Can Businesses Sue People Who Trash Them Online?

We’ve all had experiences as customers that have certainly led to some epic rants. And some of us have even taken those frustrations online, likely in an effort to either notify company executives or just connect with others who felt the same. But that has spawned an interesting question: Can companies take action against spurned customers who embellish their negative experiences. A New York Times article examines one case in Michigan:

After a towing company hauled Justin Kurtz’s car from his apartment complex parking lot, despite his permit to park there, Mr. Kurtz, 21, a college student in Kalamazoo, Mich., went to the Internet for revenge.

Outraged at having to pay $118 to get his car back, Mr. Kurtz created a Facebook page called “Kalamazoo Residents against T&J Towing.” Within two days, 800 people had joined the group, some posting comments about their own maddening experiences with the company.

T&J filed a defamation suit against Mr. Kurtz, claiming the site was hurting business and seeking $750,000 in damages.

Web sites like Facebook, Twitter and Yelp have given individuals a global platform on which to air their grievances with companies. But legal experts say the soaring popularity of such sites has also given rise to more cases like Mr. Kurtz’s, in which a business sues an individual for posting critical comments online.

The towing company’s lawyer said that it was justified in removing Mr. Kurtz’s car because the permit was not visible, and that the Facebook page was costing it business and had unfairly damaged its reputation.

Some First Amendment lawyers see the case differently. They consider the lawsuit an example of the latest incarnation of a decades-old legal maneuver known as a strategic lawsuit against public participation, or Slapp.

The label has traditionally referred to meritless defamation suits filed by businesses or government officials against citizens who speak out against them. The plaintiffs are not necessarily expecting to succeed — most do not — but rather to intimidate critics who are inclined to back down when faced with the prospect of a long, expensive court battle.

“I didn’t do anything wrong,” said Mr. Kurtz, who recently finished his junior year at Western Michigan University. “The only thing I posted is what happened to me.”

Many states have anti-Slapp laws, and Congress is considering legislation to make it harder to file such a suit. The bill, sponsored by Representatives Steve Cohen of Tennessee and Charlie Gonzalez of Texas, both Democrats, would create a federal anti-Slapp law, modeled largely on California’s statute.

Because state laws vary in scope, many suits are still filed every year, according to legal experts. Now, with people musing publicly online and businesses feeling defenseless against these critics, the debate over the suits is shifting to the Web. 

Indiana Unemployment Rate Remains at 9.8%

From the Department of Workforce Development:

Indiana’s preliminary seasonally-adjusted unemployment rate showed little change in October, the Indiana Department of Workforce Development reported today.

Indiana’s preliminary rate of 9.8 percent marks an increase of 0.1 percent from a revised September rate of 9.7 percent (+0.1 percent). Indiana’s month-to-month change is considered statistically insignificant. The national unemployment rate increased in October 0.4 percent to 10.2 percent.

"Indiana’s unemployment rate has held relatively steady for the past three months despite a steadily climbing national rate," said Teresa Voors, Commissioner of the Indiana Department of Workforce Development. "However, a projected soft holiday retail season combined with a slump in manufacturing and hospitality employment tempers my optimism concerning the coming months."

Seasonally-adjusted total non-farm employment in Indiana declined by 1,600 in October. Indiana reported the largest employment declines in manufacturing (-5,000), mostly attributed to a slowdown in domestic automobile manufacturing following a temporary "Cash for Clunkers" spike, and leisure and hospitality (-5,900). Sectors reporting large job increases include: construction (4,000), professional and business services (2,200) and financial activities (2,200).

Indiana continues to report the lowest unemployment rate of its neighboring states. Illinois increased 0.5 percent to 11.0 percent. Ohio’s unemployment rate grew 0.4 percent to 10.5 percent. Kentucky increased 0.3 percent to 11.2 percent. Michigan decreased 0.2 percent to 15.1 percent.

Additionally, here is a county breakdown of unemployment figures.

Hat tip to Inside INdiana Business.

Wisconsin Tourism Foundation (WTF) Changes Branding Over Abbreviation, Takes Heat

Anyone even remotely associated with social media these days is familiar with the cute little abbreviations that dominate text messages, Twitter updates, and — unfortunately — now general correspondence. You know, LOL (laugh out loud); BRB (be right back); OMG (Oh my God); and of course, WTF? (What the … "frig?").

Naturally, the latter has become a bit of a sticking point for the Wisconsin Tourism Foundation (WTF), causing the organization to ultimately change its name to the Tourism Foundation of Wisconsin  (TFW) — even though it had been around for 30 years. Communications company Ragan.com took the TFW to task for caving into the confusion, rather than embracing it. From their PR Junkie blog, they offer:

Wisconsin, you blew it.

