Social media compliance 101: Ensuring your online presence meets privacy standards

In a world where nearly everything is available at our fingertips online, many businesses, no matter their sector, are rushing to secure their social media presence. This enables them to boost their brand presence and get their products and services seen by larger and better-targeted audiences.

However, being present on social media is not without its risks, especially as data privacy laws continue to be passed, and social media compliance is as crucial as for other websites and apps to avoid potential regulatory trouble.

Here’s what you need to know to comply with relevant laws and best practices when employing social media for your company’s digital marketing activities.

What is social media compliance?

At its core, social media compliance means following global data privacy laws in addition to the terms of use and guidelines of various social media platforms. This involves ensuring that social media activities align with laws and regulations related to data privacy, intellectual property rights, advertising, content moderation, and disclosure requirements.

Here are the several key aspects of social media compliance to keep in mind.

Data privacy and security

Protecting personal information shared on social media is crucial for privacy compliance. Companies must ensure that they handle user data responsibly and securely, adhering to laws such as the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in California. These regulations require businesses to obtain consent before collecting personal data and to inform users about how their information will be used.

Companies do need to be well versed in the laws relevant to them, as there are often stipulations for what is considered publicly available information, which doesn’t have the same privacy protections. This can in some cases include social media content posted to social platforms, if no privacy settings have been activated, for example.

Advertising and marketing rules

When it comes to advertising and marketing on social media, honesty is key. Companies must ensure that their promotional messages are truthful and not misleading.

Marketers also need to be careful about incentives offered in exchange for personal data, like a discount for signing up for a newsletter, or exclusive access in exchange for agreeing to tracking. The incentive must be proportionate to the request, as anything that looks like a bribe in exchange for personal data is frowned upon by data protection authorities, and illegal under some laws.

Additionally, companies need to clearly disclose any partnerships or sponsorships to comply with guidelines set by regulatory bodies like the US Federal Trade Commission (FTC). This transparency helps maintain trust with consumers. It’s comparable to declaring cookies and other tracking technologies in use on a website in the company’s privacy policy.

Content guidelines

Compliance also involves adhering to content guidelines that protect intellectual property rights and prevent defamation. Organizations must ensure that all posts and shared content respect copyright laws and do not harm the reputation of others. Following the rules set by social media platforms is essential to avoid penalties, account suspension, and damage to brand reputation.

Industry-specific rules

Different industries have specific regulations that must be followed. For instance, healthcare organizations must comply with the Health Insurance Portability and Accountability Act (HIPAA) in the United States, which governs the privacy and security of health information. Similarly, financial services must adhere to rules established by the Securities and Exchange Commission (SEC) to ensure fair practices. Understanding these industry-specific requirements is vital for compliance.

These may not seem relevant to social media use on the surface. That is until one considers the proliferation and gamification of mobile apps, of which there are many for health and wellness, as well as financial management. Plus, the legal requirements vary by country, so complexity is vastly increased the more global a company’s business is.

Benefits of social media compliance

Maintaining compliance across social media offers several important benefits for organizations, particularly in regulated industries. Here are some of the key advantages.

1. Legal and regulatory compliance

By adhering to social media compliance practices, organizations can do a lot of the work to ensure they also follow relevant laws. Doing so helps mitigate the risk of fines, penalties, legal disputes, and reputational damage that can arise from noncompliance.

2. Higher levels of data protection and privacy

Implementing social media compliance measures helps organizations protect potentially sensitive data shared on these platforms. This includes using security protocols, data encryption, access controls, data minimization, and the appropriate type of consent mechanisms to safeguard customer information. These practices reduce the risk of data breaches and unauthorized access, thereby preventing reputational damage and legal and financial consequences.

3. Better brand reputation

Social media compliance enables companies to proactively manage their brand reputation. By monitoring social media activities, they can detect and address potential issues such as negative sentiment, customer complaints, or harmful content before they become viral content. This enables timely intervention and helps maintain a positive brand image and customer trust.

4. Increased customer engagement and trust

Social media compliance fosters a climate of trust and transparency with customers. By respecting privacy rights, protecting data, and adhering to advertising and marketing requirements, brands can build stronger relationships with their existing audiences and develop new ones. This increases customer loyalty, improves engagement, and attracts new customers who value compliance and responsible social media use.

