What Businesses Should Know About Social Media Compliance

Social media has always been a great marketing avenue for business. More than 5 billion people use social media. That’s half the planet! So it’s no surprise that most marketing teams are chomping at the bit to establish their own brand presence.

But with so many people frequenting their favorite social channels daily, the question of data privacy continues to come up. Currently, 75% of internet users in the US want to see more laws in place that protect their personal data rights.

To answer this call, governments are placing more restrictions on where and how businesses are allowed to collect user data, and social media platforms are no exception.

So what does this mean for your business? Is social media marketing no longer relevant?

Not necessarily. However, there are some important laws and regulations you need to be aware of, as well as certain best practices you should follow to avoid falling into non-compliance territory. 

Let’s see what those are. 

What is social media compliance?

Social media compliance refers to a business’ ability to meet both legal and ethical standards when promoting its brand’s products and services across different social media platforms.

This concept can be broken down into three primary categories:

• Legal requirements: Enforceable data privacy laws that businesses have a legal obligation to follow

• Platform rules: Platform-specific rules associated with content distribution, commercial advertising, and user engagement

• Industry expectations: Regulatory compliance frameworks (optional or legally-binding) and established industry best practices surrounding social media marketing

All in all, compliance in social media marketing covers a lot of areas. Fundamentally, though, this process is all about ensuring businesses are giving users more control over if, how, and when their information is collected and used when they post something online.

Why compliance matters in social media marketing

No doubt, you have certain goals you want to achieve with your marketing efforts. But it’s important not to ignore compliance rules and regulations when leveraging social media.

Below are some of the key reasons why this matters so much:

1. Legal risks and financial penalties

Unconsciously or purposely overlooking legal requirements when managing user data on your social media accounts can lead to heavy penalties. In the U.S., businesses can be charged anywhere between $2,500 and $20,000 per non-compliance incident.

While these are specific penalties issued by government agencies, they don’t account for any personal damages an individual may have suffered and want restitution for.

2. Brand reputation and consumer trust

The reputation your brand has built is a valuable commodity. But if you are not careful, your actions can quickly erode customer trust and damage the credibility you have worked so hard to establish.

Mishandling user data and being dragged into a long-term legal battle can hurt your reputation and impact your current or potential relationships with customers.

3. Platform account suspension or removal

In 2024, Instagram generated over $71 billion in ad revenue. If you factor in an average 2:1 RoAS (Return on Ad Spend), that’s over $140 billion a year businesses generate through just using one social media platform. 

If your business doesn’t closely follow platform guidelines and becomes permanently banned, think of all the potential revenue you're leaving on the table.

6 key areas of social media compliance

While focusing your efforts on staying compliant when using social media for your business, there are an array of areas you’ll want to consider:

1. Data privacy and user consent

All social media users have certain rights when it comes to how their information is stored or collected for commercial purposes.

Many countries or states have their own laws in place for protecting these rights, and it’s important to be aware of them and how they impact your business.

Some of the most common data privacy regulations include:

• GDPR: The General Data Protection Regulation is a law passed by the European Union (EU) and dictates certain data control measures, including personal and commercial rights to data access, modification, and deletion.

• CCPA: The California Consumer Privacy Rights Act provides specific rights to California residents over all aspects of their personal information regarding data consent and usage.

• PIPEDA: The Personal Information Protection and Electronic Documents Act is a Canadian federal privacy law that applies to all private sector organizations that mandate customer data usage and accountability best practices.

  
  

2. Transparency and disclosure

Social media users don’t want to feel like they’re being used as just another business metric. Because of this, it’s important that you’re open and transparent about any activities you’re carrying out. 

This includes disclosing when messaging being presented to users was a paid promotion or sponsored advertisement.

There are a few different ways businesses can achieve this:

• Use clear content labels: Any time you’re creating and publishing content on social media, it’s important to disclose if the messaging comes directly from you or a partner. You should also use appropriate hashtags to identify when the content is commercial in nature, such as #ad, #sponsored, or #[your partner’s brand name].

• Don’t hide collaborations: Although you want to keep your commercial activities fluid and grow your followers, it’s important not to purposely hide certain collaborations. For example, if you post an influencer’s review that your business paid for, you’ll need to disclose that information to users in clear, understandable language.