The Associated Press reports that your Wisconsin Tourism Federation — WTF — quietly rebranded in July, changing its name to the Tourism Federation of Wisconsin — TFW.

Get it? WTF to TFW.

So, what prompted this rebranding? After all, Wisconsin’s WTF was around well before teens, and later adults, started saying WTF to mean “what the f***.”

“Blogs started poking fun at it,” the Association Press reported.

Because blogs started poking fun at it? Really? One blog, it seems, made fun of it. That blog is called YourLogoMakesMeBarf.com. On July 1, the blog posted the Tourism Federation’s logo with this comment, “would really think someone would warn them about this kind of stuff.”

Ouch. Better call up the PR SWAT team for that one.

Other blogs and articles are claiming the people of Wisconsin cracked wise about the acronym endlessly, and the Tourism Federation of Wisconsin, a group of businesses in the state, finally got sick of it. Clearly, the blog YourLogoMakesMeBarf.com played a strong hand in the decision, given the timing.

It was a big mistake. This organization had a marketing goldmine. Wisconsin’s “WTF” was branded in 1979. So, WTF, optimize it! Next time someone types WTF into Google, there’s your site. Someone types WTF into a Facebook update or Gmail e-mail and an ad for Wisconsin appears.

What are your thoughts? Should the WTF have changed its name, or simply celebrated its unexpected entry into the world of new age jargon?

States Seek to Batter(y) Up

The competition to be the leader in advanced battery technology is heating up. Indiana, with its recently announced Indiana Energy Systems Network, figures to be a player. The focus at this point is relying on the people and technology that have served the state well in the past in automotive and related industries.

Others are counting on splashier efforts. Texas is reportedly seeking $1 billion from the federal government to construct a lithium ion battery plant. In addition, two Indiana neighbors are also putting their hats in the battery ring.

Michigan is focused on automotive batteries, with various tax credits and incentives geared toward building four manufacturing facilities. Kentucky has a more broad based approach. The state, the universities of Kentucky and Louisville, and Argonne National Laboratory are developing a national research and development center in Lexington. In addition, the National Alliance for Advanced Transportation Batteries (affectionately known as NATTBatt), plans a research, battery plant and headquarters campus 45 miles south of Louisville.

The large scale manufacturing plants seem to be ahead of their time. While the Indiana plan may seem a little slower and safer from afar, it might well prove best in the long run. Wins along the way, such as the addition of Altairnano and its battery productuion efforts in Anderson, could lead to a major victory down the road.

2010 Numbers Matter — for the Next 10 Years: Congressional Lines Redrawn

For those politically inclined, the work on the next election often begins before the current one takes place. In other words, while November 2008 was drawing plenty of attention at this time last year, there were at least some looking ahead to 2010. That is especially true when the "next" period ends with the number zero.

The every-10-year-period means a new census, a reapportionment of House seats in Congress and new maps for both legislative and congressional districts. There will be a great deal of time to discuss the politics of drawing the lines. For now, the early projections are in place on which states will be winners and losers in the amount of representation they have in Washington.

The National Conference of State Legislatures has its reapportionment outlook. Remember, they are only estimates at this point, but Indiana’s nine seats appear safe. The state, of course, came up short after the 2000 and 1980 population counts — losing a spot in the House each time. (Indiana once had 13 districts before dropping one each after the 1940 and 1930 censuses).

So who wins and who loses in 2011? The big, big winner, according to NCSL, is Texas with the potential of gaining three seats. The South and West also look to benefit from one additional seat for Arizona, Florida, Georgia, Nevada and Utah.

On the other side, eight states stand to lose one seat each. They are Iowa, Louisiana, Massachusetts, Michigan, New Jersey, New York, Ohio and Pennsylvania.

Side notes: If the estimate holds, California would not increase its congressional power for the first time since becoming a state in 1850. Also, pending legislation would increase the size of the House from 435 to 437 — giving the District of Columbia its first vote and allowing one more state to add a seat. (Utah would gain the additional representative, for now, if the legislation passes this year.)

Coach Duncan, We’re Ready to Play

We shared some of President Obama’s encouraging education words in this space on Wednesday. In follow-up calls with reporters, Education Secretary Arne Duncan says his vision for education reform includes a few selected states in a "race to the top."

The criteria: not settling for the status quo, being willing to adopt existing reforms and offering a few new ideas. Specific proposals will be sought later. Performance pay for teachers, expanded charter schools and longer school days/years will undoubtedly be part of the mix.

Sounds like a program that progressive states — those wanting to make sure their young people and their workplaces of the future are competitive — need to sign up for. Here’s one vote for Indiana to answer the call.

The Detroit Free Press account of Duncan’s message notes that Michigan has been in a "race to the bottom." Indiana has made some progress, but probably been stuck in neutral too long. Again, if the action lives up to the promise, Indiana needs to be in the game.