Overall, social media compliance not only helps companies avoid legal and financial repercussions but also helps improve brand credibility and customer trust, which in turn enables better marketing operations to grow the customer base and revenue.

What social media compliance laws and regulations do you need to know about?

Before companies start posting on or collecting personal data via social media platforms, there are some general social media compliance laws and regulations that they should know. Here are some key laws to know so you can ensure you’re compliant with social media regulations.

The General Data Protection Regulation (GDPR)

The GDPR is the EU’s data protection law that governs how businesses collect, store, and use personal data and cookies. It requires companies to obtain explicit consent from individuals before processing their data and mandates strict data protection measures to safeguard privacy.

The UK also now has its own version of the GDPR in the UK-GDPR, so businesses must adhere to similar requirements.

The California Consumer Privacy Act (CCPA)

A state-level data privacy law intended to protect privacy rights for residents of California. It gives consumers the right to know what personal data is being collected about them, data selling practices. It also grants them the ability to access, delete, and opt in or opt out of having their personal information sold or used for various other purposes.

CAN-SPAM Act

This US law regulates commercial email communications, including those shared on social media platforms. It requires businesses to avoid misleading subject lines, include a physical address, and provide a clear way to opt out of future messages.

Children’s Online Privacy Protection Act (COPPA)

This US law protects the privacy of children under 13 years of age by requiring parental consent for the collection or use of any personal information of young users. Most of the state-level data privacy laws in the US also defer to COPPA regarding access to and handling of children’s personal data.

Federal Trade Commission (FTC) Guidelines

The FTC enforces rules against deceptive advertising and unfair business practices. Businesses must ensure that their social media advertising is truthful, not misleading, and verifiable.

Advertising Standards Authority (ASA) Codes

In the United Kingdom, the ASA sets advertising standards for social media content to ensure that advertising is legal, decent, honest, and truthful. These standards cover areas like misleading advertising and social responsibility.

Health Insurance Portability and Accountability Act (HIPAA)

This US law protects sensitive patient health information from being disclosed without the patient’s consent or knowledge. It applies to healthcare providers and their use of social media.

Financial Industry Regulatory Authority (FINRA)

FINRA regulates social media use by financial firms, requiring disclosures and cautionary statements to prevent misleading claims. It also mandates the archiving of social media communications for compliance.

Family Educational Rights and Privacy Act (FERPA)

This U.S. law protects the privacy of student education records and applies to educational institutions, including their social media practices.

Common social media compliance risks and how to mitigate them

Social media compliance policies and standards help protect personal data, sensitive information, and other information that can reveal a great deal about individuals when aggregated. Although regulations differ by industry, there are several common social media compliance risks that all businesses active on social media should be aware of.

Data privacy concerns

Given the number of global privacy regulations and the increasing consumer awareness of access to their personal data and demand for online privacy, it’s no surprise that companies active on social media risk running into data privacy concerns. Organizations may risk violation of privacy regulations like the GDPR and CCPA if they mishandle user data or share sensitive information without proper consent. Even if they comply with requirements, they still need to be aware of audience expectations, which may be even more stringent.

To prevent this, companies should adopt data protection best practices, including encryption and strict access controls, and ensure they comply with all applicable data privacy laws. They also need to be very careful to use data, send communications, and perform other activities within the parameters of prospects’ and customers’ expressed preferences.

Compliance with ad regulations

Marketing departments must also follow advertising regulations when using social media to promote their business or offering. Noncompliance with advertising regulations can result in legal issues and damage to a brand’s reputation. This includes failing to disclose sponsored content or using misleading advertising practices.

To avoid these pitfalls, businesses should adhere to established advertising guidelines, ensure transparency in their marketing efforts, and clearly label any sponsored content to maintain trust with their audience. Additionally, they should focus on affiliate marketing compliance to ensure that all affiliate relationships and promotions meet legal and ethical standards.

Intellectual property violations

Marketers must be careful to respect intellectual property rights when posting content online because the unauthorized use of copyrighted material or trademarks on social media can lead to legal disputes and financial penalties. It can be tempting to hop on a trend bandwagon and use popular content, but companies must be very careful about using others’ intellectual property.

Companies should take proactive steps to secure necessary permissions or licenses for any content they use and respect the intellectual property rights of others. This not only helps avoid legal issues but also fosters a culture of respect for creative work.

