Key Points:
There are five basic issues you need to deal with to
make sure your social media competition complies with applicable
laws and protects your company from liability.
Social media users are increasingly using their social media
networks to engage with businesses. Around 32% of users are now
using social media to follow particular businesses or brands (up
from 25% in 2013) and 29% doing so for the purpose of accessing
offers and promotions (up from 15% in 2013). Indeed, when social
media users are asked what they want to receive from the businesses
which they follow using social media, 51% wanted
"giveaways", second only to "discounts"
(62%).1
Given these figures, it is unsurprising that Australian
businesses are increasingly using social media competitions as part
of their broader marketing strategy. What then are the key issues
which need to be considered by in-house counsel when reviewing
proposed social media competitions?
