Social media can be a great tool for your business, but it can also spell disaster – both legally and for your reputation. Here are five things to watch in your company’s social media.
1. Follow the platform rules
Every platform has rules about what you can and can’t do. When using a platform to promote your business (or any time, actually) make sure you know what the rules are and follow them. This is especially important when you are marketing a product or placing ads. Some of the platforms are cracking down on illegal claims (i.e., making drug claims for products), so be aware. Some platforms also have requirements to disclose certain facts or limitations on the types of marketing promotions you can offer.
The terms and conditions can change, so when you get that notice that “our terms and conditions have been updated,” make sure you take the time to see what’s changed and make any adjustments necessary to comply with the new terms.
Failing to follow the platform rules can get you suspended or kicked off the platform.
2. Obtain appropriate rights.
If you post pictures or content you “snag” from somewhere else, make sure you have the rights to use it.
For written words and text, the copyright belongs to the person who wrote it. That obviously includes someone’s website content, but it also includes posts, comments, reviews, articles, book content, and any other written words. Sometimes sharing is allowed by default (such as sharing someone else’s post on Facebook), but often it is not – especially when sharing outside the same platform. When in doubt, get permission first.
For pictures, the copyright normally belongs to the person who TOOK the picture (not the person IN the picture). Although often the person in the picture has already obtained the right to use the picture how they want (and to let others use it), that’s not always the case. Professional photographers often keep the rights to the pictures they take. Check to see who owns a picture or image before using it, unless you are certain you have a clear right to use it.
For likenesses, including a picture of a person or their name, publicity rights may be required. For example, you can’t just snag a picture of Gordon Ramsey and then use it and his name to promote your new cookbook or video on cake-making.
Failing to get appropriate rights can get you in trouble with the platform, or – even worse – open you up to a lawsuit for copyright infringement.
3. Treat your company social media like marketing
When you are posting from your company (or about your products) you have to treat it like marketing … and that means following the regulations that cover marketing. Fundamentally that means being truthful and not false, deceptive or misleading.
In reality, there are some pretty specific regulations addressing marketing. For example, you must disclose if you have a connection to the product (if it is not obvious). So, if you post on X about how great your product is, you need to be clear that it is YOUR product, not something you aren’t connected to. Any claims you make about your product must be truthful, and if it is a measurable statement (“lasts for 25 showers”) it must be factual. And, of course, you can’t make drug claims for your cosmetic products (that could be a disaster on several fronts!)
Failure to keep your marketing compliant can result in fines from the FTC (and being kicked off your platform).
4. Monitor what your influencers or content creators say
When you have a connection to someone who is posting content and or information about your company or products, you have a responsibility for what they say.
For example, if you provide a product to a blogger or influencer in exchange for a review or endorsement, you have a responsibility for what they say. If they say that it cures cancer (or just that it treats acne or makes skin redness go away), you’re responsible for those claims. Since those are drug claims, they can come back on you, your product, and your company.
That also holds true for any information that is posted in a place where you have some authority or ability to moderate what is being said.
Failure to monitor what’s said about your product can result in warnings from the FDA or (worst case) fines from the FTC.
5. Follow the law for giveaways and promotions
A promotion that involves a giveaway (such as a raffle or free drawing) can have legal ramifications. Sweepstakes, lotteries, raffles, and giveaways are governed by both federal and state law. As a general rule, any giveaway raffle cannot require any sort of “consideration” (such as cash payment, purchasing a product, or even giving a good review). Always make sure that you have all the rules of the promotion clearly spelled out.
Failure to follow the laws for giveaways and promotions can result in state-level penalties, including fines (depending on the laws of your state and/or the state(s) where your participants are located).
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