The Battle Over Short-Term Rentals in Pennsylvania Continues

Short-term rentals (STRs) have been a contentious issue in many Pennsylvania municipalities in recent years, particularly in popular tourist destinations like the Poconos Mountains. Many property owners are looking to capitalize on the growing popularity of home-sharing platforms like Airbnb and Vrbo to supplement their income or to offset their mortgage payments. However, these STRs are often seen as a nuisance by neighbors and local officials, who argue that they can lead to noise complaints, parking issues, and other problems.

To address these concerns, many municipalities in Southeastern Pennsylvania have begun regulating and permitting STRs. For example, Philadelphia requires all STRs to be licensed and imposes a hotel tax on them. Other municipalities, like Chester County, have imposed zoning restrictions on STRs, limiting them to certain areas and requiring that they meet certain safety and building codes. Various property owners in the Poconos will find that they need to acquire a permit for their county and then also their HOA. The Poconos have also found rental properties being scooped up by investment opportunists, who intend to use the property for rental purposes. This can cause unease with full-time residents and vacation property owners alike.

For renters, it's important to consider any homeowner association (HOA) rules or covenants that may apply to your property. Some HOAs may prohibit STRs altogether, while others may allow them with certain restrictions or requirements. If you own a rental property, it is important to review the terms of your lease agreement to ensure that you are not violating any terms related to STRs.

While Pennsylvania state law generally allows property owners to rent out their homes, there may be local regulations that restrict or prohibit STRs in certain areas or under certain circumstances. One of the most important regulations to consider is zoning. Municipalities may have different zoning classifications for different areas, such as residential, commercial, or industrial. Depending on the zoning classification, STRs may be permitted, prohibited, or subject to certain restrictions or requirements. For example, a municipality may allow STRs in residential areas, but only if the property owner obtains a permit and meets certain safety and building code requirements

Townships have found that STRs aren't all bad news. Many municipalities have benefitted from the increase in revenue from taxes and fees related to STRs. The revenue derived from STRs in the Pocono Mountains increased by over 275 percent between June 2020 and June 2021, rising from $10,881,000 to $40,833,000. This was the largest percent change in all of PA's 11 regions. With increased renters come increased need to entertain and feed vacationers. Brick and Mortar resorts, restaurants, and stores have all benefited from the increased traffic.

Here are a few examples of municipalities in Eastern Pennsylvania using the fu nds generated by STRs to benefit their communities:

Pocono Township: In Pocono Township, STRs have become a significant source of revenue for the local government. According to the Pocono Record, the township generated over $1.1 million in revenue from STRs in 2019 alone, which was used to fund road improvements, police services, and other community projects.

Bethlehem: In Bethlehem, STRs have been credited with helping to revitalize the city's downtown area. According to the Morning Call, the city has seen a significant increase in tourism and economic growth since it began promoting STRs, with many visitors opting to stay in local homes and apartments rather than traditional hotels.

Bucks County: In Bucks County, STRs have become an important part of the local tourism industry. According to Visit Bucks County, many visitors choose to stay in local homes and apartments when visiting the area, which has helped to drive tourism spending and promote local businesses.

Lancaster: In Lancaster, STRs have been used to address the city's affordable housing crisis. According to Lancaster Online, the city has implemented a program that allows property owners to convert their homes into STRs for up to three years, after which they must either convert the property back to a permanent residence or sell it. The program has been credited with helping to increase the supply of affordable housing in the city. Momentum is building that 2023 will be a strong year for tourism there.

What can PA municipalities do to mitigate tensions between STR owners and residents?

To keep STR owners and renters happy while also maximizing revenue coming into the municipality, there are a few strategies that municipalities can employ.

Streamline the permitting process

This essentially would make it easier for property owners to comply with regulations and obtain the necessary permits. This can reduce the administrative burden on both the property owner and the municipality, while also ensuring that STRs are safe and meet local building codes.

