The goal of social media marketing is to convert customers from a single transaction user of a small business into the foundation of a loyal customer base. Business owners can accomplish this goal by using social media to interact more frequently with their customers. Use of social media can allow a business to deliver more customer-centered processes, provide readily available information, and allow customers to interact with the business’ other clients. When business owners actively use social media, they create flexible options for attracting and keeping customers. However, any business which embraces social media must develop a plan that integrates sound legal principals into its social media marketing plan.
By clicking “I AGREE” when you sign up for an account with a social media site, your business is entering into a binding contract with the site’s owner. This contract is typically found on the social media site’s “Terms of Use” page. Sites like LinkedIn, Twitter, and Facebook all publish their terms of use. You should read and understand the Terms of Use, and review them with your marketing personnel. Also, you should develop a written plan for using social media in your business that complies with the site’s Terms of Use. If your business fails to comply with a site’s Terms of Use, it could be barred from the site, or even become embroiled in a legal dispute.
Complying with a social media site’s Terms of Use requires careful planning. All business owners should develop standards for their social media plan to ensure that they:
1. Comply with the laws involving privacy, copyrights, trademarks, and patents.
2. Comply with the Federal Trade Commissions rules regarding “truth in advertising.”
3. Act in a professional manner.
Keep in mind that social media use by a business should never involve the posting of inappropriate, inaccurate, or objectionable content. Avoid using social media to harass someone, including competitors, and never use libelous, obscene, or discriminatory language. Never re-publish or re-brand content from another source, and never misuse trademarks.
You should review your business owner’s general liability insurance policy before you begin using social media. Does your policy include advertising coverage for social media use? Review the policy’s exclusions, and consult with your attorney and your insurance broker to make sure that your business and its use of social media is covered. In some cases, if your policy doesn’t cover social media use, you may be able to purchase a special umbrella policy, or an errors and omissions policy, that will protect your business if a claim is made against it.
Last, your business’ social media plan should include a policy that addresses employee business use of social media. The policy should become part of your employee handbook, and every employee should receive and sign for a copy of the policy.
Russel G. Winick & Associates, P.C. can help you to develop legal standards for your business’ social media plan. We're only a phone call away. 630-548-5800.