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Social media platforms are a powerful tool for business owners and this also applies to eCommerce businesses. As an online business, you likely leverage the power of social media to drive sales for your brand. You also likely engage with social media to drive brand awareness among new audiences. There are many different social media sites to use, such as Facebook, Twitter and Instagram. However, when you engage with social media, such as by posting Instagram content, you must ensure that you act within the law. Unfortunately, however, there are many legal pitfalls for online businesses through social media use, such as if you are an Instagram user with an Instagram business profile. This article will explain three legal pitfalls for an online business with an Instagram business account.
Inadvertent Release of Confidential Information
A legal pitfall for an online business with an Instagram account is accidentally releasing confidential information to the public through the social media account. This can be done simply by accident, for example, by attaching the wrong file when posting online. It could also occur deliberately by a staff member in your eCommerce business. Release of confidential information, however, can be unlawful as either:
- a breach of the common law; or
- a contractual breach.
Confidential information is information that is not usually available to the public and is about the affairs of a business. Therefore, it could be, for example:
- a business plan;
- pricing details; or
- information on how your online company conducts day-to-day business.
To avoid this legal pitfall for an online business with an Instagram account, you should minimise who in your eCommerce business can get hold of confidential information. Also, it is essential to have clear policies and guidelines in place on the use of social media. Avoiding this legal pitfall for an online business with an Instagram account can mean you avoid a court injunction or claim for damages.
Use of a Social Media Agency
Some eCommerce brands will carry out their own social media activity on Instagram. Others, however, may ask a social media agency to do this for them to enhance the efficacy of their Instagram marketing strategy. If your online brand uses an agency to post your Instagram posts and Instagram stories, there is a legal pitfall you need to be aware of. A mistake businesses can make is to believe their social media agency understands the law concerning the use of social media. However, if they do not and post on your Instagram in violation of legal rules, your online brand is likely to pay the price for this.
A way to avoid this legal pitfall for an online business with an Instagram business account is to satisfy yourself that the social media brand understands the law regarding the use of social media. However, to be sure that you avoid this legal pitfall, you should have a robust contract in place with them. This should define exactly which of you is responsible for their mistakes on your Instagram business account, both financially and legally. For example, your contract should cover the following:
- who retains the copyright of your Instagram posts; and
- an indemnification clause to protect you from their potential intellectual property wrongdoings.
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Use of Photos Provided by a Third Party
When you, as an eCommerce brand, use your Instagram business account, one everyday activity is to post and upload photos. You may search for these through Google, for example. However, a legal pitfall for an online business with an Instagram business account is to use photos without the correct permission. However, without the correct permissions, you could break copyright laws.
Even if you have an iStock or Shutterstock subscription, you can still fall into these legal pitfalls. For example, when using iStock photos on social media, you need to have permission either:
- from the person who has the copyright for it; or
- through the licence.
You must also ensure the licence permits you if a third party is the purchaser. You may need to purchase your own licence to have the correct permission to post the photo.
This factsheet sets out how your business can become GDPR compliant.
Key Takeaways
If you are an online business using an Instagram business account, you can fall into legal pitfalls. It is essential to be aware of what these could be to avoid them when marketing your online business via your Instagram business account. This article has discussed three potential legal pitfalls for online businesses with an Instagram account. Firstly, it discusses the legal pitfall of accidental or deliberate release of confidential information. This could result in a breach of common law or a contractual breach. The article also explains the potential legal pitfalls of using a social media agency to manage your Instagram business account, deploy Instagram ads and post content when the agency has little knowledge of the law when posting on Instagram. The article also explains that an easy legal pitfall affecting a business using Instagram is not having the correct permission when they use photos. Posting photos on Instagram is an everyday activity, so it is an easy legal pitfall to meet.
If your online business uses an Instagram business account and you need help understanding the associated legal pitfalls with this practice, contact our experienced eCommerce lawyers as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.
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