protect assets, Protect information assets, Risk, Third parties

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