Social Media Compliance: Everything You Need to Know

Social media compliance isn’t just a rulebook — it's a shield that protects your brand from costly missteps. Neglecting it can lead to more than just public embarrassment — it can cost millions in penalties and irreparable damage to your brand’s reputation.

Take the Morgan Stanley WhatsApp case: casual employee chats on unapproved channels resulted in $200 million in penalties. Or consider Meta, fined €1.2 billion for mishandling user information — an incident that shook global enterprises navigating cross-border data regulations.

These examples underscore a critical truth — non-compliance isn’t an option. For large organizations operating in regulated industries, compliance isn't just a safety net but a strategic imperative.

This guide will help you with the right social media compliance strategy to mitigate risks, safeguard your reputation and confidently operate across markets.

What is social media compliance?

Social media compliance is the practice of ensuring your brand's use of social platforms aligns with relevant laws, industry regulations and ethical standards. It safeguards critical areas such as:

• Data governance
• Marketing communications
• Intellectual property
• Regulatory disclosures

But here’s the tricky part — compliance isn’t universal. The rules change depending on your company size, industry, location and audience. That’s why staying informed and adaptable is key to engaging effectively on social media while keeping your brand secure.

Related Read: How to ensure brand compliance in your social media publishing

Why is social media compliance important?

Social media compliance is crucial because it safeguards your brand while enabling effective and responsible communication. It’s the framework that keeps your organization secure, trusted and legally sound.

Here’s how it helps:

1. Minimizing legal risks

Compliance ensures your social media activities meet industry regulations, avoiding fines and legal complications. It helps identify potential issues, like non-compliance with advertising standards or data protection laws, before they escalate.

Imagine running a social media campaign that inadvertently violates advertising regulations in a specific region. Without proper compliance checks, this could lead to fines, legal action or halted campaigns. Compliance ensures such risks are caught early.

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2. Building customer trust

Customers expect their data to be handled responsibly. Demonstrating that you take compliance seriously reassures them that your brand prioritizes transparency and security, building customer loyalty and long-term relationships.

For example, a clear and transparent social media policy for collecting user consent — like when they sign up for newsletters — reassures customers that their information is safe, encouraging loyalty and trust.

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Read More: Social Media Reputation Management: A complete guide

3. Upholding data security

Compliance safeguards sensitive information through strict protocols. Regular social media audits and adherence to security standards help to prevent breaches and non-compliance, ensuring your organization is prepared for regulatory scrutiny.

Think of a scenario where a malicious actor targets your social media account. A compliance-driven approach ensures that robust security measures, such as two-factor authentication and regular audits, are in place to prevent such incidents and safeguard sensitive data.

Here are 10 Best Practices for Social Media Security!

5 common social media compliance risks

Social media compliance risks can vary depending on industry and location, but every business should be mindful of these potential challenges.

1. Data privacy violations

According to the World Economic Forum (WEF), it's estimated that 463 exabytes of data will be created every day globally by 2025. Social media sites gather a ton of it, from demographics to behavioral patterns, making user consent and strong security measures non-negotiable. With stringent laws like GDPR (Europe), CCPA (USA) and CASL (Canada), mishandling user data can result in lawsuits, hefty fines and reputational damage.

For instance, improper email campaigns that fail to secure user consent could lead to lawsuits and a damaged reputation. Brands often struggle with:

· Cross-border data transfers: Mismanaging data flows between regions with different laws (e.g., EU to US).

· Uninformed consent practices: Using personal data for social media advertising without explicit permission.

· Inadequate security: Leaving customer information vulnerable to breaches.

✅Solution: Clearly communicate how data will be used and obtain explicit consent, secure all data transactions and align practices with local and global privacy regulations with regular audits.

Interesting Read: How Generative AI Can Help Brands Better Anticipate Risks

2. Lack of regulatory compliance Regulations vary across industries (e.g., HIPAA for healthcare, FINRA for finance). Social media posts — even unintentional ones — can violate these rules, leading to legal consequences. Examples include:

· Unauthorized disclosures: Accidentally sharing confidential information in posts or messages.

