Social Media and Email Marketing Compliance

Learn how to protect your business, meet legal obligations, and build trust with your audience through clear privacy policies and compliance with evolving regulations. From GDPR requirements on Facebook and LinkedIn ads to crafting compliant email marketing strategies, this guide covers the essentials to keep your campaigns lawful and effective.

Published by Usercentrics

11 mins to read

Sep 26, 2024

Chapter 2

The most common social media privacy issues and how to stay safe online

Social media has redefined how brands connect with consumers. The vast amount of data these platforms collect provides valuable insights that marketers use to refine their targeting, engagement, and overall strategies.

However, as more and more personal information is shared online, privacy concerns are at an all-time high. For businesses, understanding social media privacy enables you to comply with global privacy laws and avoid hefty fines while building trust with your audience.

Knowing the risks of online exposure, when consent is required to access data, and how to protect sensitive data are key to safeguarding both your business and your customers.

Social media platforms collect a wide range of data. Some types, people willingly share, while others are collected automatically through interactions on the platform. These include:

Personal information: This includes basic details like a user’s name, email address, phone number, date of birth, gender, and location. While some of this information is shared directly when users create accounts, other details, like a user’s IP address, can be automatically collected when they interact with the platform.
Behavioral data: Platforms track how users interact with content, including what they like, comment on, share, and how long they stay on particular pages or view specific posts. By tracking these behaviors, platforms can build profiles of their users, helping marketers understand their preferences, habits, and interests.
Device and technical data: Social media platforms track the type of devices users access the platform from, including the operating system, device model, and browser type. They also monitor the frequency of usage, session duration, and error logs to support the smooth operation of the platform.
Location data: Many social platforms ask for access to users’ location data through GPS, IP addresses, or Wi-Fi networks. This information helps platforms offer more localized content, such as nearby events or trending topics.
Third-party data: Social media platforms often integrate with external apps and services and collect additional data from those sources. For instance, when a user logs into a third-party app through their social media account, that app can access a range of data, such as their friends lists or recent activity.

While this data collection helps marketers deliver more personalized and effective campaigns, it also poses significant social media privacy risks if it is not handled responsibly.

What do companies do with personal data?

Companies use the data gathered from social media in a variety of ways. The primary use is personalized marketing. By understanding user behaviors and preferences, marketers can create highly targeted advertisements that resonate with specific audiences. Whether it’s retargeting a user who previously viewed a certain product or suggesting products based on past behavior, social media data makes these tactics possible.

Additionally, customer insights gained through demographic and behavioral data help businesses fine-tune their offerings. Companies use this information to develop more relevant products or services and deliver content that meets their audience’s needs.

Another helpful function is audience segmentation. By grouping people into distinct segments based on shared traits or behaviors, companies can run more effective, tailored campaigns. These segments might include demographic factors such as age, location, or gender, as well as behavioral patterns like engagement level or purchase history.

Social media data also helps businesses identify trends and consumer sentiment. For example, tracking mentions of certain products or topics can help brands quickly jump on emerging trends or address potential issues before they escalate.

While these practices are effective in driving results, they can also present privacy concerns when personal data is mishandled or used without user consent.

Social media privacy is more than just a regulatory requirement — it’s essential for maintaining trust with users and protecting your business from reputational damage. The FTC reports that one out of every four US fraud victims was targeted through social media last year, leading to losses of USD 770 million.

Social media privacy directly impacts consumer trust. Users are more likely to engage with brands that respect their privacy and are transparent about how their data is used. Without this trust, customers may stop interacting, switch to competitors, or even speak out against the brand.

In addition to protecting consumer trust, businesses also face significant financial risks if they fail to maintain privacy standards. Noncompliance with laws like the General Data Protection Regulation (GDPR) or the California Consumer Privacy Act (CCPA), which has been expanded and amended by the California Privacy Rights Act (CPRA), can lead to hefty fines. Additionally, data breaches can incur substantial legal fees, class-action lawsuits, and other regulatory penalties.

Businesses need to understand that their reputation is on the line. A mishandled privacy breach can seriously damage a company’s image, often beyond repair. Negative press and social media backlash can lead to lost customers and damaged relationships with stakeholders, like partners, advertisers, or potential investors.

To address growing privacy concerns, including those related to social media, a number of regulations and policies have been put in place. These laws are designed to give consumers more control over their data and encourage companies to handle personal information responsibly.

Below is an overview of the most prominent and well-known global privacy laws.

