Marketing budgets, and the strategies they fund, often draw a great deal of attention when businesses look beyond the basics of daily operations. But, a violation of the law that prompts consequences would nullify all that time and money spent. By making every effort to adhere to the regulations protecting consumers, you eliminate the risk of incurring crippling fines.
This article provides a rundown of five critical marketing-related laws of which businesses need to be aware.
False Advertising
Simply put, all advertising must be truthful. Imagery and messaging cannot mislead buyers. For example, if you own a Honda dealership, you cannot use photos or video of a 2022 Civic in an ad if you’re only selling the 2021 model.
You must also be honest about what buyers can expect from what you’re selling, with all claims substantiated. If a supplement temporarily alleviates bloating, the copy shouldn’t include the word “cure.” If your company doesn’t fabricate copper components, your ad cannot claim you work with “all metals.” Discrepancies can also occur with terms that aren’t interchangeable, like waterproof and water resistant.
False advertising laws allow state or local officials to take legal action and seek consumer restitution if an ad is deceptive.
Copyright Infringement
Many businesses don’t think twice about using another content creator’s graphics, photographs, video, or music. Common practice includes incorporating images from a Google search into social media posts or blogs—most of which are copyrighted and require consent.
How to mitigate copyright infringement risks:
- Use original content as often as possible.
- Purchase stock photos or use websites like Pixabay or Pexels for free stock photos and graphics.
- Thoroughly read content licensing details.
- Give proper credit to the content’s photographer, videographer, musician or graphic designer.
- Never use a photo or graphic with a trademark or logo.
Children’s Privacy
It’s important to be aware of the age of target customers. The Children’s Online Privacy Protection Act requires online platforms to obtain parental permission prior to collecting the personal information, such as email or IP addresses, geolocation information or other identifiers, of children under 13. Federal regulators are very serious about child privacy rights, issuing hefty fines (up to $40,000 per child affected).
SMS Marketing
The Telephone Consumer Protection Act (TCPA) went into effect in 1991 and has since been modified to include SMS/text messaging.
Under the TCPA, businesses are not allowed to send texts to wireless numbers without prior written consent. Even if someone has previously shared their phone number, your business cannot text them unless they have knowingly opted into the program or have given permission, in writing (on paper or digitally), to be sent messages.
To ensure your business complies with the TCPA, consider these methods to get your target audience to subscribe to SMS marketing:
- In-store signage: Customers at the checkout already have existing interest in your business and will likely be receptive to a text club offering exclusive offers and incentives.
- Email marketing: All eblasts should include details on how to join the text club.
- Contests: Ask social media followers to sign up for your text club to enter a competition or contest.
Live Video Streaming
Video streaming has become increasingly popular on social media, allowing viewers to participate in Q&A sessions and watch events live. However, without proper planning, your business could face a host of legal issues. For example, live videos often unintentionally use copyrighted music in the background or feature customers/employees without their consent.
Before you hit the record button, make sure you aren’t loitering/trespassing, confidential or proprietary information isn’t visible, and everyone being filmed has signed a release form.
Stay Informed
Business owners are often unfamiliar with the ins and outs of marketing and communication law. Those who don’t think they’ll get in trouble, and ignore the law, may find themselves spending years trying to resolve issues they could have easily avoided.
To prevent a future fraught with legal risks, stay informed about marketing regulations or hire a team of trained experts, like Baer Performance Marketing.
If legal trouble is already at your doorstep, seek the guidance of a lawyer specializing in marketing, privacy, and anti-spam laws immediately.
