The massive reach of social media platforms makes it the perfect place for businesses. The ability to instantly communicate brand messages to millions of users and receive instantaneous feedback makes it an extremely powerful tool for businesses.

Although the benefits of social media are numerous, it comes with potential dangers too.

This article points out what businesses should consider before posting on social media.

1. Intellectual Property

Problem: Although the use of social media can aid in promoting a brand and disseminating copyrighted material, it can also facilitate third-party abuse and unauthorized use of trade marks and copyright.

If you fail to do thorough research before using your intellectual property, you could end up violating a third party’s intellectual property rights.

Solution: Ensure that your trade marks are registered. The registration certificate will be sufficient to prove ownership of the trade marks.

Regularly monitor social media to ensure that your intellectual property is not being misused by third parties. This will enable you to take prompt action against the infringer.

Do thorough research to ensure that you are not violating another party’s intellectual property rights. It would be advisable to check the South African Trade Marks Registry to determine whether another company is already using an identical or confusingly similar mark.

2. Compliance with POPIA

Problem: If you collect personal information such as identity numbers and contact details from customers on social media, POPIA is applicable. This means the you will be required to comply with POPIA to avoid facing imprisonment and hefty fines.

The same applies if you are using an agency to run the business’ social media accounts. They will be collecting and processing customer information on your behalf, or at least, they would have access to view and capture customer information. The agency is required to comply with POPIA on your behalf.

Solution: Have a set system in place to ensure that the business is complying with POPIA. If you are unsure about POPIA compliance, take a look at our POPI Act Compliance Checklist.

3. Adhering to Advertising Laws and Regulations

Problem: Social media is largely used to market and advertise goods and services. This means that anything posted should comply with Advertising Laws and Regulations such as the Advertising Regulatory Board’s Social Media Code. The Social Media Code provides a clear set of rules around social media marketing.

Solution: Obtain legal advice to ensure that you are not violating any advertising laws and regulations.

4. Refrain from making false or misleading statements

Problem: While you want to make your product or service sound as attractive as possible, you need to ensure that your advertising remains truthful and that it does not mislead consumers. Your business can be held liable for false or misleading statements about its products or services.

Solution: When posting on social media be sure to fact check any statements being made about the product or service. For example, you claim that you are the oldest cleaning service company in South Africa but there are a number of other cleaning service companies that predate yours. This statement would be false and misleading and could land your business in trouble.

5. Defamation

Problem: Beware of making false claims about your competitor’s products or services. False claims could harm the reputation of your competitor and may result in a defamation claim against your business.

Care should be taken when comparing your product or services to that of a competitor. Always ensure that what you are saying about a competitor’s product is true and accurate.

This applies to comments too. If someone makes a false comment on your post that damages someone’s reputation, it is your responsibility to deal with it.

Solution: It is advisable to have social media policies in place which clearly state the ground rules when it comes to social media marketing and what can or cannot be done.

Additionally, approval processes could help minimize errors and continuous oversight can allow for prompt corrective action.

6. Compliance with Terms and Conditions of Social Media Outlets

Problem: Social media websites generally have terms and conditions in place that govern the use of the sites. Some sites’ terms and conditions contain provisions specifically regulating advertising and other commercial practices conducted on the site, including consumer sweepstakes, contests, and giveaways.

Solution: Appoint a team to consider the various terms and conditions of social media outlets and have them work with a lawyer to ensure that the company complies with the terms and conditions.

Takeaway

Brand and reputation are important to a business and can become its main asset. Social media has the potential to make or ruin a business’ reputation and brand in a day. Many of the legal issues addressed in this article can be difficult to navigate and good legal advice will empower you, to successfully navigate these issues.

If you have concerns about your business and social media get into contact with Xellerate.
Click here to reach out to our team for a free, no obligations chat.

Or contact us on: info@xelleratelegalsolutions.co.za or 072 438 8275.

The post Rules for using social media responsibly – legal risks and how to mitigate them appeared first on Xellerate.

In this fast-paced world most things are available at the click of a button – including online legal advice. The benefits of using an online lawyer may not be immediately apparent, but they are numerous.

