Social media is a tool which is used by many businesses of all different sizes and across various sectors. It is important to be aware however of the risks that social media can pose. This is the first article in a three part series.
Defamation
One of the main risks that social media can pose is in respect of defamation claims. In simple terms, defamation claims arise when an untrue statement has been published by a third party, that is defamatory in nature and has caused or is likely to cause serious harm.
Common situations can include:-
- A malicious and untrue review from a customer
- An untrue statement posted about a competitor by one of your employees
Breach of confidence
Employees and contractors have access to significant amounts of commercially sensitive information such as customer details, financial data and information about other employees. One potential issue that can arise is litigation over breach of confidence. A breach of confidence claim is based on the principle that when someone receives information in confidence it should remain private and not be used or shared with third parties.
Common situations can include:-
- Leaks to the media
- People sharing confidential information on social media platforms
- Current or former employees posting sensitive commercial information about the business or customers online
Comparative advertising
Comparative advertising is a marketing tactic which helps to drive brand awareness by businesses comparing their product or service to a competitor. Comparative advertising can be lawful provided that certain criteria are met. This criteria includes ensuring that the advertisement is not misleading and making sure any goods and services are being compared on a like for like basis.
As of 25 May 2024, the new Digital Markets, Competition and Consumers Act empowers the Competition and Markets Authority to be able to take action to protect the interests of consumers without the need for court orders. We will be following the impact of this legislation with interest.
Summary
In this article, we have briefly covered some of the key areas of potential liability arising from social media. Social media remains an extremely important instrument for businesses however we would recommend putting in place a clear social media policy for employees and contractors (including any social media influencers) to protect your position. If an adverse situation does arise, it is critical to seek legal advice promptly to minimise the potential fallout.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.