· Inaccurate advertising: Financial disclosures that don’t meet regulatory standards.

✅Solution: Train teams on industry-specific rules, implement tools that automatically archive all social media interactions and enforce policies for content approvals and archiving.

3. Misinformation and content moderation Online content moderation filters harmful, offensive and inappropriate content on the internet. It ensures the quality and safety of information, enforcing platform-specific guidelines. For example, Facebook has specific community guidelines to direct user behavior. 👇

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Failing to regulate content can result in the spread of misinformation or offensive material linked to your brand. Key risks include:

· Employee misconduct: Employees sharing unverified or polarizing content on official accounts.

· Public backlash: Offensive posts from users that go unmoderated can harm your brand’s reputation.

✅ Solution: Establish clear social media policies, train employees on responsible use and monitor official and unofficial brand mentions.

4. Intellectual property misuse

Sharing a meme online? Check its copyrights. The same goes for images and tunes. Reposting content without proper licensing or credit can lead to copyright disputes. Common pitfalls include:

· Using stock images without permission: Not all stock images are free for commercial use.

· Sharing viral content: Memes, videos and graphics often have unclear copyright ownership.

It's best to create original content or get permission before sharing. Some images have a Creative Commons license, which might make them easier to use, but it always helps to double-check the terms.

✅Solution: Maintain a repository of licensed assets, vet third-party content rigorously, double-check IP status before sharing any material and prioritize originality in campaigns.

5. Non-compliance in advertising and sponsorships

Social media advertising is governed by strict laws to ensure fairness and transparency. Missteps, like failing to disclose paid promotions, can result in legal penalties and damage to credibility. Common risks include:

· Failure to disclose sponsorships: Influencers or brand posts that don’t clearly label paid partnerships.

· Misleading claims: Overstating product benefits or omitting disclaimers in promotional content.

Ensure that sponsored posts are clearly identified and labeled. See how Messi does this. 👇

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Avoid making misleading advertising claims. Kim Kardashian, for example, got hit with a $1.26 million fine for plugging a crypto asset security product without mentioning she was getting paid for promoting it. Not the kind of attention you want to receive, right?

✅Solution: Always disclose sponsorships with clear labels like #Ad or #Sponsored, substantiate claims and audit ad content for compliance.

Social media compliance by industries

Social media can be tricky if your business operates in a highly regulated landscape. Data breaches, misinterpreted regulations and seemingly innocuous comments can lead to significant legal and financial repercussions. Familiarize yourself with your industry-specific rules and use them to grow your business.

Below, we’ve outlined key compliance regulations specific to various sectors, highlighting their relevance and impact.

Social media compliance for financial institutions

In the U.S., financial institutions must adhere to regulations from bodies like Financial Industry Regulatory Authority (FINRA) and the U.S. Securities and Exchange Commission (SEC). This includes archiving both static and interactive content for at least three years. Static content, like advertisements, must undergo pre-approval, while interactive content, such as live comments or responses, is subject to post-review.

In the UK, The Financial Conduct Authority (FCA) provides guidelines for influencers promoting financial products — ensuring they comply with marketing guidelines, such as disclosing paid promotions. In Australia, the Australian Securities & Investments Commission (ASIC) requires financial firms to provide accurate disclaimers when influencers discuss investment products.

Social media compliance for healthcare

As per the Health Insurance Portability and Accountability Act (HIPAA) rules, healthcare providers must avoid sharing protected health information (PHI) on social media. PHI includes identifiers like names, health history and photos where patients can be recognized. Common violations in the aspect include posting a patient’s testimonial without written authorization or sharing behind-the-scenes photos of a hospital that inadvertently show patient records in the background.

Social media compliance for government institutions

Government agencies must balance transparency with strict compliance to maintain public trust. They must comply with regulations such as the Freedom of Information Act (FOIA), which mandates public access to government records, including social media interactions. Additionally, they must adhere to data privacy laws like General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA) when applicable.

