Legal Risks: Can a Social Media "Drama" Take Your Business to Court?

In the digital age, a careless comment, a flawed contract, or an innocent-looking post can push a business into a legal battle, leading to hundreds of millions in losses and a brand crisis. Legal risks are always lurking, and can a business be sure it won’t be the next "victim"?

Businesses face legal risks and brand crises when KOLs get involved in controversy.

Case Study: Real-Life Lessons

When a Brand Representative Gets Involved in Controversy

Many businesses partner with KOLs (Key Opinion Leaders) to boost brand recognition, but is this always a safe move? When a brand representative becomes embroiled in controversy, the business can easily get caught up in the negative whirlwind. In March alone, figures like ViruSs, Kim Soo Hyun, Thùy Tiên, Quang Linh, Hằng Du Mục, and Phạm Thoại became the center of online drama, bringing significant repercussions to the brands they represented. Without a clear contract outlining responsibilities for statements and actions, a business could find itself in a reactive position, facing a media crisis and unpredictable legal risks.

According to a report from a major advertising agency in Vietnam, during social media drama outbreaks, interactions with ads drop by an average of 20-30%. The reason is that users spend more time following updates about the scandals instead of paying attention to promotional posts.

What should businesses do to avoid legal risks?

Case 1: When a Brand Representative Gets Involved in Controversy

Solution: Draft and Evaluate KOL Contracts Carefully

✔ Define responsibility for statements and actions: The KOL should be contractually bound to make statements that align with the brand's values, avoiding violations of community standards.

✔ Crisis management clauses: Clearly outline the KOL's responsibility in managing the fallout if a scandal occurs.

✔ Add compensation and contract termination clauses: The business should have the right to stop working with the KOL or demand compensation if the KOL harms the brand.

➡ In conclusion: A KOL contract isn’t just a partnership agreement; it’s also a "shield" to help businesses proactively manage legal risks.

Case 2: When Using Controversial Personal Images

Solution: Control Intellectual Property and Image Rights

✔ Ensure written consent: Avoid oral agreements. The business must have a clear contract regarding the use of a KOL's or celebrity’s image.

✔ Image and trademark usage transfer agreement: If using someone’s image for promotional purposes, the contract should clearly specify the scope and duration of the usage.

✔ Register intellectual property rights: If the business creates content related to another brand’s personal image, they should check and register the intellectual property to avoid disputes.

➡ In conclusion: Don’t let what seems like an innocent photo become the reason for your business to face a lawsuit!

In today’s social media-driven world, drama can erupt at any moment, bringing media crises and legal risks in its wake. To avoid becoming a "victim," businesses need to draft tight contracts, control the usage of images, and have a crisis management plan in place from the start. Protect your brand proactively before it’s too late!

Source: vietnamfinance.vn