Social media is a powerful tool for businesses to connect with their audience, but it also comes with significant legal risks. Marketing agencies managing social media campaigns for clients must be aware of their responsibilities to ensure compliance with advertising, consumer, privacy, and intellectual property laws.

This guide outlines a legal checklist for running client campaigns, strategies for managing liability, and how agencies can protect themselves with strong client contracts.

Legal Checklist for Running Client Campaigns

Before launching any social media campaign, marketing agencies should ensure compliance with the following legal requirements:

1. Truth in Advertising & Consumer Protection Laws

• Ensure all advertisements, claims, and promotions comply with the Australian Consumer Law (ACL).

• Avoid misleading or deceptive conduct, particularly with testimonials, influencer partnerships, and comparative advertising.

• Review the ACCC guidelines on influencer marketing and online reviews.

2. Influencer Marketing Compliance

Require influencers to disclose sponsorships or partnerships with #Ad, #Sponsored, or similar labels in accordance with ACCC recommendations.

• Monitor influencer content for misleading claims or endorsements.

• Maintain agreements with influencers detailing compliance responsibilities.

3. Intellectual Property Protection

• Obtain necessary licenses for any images, music, or videos used in social media campaigns.

• Ensure permission is obtained before republishing user-generated content (UGC).

• Avoid using copyrighted material, trademarks, or branding without authorization.

4. Data Privacy and Security

• Comply with the Privacy Act 1988 (Cth) and Australian Privacy Principles (APPs) when collecting or processing consumer data.

• Ensure transparency in data collection, including the use of tracking pixels, cookies, and analytics tools.

• Avoid collecting, storing, or processing sensitive personal data without explicit consent.

5. User-Generated Content & Moderation Policies

• Have a clear content moderation policy to manage potentially defamatory, false, or harmful comments on client pages.

• Set up a process for reviewing and removing harmful or legally problematic content.

• Educate clients on their obligations in moderating social media interactions.

Managing Liability When Handling Client Social Media Accounts

Marketing agencies can be held accountable for legal violations that occur during the execution of client campaigns. To mitigate risks:

1. Clearly Define Roles & Responsibilities

• Ensure all social media accounts, ad accounts, and content approvals are clearly assigned between the agency and client.

• Outline responsibilities for content creation, posting, responding to comments, and compliance checks.

2. Establish Approval Processes

• Require pre-approval of all advertising copy, influencer partnerships, and major campaign strategies from clients.

• Implement a sign-off system for legally sensitive content such as promotions, giveaways, and customer testimonials.

3. Keep Records & Documentation

• Maintain records of approvals, influencer agreements, and content licenses.

• Archive posts and interactions to provide a defense against potential legal claims.

• Keep documentation of consumer complaints and actions taken in response.

4. Stay Updated on Social Media Platform Policies

• Regularly review Facebook, Instagram, LinkedIn, YouTube, and TikTok advertising policies.

• Ensure compliance with platform rules to prevent account suspensions or legal disputes.

How Agencies Can Protect Themselves with Strong Client Contracts

A well-drafted social media services contract can help marketing agencies manage liability and protect their business. Key provisions to include:

1. Scope of Work

• Clearly outline services provided, including social media management, content creation, influencer marketing, and ad campaign management.

• Define what is outside the agency’s scope (e.g., legal compliance reviews, customer service interactions).

2. Compliance & Indemnity Clauses

• State that the client is responsible for legal compliance, while the agency will follow best practices.

• Include an indemnity clause to protect the agency from claims arising due to the client’s non-compliance.

3. Intellectual Property Rights

• Specify ownership of created content, ad copy, and visual assets.

• Determine whether the agency retains any licensing rights over produced materials.

4. Approval & Sign-Off Requirements

• Require client approval for campaigns and key content before publication.

• Outline the client's responsibility for signing off on any legal or regulatory compliance matters.

5. Limitation of Liability

• Limit the agency’s liability in cases of unforeseen legal disputes, platform bans, or reputational damage.

• Specify that the agency is not liable for platform policy changes or third-party actions beyond its control.

6. Dispute Resolution & Termination Clauses

• Establish a clear dispute resolution process to handle disagreements.

• Define conditions for contract termination, including penalties for early termination.

Marketing agencies must stay ahead of evolving social media regulations to avoid legal pitfalls. Ensuring compliance, managing liabilities, and strengthening contracts can protect your agency and your clients from potential disputes.

At Connected Legal + Commercial, we provide expert legal support for marketing professionals, ensuring your social media campaigns meet regulatory standards while maximising your business opportunities.

Contact us today for a free consultation on your social media legal strategy!

DISCLAIMER

The content given herein is provided for information purposes only. It is general in nature and does not constitute legal advice and should not be used as such. Formal legal advice should be sought in particular matters.

Connected Legal + Commercial does not accept any liability to any person for the information (or use of such information) which is provided herein or incorporated into it by reference.

The information is provided in good faith on the basis that all persons accessing the content undertake responsibility for assessing its relevance and accuracy and will seek appropriate formal legal advice accordingly.