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Social Media Law for Businesses

Social Media Risk Assessments

The Federal Financial Examinations Institute Council (FFIEC) requires every credit union and financial institution that maintains a social media presence to have a risk management and compliance program encompassing marketing, technology, legal, and human resources. Without a sound compliance program, credit unions and financial institutions can experience compliance and legal risks.

Social Media Policies and Compliance Procedures

Federal regulations require credit unions and financial institutions to maintain workplace policies and procedures governing the use and monitoring of social media for marketing, employee personal and professional social media use, and human resource policies to comply with consumer protection and employment laws and regulations. Without social media compliance procedures, a financial institution places its reputation, business relationships, trade secrets, and intellectual property at risk.

Social Media Marketing Compliance

Federal regulations require credit unions and financial institutions to train employees how to comply with social media related financial regulations, such as the Truth in Lending Act, Regulations DD, NCUA Statements, Regulation Z, Bank Secrecy and Anti-Money Laundering Act, and the Gramm-Leach-Bliley Act Privacy Rules. Without a social media marketing compliance training program, financial institutions are exposed to advertising lawsuits and regulatory audits.

Social Media Employee Training

Credit unions and financial institutions must provide employees with a social media training program to ensure that their social media policies are implemented in a compliant fashion. Without a social media employee training program, you may be unable to enforce your social media policy if an employee posts harmful information online.

Social Media Contests and Sweepstakes

Social media contests, sweepstakes, promotions, and giveaways are a great way to engage customers, but promotions that do not comply with the law and social media website guidelines can result in civil lawsuits, regulatory investigations, and deletion of social media accounts. Marketing departments need a Social Media Promotions Compliance Policy to help their employees understand the best practices and compliance requirements of conducting social media promotions.

Advertising Compliance

Credit unions and financial institutions can be sued or face regulatory scrutiny if their advertisements do not comply with federal advertising laws, which can result in lawsuits, regulatory investigations, and legal fees.  Your financial institution must have its advertisements reviewed for compliance with financial regulations or it will be at risk of a lawsuit or regulatory audit.