Employee conduct on social media

There can be many benefits when employees use social media on behalf of their employer. But there are also increased risks.

Employees can accidentally damage a company’s reputation by posting inappropriate or confidential information on their social media accounts.

To prevent this, companies should create clear social media policies that explain what is acceptable and provide training on responsible use. There should also be a limited number of approved people who post to the companies’ social profiles. Additionally, it may be valuable and protective for other employees to make clear on their profiles when they are not posting as company representatives.

How to create a social media compliance policy in a privacy-first era?

In our privacy-focused world, crafting a social media compliance policy is essential for navigating both legal requirements and consumer expectations. It must encompass both corporate activities and expectations for staff. Follow the steps below to develop a social media compliance policy that keeps you on the right side of the law, protects and enhances your brand, and builds trust with your audience.

Understand regulatory requirements

Given the increasing consumer expectation for online privacy, developing a social media compliance policy that prioritizes privacy is essential. To begin, it’s crucial to understand the legal and regulatory requirements that apply to your company based on where you do business. The regulations you need to adhere to depend on both your company’s location and your audience’s locations, as well as your industry.

Familiarize yourself with key regulations such as the GDPR and CCPA, as well as any industry-specific laws.

Develop a clear and detailed social media compliance policy

Given consumer preference, a privacy-first marketing strategy is essential for meeting regulatory requirements and addressing consumer concerns about data security. Such a plan focuses on respecting consumer privacy and being transparent about how data is collected, used, and stored.

When developing your social media compliance policy, set clear guidelines for managing company accounts. This should include guidelines on who has authorized access, appropriate behavior, your brand’s tone of voice, and how employees and marketers can comply with privacy regulations. Include best practices in addition to clear examples of what not to do, such as sharing confidential company information or engaging in personal disputes on official accounts.

In addition, develop a privacy policy that explains how consumer data is collected, used, and stored. This policy should be transparent and easily accessible to consumers, enhancing trust and compliance. Consider including a section on user rights, such as the right to access, correct, or delete their personal data, which can further strengthen consumer confidence in your brand.

In addition to these general guidelines, consider the specific needs of your industry.

Implement compliance measures and social media compliance monitoring tools

To achieve and maintain compliance, there are certain measures you can implement as a company.

For example, restrict access to company social media accounts to authorized and trained personnel to limit the risk of misuse. In addition, regularly monitor social media interactions to quickly identify and address any non-compliant or otherwise problematic activities.

Using monitoring tools can help track trends and assess social sentiment. Additionally, maintaining a record of all social media communications creates a valuable paper trail for compliance audits and resolving disputes.

Furthermore, consider conducting regular audits of your social media practices to identify areas for improvement and ensure ongoing compliance with your policies. It may also be valuable to determine changes in engagement or where shifts in strategy may be a good idea.

Educate and train employees

Conduct regular social media compliance training that includes data privacy laws and social media etiquette for all your employees, and include it in the onboarding process. It’s a valuable ongoing exercise even for staff who aren’t authorized to post on company accounts.

Consider providing a library of pre-approved content templates to help ensure employees have access to brand-appropriate, compliant materials, reducing the risk of non-compliant posts.

Lastly, promote open discussions about compliance issues, so employees feel safe reporting problems without fear of retaliation. Keep training materials current with regulatory changes and best practices.

Depending on your industry of operation, you may need to tailor your training accordingly.

Understanding social media ad compliance

Social media advertising is now a key part of modern marketing, helping businesses reach large, targeted audiences. However, as the digital world changes, so do the rules governing online ads. This makes social media ad compliance a critical issue for businesses of all sizes, as they must navigate a complex set of rules and guidelines.

Social media ad compliance involves following requirements set by platforms, regulators, and industry standards. These rules are designed to protect consumers, ensure transparency, and maintain the trustworthiness of online advertising. Important aspects include clearly disclosing sponsored content, following the specific guidelines of each platform, and complying with data privacy laws. Marketers also need to be aware of rules that apply to their specific industry, such as those for financial services or healthcare.