Promote STRs as a viable and attractive option

This can include partnering with local tourism organizations to promote the area's unique attractions and amenities, and highlighting the benefits of staying in a local STR over a hotel or other traditional accommodation.

Enforce the Rules

Certain municipalities have worked to strike a balance between the needs of STR owners and the concerns of local residents. This can include enforcing noise ordinances and other regulations, while also ensuring that STR owners are aware of their responsibilities and obligations as property owners in the community.

In summary, short-term rentals can bring a variety of benefits to Eastern Pennsylvania municipalities, including increased tax revenue, economic growth, and tourism promotion. By embracing STRs and working to promote them as a viable and attractive option for visitors, townships can continue to benefit from the growing popularity of home-sharing platforms like Airbnb and Vrbo.

If you have questions regarding short term rentals in your township, contact the municipal law group at High Swartz LLP for more information at (610) 275-0700.

What Do I Need to Start a Business?

Starting a business can sound like a pretty daunting task. It's true, there are many things to consider such as how your business is structured, contracts, and insurance. Below is a quick breakdown of specifics you will need to start a business. For this example, we have consulted with a Pennsylvania business attorney with regards to starting a business in the commonwealth state.

First and foremost you need to:

Choose the right business structure

Selecting the appropriate legal structure for your business is crucial for minimizing risk and liability. In Pennsylvania, common business structures include sole proprietorships, partnerships, limited liability companies (LLCs), and corporations. We've gone more in depth on those structure in our Legal Handbook for Starting and Running a Small Business.

Essentially, each structure has its own advantages and disadvantages, so choosing the correct structure is paramount. If you're still not sure, consult with a business attorney.

Develop sound contracts

Written contracts are essential to protecting your business interests and minimizing legal disputes. Whether you're entering into an agreement with a supplier, vendor, customer, or employee, it's important to have a clear, comprehensive contract that outlines the terms of the agreement, including payment terms, delivery dates, and dispute resolution mechanisms.

Here are 3 of the more important contracts to consider:

Partnership Agreement: If you are starting a business with one or more partners, you may need a partnership agreement that outlines each partner's roles and responsibilities, profit-sharing arrangements, and how decisions will be made.

Operating Agreement: If you are forming a limited liability company (LLC), you may need an operating agreement that outlines how the company will be run, including how profits and losses will be shared, how decisions will be made, and what happens if a member leaves the company.

Exit Strategy: A business exit strategy outlines how a business owner or investor intends to exit or sell their ownership stake in a business. It’s essentially a roadmap that lays out the steps and actions necessary to leave a company and realize the maximum possible value of the business. We have a whole chapter dedicated to it in our handbook.

Protect your intellectual property

If your business relies on products or services that are distinct to your operation, such as trademarks, patents, or copyrights, it's important to take steps to protect that property.

And with the advent of AI technology, it's appropriate to wonder whether certain intellectual property laws pertain to ideas that may have been discovered using it. Below is a quick breakdown:

Can I trademark or copyright ideas that came from ChatGPT or Open AI?

You may think that ChatGPT just gave you a one in a million business idea, but think again. ChatGPT or a similar open AI platform is not capable of inventing new ideas or concepts on its own.

Why is that?

Open AI was created to process and generate responses based on the input provided by the user. Therefore, any "original ideas or concepts" that may be expressed through AI responses are ultimately the property of the person that provided the input.

If you, as the AI user, have created an original idea or concept that you would like to protect, you may be able to obtain intellectual property protection through a trademark, or copyright, depending on the nature of the idea or concept. However, it's important to note that obtaining intellectual property protection can be a complex process and requires meeting certain legal requirements. We would recommend consulting with an IP attorney who is experienced in intellectual property law to determine the best course of action for protecting your idea or concept.

