Social media reigns supreme for connecting with customers, building brand awareness, and driving sales. But navigating the world of likes, shares, and hashtags can be tricky, especially when it comes to legal considerations. This article empowers online entrepreneurs and small businesses by outlining the key “do’s” and “don’ts” to ensure your social media presence is legally sound and strategically strong.
The Legal Side of Social Media
Before diving headfirst into the “do’s” and “don’ts”, entrepreneurs and small businesses need to be aware of these key Canadian laws:
- The Competition Act: This law prohibits misleading or deceptive marketing practices. Ensure your social media marketing is truthful and don’t exaggerate the benefits of your products or services.
- The Personal Information Protection and Electronic Documents Act (PIPEDA): This law governs the collection, use, and disclosure of personal information. Be mindful of PIPEDA if you’re collecting customer data through social media.
- The Canadian Anti-Spam Legislation (CASL): This law outlines how businesses obtain consent for electronic marketing messages. Be mindful of CASL when running contests or promotions.
Do’s: Mastering Social Media Legally
Now, let’s explore the essential “do’s” for businesses to navigate social media in a legally compliant manner:
- Know the Platform Rules: Each social media platform has its own Terms of Service (TOS) which outlines acceptable use and content restrictions. Read and understand the TOS for each platform you use. Violating them can result in account suspension, termination, or other consequences. For example, did you know that Instagram requires written permission before users can promote online gambling, online real money games of skill or online lotteries?
- Transparency is Key: Consumers appreciate authenticity. If you partner with influencers or promote sponsored content, clearly disclose these collaborations. Follow the Influencer Disclosure Guidelines to ensure proper disclosure of endorsements and testimonials.
- Respect Intellectual Property: Copyright and trademark laws exist to protect creators. Avoid using copyrighted images, music, or videos without proper permission. The Canadian Intellectual Property Office (CIPO) website offers valuable resources on copyright and trademarks.
Don’ts: Avoiding Social Media Mishaps
- Don’t Engage in False Advertising: Social media marketing thrives on honesty. Avoid making reckless or unsubstantiated claims about your products or services. Misleading or deceptive tactics to pressure sales will damage your reputation and could violate the Competition Act. Penalties for infringing the Competition Act range from a fine up to $200,000 or even imprisonment.
- Don’t Promote Products and Services That You Haven’t Vetted: See the case study below where two popular celebrities got wrapped up in a multi-million dollar lawsuit for unknowingly promoting a financial fraud. Moreover, advertisers should ensure that the any studies being used to substantiate their advertising claims are actually scientifically sound.
- Don’t Engage in Disparaging Behaviour: Social media is a valuable communication tool, but it’s not your personal space. Keep your interactions professional and avoid defamatory or discriminatory language at all costs. See the case study below where a social media influencer was ordered to pay over $100,000 in damages for making defamatory statements online.
- Don’t Neglect Data Privacy: Respect other people’s privacy when collecting or using personal data on social media. If you’re running contests or promotions that require collecting user information, be transparent about how you’ll use that data and obtain explicit consent. Familiarize yourself with PIPEDA regulations to ensure compliance.
- Don’t Share Confidential Information: Social media is a public platform. Avoid sharing confidential business information or customer data. This includes sensitive financial information, pricing strategies, or unpublished product details.
Case Studies
#1: Involvement in a scam. This case highlights the fact that while it’s easier than ever before for people to cash in on their influence, it’s also easy for them to be dragged into situations that can expose them to serious legal ramifications. Investors in a cryptocurrency scam called Centra Tech sued two famous celebrities, DJ Khaled and Floyd Mayweather, for using their influence to promote the scam which resulted in them losing most if not all of their money. The plaintiff investors claim that the scam wouldn’t have been so successful if the two celebrities hadn’t promoted it. Moral of the story? Don’t promote products and services if you haven’t conducted thorough due diligence. If in doubt, don’t promote.
#2: Watch your online words. This case highlights the fact that the statements that you make online can cost you thousands of dollars if you aren’t careful. A social media influencer made false statements about a doctor and his wife online. The Alberta court ruled that the influencer’s statements were harmful because they were spread online to her 16,000 followers. The influencer was ordered to pay the couple damages totalling $120,000 plus the couple’s legal costs. This was partly due to the malicious nature of the online attacks and the fact that the plaintiff was a doctor and his reputation is important for him to be able to earn a living.
By following these “do’s” and “don’ts,” online entrepreneurs and businesses can maintain legal compliance while leveraging social media’s immense potential to connect with customers, build brand awareness, and achieve their marketing goals.
