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Social media has become an essential tool for commercial agents in the UK to promote products, build brand awareness and engage with customers. However, using social media also presents legal risks and challenges that commercial agents must navigate to avoid liability.
One of the most significant risks associated with social media use by commercial agents is the potential for misleading or defamatory statements. Commercial agents must ensure that any statements on social media are accurate and not misleading, as they can be held liable for false advertising or other misrepresentation. Additionally, commercial agents must be careful not to make statements that could be deemed defamatory, as this can result in legal action being taken against them.
A commercial agent must also remember that he is under a duty under the Commercial Agents Regulations to look after the principal’s interests and act dutifully and in good faith (Regulation 3). Suppose an agent is found to have made a misleading or defamatory statement via social media. In that case, the principal will likely threaten action in damages for breach of the agency contract or breach of the Regulations, or worse, seek to terminate the agency contract on the grounds of a repudiatory breach and claim damages for the harm caused by the breach. This is something an agent should seek to avoid, as the harm caused to the principal could be substantial and extremely costly for the agent.