Comply with regulations

As a business owner, you must comply with a wide range of federal, state, and local regulations, including tax laws, employment laws, environmental laws, and more. Noncompliance can result in costly fines and legal penalties, so it's important to understand your obligations and take steps to ensure compliance.

What are the most important regulations to consider when starting or running a business in Pennsylvania?

The best advice would be to consider every business regulation as important, but of course, some could be considered more important than others. For example:

Businesses need to obtain various tax IDs, such as an Employer Identification Number (EIN) or a sales tax license. Business owners should consult with a tax professional to ensure compliance with tax laws and to minimize tax liability.

If your business has employees, you must comply with Pennsylvania-specific employment laws such as the Pennsylvania Minimum Wage Act and the Pennsylvania Human Relations Act. Federal laws that PA business owners need to adhere to include the Americans with Disabilities Act (ADA), Fair Labor Standards Act (FLSA) and the Family and Medical Leave Act (FMLA). We've included links to each act above.

Business licensing and registration

Depending on the nature of the business, Pennsylvania may require business owners to obtain certain licenses or permits, such as a local business license or a professional license.

What are the specific business licenses and/or permits I need to get to start or run a business in PA?

It all depends on the nature of your business, your location, and other factors. However, here are some common licenses and permits that many businesses in Pennsylvania may need to obtain:

Pennsylvania Business License: This is all dependent on your business structure. You can read more on the specific structure best suited for your business here.

Local Business License: Some cities or counties in Pennsylvania may require businesses to obtain a local business license. Check with your local government to determine whether this is required for your business.

Below are a few cities in Pennsylvania that require a local business license:

Philadelphia: All businesses operating in Philadelphia must obtain a Commercial Activity License (CAL).

Pittsburgh, Allentown, Erie, Reading: Businesses operating within these cities must obtain a Business Privilege License (BPL).

Professional or Occupational License: Some professions or occupations in Pennsylvania may require this license. These may include doctors, lawyers, accountants, and others.

Data privacy laws

With the increasing prevalence of data breaches and cyber attacks, Pennsylvania businesses must comply with data privacy laws to protect sensitive customer information. The Pennsylvania Data Breach Notification Act requires businesses to notify customers in the event of a data breach.

There have been several businesses in Pennsylvania that have experienced data breaches and had to notify their customers. One of the most egregious examples came from a 2014 breach at the University of Pittsburgh Medical Center.

Essentially, UPMC experienced a data breach in which the personal information of approximately 62,000 employees, including names, birth dates, Social Security numbers, and tax information, was stolen. UPMC notified affected employees of the breach and offered free credit monitoring and identity theft protection.

In late 2018, the Pennsylvania Supreme Court decided that employees may sue employers for the release of stolen confidential employee data. The Court’s decision in the Dittman vs. University of Pittsburgh Medical Center, allowed UPMC employees to bring a class action lawsuit for negligence. Read more about the fallout and impact written by attorney Thomas D. Rees here.

Talk with a business attorney who can give you the right answers

It's important to note that this is not an exhaustive list of regulations that may apply to your business. Depending on the nature of your business, there may be additional regulations that you must comply with. Working with an experienced business attorney and other professionals can help ensure that you are aware of and compliant with all relevant regulations.

The above information is not to be taken as legal advice.

Who's Responsible for That Street Tree?

In Pennsylvania, there are different laws governing boundary, private property, and street trees that landowners and municipal authorities need to be aware of.

If you have more questions, please contact us to schedule a consultation with Gilbert High Jr.

Back in the day, municipalities added street trees along roads for one important reason. It was felt that horses needed a place to get out of the sun and cool off. Presently, trees have been shown to have many more positive effects to modern day living.

Trees are an essential part of any municipality, providing a range of ecological, economic, and social benefits, such as improving air quality, reducing stormwater runoff, lowering energy costs, and enhancing property values. However, with these benefits comes the responsibility to properly maintain and manage trees in public spaces, including those in residential communities.


