Social Media Marketing: Rewarding, But Potentially Dangerous? (2025 Updated)

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Social media is great for getting your business out there. Publicity and profitability often go hand in hand. In today’s rapidly evolving digital landscape, there is no platform better for gaining exposure than social media. If you’re just starting your business – whether as an operating sole trader or a company – you should seriously consider using social media as a powerful tool for boosting your profile. For more guidance on setting up your legals, check out our Getting Started with Your Legals guide.

However, if you decide to use social media for your business, you must be aware of your responsibilities as well as your rights as a content creator. Staying on top of the latest legal requirements is vital in 2025, with regulators and industry bodies updating guidelines to reflect current technology and marketing practices.

Read on to avoid the pitfalls of advertising on social media so you can enjoy all the benefits with none of the negatives!

Does Australian Consumer Law Apply On Social Media?

Social media for personal use does not apply here. However, if you’re conducting business on these platforms, then the Australian Consumer Law remains very much in effect. When you use social media for advertising or promotion, you are accountable for any false or misleading statements made about your products or services.

So what do you need to look out for to remain compliant in 2025?

Avoid Making False Or Misleading Statements

While you want to make your product as attractive as possible, you must stick to the truth to avoid legal ramifications. When posting on social media, ensure you fact-check every claim. The ACCC and other watchdogs are vigilant in scrutinising any unsubstantiated claims. For instance, if you assert that your business operates the oldest taco stand in South Australia, yet there are several establishments with a longer history, that is a false or misleading statement you must avoid.

What About Commenters?

If a comment or post appears on your social media page or ad, it falls under your responsibility. This means that if a comment – even one that is overly enthusiastic or inaccurate – misleads the public about your business, you must correct or remove it promptly.

For example, if a fan posts on Soap Co.’s advertisement saying, “I used this soap once and I’ve never needed to shower again!” you should take action to correct or delete the comment to avoid any unintended claims or liability.

What Else Do I Need To Be Aware Of When Advertising On Social Media?

An organisation called the Australian Association of National Advertisers (AANA) has updated its ‘advertising code of ethics’ to suit the digital trends of 2025. This code helps the advertising and marketing industries to self-regulate and ensures fair competition and responsible consumer messaging. If your business advertises on social media, being familiar with these updated guidelines is a must. For further insights, you might also look at our article on what regulations affect your corporation.

Section 1: Competition Complaints

This part of the code sets out guidelines on how competing businesses should manage their advertising, including a low-cost dispute resolution mechanism. In the event that a consumer has a complaint about your advertising practices, the matter may be referred to the AANA rather than escalating to the courts immediately.

Section 2: Consumer Complaints

Section 2 applies when a business advertises a product or service that later results in consumer complaints. It governs the level of acceptable content, such as violence, nudity, explicit language, and sexual themes, as well as ensuring a fair portrayal of people in your advertisements.

Running A Giveaway On Your Social Media?

Many businesses run giveaways to promote products or thank loyal customers. However, as of 2025, depending on the value and size of your giveaway, you may need to obtain a permit. Failure to secure a permit could mean that you are running an illegal giveaway.

The competition thresholds vary slightly between States and Territories. For a detailed breakdown of the current thresholds, check out our article: Competitions: Do I Need A Permit?

Along with complying with Australian law, you must also adhere to the specific policies of the social media platforms you use. For example, you can review the Instagram rules on promotions here and for Facebook here.

Intellectual Property and Social Media

When you post content on social media as a business, you are creating original material that may be covered by Intellectual Property law. If someone misuses your branding, videos, or other creative content, you may have legal recourse against them. A good starting point is to review the website terms and conditions of the platform you are using. Note that while registering your business name is important, it doesn’t provide trade mark protection – for that, consider registering a trade mark for your logo or brand name.

Privacy

When you advertise on social media, you access a wealth of information about your consumers and how they interact with your posts. As privacy concerns continue to dominate the digital space in 2025, it’s crucial to handle this information responsibly. Ensure you have updated privacy policies that comply with the latest legal standards. For more detailed information on current privacy obligations, you might find our article on the 13 Australian Privacy Principles very useful.

But People, Right?

Consumers consent to share their information with you by engaging with your posts, but this consent is limited to your business. Once you have their data, you have a legal obligation to protect it from unauthorised access. Failure to do so could mean breaching privacy laws. To prevent this, maintain robust data protection measures and keep your policies updated – learn more about this on our Privacy Policy page.

Defamation

Trolling and online character attacks are, unfortunately, common on social media. As a business, making false claims that damage the reputation of a person or another entity can lead to serious legal consequences, including hefty fines. It is critical to ensure that you and your employees monitor posts and comments to prevent defamatory content from being associated with your brand.

Commenters, Again!

It is a good rule of thumb that you are responsible for all content on your page – including comments. This means if someone posts a defamatory comment on your content, you must act quickly to address it. Businesses have faced charges for defamation because of comments on their posts, so careful monitoring is essential.

Worried About Your Employees’ Social Media Presence?

Brand and reputation are crucial assets for any business. Social media can make or break your reputation within a day, and you have every reason to be concerned about what your staff post online, especially if they represent your business.

But how far can you go in managing what your employees post? Sprintlaw has a few articles on this topic, including Can I Take Action Against My Employee For Expressing Their Political Views? and Criticising Your Boss On Social Media: What’s Legal?

In 2025, many forward-thinking companies are enhancing their internal social media policies. These policies define clear guidelines on acceptable and unacceptable conduct online, ensuring that employees’ digital expressions align with your brand values. For further advice on setting such policies, take a look at our comprehensive resources on Employment Law.

Still Unsure?

We don’t blame you! Many of the legal issues touched on in this article – such as defamation, intellectual property, and data privacy – can be challenging to navigate. Ensuring your business’s social media practices comply with the latest laws in 2025 is essential to protect your reputation and avoid costly legal disputes.

If you have any concerns about your business’s social media presence or the legal obligations that come with advertising online, get in touch with Sprintlaw. Reach out to our team for a free, no-obligations chat at team@sprintlaw.com.au or 1800 730 617.

Joe Casey

Joe is a final year law student at the Australian National University. Joe has legal experience in private, government and community legal spaces and is now a Content Writer at Sprintlaw.

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