Legal Implications of Social Media: What You Need to Know to Protect Yourself

Legal Implications of Social Media
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Social Media Law and Small Businesses: What You Need to Know

Social networking sites have now become a crucial part of our everyday life, and this applies not only to individuals but also to small companies and their employees. Skilful utilization of social media channels can offer small enterprises direct and cost-free publicity for their products and services and enhance brand recognition. However, a lot can go wrong if social media is improperly handled. Hence, small businesses must be aware of social media legislation and its impact on their practices.

What is Social Media Law?

The concept of social media law pertains to the legal matters surrounding user-created content and the online platforms that host such content. According to Corinne Chen, an associate lawyer at Romano Law located in New York, social media law is an evolving field that covers the internet and social media. It encompasses a variety of civil and criminal issues at both state and federal levels. Examples of social media law include rules that safeguard or forbid content posting and those that amplify or constrain employees’ privacy rights.

Social Media Laws to Know

While social media laws are still in flux and subject to change, several established acts shape the legal framework. Chen has compiled a thorough catalogue of the various laws and regulations that often pertain to social media. These include:

  • Anti-SLAPP statutes
  • Computer Fraud and Abuse Act
  • Copyright Act
  • Digital Millennium Copyright Act
  • Communications Decency Act
  • Children’s Online Privacy Protection Act (COPPA)
  • Americans With Disabilities Act
  • Electronic Communications Privacy Act (ECPA)
  • Lanham Act
  • Federal Trade Commission (FTC) Act
  • National Labor Relations Act
  • Stored Communications Act (SCA)

Legal Implications of Social Media for Small Businesses

Small businesses should note how social media laws apply to their operations and employees. “The initial and essential measure is to establish a social media policy before any legal conflict proactively. This can aid in shielding the business from employee or customer risks,” Chen suggested. In addition, there are other key areas that small businesses should focus on:

  • Negative Reviews and Feedback

Corinne Chen advises that consumers often use online platforms to express their satisfaction or dissatisfaction with a business through reviews. Negative reviews may cause harm to a business, but responding to them can be even more detrimental and may even lead to legal action. A business cannot take revenge if an employee or customer posts negative feedback, nor can it delete negative reviews. If an employee posts a positive review, the relationship between the two must be disclosed.

  • Third-Party Content and Intellectual Property

It is essential for small businesses to establish guidelines for addressing third-party content on their social media platforms, particularly with regards to copyright and trademark laws. These policies should also prioritize the protection of data and customer privacy, which includes sensitive financial information. According to Chen, social media content may sometimes infringe on copyright, trademark, or other intellectual property rights.

  • Employee Social Media Use

Chen further states that a small business must make it apparent that anything employees post on social media has the potential to impact the company. Threats of violence, harassment and hate speech may be illegal and violate the company’s policies. Therefore, small businesses must develop a comprehensive social media policy that addresses employee social media use to prevent any negative impact on the company’s reputation.

A social media policy outlines the rules and guidelines for employees’ use of social media accounts associated with the business. The policy should define acceptable and unacceptable conduct, including confidential information, harassment, and discrimination.

Additionally, the policy should clearly state the consequences of violating the guidelines, including disciplinary action, termination of employment, or legal consequences.

Businesses must also educate employees about the potential legal consequences of inappropriate social media use. For example, posting confidential or sensitive information can lead to legal action and damage the company’s reputation.

  • Privacy Concerns

Small businesses should also be aware of the privacy issues surrounding their official and employees’ social media accounts. Employees’ social media accounts can blur the lines between their personal and professional lives, confusing the employees and the company.

Businesses must determine whether an employee’s social media account is associated with the employer. In cases where employees are provided access to work-related devices and social media accounts, businesses must determine whether any disputed social media activity occurred during business hours and whether it was personal or professional.

Alison Pearson, who serves as the Head of Human Resources at Hal Waldman and Associates Company, notes that the issue of employee privacy rights on social media can be complex. She emphasized that federal laws prohibit employers from discriminating against employees based on their social media activities, but employers can dismiss workers for legally valid reasons that have not been disclosed.

Additionally, employers may utilize social media platforms to conduct informal background checks on potential hires. Hence, it is crucial to keep up with the evolving state laws regarding social media and employee rights.


Small businesses can utilize social media as a potent resource to advertise their goods and services and boost brand recognition. However, small businesses must be aware of social media legislation and its impact on their practices.

By implementing a comprehensive social media policy, small businesses can minimize legal risks and ensure that their employees understand the guidelines for social media use. Additionally, businesses should be mindful of privacy concerns surrounding employee social media use and educate themselves on the legal implications of their actions.

In summary, social media can be a valuable asset to small businesses, but it must be used with caution and within legal boundaries to protect both the business and its employees.

Author Bio: Mark Edmonds is a professional writer at Academic Assignments, a company offering assignment writing services. He specializes in providing high-quality law assignment help to students. Through his writing, he aims to help students understand complex legal concepts and excel academically.