SAIF Golden Charter

Claims and social media

Whether it’s use of Twitter, posting on Facebook, using LinkedIn, or blogging; social media offers opportunities for presenting a positive business image.

However, legal liabilities can arise if social media is used incorrectly. It is important to know how to prevent these liabilities from occurring, which will in turn protect a business’ reputation and financial position.

Remarks made on social media by an employee may, sometimes unintentionally, be defamatory. Online defamation occurs when untruthful remarks that cause reputational harm to another party are posted online as posting online is also deemed to be ‘published’. Recently, the columnist Katie Hopkins was successfully sued after making defamatory comments on Twitter. She now faces legal bills in excess of £100,000. Defamatory comments clearly can damage businesses’ reputations as well.

Care should also be taken to avoid breaching intellectual property protection. Copyright protects output published on social media like online brochures and photographs.

Passing off is where one business might present themselves in a misleading way, causing confusion among customers using social media to choose where to spend money. Businesses must ensure they do not infringe these laws as damages often run into the thousands as do the requisite accompanying legal fees.

What can businesses do to prevent social media becoming a legal issue? Primarily, a social media policy that educates employees and outlines the accepted use of social media offers best protection of the reputation of the business.

Such a policy should include a plan to deal with reputational fallout. If reputational damage or financial damage is anticipated through the incorrect use of social media, businesses should look to take legal action against the perpetrators.

Please visit the SAIF members’ area for a social media policy template.