State Budget Director Talks Taxes, Stimulus on First Friday Call

Indiana State Budget Agency Director Chris Ruhl was kind enough to join our VP of Taxation and Public Finance Bill Waltz on this morning’s monthly First Friday Call.

During the call, Ruhl discussed the state’s current budget and the impending federal stimulus plan. 

"It’s certainly a dramatic proposal just because of the magnitude of it," he said. "It’s likely going to be over $900 billion."

Ruhl explained the importance of using the state’s stimulus funds for one-time expenditures. He says that Indiana should avoid just plugging gaps in state operating budgets because that would cause problems in two years when the money runs out. Ruhl asserted the remaining shortfalls would not be able to be made up in state tax dollars. This is why the state plans to remain focused on infrastructure investments and tax reductions to grow the economy.

He also stated that while the state would receive $4-5 billion, that number could be deceptive as the distribution of that money must be formulaic in many cases, meaning the state wouldn’t have total autonomy or leeway to maneuver the money around.

Ruhl added that Indiana is one of the 10 best financially positioned states, and that states like California and Michigan are really struggling.

"California has an annual deficit that’s three times larger than our state budget," he noted. "Things are much worse in other states, because they spent heavily in the good times and spent all their reserves. Now the only way out is stimulus dollars and tax increases — we saw that in Michigan."  Continue reading

Spinning Windmills and Movie Reels for Michigan?

Give Michigan Gov. Jennifer Granholm credit for truthfulness. Her State of the State speech included this statement: "Any honest assessment of our state’s economy has got to recognize that things are likely to get worse before they get better."

As for some of the specifics in the address, Granholm appears to have adopted the "promise everything and see what sticks" approach. A few examples from this Detroit News summary:

  • Following the lead of several people currently in power in Washington, she is denouncing coal. A potential moratorium on new coal-fired plants and a "45 by 20" plan that calls for a 45% reduction in fossil fuels by 2020 sounds nice, but doesn’t pass the realism test.
  • As for no utility shutoffs, a one-year freeze on car insurance rates and no home foreclosures without 90-day notices. These are great for consumers to hear, but can businesses survive and thrive with those restrictions?
  • In education, "Promise Zones" to help provide college tuition for the needy and "Algebra for All" to better prepare teachers offer hope for improvement.
  • And, if the green energy industry doesn’t help the auto woes, there is state money proposed for an $86 million animation movie studio in Detroit, and a $54 million movie studio in Detroit. What?

Sure, Indiana might compete with our neighbors to the north in some business aspects. But in looking beyond state borders, a stronger Michigan would likely mean a stronger region to the benefit of all.

The economic hole is a deep one. Good luck! You’re going to need it.

Big and Blue: Michigan’s Unemployment Rising, Tax Revenues Shrinking

Michigan is a beautiful state, but right now its economic situation isn’t. The Detroit News offered this article yesterday articulating just how true the phrase "no rest for the weary" is becoming for the Great Lakes State, noting a projected unemployment rate of 11% coupled with declining tax revenues:

Michigan’s jobless rate will top 11 percent in each of the next two years and state tax receipts this year will come in $870 million below estimates made in May due to the languishing economy, according to a revenue forecast released Wednesday.

The House Fiscal Agency report says unemployment in Michigan, which was 8.4 percent in 2008, will rise to 11.3 percent this year and 11.4 percent in 2010. The jobless mark will peak at 11.7 percent in the first quarter of 2010, the report predicts.

"Michigan’s economy and state revenue will be significantly affected by the national recession, the weakened level of motor vehicle sales, the tight credit conditions, and the financial condition of General Motors, Ford, Chrysler and their suppliers," the report says.

Great Lakes Region Not Trending So Great for GOP Houses

The 10 states in the Midwest/Great Lakes region have undergone significant shifts in party control in their State Houses. Following the 2004 election, eight of these 10 states had a Republican Speaker of the House. Today, nine of the 10 states have a Democratic Speaker of the House. The Midwest has been seen as a battleground the last several years for party control and for the Presidential races, but it has also shown dramatic power shifts.

During these last three elections, the Democratic Party has gained seats in ALL 10 states in both the 2006 election and the 2008 election. This has resulted in a net gain of 101 seats for the Democratic Party in this 10-state region since 2004. The most dramatic shift has been in Minnesota where the Democratic Party has gained 20 seats in the last two elections. Illinois and Indiana have changed the least with a shift of four seats each.

This sets up the Democratic Party nicely for the next decade if they are able to maintain their majorities in these nine states and control the reapportionment process in 2011. Control of the legislative agenda for the next decade has already been sealed by the Democratic Party in many of these states before the 2010 election is even over.