Social Media Platforms for Business: Legal and Marketing Compliance 

Summary

• Businesses must comply with the ASA’s advertising rules when using social media, ensuring posts are clearly identifiable as adverts.
• Influencer partnerships require transparent disclosure of paid relationships to avoid misleading consumers under UK consumer protection law.
• Breaching social media advertising rules can result in reputational damage, regulatory action, and potential legal liability.
• This article is a plain-English guide to social media compliance for UK businesses, covering advertising standards and influencer marketing obligations.
• It has been produced by LegalVision, a commercial law firm that specialises in advising clients on commercial contracts and regulatory compliance.

Tips for Businesses

Label paid posts and gifted content clearly using terms like “Ad” or “Sponsored.” Review influencer contracts to include disclosure obligations. Audit your social media regularly to ensure posts meet ASA guidelines. Train marketing teams on compliance requirements to reduce regulatory risk.

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On this page

• Why Is Compliance Important?
• What Responsibilities Can Arise?
• Using Social Media Platforms as a Business
• Taking Legal Advice on Your Business Duties 
• Key Takeaways
• Frequently Asked Questions

Running a social media platform or using one to promote your business creates real legal obligations you cannot ignore. The rules cover how you handle personal data, what content you allow, and how you market to users. This article provides a high-level and simplified introduction to key legal issues for social media platforms and business users in the UK. It focuses on privacy, protecting children, online safety duties and key marketing compliance obligations.

Why Is Compliance Important?

Social media compliance means following the laws that apply when users: 

• share content; 
• interact; or 
• collect and use personal information on a social media service. 

If you run social platforms, you may have a wide range of obligations, such as duties arising under online safety and data protection laws. 

If you use social media for business marketing or branding, you will also be subject to various rules, including: 

• advertising; 
• consumer protection; and 
• privacy laws.

What Responsibilities Can Arise?

If your platform lets users post, message, or share content, then you need to identify and manage the risks these features may create.

Online Safety Duties

The Online Safety Act 2023 imposes duties on in-scope service providers. If your service falls within scope, common duties include identifying risks of illegal and harmful content, and you must put proportionate systems and processes in place to mitigate those risks.

It is important to set up: 

• content moderation; 
• reporting tools; and 
• clear terms of service that you enforce. 

It is also vital to carry out risk assessments and regularly review them. The specific legal requirements depend on your service’s size and features, and Ofcom checks compliance and can issue penalties for breaches.

Data Protection Duties 

The UK GDPR and the Data Protection Act 2018 require you to handle personal data in accordance with the set principles. 

Personal data includes: 

• names; 
• photos; 
• messages; 
• device IDs; and 
• usage data. 

You need a legal reason to process data, and you must: 

• only collect what you need; 
• keep it secure; and 
• not keep it longer than necessary. 

Child Specific Rules 

If children are likely to access your service, then you must meet additional standards, as children are afforded significant protection. The Children’s Code requires you to take the best interests of the child into account when designing and operating your online service. You should: 

• apply high privacy settings by default; 
• limit profiling and behavioural tracking; and 
• switch off geolocation by default unless you can demonstrate a compelling reason to activate it.

Privacy information must be clear, use age-appropriate language and offer children accessible tools to manage their data and raise concerns. 

You must also conduct a data protection impact assessment that specifically assesses risks to children where your service is likely to be accessed by them and comply with the Code’s standards. This includes requirements on: 

• default settings; 
• data minimisation; 
• profiling; 
• nudge techniques; and 
• parental controls.

Advertising Considerations

If you advertise on your platform, you must ensure your systems comply with applicable advertising laws. You should also consider any specific statutory advertising restrictions and best practices that apply online and impact your operations. 

International Considerations 

If you operate internationally or you make your service available to users in the European Union, you may also need to comply with additional EU law obligations, including the Digital Services Act. These obligations can apply based on where your users are located. If you fall within the scope of these rules, then you may need to seek advice from local lawyers in the EU to properly understand your duties. 

Using Social Media Platforms as a Business

Using social media for marketing, brand promotion, or community engagement carries legal risks, even if you do not run the platform you use.

Your business should make sure you have clear written terms and privacy information for any pages, groups, or communities you manage. Also, remember to understand and follow the platform’s rules and policies.

If you allow user comments or user-generated social media content on your pages, remember to monitor and manage that content to mitigate risks such as: 

• defamation; 
• harassment; 
• copyright infringement; and 
• data protection breaches.

Your business should provide your employees with clear guidance on using social media for work by establishing a written social media policy.

Taking Legal Advice on Your Business Duties 

Your compliance duties depend on how your platform or business operates and your social media activities. Various factors determine which rules apply and your risk profile, such as: 

• your audience; 
• data use; and 
• business model. 

Several areas of law may apply when operating or using social media platforms. You should seek legal advice on your specific duties. A regulatory lawyer can help you assess risk, review key documentation, conduct required assessments, and align your business processes with legal requirements.

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Key Takeaways

If you run a social media platform, you need to manage a range of legal issues and risks. This can include online safety laws, data protection rules and the need to apply higher protective standards if children might use your service. If you use social media for business, you must follow a range of advertising, consumer, and privacy laws and have clear internal policies to reduce risk.

By understanding your legal duties and implementing the right safeguards, you will be in a better place to reduce possible regulatory risks and protect your reputation.

LegalVision provides ongoing legal support for businesses through our fixed-fee legal membership. Our experienced contract lawyers help businesses manage contracts, employment law, disputes, intellectual property, and more, with unlimited access to specialist lawyers for a fixed monthly fee. To learn more about LegalVision’s legal membership, call 0808 196 8584 or visit our membership page.

Frequently Asked Questions