Compliance in social media advertising covers several key areas:

1. Disclosure of sponsored content: Marketers must clearly label any sponsored posts or paid partnerships, usually by using platform tools or hashtags like #ad or #sponsored. This transparency helps users tell the difference between organic and paid content.
2. Platform-specific guidelines: Each social media platform has its own set of guidelines that advertisers must follow, which can include rules about ad format, content restrictions, and targeting options.
3. Data privacy compliance: Advertisers need to comply with data privacy laws such as the GDPR and the CPRA. This includes getting proper consent for data collection, providing clear privacy policies, and giving users control over their personal information.
4. Industry-specific regulations: Certain industries face additional regulations. For example, financial services must comply with FINRA, while healthcare advertisers must follow rules like those in HIPAA.

Failing to comply with these regulations can lead to serious consequences, such as account suspensions, financial penalties, and damage to a brand’s reputation.

Below is a printable social media compliance checklist which you can keep as a handy summary.

Social media compliance checklist

Social media compliance policy examples

An example of a detailed social media compliance policy is the one created by Coca-Cola. Their policy is comprehensive and addresses various aspects of social media use by employees and representatives of the company.

The policy is designed to guide the behavior of employees, agency associates, and company spokespeople on social media platforms. It aims to protect the company’s reputation and ensure that employees represent the company positively online.

Key elements of Coca-Cola’s social media compliance policy include:

• Purpose and scope: The policy aims to guide employees in their online interactions, emphasizing the importance of maintaining the company’s reputation.
• Guidelines for engagement: Employees are encouraged to participate in social media, but must exercise sound judgment and common sense. They should differentiate between speaking “on behalf of the company” and “about” the company.
• How to respond to negative posts: Employees are instructed to direct negative comments to authorized spokespeople rather than responding directly, which helps manage potential fallout.
• Accountability and transparency: The policy highlights the importance of accountability in online interactions and the need for transparency in communications.
• Disciplinary measures: It outlines potential disciplinary actions for violations of the policy, reinforcing the seriousness of adhering to these guidelines.

This policy is a great example of how large organizations can structure their social media compliance to protect their brand while encouraging employee engagement.

Social media compliance software

Monitoring your company’s social media accounts can be overwhelming. That’s why social media compliance software and tools exist to help organizations ensure their social media activities adhere to industry regulations, company policies, and legal requirements.

A social media compliance solution is particularly important for businesses in regulated industries such as finance, healthcare, and pharmaceuticals, where compliance with specific laws is mandatory.

Social media compliance software offers essential features to help organizations meet regulatory standards and manage their online presence effectively. These include the following.

Monitoring and detection

Such a tool should automatically monitor social media channels to detect potential compliance violations. They can identify misrepresentations or non-compliant content in both paid and organic posts, ensuring that all social media activities align with regulatory standards.

Content archiving

Compliance software often includes features for capturing and archiving social media content. This is crucial for maintaining records that can be used in audits, investigations, or legal proceedings. For example, Smarsh provides capabilities to capture and archive content from platforms like LinkedIn, Twitter/X, and Facebook, helping organizations stay compliant with regulations.

Risk management

The software helps mitigate risks by identifying and addressing security threats, such as phishing, account takeovers, and brand impersonation. It provides tools to monitor for suspicious activities and take down malicious content or fake accounts.

Automated workflows

Many compliance solutions offer automated workflows to streamline the compliance process. This includes approval processes for content before it is published and tracking compliance status across various social media accounts.

Regulatory compliance

The software helps ensure that social media activities comply with industry-specific regulations. This is particularly important for sectors like finance and healthcare, where noncompliance can result in significant fines and legal issues.

Reporting and alerts

Compliance tools provide detailed reports and alerts on potential violations, allowing organizations to take immediate action. They also offer features for documenting and archiving compliance activities, which can be crucial for audits.

By leveraging social media compliance software, organizations can effectively manage their digital presence and marketing activities, protect their brand reputation, and avoid regulatory penalties.

Stay compliant on social media

Social media offers great opportunities for businesses to grow and connect with their audience. However, it’s essential to follow the rules to avoid legal issues, stay in your audience’s good graces, and protect your brand.

By staying on top of data privacy laws, advertising rules, and content guidelines, as well as setting clear policies and keeping staff trained and up to date, companies can safely manage their social media presence. Following these compliance rules not only helps avoid problems but also builds trust with your audience and keeps your brand in good standing.