By Courtney Jared Bannan, Esq.
This content is for informational and educational purposes only. This is not legal or professional advice. Please seek the guidance of an attorney if you need assistance with your specific project.
For brands operating in regulated industries, the allure of social media comes with a myriad of potential hazards. From costly data breaches to the dissemination of unapproved claims, the landscape of social media poses significant risks for companies in sectors such as healthcare, finance, and consumer goods.
However, with careful adherence to social media compliance guidelines established by industry regulatory bodies, brands can harness the power of social media while mitigating legal risks and safeguarding their reputation.
Here are some key regulatory bodies that govern high-risk industries and their respective roles:
Federal Trade Commission (FTC)
Regulated segments: All US industries
The FTC is a US government agency tasked with protecting consumers and competition by preventing deceptive and unfair business practices.
On social media, the FTC enforces Truth in Advertising guidelines to prevent deceptive advertising and unapproved claims from proliferating. This is particularly relevant for brands partnering with influencers, as influencers may unknowingly violate FTC guidelines by failing to disclose sponsored content adequately.
US Food and Drug Administration (FDA)
Regulated segments: Healthcare, pharmaceuticals, food and beverages
The FDA oversees the safety and effectiveness of food, drugs, medical devices, cosmetics, and other products within its jurisdiction.
For brands in healthcare and pharmaceutical industries, compliance with FDA regulations is essential when promoting products or making health-related claims on social media. This includes ensuring that promotional materials are truthful, accurate, and not misleading.
Health Insurance Portability and Accountability Act (HIPAA)
Regulated segments: Healthcare
HIPAA sets standards for the protection of sensitive patient health information, known as protected health information (PHI).
Healthcare organizations and professionals must adhere to HIPAA regulations when sharing patient information or discussing medical treatments on social media platforms to ensure patient privacy and confidentiality.
General Data Protection Regulation (GDPR)
Regulated segments: All industries (with a focus on data protection)
The GDPR is a comprehensive data protection law that applies to businesses operating within the European Union (EU) or handling the personal data of EU residents.
Companies collecting and processing personal data through social media marketing activities must comply with GDPR requirements, including obtaining consent from individuals for data processing and ensuring the security and confidentiality of personal data.
Financial Industry Regulatory Authority (FINRA)
Regulated segments: Financial services, securities industry
FINRA is a self-regulatory organization responsible for regulating brokerage firms and exchange markets in the United States.
Financial institutions and professionals must adhere to FINRA regulations when using social media for marketing and communication purposes, including record-keeping requirements and adherence to suitability and advertising rules.
For brands in regulated industries, social media compliance is paramount to avoid legal violations and maintain trust with consumers. By familiarizing themselves with the guidelines established by industry regulatory bodies and implementing robust compliance measures, brands can navigate the complexities of social media marketing while minimizing risks and maximizing the benefits of digital engagement.
Courtney Jared Bannan is the CEO and Founder of The Entrepreneur’s Law Group, a boutique law firm tailored to entrepreneurs, start-ups, and large enterprises with expanding verticals. Ms. Bannan is admitted to practice law in Florida, New York and Texas and admitted in Arizona as Certified In-House Counsel. She is also barred in the United States District Courts for the Northern Middle and Southern Districts of Florida and the 11th Circuit Court of Appeals. Courtney has over twenty years’ experience in experience in Multifamily Commercial Real Estate, Commercial Real Estate Transactions, Residential Real Estate, Corporate Law, International Law, Intellectual Property, Mergers and Acquisitions, Securities, Crowdfunding, Media and Entertainment law, Business Litigation, Franchising and Licensing Law, Technology Law, Advertising and Social Media Law, and Data and Privacy Law.
Ms. Bannan began her career as a litigator and was the Chief Legal Officer of several large corporations, including a FinTech, where she gained experience in multiple areas of law.
Prior to her career as an attorney, Ms. Bannan was an established writer and editor for several publications.
Ms. Bannan’s book, “Ready, Set, Launch” is a comprehensive playbook for businesses and entrepreneurs and can be purchased at Barnes & Nobel, Amazon or at www.courtneyjaredbannan.com.
The Entrepreneur’s Law Group has years of experience in handling complex business litigation and transactional legal matters specific to entrepreneurs and business owners. If you are starting or growing your business and need compliance guidance, please schedule an appointment today at www.courtneyjaredbannan.com for a consultation.
