In a social media world, here’s what you need to know about UGC and privacy

In today’s brand landscape, consumers are rejecting traditional advertising in favor of transparent, personalized and most importantly, authentic communications. In fact, 86% of consumers say that authenticity is important when deciding which brands they support. Driven by this growing emphasis on brand sincerity, marketers are increasingly leveraging user-generated content (UGC) in their marketing and e-commerce strategies.

Correlated with the rise in the use of UGC is an increase in privacy-focused regulation such as the European Union’s industry-defining General Data Protection Regulation (GDPR), the along with others that will go into effect in the coming years, like the California Consumer Protection Act (CCPA), and several other state-specific laws. Quite naturally, brands are asking themselves two questions:

• Is it worth the effort to incorporate UGC into our marketing strategy?
• And if so, how do we do it within the rules, and more importantly, in adherence with the expectations of consumers?

Consumers seek to be active participants in their favorite companies’ brand identity journey, rather than passive recipients of brand-created messages. Consumers trust images by other consumers on social media seven times more than advertising.

Additionally, 56% are more likely to buy a product after seeing it featured in a positive or relatable user-generated image. The research and results clearly show that the average consumer perceives content from a peer to be more trustworthy than brand-driven content.

With that in mind, we must help brands leverage UGC with approaches that comply with privacy regulations while also engaging customers in an authentic way.

Influencer vs user: Navigating privacy considerations in an online world

Savvy marketers are aware of the distinction between UGC and influencer-generated content (IGC) when it comes to marketing strategy, but may be less aware of differences when it pertains to compliance with privacy regulations. To put it simply, UGC is a gift from the consumer but the brand can’t control the quality; while IGC is professionally sourced and directed at the brand’s target audience.

Per the FTC, “where there exists a connection between the endorser and the seller of the advertised product that might materially affect the weight or credibility of the endorsement such connection must be fully disclosed.” A material relationship could be cash payment, a free product or trip, or could exist if an individual works for and is paid by the company. In the case of influencer posts, brands should ensure any partners they work with on social media are denoting their sponsored posts with #ad, #sponsored, or something similar.

In contrast, UGC does not require disclosure copy because the content is organic, created by the individual without the brand providing any form of compensation. The most important aspect of privacy compliance when it comes to UGC is avoiding copyright infringements and respecting the creative license of the original poster.

Brands should prioritize protecting the relationship with consumers. The ubiquity of high-quality smartphone cameras enables them to develop unparalleled creative content, which is more likely to influence peers’ purchase decisions.

If a brand is perceived to be ‘stealing’ a user’s creation, the result is a massive breach in trust, permanently damaging the brand’s relationship with that valuable person and his or her followers. To avoid this, brands must ask for permission before re-posting UGC — every single time.

Permission to launch

The first step in gaining permission is determining who posted the content. If the original source cannot be 100% verified, it cannot be used. Use or transformation of a creation without express permission could result in legal action. Further, if a brand uses a piece of content without realizing the user actually copied the original from another profile, the brand may be held liable for sharing.

Additionally, by captioning the creative asset with the name or handle of the content producer, brands show an interest in fostering a symbiotic relationship in which both parties benefit — and the creator gets credit for the asset. When brands share the user’s content, they elevate the creative assets to a larger audience that results in more likes and followers for the user as well as a sense of camaraderie with the brand. Select social platforms, such as Facebook and Instagram require a user to use a hashtag and an @mention before a brand can approach and ask for permission.

If someone chooses to deny permission for re-use of content indefinitely, brands must make an effort to avoid repeating unwanted queries. Therefore, in addition to requesting permissions, brands need to provide consumers with the option to opt-out of further communications. Brands may choose to handle this in a variety of ways, either internally or by using third-party software.

Competing for social media stardom

Using UGC to fuel a contest on social media can result in impressive engagement. For example, Starbucks’ #whitecupchallenge encouraged customers to doodle on the brand’s iconic paper cups, then post a photo of their artwork to Twitter or Instagram.

The campaign resulted in more than 4,000 posts on Instagram and more than 88,000 followers on the Pinterest White Cup Challenge page. It’s important to remember state and local laws apply to promotion rules and guidelines, which brands should clearly post and explain to participants.

Words from the web 

Transparency is key when brands use reviews and comments from their own site for social media, ad content or other marketing purposes. A brand may assume anything posted to their website is their property, however this is not the case.

If the brand views contest entries, comments, and reviews on the website as permission to use, the brand needs to dedicate space on the site to inform users of this policy. A clear, easy-to-navigate privacy statement on the website can protect a brand from retribution.

Additional considerations for minors

In the digital age, some of the best users and early adaptors are also the youngest. In order to use UGC created by minors, anyone under 19 years of age, usage permission is required. The difference, in this case, is that the person granting permission or accepting terms must be of legal age to accept contractual terms, or a parent or legal guardian acting on the minor’s behalf.

It’s important to note that UGC could contain Personal Identifying Information (PII). The Children’s Online Privacy and Protection Act (COPPA) protects the PII of minors under 13 years of age in the United which can make any usage for UGC very difficult. Under GDPR for Kids, the same applies to minors under 16 years of age in most of the European Union member states. Always consult legal counsel when considering UGC created by minors.

The privacy path forward

Usage permissions differ based on geography and other considerations. When it comes to UGC, best practice is to be aware of privacy policies in all locations that a company operates, so as not to infringe on consumer rights anywhere.

Some marketers lament the increase in industry oversight and purport the end of digital marketing as we know it, but clear regulations are a good thing for brands and the industry as a whole. Consumers appreciate transparency and the new regulations provide a distinct line in the sand.

Brands that ignore the law face punitive action. Under CCPA, which was passed in 2018 and is expected to go into effect in 2020, intentional violations will bring civil penalties of up to $7,500 per violation (source). Rather than focus on the fines, marketers should look at the more costly loss of consumer trust that would result from a privacy breach of any magnitude.

Brands that understand these new policies as constructive, rather than constrictive, will not only foster better relationships with consumers in the short term but will also be better positioned for long-term success. Compliance with data privacy regulation strengthens trust with consumers and helps brands maintain relationships with fans and content creators. Authenticity and transparency create a better experience for the consumer, and therefore a more effective and integrated relationship with the brand.

Though CCPA has not gone into effect yet, state legislatures across the country are likely to follow California’s lead, introducing state-specific policy proposals. Just recently, Maine and New York introduced their own privacy bills. Regardless of the form of UGC, it is wise to consult legal counsel about copyright, fair use, creative commons and public domain image considerations.

It’s possible that the development of new technology will continue faster than the laws intended to govern them. Therefore, when working with consumers to co-create creative marketing assets, brands should always lead with trust.

A step-by-step guide for marketers

1. Get educated on privacy policies at the local, national and global levels, depending on the markets served
2. Lead with authenticity and look to the consumer for organic, trusted content
3. Understand the difference between UGC and IGC – proceed accordingly
4. Identify the content’s original source and be diligent about obtaining the necessary permissions
5. Embrace growing regulation and develop as a brand alongside the well-intentioned changes
6. Lead with transparency to create and maintain more meaningful relationships with consumers