Don't see your answer here? Visit our in-depth guide on Pennsylvania Tree laws.


Street Tree Laws

Shade tree commissions were created to maintain street trees within the public right of way, with the cost of maintenance falling on the municipality. While the abutting property owner may be compelled to remove or maintain trees, the liability for hazardous trees remains with the municipality. Municipal authorities also have a responsibility to ensure that trees are not hazardous in the first place. If a branch from a municipal tree falls and causes damage or injury, the municipality can be held liable if they knew or had reason to know that there was a dangerous situation created by that tree.

The responsibility for removing hazard trees falls on the municipality, not the property owner. Property owners are responsible for maintaining the sidewalk, especially if the municipal street tree causes disruption, such as broken or lifting pavement. It is considered best practice for municipalities to maintain an inventory of sick trees to inform their decisions. In Pennsylvania, the role of shade tree commissions in virtually every municipality is to maintain street trees, except in home rule communities like Philadelphia, where an ordinance compels the abutting property owner to maintain the trees.

Boundary Tree Laws

Boundary trees, also known as trees along property lines, have a separate set of laws governing their maintenance. The general rule is that both property owners share ownership of the tree, and neither one can unilaterally cut down the tree without the other's permission. Both owners also share responsibility for the care and maintenance of the tree.

However, if the tree is entirely on one side of the property line, then that owner is solely responsible for the tree. They can cut down the tree or trim its branches without the permission of their neighbor, but they are also solely responsible for any damage that the tree causes to their neighbor's property. In the 1990s, the Commonwealth court ruled that overhanging branches and roots are considered a trespass, and the neighbor whose property is being trespassed upon can sue the owner of the tree for the cost of removing the branches or roots. This also applies to cases where the property owner's tree roots are causing damage to a neighbor's property.

Private Property Tree Laws

There are no laws in Pennsylvania requiring private property owners to maintain trees on their land. However, some municipalities have ordinances that regulate tree removal or trimming on private property. For instance, in Philadelphia, you must obtain a permit before removing any tree with a trunk diameter of 12 inches or greater. Failure to comply with these ordinances can result in fines and legal action.

If a tree on private property poses a danger to the public, the local government can require the landowner to remove or maintain the tree. It's crucial to understand the laws and regulations governing trees in your area to avoid legal trouble and ensure that your trees are cared for properly.


If you have more questions, please contact us to schedule a consultation with Gilbert High Jr.

Trees are essential for the development and beautification of a municipality. Municipal authorities and property owners have a shared responsibility to maintain and manage street trees and those in public spaces and residential communities. It's crucial to understand the laws and regulations governing street, boundary, and private property trees in Pennsylvania.

If you're unsure about your rights and responsibilities regarding trees on your property or your neighbor's, it's best to consult with a knowledgeable attorney who specializes in municipal tree law. By doing so, you can avoid legal trouble and ensure that your trees are cared for properly.

What Happens if I Die without a Will in Pennsylvania?

There is a common misconception that the government takes assets if someone dies without a will. Fortunately, this is not the case as long as at least one living relative is left to inherit under Pennsylvania law. But what happens if there are no living relatives?

When an individual dies without a will, they die "intestate." As a result, your assets become subject to intestate succession. An estate attorney can provide more insight. But, equally important, they can work with you to ensure your assets don't become subject to intestate succession.

Intestate Succession Law in Pennsylvania

A will includes written instructions on how to distribute certain assets. However, Pennsylvania Intestate Succession Law (20 P.S. § 2101 et seq.) provides an order of inheritance to distribute estate probate assets held solely in the decedent's (deceased) name.

PA Intestate Succession laws, however, do not govern the passing of non-probate assets such as:

  • jointly owned property with survivorship rights
  • certain assets with the named beneficiary (such as Transfer/Payable Upon Death accounts)
  • life insurance accounts
  • retirement accounts

These non-probate assets become the property of the surviving owner, or beneficiary, by law. In addition, they’re accessible without the appointment of a personal representative. So, they do not constitute a part of an estate.