The General Data Protection Regulation (GDPR): Enforced in the European Union, the GDPR requires companies to obtain clear and explicit consent before collecting personal data. It also gives users the right to access, correct, and delete their data.
The California Privacy Rights Act (CPRA): The CPRA amends the earlier California Consumer Privacy Act (CCPA), and gives California residents the right to know what personal information is being collected, to easily delete it, and to opt out of it being sold, shared, or used for targeted advertising or profiling. The law applies to businesses that collect data from California residents, including social media platforms.
Children’s Online Privacy Protection Act (COPPA): COPPA protects the privacy of children in the United States under the age of 13. It requires that businesses obtain verifiable parental consent before collecting personal information from children.
Digital Services Act (DSA): In the EU, the DSA requires digital platforms, including social media companies, to be more transparent about their content moderation practices and to make efforts to protect users from illegal or harmful content.
Brazil’s General Data Protection Law (LGPD): The LGPD regulates the collection, use, processing, and storage of personal data in Brazil, including data collected through social media platforms.

Of additional interest is the potential for more specifically targeted legislation, like Australia’s Social Media Minimum Age bill, which passed in November 2024, and bans children under the age of 16 from accessing social platforms.

These relevant regulations are not an exhaustive list, though, and companies are encouraged to do additional research based on their location and that of their target audience, as national laws or frameworks or policies by business platforms like Google may have additional requirements.

There are several significant privacy risks associated with social media, many of which stem from either intentional misuse or unintentional exposure of sensitive data. These issues can have serious consequences for both consumers and businesses.

Malware and viruses

Social media platforms can be used to spread malware and viruses. Cybercriminals pose as legitimate users or companies and send links that, once clicked, download malicious software onto the user’s device. This can lead to stolen personal data, identity theft, financial loss, or damage to a user’s device.

Hacking and account takeovers

Hackers target social media accounts to steal sensitive data or impersonate users. Once a hacker gains access to a user’s account, they can steal sensitive data, impersonate the user, and even send harmful links or messages to the user’s contacts. This type of damage can be difficult to recover from and can severely harm both the reputations of the user and the business.

Data mining for identity theft

Data mining involves extracting and analyzing large sets of personal information to create detailed profiles of individuals. This data can be used for identity theft, with criminals impersonating users to open credit lines or make fraudulent transactions. Because social media platforms collect extensive personal information, they can make it easier for criminals to steal identities and commit fraud.

Data breaches

Data breaches occur when unauthorized parties gain access to user data, often due to weak security measures. These breaches can expose sensitive information such as names, addresses, passwords, and financial details. Once exposed, this data can be used for criminal activities, and the breach can cause a permanent loss of consumer trust, as well as ongoing hardship for victims.

Location settings loopholes

Many social media platforms enable users to share their location. However, even if social media users turn off their location settings, scammers can get a device’s location by other means, such as public Wi-Fi and cellphone towers. Location might not seem like a very valuable piece of data. However, when paired with other personal information, it could help to create an even more accurate fraudulent user profile. This information can also be used to track a person’s whereabouts.

The spread of false information

False claims and misinformation can spread rapidly across social media platforms. This not only misleads users but also raises privacy concerns, especially when fake accounts or bots are used to manipulate public opinion or push fraudulent schemes.

Many platforms share user data with third-party advertisers, marketers, and data brokers. This can result in users’ information being sold or used for purposes they never consented to. When third-party data sharing isn’t transparent, it leads to privacy violations and a loss of consumer confidence.

Over the years, several high-profile social media data privacy issues have highlighted the risks of social media platforms and the sensitive data they collect.

Perhaps the most infamous case is the Cambridge Analytica scandal, which revealed how millions of Facebook users’ personal data was harvested without their consent. The data was then used for, among other things, political influence, including a US federal election, raising serious concerns about privacy, data misuse, and the lack of oversight on social platforms. This breach not only severely damaged Facebook’s reputation but also triggered widespread calls for regulatory changes to how platforms handle personal information. This led to new laws like the Digital Services Act and Digital Markets Act in the EU.

Another ongoing privacy concern revolves around TikTok, particularly regarding its data collection practices and potential ties to the Chinese government. Critics argue that TikTok may be compelled to share user data with the Chinese government, raising questions about the security and privacy of its global user base, especially given that many users are children. These concerns have prompted several countries, including the U.S. and India, to scrutinize the app’s operations more closely, with some even banning it altogether. The Canadian government ordered TikTok’s Canadian operations to be shut down in November 2024.

Controversy over the company’s practices has sparked wider discussions about the need for transparency, stronger data protection laws, and the challenges of regulating apps with international reach.

These examples serve as stark reminders of the risks social media platforms can pose to user privacy and the growing importance of handling data responsibly and transparently.

