In this blog, we’ll go over proven strategies that will help you harness the full potential of various Social Media platforms while avoiding common pitfalls. Before you go into learning about do’s and don’ts you should know that each social media channel has its own unique appeal and audience, such as:

• Instagram, has visually-centric content, which predominantly attracts a younger, more lifestyle-oriented demographic, presenting opportunities for brands and influencers to leverage vivid imagery and compelling stories.
• LinkedIn, with its professional focus, serves as a networking hub for businesses and professionals, making it a potent space for B2B marketing and professional content dissemination.
• X, formerly known as Twitter, is fast-paced, trending, and perfect for companies dropping fresh content and updates about almost everything regularly. Therefore, to connect with your audience via X, you can engage in industry discussions, participate in relevant hash tags, or offer real-time customer service.
• Facebook, with over 2.27 billion monthly users, has reached an all-time high! Therefore, tailor your strategy to specific audience segments based on age, interests, and location. Run targeted ads or create engaging groups to foster brand communities.

The Dos: Building a Legally Sound Social Media Presence

1. Disclosures and Endorsement Guidelines. The Advertising Standards Council of India (ASCI) enforces clear guidelines for disclosing influencer partnerships and sponsored content. Brands as well as influencers should use clear hashtags like #ad or #sponsored partnership to avoid misleading their audience.

2. Respect Intellectual Property (IP) Ensure that your start-up’s branding elements, such as logos, trademarks, and content, are protected. Regularly monitor social media platforms for unauthorised use of your intellectual property and take appropriate legal action if necessary. Also, do not use copyrighted materials without the permission of the copyright holder to protect yourself from landing in legal trouble.

3. Comply with Platform Guidelines. Each social media platform has its own Terms of Service (TOS) outlining acceptable use. Familiarise yourself with these TOS to avoid unintentional violations. This might include restrictions on hate speech, spam, or misleading content. Non-compliance with TOS may lead to the suspension of the account.

4. Data Privacy under the Information Technology Act (IT Act). India has strict data privacy regulations under the IT Act, 2000, and the Digital Personal Data Protection Act, 2023. Therefore, ensure that you have a clear privacy policy outlining how you collect, store, and use user information. Also, get user consent before gathering personal data.

5. Display accurate information. Your social media platforms serve as a digital display. Ensure that all information presented, including contact information, website links, and product descriptions, is correct and up-to-date. Misleading or outdated information can undermine customer trust and even breach consumer protection laws.

6. Contest Regulation. Running contests or giveaways can be a fun way to engage your target audience. However, make sure you follow the Consumer Protection Act, 2019 and the platform’s specific promotion restrictions. This could include random selection processes, clear terms and conditions, and possible prize registration requirements.

7. Address Grievances from Customer Promptly. Social media is a double-edged sword. Negative feedback or customer complaints can spread quickly. Create a method for monitoring comments and communications and responding quickly and professionally. Addressing concerns head on indicates your dedication to customer satisfaction and fosters trust.

8. Allow for User-Generated Content (UGC). Encourage customers to use specific hashtags or mentions when sharing their brand experiences on their social media accounts. User-generated content can be a strong marketing tool. However, always obtain consent before using UGC on your own channels, particularly user-generated photographs or videos.

9. Track and Analyse your Results. Monitor the effectiveness of your social media initiatives using the analytics tools provided by each platform.  Analysing important indicators such as engagement, reach, and click-through rates will help you understand what content your audience enjoys. Track your progress over time and adjust your plan for the best outcomes.

10. Stay Updated. The social media landscape and rules are continuously changing with new technology. Keep up-to-date on the latest legal developments, platform updates, and best practices for Indian social media marketing. Attending professional events and reading relevant publications might help you stay ahead of the curve.

The Don’ts: Avoiding Legal Missteps

1. False or Misleading Claims. Any start-up should avoid making false or misleading claims about their products or services. The ASCI can take legal action against misleading advertisements. Focus on honest and transparent communication to build trust with your audience as well as to maintain healthy competition.

2. Data Security Breaches. Social media accounts can hold sensitive data about your customers. Implement strong data security protocols, like complex passwords and two-factor authentication, to protect this information. Regularly update security measures and be wary of phishing scams targeting your business accounts. Any breach can land you in legal trouble under DPDP laws.