The Succession of Assets Through Intestate

If any probate assets remain after payment of all estate obligations, PA distributes them through intestate succession. As a result, the net balance of an estate passes to the surviving heirs based on their relationship to the decedent and in succession as follows:

  1. The surviving spouse receives the entire estate if the decedent has no descendants or parents.
  2. The spouse receives the first $30,000 of the estate plus half the remaining estate if a decedent has no descendants but is survived by their spouse and at least one parent. The surviving parent or parents receive the other half of the remaining estate.
  3. With children, the decedent's spouse receives the first $30,000 plus one-half of the remaining estate. The decedent's children, children's children, etc., who are descendants of the surviving spouse, receive the other half of the remaining estate.
  4. If a spouse survives a descendant and none or at least one of the surviving descendants is not a descendant of the surviving spouse, the spouse will receive one-half of the estate, and the other half estate will pass to the surviving descendants.
  5. If there is no surviving spouse, the descendants of the descendant receive the entire estate.
  6. If a spouse or descendants do not survive a decedent, the decedent's parents receive the assets. After that, the assets sequentially fall to Siblings, then Grandparents, then Uncles/Aunts, then Respective children and grandchildren.
  7. As mentioned above, the estate only passes to the Commonwealth of Pennsylvania without surviving relatives.

Protecting Your Assets

As stated above, while the government does not typically claim the assets of individuals who die without a will in Pennsylvania, there are still steps you can take to protect your assets. But, more importantly, you can ensure they get distributed according to your wishes.

First and foremost, you should create a will. A will is a legal document that outlines how you want to distribute your assets after you die. By creating a will, you can ensure that your assets get distributed according to your wishes rather than relying on intestate succession laws.

In addition to creating a will, you should consider other estate planning tools, such as trusts. A trust is a legal arrangement in which a trustee manages your assets on behalf of your beneficiaries. Trusts help to avoid probate, reduce taxes, and protect your assets from creditors.

Talk to an Estate Attorney or Will Lawyer in Our Law Offices

Please note that there are plenty of benefits to having a will other than just naming the beneficiaries of your estate. If you want to discuss your needs, don't hesitate to contact our law offices and their estate planning attorneys at (610) 275-0700. You can also fill out our contact form.

High Swartz LLP and our lawyers have proudly assisted clients with preparing estate plans and administrating the decedent's estates for over 100 years.

How do I Evict a Tenant?

If you’re a landlord, you might have faced this very real question: how do I evict a tenant? After all, it isn’t all that unusual to have an inconsiderate, messy, or possibly even dangerous tenant. So at some point, you may decide that it’s necessary to part ways and evict them from your property.

But here’s the catch. Evicting a tenant isn’t as easy as you might expect. For example, residential landlords are often surprised about the numerous requirements and the time it takes to evict. There’s also time and monetary costs to consider.

In Pennsylvania, the Landlord and Tenant Act governs the process. And strict compliance is vital to ensure that you evict a tenant legally. After reading this article, you may want to talk with a real estate attorney near you to cover all the bases. Our firm has years of experience assisting residential and commercial landlords in navigating their rights in Pennsylvania and the mid-Atlantic region.

Steps Required for Evicting Tenants

Although various jurisdictions may differ slightly, typically, the process for how to evict a tenant follows these steps:

  1. Ensure you have appropriate grounds for an eviction
  2. Serve an official written eviction notice to the tenant
  3. Serve a summons and complaint if the tenant fails to comply
  4. Attend a court hearing and judgment
  5. Issuance of a writ of execution evicting the tenant
  6. Gaining possession of the property

So, as you can see, the process can take some time, anywhere from a month to two months or more from start to completion.