Protecting social media data is critical for any business that relies on these platforms for marketing, customer engagement, or brand building. Not only does protecting your data help achieve compliance with global privacy laws, but it also helps maintain consumer trust and safeguard your reputation. Below are key steps that companies can take to protect their social media accounts, data, and users.

Social media accounts are often targeted by cybercriminals. If your business uses social media accounts, one of the most effective ways to protect them is by using strong, unique passwords for each social media platform. Avoid reusing passwords across multiple sites to minimize the risk of unauthorized access. Additionally, enable multifactor authentication to add an extra layer of protection.

Implement role-based access control

For larger organizations with multiple employees managing social media accounts, it’s important to implement role-based access control. This means giving employees access only to the tools and data they need to perform their tasks. Limiting access reduces the risk of a security breach and protects sensitive information.

Review third-party permissions

Many social media platforms enable users to integrate third-party apps or services. While these integrations can enhance your marketing efforts, they can also create security risks if the third-party tools have weak data protection practices. Regularly audit the apps and services connected to your social media accounts, and only give data access to trusted and secure services.

Follow data minimization best practices

Data minimization is a privacy principle that calls for only collecting the data necessary for a specific purpose. On social media, this means avoiding the over-collection of personal data and limiting how long you store it. Reduce the risks of data breaches and noncompliance with privacy laws by keeping data retention periods short, securely deleting unnecessary data, and anonymizing data when possible.

Implement regular audits

Conduct regular security audits to protect your company’s social media information. This involves assessing your security protocols, reviewing permissions, and maintaining compliance with evolving privacy regulations. Regular audits help identify vulnerabilities and gaps in your data protection strategy, enabling you to address them proactively before any issues arise.

Establish an incident response plan

Despite taking all the necessary precautions, breaches and other data privacy issues can still occur. Having a well-defined incident response plan in place will help your company quickly address and mitigate the impact of a data breach, should one occur. Many data privacy laws have specific requirements for organizations in the event of a breach or other violation, including notifications of affected users and authorities. So your plan should include steps to notify affected users, cooperate with regulators, and implement corrective actions to prevent future incidents (which can help mitigate penalties).

A Consent Management Platform (CMP) is an essential tool for achieving compliance with privacy laws and managing user consent effectively. With a CMP, you can obtain explicit consent from users before collecting or processing their data, track consent status across different platforms, and handle data subject requests such as data access or deletion. This proactive solution is particularly important for businesses operating on multiple platforms or across multiple jurisdictions with varying privacy regulations.

Verify that your online presence meets privacy standards

Being active on social media brings risks, but your online presence is important to boost brand awareness and connect with their audience. Learn all about social media privacy compliance.

Master social media compliance 101

Companies need to protect their users’ privacy and data on all platforms where they’re active and interact online. This includes both owned platforms, like the company website and/or app, as well as third-party social platforms. The ways companies run marketing operations online involve an ecosystem, and it’s important to center privacy in its end to end.

In addition to our recommendations for mitigating privacy risks with social accounts, companies can obtain valid consent and help protect data privacy on their websites, apps, and other connected platforms with a CMP. Protect your brand and monetization, obtain high consent rates for the data you need while building trust with users, and maintain privacy compliance to avoid penalties. Show your audiences that you respect data privacy end to end in the digital ecosystem.

Curious to learn more about how a CMP can help you?

Discover how implementing a website consent management platform can benefit your marketing strategy and data privacy efforts to the next level.

Learn more about consent management

Frequently asked questions

What is social media privacy?

Social media privacy refers to protecting personal and sensitive information shared by users of social media platforms, which can be accessed by others, including advertisers and potential bad actors.

What are the main social media privacy concerns?

Primary social media privacy concerns include data mining and identity theft, in which personal information is harvested by cybercriminals to exploit users or commit fraud.

Why is privacy important in social media?

Privacy is critical on social media as it helps to protect individuals from identity theft, data misuse, and unwanted surveillance. It also helps them to maintain control over their personal information. Additionally, safeguarding privacy fosters trust and encourages open expression among users, creating a safer online environment for sharing and connecting.

What types of data do social media platforms collect?

Social media platforms collect five primary types of data:

behavioral data (like user interactions and transactions)
engagement data (such as likes, shares, and clicks)
personal data (including name, location, and demographics)
attitudinal data (user sentiments and preferences)
preference data (political affiliations, interests, and favorite activities)

Is there a lack of privacy on social media?

Yes, there is often a significant lack of privacy on social media, primarily due to the extensive collection and sharing of personal data by platforms, which is often done without users’ full awareness or consent. This issue is exacerbated by data breaches and privacy-setting loopholes, which leave users vulnerable to identity theft and unauthorized access to their information.