APPENDIX

Complying with the law!

Most countries around the world have laws to protect consumers (that's you, me and your future customers!) from unscrupulous business practices like false or misleading claims, breaches of privacy and spamming. Each country's laws differ in the detail but the fundamental principles are similar.

While no one expects you to be a lawyer, consumer protection bodies (such as the ACCC in Australia and the FTC in the United States) expect anyone selling to consumers to be familiar with the fundamental principles of consumer protection laws. A similar approach is taken by the bodies that enforce privacy laws and anti-spamming laws. These regulatory bodies have the legal power to investigate and prosecute breaches and they won't hesitate to do so. Fines (sometimes very large fines) are regularly imposed on businesses that do the wrong thing. Attention from these regulators is a hassle and a distraction you don't need. Also, given that information about prosecutions is often made public by regulators, and is sometimes picked up by the mainstream media, it could be very bad for your reputation.

The good news is that the regulators have invested a lot of time and money trying to make basic legal compliance as easy as possible. Their websites (some of which are listed at the end of this section) are excellent sources of information and are written for non-lawyers. Remember also that most laws are built on concepts of fairness, ethics and respect. So while ‘legal compliance' sounds intimidating and feels daunting, it really isn't once you invest a little time in understanding a few key concepts.

Here is some information (not legal advice!) about some of the key concepts involved. Make sure you invest some time reading up on the legal rules applicable in your country. I have included some links to various reference sites below.

Consumer protection laws

The golden rule of consumer protection laws is ‘don't mislead or deceive'. In essence, this means ‘be truthful and accurate'. Fleshed out a little it means don't exaggerate or over-state things, be open, honest and transparent with your customers, don't make things up and don't hide important information in the ‘fine print'. Don't make statements you can't back up with facts and don't make promises you can't keep! Easy … right?

Privacy laws

In this digital age some people are very sensitive about their privacy. Perhaps rightly so! Never before has the potential existed for our personal information to be so easily collected, used and misused.

Not all privacy laws will apply to your business and in fact in Australia there is generally an exemption from compliance for small businesses with a turnover of less than $3 million. But look at it this way:

• Your database of followers is perhaps your most valuable tangible asset (after your content).
• A privacy compliant customer database is a lot more valuable.
• Followers are a lot more loyal if you treat their information with respect.
• Privacy compliance is not very hard.

For these reasons I think it makes sense to aim for basic privacy compliance from the outset. It's also much harder to build compliance in retrospectively later on.

Fundamentally, privacy laws are based on principles of respect and transparency in the handling of someone else's personal information. For example, if you are collecting and using someone's personal information they deserve to be told who you are and why you are collecting it, how you will use it and to whom you will disclose it. Make sure you check out the privacy reference links at the end of this section.

Anti-spamming laws

Spam is sending emails or text messages to people who aren't expecting to receive them. Generally, social media messaging isn't considered spam because people use the platform to choose to follow you. But unsolicited emails or text messages that you send to people directly can be spam — and spam is bad! Not only might you get prosecuted and fined but, I suggest, you will not have a very good reputation as a reputable and credible agent of influence if your communications are perceived as spam!

Generally speaking there are three golden rules to follow to make sure you don't inadvertently engage in spamming:

Hopefully this information helps to de-mystify the dark art of legal compliance. It's an important topic to think about and an important aspect to build into your business plan. Not only does it keep you out of trouble but it helps you to be perceived as professional, reputable and competent in the eyes of your followers. What could be more important than that?

Reference links

Consumer protection

www.accc.gov.au/business/advertising-promoting-your-business/false-or-misleading-claims

http://business.ftc.gov/advertising-and-marketing

www.oft.gov.uk/business-advice

http://www.comcom.govt.nz

Privacy

http://www.oaic.gov.au/privacy/about-privacy

http://business.ftc.gov/privacy-and-security/consumer-privacy

http://www.ico.org.uk/for_organisations/data_protection

http://www.privacy.org.nz

Anti-spam

http://www.acma.gov.au/Industry/Marketers/Anti-Spam/Ensuring-you-dont-spam

http://www.fcc.gov/guides/spam-unwanted-text-messages-and-email

http://www.ico.org.uk/for_organisations/privacy_and_electronic_communications

http://www.dia.govt.nz/services-anti-spam-index