  
  

3. Contests, giveaways, and promotions

Everyone loves getting free stuff. But even though contests or giveaways on social media can be a great way to introduce your brand to others, that doesn’t mean you won’t need to follow certain guidelines or privacy laws when running them.

Even if you have reviewed and are following regulatory laws when running your online contest, you’ll also want to review the specific platform rules regarding contests or promotions before you push them through.

Below is a list of the top social media platforms and their applicable guidelines surrounding these types of posts:

• Facebook (Meta): Contest and giveaway rules 

• Instagram: Contest and giveaway rules 

• YouTube: Contest and giveaway rules 

• TikTok: Contest and giveaway rules 

• LinkedIn: Contest and giveaway rules 

4. Intellectual property and copyright compliance

Social media platforms are highly visual. As a business, this gives you ample opportunities to incorporate images, videos, music, infographics, and other multimedia elements to keep your messaging engaging.

However, it’s crucial that you remain aware of any Intellectual Property (IP) rights or copyright restrictions associated with the content you are posting. Even though the internet is filled with great content that might complement your messaging, this doesn’t mean you have the right to use it.

So what options do you have?

In almost all cases, the safest way to avoid breaching any IP or copyright laws is to always create your own visual content.

Most of the top social media agencies purchase licenses from image sharing sites or use stock photos that are free to use and don’t require any attribution or royalty fees.

5. Truth in advertising

Your business should always focus on being truthful in your messaging. This applies to both organic posts and any paid advertisements you’re running.

Misleading users with shady, click-bait tactics or unsubstantiated claims is a quick way to get your account banned from social media platforms.

This is especially important when advertising products, services, or sectors, such as finance or healthcare, that often have much stricter regulations on what you can claim to potential customers.

6. Staying up to date with changing regulations

While you may have done preliminary research to help your business stay compliant on social media, it’s important not to get complacent. 

Social media marketing laws and regulations are constantly changing, and it’s important to stay up-to-date and adapt your policies as necessary.

One way to do this is by subscribing to each platform's developer updates or newsletter. This keeps you notified of new changes that impact your business. 

It’s also a good idea to work with legal or compliance efforts in your industry that can outline specific requirements you need to follow.

Best practices for ongoing compliance

1. Establish a social media compliance policy

Don’t leave important compliance standards to chance. Take the time to create a documented social media policy your teams can reference. 

This eliminates the guesswork when knowing what they can and can’t post, and ensures specific platform rules are always being followed.

2. Provide regular training to marketing teams

It’s always a good idea to have regular social media training sessions with both your internal teams and any influencers you work with.

Take this time not to just focus on the type of content you want featured or the best time to publish it, but also go over any new compliance guidelines you need to ensure remain in place.

3. Implement strict content approval workflows

All of your social media content should go through an approval process before it’s allowed to be published. 

By referencing your drafting compliance policies and assigning key stakeholders to review, edit, or delay content publications, you can design a reliable approval workflow that helps your business avoid receiving any non-compliance penalties.

4. Use compliance tracking and auditing tools

One of the best ways to stay on track with your social media activity is to invest in various compliance tracking and auditing tools. 

Platforms like Media.Studio, Ziflow, Pepper Flow, and Performline all have built-in features that help you track your online content and digital assets, while making sure they’re always in alignment with industry compliance standards.

Wrapping up

Complying with social media guidelines and regulations should never be an afterthought for your business.

Data privacy and disclosure are critical elements when engaging with customers online, and it’s important that your business takes its ethical and legal obligations seriously as you market your brand.

By following up-to-date local and federal privacy laws, evaluating each of your social platforms’ posting guidelines, and applying industry best practices, you’ll show your customers you value their privacy rights while developing a reputation they can trust.

Author Bio

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.

Frequently Asked Questions

What are the biggest compliance risks for businesses on social media?

The top risks include mishandling user data, failing to disclose sponsored content, using copyrighted material without permission, and violating platform-specific rules. These missteps can lead to legal penalties, damaged reputation, or even account suspension.

Do small businesses need to worry about social media compliance too?

Yes, compliance isn’t just for big brands. Even small businesses must follow data privacy laws like GDPR or CCPA and be transparent in their promotions and partnerships. Failing to comply can result in fines and loss of customer trust.

How can businesses stay compliant as rules and platforms evolve?

Stay informed by subscribing to platform updates, training your marketing team regularly, implementing a content approval process, and using compliance tools. Having a documented policy and auditing your content routinely also helps avoid costly mistakes.