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Protecting your Dealership - Benefiting from Social Media While Limiting Risk

Social media is no longer a new concept; it has become a common and highly used tool in society today. Often a free tool, social media can help take your dealership to new heights; however, it can also create legal risk if taken advantage of or used improperly. To keep your dealership on the right side of social media, utilize the following best practices:

Currently it is illegal to request employee’s passwords in 12 states and many other states may be following suit. Never ask for your employees’ social media passwords.

  • It is important that your dealership complies with federal equal employment opportunities laws; make certain that your dealership’s “about” profile on each social media site includes a notice that you comply with all applicable laws.
  • Social media is proving to be a strong hiring tool, however, if you use your social media platforms for hiring, make certain to keep copies of all open positions or ads that are posted.
  • If your employees are endorsing, promoting, or advertising for your dealership or services through their social media accounts, make sure that they disclose their relationship with the dealership on each of their social platforms.
  • It is valuable for your employees to “like” your business pages or share your posts, but this is considered a work task. Never recommend that your employees promote your dealership on social media when off-duty.
  • Even though social media sites are accessible 24 hours a day and any employee can post to the pages, the content on each page is still the property of the dealership. Make certain that employees understand that no matter who posts on the social media pages, the dealership owns all of the content posted on them.

Social media is a quickly evolving entity. To keep yourself and your dealership safe, stay up to date on new cases and regulations that could affect your business. To learn more about social media policy or to request a sample policy, contact

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