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Advertising is a necessity in business. If you want people and partners to be aware of what you’re doing, you need to show them, and that comes with creating a clever, engaging marketing campaign that can spark their interest and encourage them to learn more. When creating that marketing campaign, you’re going to be attempting to nail down a few things. Target audience, key messages, goals and metrics, your budgeting resources.
But one thing that you might not consider – and yet could throw your campaign and potentially your entire company off-track – is the legality of the campaign. Over the last ten years, there have been numerous examples of companies that have faced legal issues over their adverts, and these cases almost always end with a damaged reputation, financial penalties, or even lawsuits. So what are the legal risks when launching an advertising campaign and how do you avoid them?
Launching a Campaign Without Insurance
One of the biggest risks of launching an advertising campaign is, rather unhelpfully, completely unknown! By that we mean, it’s impossible to predict every reaction, interpretation, and legal challenge that might arise once your content is out in the world.
This is why launching a campaign without insurance, specifically, professional liability insurance which can help protect you from claims of negligence, misrepresentation, or even IP infringement, is a serious gamble. Even if you do everything in your power to ensure the campaign is responsible, it’s important to take the time to insure your company and your creative output before going public, giving you the peace of mind that your company is protected.
Making False Claims
When it comes to the types of claims that might be made against your company, one of the most common is that your product doesn’t deliver on what you said it would.
Advertising is all about showing what your company can do and promising results, but there’s a fine line between persuasive marketing and misleading advertising. If your campaign exaggerates or misrepresents the capabilities of your product or service – even unintentionally – you could be held legally accountable for false advertising, so make sure you review your campaign thoroughly and make sure you’re not leading anyone astray.
Infringing on Copyrights and Trademarks
Another trap that a lot of companies fall into involves using images, music, slogans, or logos without permission. Even if it’s unintentional, there are serious consequences for violating IP rights, including hefty fines that could put you out of business.
This applies to everything from stock images to distinctive designs that are already trademarked by another business, so it’s important to keep an eye on everything to avoid making this mistake. Use only media you’ve created yourself or obtained through verified licensing platforms, and always consult a legal advisor before launching a campaign with third-party assets.
Conducting Comparative Advertising
If you’re operating in a business landscape with a range of competitors, it’s likely that you’ll want to distinguish yourself and communicate that you do things better.
This can be a risky move, however, as calling out competitors directly can result in defamation claims or legal disputes under fair competition laws. You don’t have to stand out by bringing others down. On the contrary, it can be far more effective to stick to the facts, avoid subjective language, and run a campaign with a fair, unassuming tone that will endear customers towards you.
Violating Privacy
One last thing to be aware of is the legality of data usage. Before running an advertising campaign, many businesses utilise data they have attained and work to target their advertisements more effectively. But this all needs to be done fairly and ethically.
Using customer data without proper consent, especially for targeted advertising, can easily violate privacy regulations like the CCPA or GDPR, resulting in heavy fines and possibly even legal action. It’s your job to make sure you collect data responsibly and transparently, not just so that you can avoid fines, but you can keep the trust of the customers you’re marketing to intact.