Agencies are required to archive all social media interactions, including comments and posts, to meet public record laws. They must clearly identify official accounts and include disclaimers when needed. For example, a city council sharing updates on emergency relief must ensure posts are archived and maintain a clear distinction between official communications and personal opinions.

Agencies must also set clear policies for addressing harassment, responding to public inquiries and managing misinformation, such as labeling official announcements to prevent the spread of false information.

Checklist to ensure social media compliance

Enforcing social media compliance may require effort, but it builds trust, safeguards your brand, and avoids legal pitfalls. Use this checklist to stay compliant:

1. Know the rules specific to your industry

Understanding industry-specific regulations is the foundation of social media compliance. Collaborate with your compliance team to identify relevant laws and best practices for your social media strategy.

Why it matters: While this may initially slow down social media content creation, it’ll help you avoid costly mistakes and ensure long-term compliance.

2. Limit social media access

Restricting access to your organization's social media accounts ensures better control and reduces compliance risks. Here's how it helps:

· Protects sensitive information: Limiting access safeguards customer data such as PII (Personally Identifiable Information), financial figures and trade secrets from unauthorized access and prevents costly breaches.

· Maintains brand voice: It limits who can post on your behalf, ensuring that your content reflects your brand voice. This is especially important in industries like healthcare, where misinformation can be harmful.

3. Monitor your social media channels

Social media monitoring is crucial across posts and comments to stay compliant and address issues before they snowball into PR nightmares.

· Watch posts and comments: Address non-compliance or misinformation promptly to avoid escalation.

· Move sensitive conversations to private channels: For example, if a customer shares private data in a comment, immediately shift the conversation to direct messages (DMs) for privacy.

· Report regulatory issues: In industries like healthcare or pharmaceuticals, regulations may require you to flag adverse events or complaints to authorities quickly.

4. Train your team

Get your team on the same (social media) page. Regular compliance training keeps everyone informed about industry regulations and policies.

Why it matters: Employees are your first line of defense; their understanding of compliance can prevent costly mistakes.

Best practices:

· Cover topics like privacy laws, company policies and approval processes during onboarding

· Schedule periodic refreshers to address updates in social media platforms, laws or industry standards

· Encourage employees to flag potential risks they encounter while managing social accounts

💡 Tip: Incorporate case studies of common social media compliance failures to highlight risks.

5. Set your social media guidelines

Your social media playbook should cover compliance basics — what's compliant, what's not, why it matters and how to stay out of the online penalty box. It should include and monitor:

· Approval processes: Who needs to greenlight a post before it goes live?

· The good, the bad, the off-limits: What's fair game to share and what's a no-go zone?

· Work information sharing: Can your team discuss work on their social media pages? If so, what are the limits?

See how the Government of British Columbia does this. 👇

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It provides clear guidance on managing compliance, brand voice and online interactions. The policy framework is a leading example for any business setting up its own social media guidelines.

How Sprinklr enables brands to be compliant with social media regulations

Sprinklr Social is a comprehensive platform designed for enterprise-grade social media management. While Sprinklr Social isn't primarily a compliance tool, it offers features that can help you stay on the right side of social media regulations.

With its robust content moderation, automated workflows, and comprehensive analytics, Sprinklr Social ensures your posts meet community guidelines and industry standards.

Plus, its real-time monitoring capabilities help you quickly address any compliance issues that arise, making it a valuable asset in maintaining a compliant social media presence.

Here’s how Sprinklr has your back:

· With social media approval workflows, Sprinklr ensures compliance by streamlining the review and approval process across posts, messages and assets. Multi-step workflows allow teams to submit, review and approve content effortlessly, reducing risks and maintaining brand alignment.

· Sprinklr’s social media monitoring provide visibility across multiple platforms, enabling quick identification and resolution of potential compliance issues or security risks.

Sprinklr combines compliance, efficiency and scalability, making it an indispensable tool for enterprises navigating complex social media landscapes.