Social Commerce: Selling Directly via Instagram & Co.

In today’s digital world, online shopping is shifting from traditional webshops to social media platforms. This transformation—known as social commerce—allows businesses to market and sell their products and services directly through platforms like Instagram, Facebook, and TikTok. While this creates exciting opportunities for reaching customers where they spend most of their time, it also comes with specific legal requirements. If businesses fail to comply with these, they risk receiving legal warnings or fines.

What is Social Commerce?

Social commerce refers to the sale of goods and services directly through social media platforms. The entire customer journey—from discovery to purchase—can take place without ever leaving the app. Businesses no longer need a traditional webshop; instead, they can use shoppable content like posts, stories, and reels to promote and sell products directly.

Social Commerce vs. Social Media Marketing

While social media marketing is about building brand awareness and driving traffic through promotional content or ads, social commerce is all about enabling the purchase within the platform itself. It goes beyond advertising—it integrates sales directly into the user experience on social networks.

Key Legal Requirements for Social Commerce

If you’re planning to use social commerce, here are the most important legal aspects you need to consider:

• Imprint (Legal Disclosure):
  Your social media profile must include an imprint that is easy to find, directly accessible, and always available. This is a legal requirement in many countries, especially in the EU.

• Privacy Policy:
  Since personal data is processed when using social media, a dedicated privacy policy is essential. It should explain what data is collected, how it’s used, and where it’s stored.

• Advertising Disclosure:
  Any post that serves a commercial purpose must be clearly labeled as an ad. This is especially important for influencers or content creators who promote products in exchange for payment or gifts. Misleading or missing labels can result in accusations of surreptitious advertising, which can lead to fines.

• Transparent Pricing and Delivery Info:
  You must provide clear and complete information about product prices, shipping costs, and delivery times. Customers need to understand exactly what they’re paying for and when they can expect delivery.

• Right of Withdrawal & Terms of Service (T&Cs):
  Even when selling through social media, customers are still entitled to the right of withdrawal under consumer protection laws. You need to provide clear instructions on how they can cancel their purchase and include easily accessible terms and conditions.

Conclusion

Social commerce opens the door to innovative ways of reaching customers and selling products directly within social media environments. But with these new opportunities come new responsibilities. A legally compliant setup is essential to avoid legal pitfalls. By following the key legal requirements—like providing an imprint, a privacy policy, and clear advertising labels—you can make your social commerce strategy both successful and safe.