Convenient

One of the most obvious benefits of online legal advice is how convenient the process is. You can access legal services from the comfort of your home or office by simply browsing their website and communicating with them quickly and conveniently. You are able to schedule a virtual meeting via Zoom at your convenience allowing you to meet with your lawyer while you are on the go.

Cost-effective

There is no doubt that lawyers from traditional law firms can have virtual consultations or communicate via text. What you may not know is that you will be charged for every minute the lawyer spends on the Zoom consultation or reading and responding to your text. Online legal service providers operate using transparent, fixed-fee pricing instead of surprising clients with excessive bills at the end of the month.

Experienced lawyers

Most online legal service providers are made up of experienced lawyers who have worked on complex matters. These lawyers understand the importance of finding creative solutions to legal problems and staying up-to-date with constantly evolving law. You are provided with immediate access to highly experienced and reputable lawyers spread across different locations.

Every client is valued

Whether you are a start-up or established business, you are valued. Most online legal service providers ensure that every client is a priority. Whether the legal services you require costs R1000 or R10 000, all clients will receive excellent quality and service.

How can Xellerate help?

By booking a free legal consultation via Zoom with Xellerate, you will enjoy the benefits described above as well as free lawyer advice on a situation you or your business may be facing.

The post Online legal advice is changing the game appeared first on Xellerate.

Choosing the Correct Business Structure

One of the first steps when starting your business is choosing a business structure to suit the needs of your business. Structures vary from sole proprietorship, partnership, private company, public company, personal liability company, non-profit company and state-owned company, each with their own advantages and disadvantages.  The business structure can be critical to the success of your business as the structure influences everything from day-to-day operations, taxes, the paperwork you need to file and your personal liability.

Protecting your Intellectual Property

Intellectual Property (“IP”) is integral and unique to your business and it can become your most valuable asset. It is therefore important to ensure that your IP is protected.  Intellectual Property includes, but is not limited to, trademarks (your logo, business name, product look and feel) and copyright (your photographs, music, book and software).

Protecting your Intellectual Property can be complex to understand which is why it is advisable to have an experienced and qualified Intellectual Property lawyer assist you with the process, including the registration of your trademark and/or drafting a Copyright Assignment Agreement.

Having  Comprehensive, Written Contracts in Place

A handshake, phone call or Whatsapp conversation is not sufficient to secure and guarantee your agreements with other individuals and/or businesses, in particular you rights and obligations in terms of the agreements. It is advisable to have your agreements in writing and signed by all parties to the agreement. Contracts are necessary to ensure your business is protected and in doing so, contribute to the success of your business.

A proper written contract protects the fundamental aspects of your business and it can provide security and peace of mind to all parties involved in the business transaction.  You may require written contracts with co-founders, employees, suppliers, clients, service providers or affiliates.

Fulfilling Legal Obligations

When starting your business, it is important to ensure you comply with all necessary legal and commercial obligations. These obligations include, without limitation, tax obligations, VAT, PAYE, Unemployment Insurance Fund, insurance, medical aid schemes. It is important to be aware of the legal and commercial obligations from the outset in order to avoid liability.

Your Staff

If you have employees or contractors, it is important to comply with employment laws. You will require contracts as well as company policies. The contracts will deal with aspects such as duties and responsibilities, leave, termination of employment, length of appointment, restraint of trade and confidentiality. Without clear written contracts regarding the employee’s or independent contractor’s rights and responsibilities, the relationships may easily break down and lead to expensive disputes that could have easily been avoided.

Key Takeaways

Legal compliance plays a crucial role in the success of a business. The legal landscape can, however, be difficult and confusing to understand. It is best to approach a professional to assist you with the legal components of your business.

Our lawyers are experts in commercial and business/corporate law with a thorough understanding of the legislation pertaining to companies. If you would like a consultation to discuss your options going forward, you can schedule a free, no obligations consultation.

The post Legal aspects entrepreneurs forget that can be dangerous to the success of their business appeared first on Xellerate.