Facebook Inc. (FB): Posts are Free Speech, but Libelous?

Facebook Inc. (NASDAQ:FB) has been involved in its share of issues involving privacy and security of personal information around the world, but it is now the platform that shows a couple of First Amendment issues – one which was decided in and administrative hearing, while the other is due to go to trial over a libel charge. These cases lead to the question of how far does free speech go when users post to an online social-network site like Facebook Inc. (NASDAQ:FB)?

By the way, Facebook Inc. (NASDAQ:FB) stock was up more than 3 percent Tuesday, settling at $30.73 per share.

At the federal level, posts on Facebook Inc. (NASDAQ:FB) cannot get you fired from your job. Four New York employees were fired for posting negative comments about their bosses on the social-network site, but the National Labor Relations Board ruled they were unjustly fired  and that their posts constituted free speech. In the ruling, the NLRB wrote that as as long as the posts weren’t threatening or harassing anyone, employees should be allowed to post whatever they want.

On a more local level, a case involving a Facebook Inc. (NASDAQ:FB) during the 2010 election cycle is going to trial soon in North Carolina, as a campaign strategist is being sued for libel after making a post directed toward a sitting elected judge who was campaigning for the opponent of the candidate the strategist represented.

What happened?

The initial case, which involving two Facebook Inc. (NASDAQ:FB) posts was tossed out in 2011, but an appellate court reinstated the case about the second post, and that is expected to see a courtroom Wednesday.

This case involves the strategist charging the judge of a violation of the state’s judicial conduct code for her comments in regards to her support of a state senate candidate. The judge maintained she was in her rights to campaign for a candidate of another office  if she herself was actively campaigning for re-election, which she was. The strategist recognized errors in the first post, but doubled down in the second, suggesting that there may be a basis for discipline against the judge.

What do you think? Are posts on Facebook Inc. (NASDAQ:FB) protected speech under the First Amendment, or are there constraints? How do you see cases like these affecting user interaction on the social site? We’d love your thoughts on this in the comments section below.

DISCLOSURE: I own no positions in any stock mentioned.

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