The rise of TikTok Shop — key legal considerations for ‘social commerce’ retailers

With the average person spending 143 minutes per day on social media, it’s no surprise that savvy retailers are looking to social commerce to drive sales. TikTok Shop — which generated a whopping USD $33bn globally in 2024 — is rapidly gaining market share, with 44% of UK TikTok users having made a purchase directly on the platform.

With the UK’s social commerce industry set to hit £16bn by 2028 — which will account for 10% of the total online commerce market — this trend seems to be here to stay.

Below, Domonique West provides guidance on what retailers must do to stay compliant with consumer protection laws, advertising standards and more when looking to capitalise on social commerce.

What is social commerce? 

Social commerce integrates eCommerce natively within social media platforms — enabling users to browse products, read reviews and make purchases without having to leave their favourite apps. Shopping can take multiple forms, including via a ‘shop tab’, hyperlinks in videos, posts and descriptions and even live-streamed shopping events. 

Beauty & apparel products lead the charge

While Meta (which owns Instagram and Facebook) has long dominated the social commerce sector, TikTok has gained traction fast. 67% of users have reported feeling inspired to shop while scrolling, even when they weren’t intending to do so. 

Currently, beauty and apparel remain the most popular categories on the platform, with a beauty product being purchased every two seconds in the UK. 

Low barrier to entry for SMEs

Over 200,000 businesses are now active on TikTok Shop in the UK, vying for the attention of its 30m UK users. The market mainly consists of small- and medium-sized businesses (SMEs), many of which have leveraged the platform’s low barrier to entry (particularly the absence of upfront costs). 

This approach has proven effective, with 73% of SMEs reporting that the platform has helped them to interact with customers.

Social commerce — your legal responsibilities

While social commerce facilitates ease of access to a sizeable consumer base, businesses still need to be mindful of their legal responsibilities when dealing with consumers.

1. Consumer protection laws

In the UK, businesses selling directly to consumers must comply with the Consumer Rights Act 2015, which requires that goods are of satisfactory quality and fit for their intended purpose. 

Social commerce businesses must comply with distance-selling regulations and should be particularly mindful of the possibility that advertisements and sales are being made to minors using the platform. 

Consumer protection laws also require businesses to provide clear pricing and transparent return and refund policies, which are often lacking in social commerce listings. Any references to discounted pricing must be verifiable against full price sales and pressure tactics — such as ‘limited stock’ listings — mustn’t mislead. 

Any failure to comply with consumer protection laws may result in enforcement action by Trading Standards or the Competition and Markets Authority.

2. Advertising standards

Product descriptions must be clear and accurate and any ‘claims’ that are made about a product’s quality or attributes must be true and capable of substantiation — particularly in respect of cosmetic products, which are subject to specific regulations in the UK. 

In addition, the Advertising Standards Authority requires that influencer accounts and listings are honest and transparent in disclosing paid promotions and gifted products, using hashtag labelling such as #ad or #gifted or disclosing paid commercial partnerships. 

3. Online platform terms 

Finally, each social media platform has its own terms of service that businesses must adhere to. Aside from rules concerning compliance with data protection and intellectual property laws, businesses should be aware of platform-specific posting rules, liability provisions and dispute resolution requirements. 

The Online Safety Act 2023 requires platforms and their users (including social commerce businesses) to take measures to ensure that content isn’t harmful or offensive and that advertising is age-appropriate. Businesses should also take measures to ensure that listings and live streams are honest and don’t contain fake reviews, fake products or harmful content.

Talk to us

Our specialist RetailTech & eCommerce lawyers are here to help you navigate social commerce while staying compliant with the relevant laws and regulations.

Talk to us by giving us a call on 0333 004 4488, sending us an email at hello@brabners.com or completing our contact form below.