The use of social media in digital marketing has been included in the government regulation and marketers need to follow proper guidelines. There are loopholes in the social media usage that can result in deceptive marketing practices. Government agencies should actively enforce proper use of social media to prevent marketers from misleading users. Some countries already implement guidelines that require companies to have proper and accurate posts. It is a legal violation to post fake reviews, but unfortunately, guidelines on this can be very broad. It is important for marketers to avoid using methods that are seemingly easy and quick, only as an attempt to improve ratings. In fact, companies may suffer devastating damage in reputation due to improper use of posts.

It can be quite easy to discover suspicious reviews that are written form dealerships and businesses across the nation. Unfortunately, it is possible for honest companies to hire unreliable marketing agencies. This could be a real concern, because legal implications can happen to many companies. It is possible for employees of the company to pose as average consumers and they simply post positive online reviews. In this case, dealers could face significant liability if they are discovered to use social media to post fake reviews without disclosing real information. When a seller is suspected to deliver wrong information, related government agency may require disclosure on various marketing materials. Legal sanctions can be implemented if some or more reviews are dishonest opinions made by the company to mislead average consumers.

Failure to comply with these regulations may result in significant penalties. Attorney general may fine local companies for ordering employees or related individuals to write reviews about their products. In this case, companies can be held liable or fully responsible for any inappropriate actions of the employees. Reviewers can be easily tracked and they can be held personally liable for any kind of statement that they made in the endorsement posts. In some countries, it is illegal to compensate consumers for positive reviews. In this case, selected consumers could be offered vouchers or discount cards in exchange for positive surveys. Other compensations may include rewards, free services, review items, samples, gifts and incentives. Unfortunately, many companies are engaging in this kind of marketing activities. Potential implications of such activities may not be good.

Applications of social media, such as video sharing, social networking and blogs; always soar in popularity. People will be able to see what we do in social media. In this case, we should make sure that all information that comes out from our company is regulated. Procedures and policies must be described and implemented properly by everyone, including our own employees. NGOs may issue a complaint against companies that instruct their employees to create negative comments about competing products. Any inappropriate and unprofessional conduct must be prevented to make sure that our company won’t get into various legal problems. Enough education is essential to make sure that marketers and executives use social media properly and avoid untruthful information from being released.

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