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Social media has introduced new, exciting ways for businesses to make their mark. Not only can it be an invaluable tool for branding yourself and showcasing your unique personality, but it can also be a great source of web traffic and recurring revenue streams.
However, while social media platforms may seem like they’re designed to let you operate in whichever way your business deems fit, there are actually a variety of legal and ethical considerations that come into play. In fact, if you’re not careful, what was designed to help you grow your brand could cause you significant setbacks and financial penalties.
To avoid this from happening, it’s important to consider the legalities surrounding social media marketing and how you can stay compliant with them.
Following Data Privacy Regulations
All countries have certain data privacy regulations in place when it comes to protecting the public’s best interest. While many regulations are region-specific, there has been a push for more standardization of these privacy laws, especially when applied to social media platforms and the general use of the Internet.
The US and the UK have been leaders in this initiative, releasing regulations like the California Consumer Privacy Act (CCPA), General Data Protection Regulation (GDPR), and Children’s Online Privacy Protection Act (COPPA). The purpose behind many of these regulations is to enforce safe practices, especially for businesses, as they collect and process an individual’s data.
Knowing the rights of customers is a critical component of using social media or any other digital platform intended to help you build the business. One of these key rights is ensuring that all individuals know exactly what type of information is being stored and for what purpose, as well as allowing them to opt out if and whenever they want.
Ensuring Transparency and Disclosure
Establishing trust and credibility with customers is one of the most important things a business can strive to do. This not only applies to how they do business but also to how they present themselves online and through social media.
When it comes to building trust with individuals on social media, it’s important to follow strict ethical standards. Part of this process is to ensure you’re being as transparent as possible when launching your marketing campaigns and communicating how collected data is being used. Your customers have a right to know if they’re being shown sponsored content and whether or not the information they’re receiving is from your brand or one of your partners.
I highly recommend taking a look at the campaigns that the top social media agencies and brands are running. These players are often under the most scrutiny and will go the extra mile to ensure they are in compliance. By reviewing their work, you’ll have a great jump off point for what your brand or campaign may need to do.
It’s also important that any influencers or paid promoters you’re working with disclose that they were asked to complete reviews or other promotions on your behalf. Failure to disclose that forms of compensation have been exchanged can be considered deceptive, and in some countries, customers can take legal action against the brand.
Running Contests or Promotions
A common use of social media by brands is too great product giveaways for new or potential customers. They’re one of the most popular ways to grow a following, especially on Tik Tok and Instagram. However, while there is nothing wrong with running certain giveaways, there are certain requirements in place regarding how they’re executed.
One requirement for running social media promotions is clearly outlining any rules or requirements for individuals to enter. This includes clearly stating eligibility requirements, detailing the prizes involved, and being fully transparent regarding winner selection processes.
There are certain local or national laws that may also apply to running sweepstakes or similar promotional activities on social media. You’ll want to make sure you research and understand any limitations you may have in this area and ensure you’re not inadvertently running a contest that could be in violation of these regulations.
Respecting Intellectual Property Rights
Social media platforms are highly visual. Often, brands will post pictures, videos, or even music to help improve engagement rates with posts or updates and make their profiles stand out a bit more from other businesses. However, because of the wide accessibility of social media sites, there can be certain risks involved with this if you aren’t careful.
Other companies, photographers, and designers are all protected by certain intellectual property rights when they produce original text, images, videos, or music. Some even go so far as to trademark their own work, especially when it comes to their logos or any other identity marks. If a business uses any of these assets knowingly or unknowingly on their own websites or social media platforms, it can be considered a breach of copyright and could lead to legal challenges or being banned from the social media platform.
To prevent this, it’s important to carefully vet all materials you consider posting on your social media accounts. Make sure your business has full legal rights to post any digital assets and that you are not in breach of any intellectual property laws.
Adhering to Advertising Regulations
Most social media platforms provide businesses with a variety of different ways to better reach their audience. Many times, this includes getting involved with sponsored posts or pay-per-click advertising. However, as with most digital marketplaces, there are certain guidelines you’ll need to follow if you’re considering creating promotional ads for your products or services.
The first thing to evaluate is the copy of your advertisements. It’s critical that you’re not making unsubstantiated claims or misleading information when running your ads. This not only helps to establish more trust in your brand, but also is a strict requirement of nearly all advertising platforms.
Another thing you’ll need to consider is if the platform you’re using has strict policies regarding the format of the advertisements. Many platforms may require you to clearly differentiate between paid advertisements and regular branded content. This is to help make it clear to users that they are clicking on a sponsored post or ad rather than simply organic placements.
Regularly Monitoring for Changes
It’s important for businesses to keep in mind that regulations are always changing when it comes to the commercial use of social media platforms. While there may not be specific regulations in place right now that directly impact your business, this doesn’t mean that newer privacy laws aren’t around the corner.
To ensure you’re always on the right side of compliance laws, it’s important to regularly review the terms of service outlined by different social media platforms. Legally, these platforms need to make sure businesses are informed of any new changes that happen with their terms of service. However, it can be easy for these updates to slip through the cracks, so it’s important to stay vigilant.
Keep Your Social Media Activity Compliant
The key to staying compliant is being proactive. I find most social media teams are very proactive about things like when’s the best time to post on Twitter/X or what type of video effect is in for instagram, but they can be willfully ignorant about new terms, conditions and regulations.
By expanding this proactive attitude when it comes to compliance adherence and ensuring your marketing teams are kept up-to-date on any relevant changes, you’ll ensure that your business can continue to leverage the power of social media while avoiding a costly legal situation that can hurt the reputation of your brand.
I know it’s hard and I know it’s not sexy, but if all the work we do in social media is to lift the brand, compliance is our responsibility to protect the brand.
You may also like: Harnessing Social Media for Financial Services PR
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About the Author
Keith Kakadia, founder and CEO of Sociallyin, has been at the forefront of transforming the social media marketing landscape for over 13 years. From humble beginnings at Mississippi State University to building a world-class agency that serves clients like Samsung, Carnival Cruise Line, and Nikon. Keith has earned a reputation as a trailblazer in leveraging social media to drive brand success.
