Advertising on social media – could it be misleading?

October 16th, 2017

Social media gives brokers and small business operators a direct way to interact with potential and existing customers. Advertising on social media looks easy, but with so many channels like Facebook, Instagram and YouTube to choose from, brokers need to be consistent about ensuring the content is accurate and is not misleading to the general public.

So here are some simple compliance points you need to consider before you start advertising on social media!

Don’t make misleading claims

You must ensure you do not make any false or misleading claims. This applies to advertisements or statements using any media – including print, radio, television, websites and social media channels like Facebook, Twitter, LinkedIn or Instagram.

Here are two examples of misleading claims*:

1. XYZ Pty Ltd tweets that they are the first Australian company to offer a 100 per cent environmentally friendly car wash service when they have not done any research to support this. It turns out that GHI Pty Ltd has offered the same service for many years. This tweet is likely to be false, misleading or deceptive.

2. ABC Pty Ltd pays a celebrity to tweet that she loved staying at one of ABC’s resorts. The celebrity has never actually been to this resort. This tweet is likely to be false, misleading or deceptive.

Source: ACCC Website

Minimise your risk!

• Don’t make statements on Facebook or other social media sites that you would not make in any other advertising.

• Monitor your social media pages and remove any posts that could be false, misleading or deceptive.

Responding to negative comments on social media

When responding to a negative comment or any customer concerns on social media, you need to remember that as soon as you reply, it’s on the internet forever! So be professional and maybe say: “DM me your details please and we will contact you”. That way, your customer will feel that you have read the comment and you would like to discuss it privately.

The ACCC’s role in enforcement of social media

The Australian Competition and Consumer Commission (ACCC) do review social media advertising on a daily basis as well as ASIC, so you need to make sure your copy is compliant before you post something. Double check it, and make sure you get someone to proofread it, as the ACCC take misleading or deceptive advertising very seriously.

We hope this article has given you a little more insight into your compliance requirements when using social media platforms. If you require more information, check out our video on the wiki here, or please contact the Compliance Team for further information by clicking on your Help button in Mercury, or by emailing us at compliance@connective.com.au