3. Discrimination Against Users We all know that social media offers a diverse space for interaction with people of different backgrounds. Avoid making discriminatory or offensive statements based on race, religion, gender, or other protected characteristics. Such behaviour can damage your brand image and violate anti-discrimination laws in India.

4. Ignoring Negative Feedback. Negative comments and complaints are inevitable on digital platforms. Addressing them with professionalism and grace transforms these incidents into opportunities for brand growth and enhancement. Transparency in acknowledging and learning from criticism displays a brand’s dedication to improving its offerings and customer experience.

Social media can be a powerful tool to propel your start-up to new heights. By following these legal “dos and don’ts,” you can navigate the intricate landscape with confidence, safeguarding your brand reputation and fostering trust with your audience. Remember, social media is ever-changing; therefore, stay updated on the latest trends, platform changes, and legal developments to maintain a competitive edge. Embrace the power of social media responsibly, and watch your start-up blossom in this ever-evolving digital world.

Author: Shubhi Gupta – 5th-year law student of ICFAI Law School, IFHE University (Hyderabad).

1. Choosing the Right Business Structur

The foremost step in starting a start-up is selecting the most suitable legal structure for it because this will impact your liability, tax implications, fundraising options, and operational flexibility. Here are some key considerations:

• Sole Proprietorship
• Limited Liability Partnership (LLP)
• Private Limited Company
• Partnership

To assure the growth of a business, consult experienced professionals regarding structure of your Start-up and most viable structure is private limited company because it allows for the fastest way to raise funds because it has the capacity to sell a share of the company in exchange for investment providing entrepreneurs with a clear incentive for investors to invest, allowing them to raise cash more easily.

2. Registration and compliance under the Companies Act, 2013.

Once you choose your structure, register your chosen entity with the Ministry of Corporate Affairs (MCA) through the online portal. For Pvt. Ltd. companies, registration with the MCA is mandatory as this will grant you legal recognition as well as access to government benefits.

For start-ups to avoid penalties and potential legal trouble, they should comply with ongoing compliance obligations such as:

• Annual KYC.
• Income Tax Returns.
• GST Fillings(if applicable)

3. Founders Agreement under the Indian Contract Act, 1872

A founders agreement is a contract among co-founders outlining ownership, roles, decision-making, and how they’ll resolve issues. When everyone’s excited about the initial idea, a founders agreement forces open communication and ensures everyone’s on the same page regarding ownership, roles, and decision-making. This clarity prevents misunderstandings and potential conflicts down the road.

Investors are more likely to back a start-up with a well-defined ownership structure and clear governance framework. A founders agreement demonstrates professionalism and reduces perceived risk for investors.

4. Intellectual Property (IP) Protection

Your start-up’s intellectual property (IP) can be its most valuable asset; it may include trademarks, copyrights, patents, or designs. Registering your IP with the Office of the Controller General of Patents, Designs, and Trademarks is important to prevent unauthorised use and establish ownership rights.

• Trademarks: Register your brand name, logos, and slogans to prevent others from using them.
• Copyrights: Automatically protect original creative works like software code, website content, or artistic designs upon creation.
• Patents: Register inventions or unique processes to prevent others from commercially exploiting them for a limited period of 20 years. Registering patents can be time-consuming and complex, so consulting a patent attorney is recommended.
• Designs: Register unique product designs for an extra layer of protection against unauthorised copying

By taking these steps to protect your IP, you safeguard your competitive advantage and ensure the long-term success of your innovative ideas.

5. Non-Disclosure Agreement (NDA)

When you collaborate with potential investors, partners, or employees, you often share confidential business information like trade secrets, product ideas, or customer lists; therefore, it’s crucial to protect them through a binding contract called Non-Disclosure Agreements (NDAs) to keep this information confidential. A well-drafted NDA outlines the confidential information, the duration of confidentiality obligations, and potential legal consequences for breaches.

By following the above legal must-haves, you’ll be equipped to launch your Indian start-up with confidence and a clear path to success. At IAIPF, we understand the importance of navigating legal complexities while fostering innovation.  We encourage you to focus on what you do best, i.e., building your game-changing idea, while we provide the legal foundation for your journey. If you have any questions, feel free to connect with us to learn more.

Author: Shubhi Gupta – 5th-year law student of ICFAI Law School, IFHE University (Hyderabad).