The Legal Risks of User-Generated Content—and How to Avoid Them

User-generated content (UGC) is one of the most effective ways to build trust, boost engagement, and showcase your brand through the voices of real people. From tagged photos and video testimonials to TikTok trends and contests, UGC gives your marketing strategy an authentic edge that paid campaigns often can’t match.

But if your business shares user-created content without the proper legal guardrails, that same authenticity can quickly turn into a liability. Copyright claims, privacy violations, defamation, and FTC violations are all real risks. That’s why every brand using UGC needs a clear policy—and the guidance of an influencer attorney who understands the legal nuances of digital content.

Here are the top legal risks of UGC and how your brand can avoid them.

1. Copyright Infringement

Creators automatically own the copyright to any original content they produce—photos, captions, videos, and more. Using their content without permission, even if they tagged your brand, can result in legal action.

• Always get permission. Don’t assume a tag or hashtag equals approval to repost.
• Use campaign terms. If users are submitting content for a giveaway or challenge, make sure the terms state they grant your brand usage rights.
• Monitor hashtags. Not all tagged content is up for grabs—ask before sharing.

2. Privacy Violations

UGC often includes people who didn’t agree to be featured in your campaign. That can result in privacy complaints—or worse, legal claims under state or international privacy laws.

• Blur faces and private info. When in doubt, protect identities.
• Use model releases. If someone is clearly identifiable in a photo or video, get their written consent before sharing it.

3. Defamation Risks

If a user submits a review or comment that includes false or damaging claims about someone else—and your brand reposts it—you could be held liable for defamation.

• Moderate UGC carefully. Don’t reshare content that contains unverified claims or negativity directed at others.
• Set clear content guidelines. Let users know what’s acceptable in your campaigns or comment sections.

4. FTC Compliance

Even if content is created by fans, the FTC requires disclosure if there’s a material connection between the brand and creator—like gifted products or paid posts.

• Use proper disclosures. Require influencers to use tags like #Ad, #Sponsored, or #PaidPartnership.
• Consult an attorney. An influencer lawyer can ensure your content strategy follows FTC rules across platforms.

5. Trademark Violations

If a user’s content includes third-party logos, brand names, or slogans—and your brand shares it—you could be unintentionally infringing on another company’s trademarks.

• Review UGC before sharing. Flag any content that features outside brands.
• Educate participants. Ask users not to include other branded content unless they have permission.

Best Practices for Managing UGC Safely

1.     Create a UGC Policy

Spell out what kinds of content are allowed, what rights your brand is requesting, and what users are agreeing to when they submit.

2.     Use Terms of Service and Contracts

If your platform or campaign accepts submissions, include custom legal language developed with an influencer attorney to protect your rights and limit liability.

3.     Conduct Legal Audits

Regularly review your UGC process, from permissions to publication. A UGC audit from a social media lawyer can uncover risks before they turn into legal trouble.

UGC can be one of your brand’s most valuable marketing assets—but only when used responsibly. By putting the right permissions, policies, and legal strategies in place, you can protect your business while still encouraging authentic engagement.

If you’re incorporating user-generated content into your marketing strategy, protect your brand by working with a lawyer who understands the legal risks and can develop policies, permissions, and contracts tailored to your specific needs.

About the Author

Ethan Wall is a social media attorney and the founder of The Social Media Law Firm, the first law firm focused exclusively on social media legal issues. A trusted legal advisor, professor, and keynote speaker, Ethan helps businesses protect their brands through influencer contracts, sweepstakes compliance, trademark protection, and more. The Social Media Law Firm offers flat-fee influencer contract services and legal advice tailored to brands, agencies, and creators – schedule a free consultation today.