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Advertising Risks and How to Protect Yourself

Advertising Risks and How to Protect Yourself
Advertising Risks and How to Protect Yourself

Advertising Risks and How to Protect Yourself

April 26, 2022 Posted by Jane Smith Editorial No Comments

There’s almost no way to succeed as a business in today’s world without advertising. Everything your company does that faces the public, from television ads to radio to even social media posts, is a form of advertising and marketing. When you are making statements to the public, you have a responsibility for the content you produce. 

What Is Advertising Risk?

Advertising risk is the possibility that you will be held liable for something you or someone working for your business has said or produced. Words and statements about other companies can be perceived differently by different people, and you have to be careful not to say anything untrue about another person or entity.  

There are other risks as well. You cannot use copyrighted material without permission, for example. You also cannot claim that a celebrity or someone else endorses your product if they don’t endorse it. You can also cross a legal boundary if your advertising claims you have a sale or a specific price when in fact, you do not. It can be a dangerous legal minefield for you to navigate. 

If you do any of these things, or if someone thinks you did, then you may find your business facing a lawsuit for slander, liability, copyright infringement, or false advertising. Your words can cause financial losses for other companies if the public takes action and doesn’t buy their products or if a suit is brought against them as a result. They could also be falsely arrested or suffer from malicious prosecution, depending on what you may have said. You don’t want to face a lawsuit for these kinds of mistakes, as any lawsuit can have serious repercussions for your business. Here are some ways that you can protect yourself. 

Be Strict About What Is Published

As a business owner, you might think that certain things are common sense. However, that isn’t always the case. For example, if you have a social media manager or a marketing team, they may think that something is entirely innocuous and put it out into the world. However, if the statement or content could be misunderstood or taken out of context about another entity, it could cause you problems. 

Have a Strategy
Have a Strategy

The important thing is that you have strict guidelines about what gets released to the public. For example, you can have a requirement that you personally vet everything before it gets published. Or, you can hire a legal expert to go over everything that might be controversial to make sure you are protected. If part of your marketing is based on comparing your business to others, it can be challenging to keep your competitors out of your materials. However, by being diligent and responsible, you can limit your liability. 

Focus on Being Accurate

For someone to bring a suit against you, they would have to prove that something you published is untruthful or inaccurate. If you confirm everything to ensure that there is nothing untrue, then there is a good chance that you will be adequately protecting yourself. If you have facts and figures, make sure to have authoritative sources for your numbers. If you are comparing prices, then take photos or keep records of your competitors’ prices when you are publishing ads. It is very hard for another party to sue you if you did not do anything wrong. 

Insurance Protection

The fact is, you can do everything right and still end up getting sued. It might be that something you published was taken out of context or someone misunderstood. Or, it could be a competitor using malicious tactics to cause problems for you. Even if you are extremely careful, you will still need advertising injury insurance protection. It will cover the costs associated with being sued. These can include legal, lawyer, and witness fees, plus any damages awarded to the complainant. 

Without coverage, even if you are eventually found not liable, the costs can be astronomical and cause a severe strain on your finances. Protect yourself and your business by getting liability insurance in minutes online. You can be covered almost immediately and save yourself from potential catastrophe. 

Get Permission for Endorsements or Copyrighted Materials

You can get sued if you use someone’s art, music, images, videos, or words without permission. If it is copyrighted, then you will need to apply for a license to use it. A lawyer can produce the necessary documents that both parties must sign. This ensures that you have permission and that you cannot be sued. 

You also cannot use someone else or their likeness to promote your brand without their permission. This is the same for “regular” people as it is for celebrities. If you ask a customer if they like your store after a purchase and then post their answer on your website, they can sue you if you did not specifically ask permission. If you imply that Tom Cruise uses your product to look younger, he can also sue you. Even something as seemingly innocuous as a single tweet can put you in hot water, so be careful. 

Be Careful With Your Sales Claims

When advertising special deals or free trials, you need to be very clear about what the customer will or won’t be charged for. Plus, you also can’t artificially inflate your prices and then claim to be offering a sales price. For example, let’s say you sell knick-knacks for $20 apiece. You decide to hold a 50% off sale to bring in customers. When customers come in, they can see that the sales stickers say 50% off but that the “original” price listed is $40. So you haven’t offered a sale; you’ve just upped your price and called it one. Several retailers have found themselves in court over these tactics, and you could too. 

You should also be very careful when you offer things for “free.” For example, if you take a customer’s credit card information as part of a free promotion, then they need to know exactly how you could potentially use that information. You can’t charge them for anything that they did not agree to down the line, nor can there be fees on top of the free offer that was not explicitly disclosed ahead of time. 

As you can see, there is a lot of risk involved when you are advertising and marketing. Anything that you publish must be accurate and on the level to avoid facing severe financial and legal consequences. Keep these tips in mind when crafting your marketing materials to protect your business and still effectively get the word out about your products and services. 

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About Jane Smith

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