Retail Surgery: What are the legal considerations for a social commerce strategy?

Social commerce can be anything from a Facebook page to sophisticated campaigns across multiple channels. Social commerce is an adaptable means of selling to and engaging with customers. But in developing a strategy to fit, retailers need to consider a few key areas to make sure the business is social-commerce compliant, says Kim Walker, partner and retail specialist at law firm Thomas Eggar.

Social commerce demands connection with customers on the go via mobile apps, so it raises the issues of privacy and data protection, Walker points out.

Apps can access an array of information such as the user’s location via GPS, browsing history, photo albums and social networking site profiles.

“Companies should ensure that their data protection and privacy policies in relation to mobile applications are carefully drafted and up-to-date with current developments, and that users can easily access, understand and amend the privacy settings,” says Walker.

“One option for companies is to enable the most restrictive privacy settings by default to avoid bad publicity and promote the business’s corporate social responsibly.”

In more informal engagement with customers, Walker advises it is important that the terms on which sales are made are clearly referenced and that certain messages –about the right to cancel a contract, for instance – are clearly communicated and easy to spot.