Social Media Compliance: How to Protect Your Business from Online Risk

Social media can be one of the most effective marketing tools in your business toolkit—but it also opens the door to real compliance risks. From regulatory violations and data privacy issues to reputational damage and misinformation, the consequences of unmanaged social media activity can be serious.

That’s why social media compliance is essential—especially for banks, credit unions, and businesses operating in regulated industries. Without clear policies and oversight, one misstep online can lead to regulatory investigations, lawsuits, or costly PR crises. A social media risk assessment is often the first step in identifying vulnerabilities and building a framework for safe, compliant engagement.

1. Identify and Assess Your Risks

Every business faces different risks when it comes to social media. A structured social media risk assessment helps uncover these issues—whether it’s unauthorized disclosures, lack of internal controls, or non-compliance with industry-specific laws.

Common risks include:

• Negative or unmoderated public comments
• Disclosure of confidential or proprietary information
• Unlabeled sponsored content or affiliate relationships
• Employees posting inappropriately on behalf of the brand

Once risks are identified, they must be prioritized by likelihood and potential impact. This analysis guides the development of effective compliance protocols.

2. Develop a Social Media Policy

A well-written social media policy provides clear guidelines for employees who represent your organization online—and it’s a cornerstone of any compliance strategy.

Your policy should include:

• Rules for acceptable content and tone
• Procedures for responding to comments and complaints
• Approval workflows for branded content and campaigns
• Data protection standards and restrictions on confidential information
• Guidance for personal social media use if it can be linked to the organization

Having a comprehensive policy helps limit liability and ensures consistent, compliant messaging across your team.

3. Monitor Activity and Enforce Guidelines

Once your policies are in place, they need to be actively enforced. Real-time monitoring helps detect violations before they escalate. It also allows your business to respond quickly to customer concerns or reputational threats.

Consider using tools that track keywords, tags, and mentions of your organization—and establish internal protocols for reporting and resolving issues.

4. Ensure Ongoing Regulatory Compliance

Financial institutions, healthcare organizations, and other regulated businesses must comply with specific rules governing how they engage online. These include:

• Truth-in-advertising standards
• FTC endorsement guidelines for sponsored content
• State and federal data privacy laws (like CCPA and GDPR)
• Recordkeeping requirements for certain industries

Compliance is not a one-time effort. As laws evolve and platforms change, your business must regularly review and update its practices. A social media attorney can help ensure your policies, campaigns, and team are aligned with current regulations.

Social media compliance isn’t just about protecting your brand’s image—it’s about shielding your organization from legal risk, regulatory action, and operational disruptions. Whether you’re a financial institution, healthcare provider, or enterprise organization, a proactive approach to compliance is essential.

If your business operates in a regulated industry or faces heightened compliance risk, social media isn’t something you can afford to leave unchecked. Protect your organization by working with a social media compliance lawyer who understands the legal landscape and can help you develop custom policies, conduct risk assessments, and ensure ongoing compliance across your social channels.

About the Author

Ethan Wall is a social media attorney and the founder of The Social Media Law Firm, the first law firm focused exclusively on social media legal issues. A trusted legal advisor, professor, and keynote speaker, Ethan helps financial institutions and businesses protect their brands through risk assessments, policy development, and regulatory compliance. The Social Media Law Firm offers social media compliance services and ongoing legal support tailored to banks, credit unions, and businesses—schedule a free consultation today.