Marketing Compliance: Social Media Laws You Need To Know [Guest Post]
Social media is both a blessing and a curse for a variety of reasons. One major pro is that social media is a rapid way for brands to interact with millions of target customers. However, one wrong business move on social media can spread like wildfire, becoming impossible to retract or correct. Given the fast-paced, unforgiving nature of the internet, it is important that your business understands the legal impact of its social media presence. In this post, we will discuss three major areas where social media mistakes could result in major legal consequences.
Intellectual Property Considerations
You already know that the internet is not a “real” location. But, this does not shield it from federal laws (and many state laws) based on where internet users are located. In short, this means that intellectual property laws do not go away merely because you operate online. For instance, using another person’s intellectual property (e.g., brand name, logo, or photograph) without permission is just as illegal on the internet as it would be “in real life.”
While many of these transgressions are often overlooked on the internet, there is nothing to stop someone from hitting you with a claim if you have misused their intellectual property; not to mention, they may stand to recover cash from you if they suffer a loss caused by your misconduct. The safest way to avoid liability in this area is to make sure you obtain permission from others before using any intellectual property. If you happen to use intellectual property without proper permission inadvertently, make sure that you are responsive and timely to the owner’s request to remove or adjust the intellectual property to their standards.
Federal Trade Commission (“FTC”) Disclosures
Another area of growing concern is the Federal Trade Commission’s focus on internet advertising. When it comes to selling products on the internet, particularly through endorsements on social media, disclosure is key. It is the advertiser’s responsibility to make clear that a product is being sold, and that there is no misleading information within the advertisement. For example, if a brand engages a social media influencer by sending a free product in exchange for a review, then all posts by the influencer about the product must disclose the paid relationship between the brand and influencer.
Frequently, the FTC is satisfied with disclosures such as hashtags (i.e., #sponsored), or similar written or verbal disclaimers that are clear and unavoidable within the actual post content. The FTC has created Endorsement Guides that outline additional details to keep your business compliant with federal regulations in this space.
[Reference: Federal Trade Commission, Endorsement Guides ]
Platform Updates
Popular social media platforms like Facebook, Twitter, Instagram and YouTube have various policies to impact the way your business uses their websites. It is crucial that businesses stay up-to-date with the current versions of these platform policies. Typically, you will be most directly impacted by the Terms of Use, Privacy Policy, Community Guidelines and other similar documents. The platforms reserve the right to update and edit these documents at their discretion, and in most instances are not obligated to send you an email alert of the changes.
It is your responsibility to review these documents frequently, and accordingly adjust any of your brand’s strategy for using these platforms. Failure to comply with platform rules may result in account restrictions or termination, and in more serious cases, expose your business to liability for damages to others caused by activity on these social media websites.
Reduce Your Risk
The world of internet and social media is constantly changing. It is so important to have an understanding of what’s happening to minimize your legal risk and exposure. If you have questions about any aspect of advertising, marketing or social media law, reach out to us!
Thallen Brassel is an attorney of counsel in the Nashville office of Nelson Mullins Riley & Scarborough LLP. She concentrates her practice in advertising, communications, and media law issues, including advertising copy review, claims and substantiation, social media, contests/sweepstakes, and regulatory compliance issues. Ms. Brassel is also the Founder & CEO of Lady Lunch Club, Inc., a company that curates educational and inspirational content for the personal development of professional women.