Grounds for Evicting a Tenant

The first step in an eviction is determining the basis for the removal. Pennsylvania requires a landlord to comply with notice requirements. In addition, the notice must include the tenant’s violation prompting the eviction. And that violation must be a valid reason. There are plenty of factors in play currently due to the pandemic and it's fallout, so touching base with a real estate attorney would be prudent to get the latest information.

You have grounds to evict a tenant for any one of these violations:

Failure to Pay Rent

Unsurprisingly, the primary reason for an eviction notice is a tenant who fails to pay rent or does so habitually. In Pennsylvania, rent is late one day after due. A landlord can take steps to evict the tenant with a 10-Day Notice to Quit, giving them ten days to settle unpaid rent. If the tenant fails to pay after the notice to quit, a landlord can continue filing an eviction action.

Violations of the Rental Agreement

Pennsylvania allows a landlord to evict a tenant for violating written lease terms. For example, the tenant may have a pet or roommate prohibited by the lease agreement. In this case, the landlord presents a 15-Day Notice to Quit for tenants residing at the property for one year or less.

For tenants residing at the property for greater than one year, the landlord presents a 30-Day Notice to Quit.

In either case, the tenant must move out of the property within that timeframe. Otherwise, the landlord can file an action to evict them.

Illegal Activities

Landlords can give tenants a 10-Day Notice to Quit for performing illegal activities on the property. For example, if a tenant creates, distributes, or uses controlled substances. Or if police seize drugs from the tenant’s rental unit.

Other examples include using the property for gambling or prostitution. Landlords can also evict tenants for becoming a chronic nuisance or substantially damaging the property. Keeping records of dates and times and any police reports is important to strengthen your case.

Independent of sufficient cause, a landlord must wait for the tenant to commit some violation. Otherwise, the only remedy is to wait for their lease to expire.

It’s critical to note that the Landlord and Tenant Act require that the notice to quit be served personally to the tenant. That being said, you can post the notice on the principal building or the lease premises. However, you cannot deliver the notice to quit by mail. This is important information for landlords that may live out of town and don't have easy access to the property in question.

While typically expected, notice to quit isn’t always required. Sometimes tenants waive receipt for a notice to quit in the lease agreement. Make sure your lease agreements are up-to-date and signed is extremely important.

What Happens if the Tenant Fails to Leave?

It's likely that a tenant may fail to comply despite receipt of a notice to quit. Don't panic. In that case, the landlord must file a recovery of possession of real property action in the Magisterial District Court of the count where the property resides. Although you can file the action yourself, a real estate attorney has the experience to do so properly to avoid delays in eviction.

The court serves the tenant the action and sets a hearing date between seven and 15 days after the complaint’s filing.

On the hearing date, the landlord must appear in person and present their case to the judge. The tenant can also submit their claim.

Tenants can assert any number of defenses during the eviction process:

  • The landlord's allegations were false
  • The breach of the lease wasn’t severe
  • The complaint wasn’t reasonable
  • Improper serving of the notice
  • The landlord failed to remedy a condition of the property such as leaks, mold, or another dangerous issue
  • The eviction violates the Fair Housing Act - this could entail discriminating on the basis of race, color, religious creed, ancestry, age, sex, pregnancy/childbirth, national origin, familial status, and disability

However, if the court rules in the landlord’s favor, tenants typically have ten days to appeal the judgment.

In addition to judgment for possession of the property, the judge can enter judgment for outstanding rent due, damage to the property, and lawsuit costs. The judge may also award the landlord attorneys’ fees if the lease agreement allows for their recovery.

Order for Possession

Fifteen days after the judge’s decision, the landlord can request that the court issue an order for possession. Within 48 hours from receipt, a constable or sheriff must serve the order to the tenant.

That order states that the tenant must vacate the property ten days after service (15 days for a non-residential tenant). If the tenant has not left after that timeframe, the constable may forcefully evict the tenant from the property. After the constable delivers possession of the property, the landlord has legal possession.

Even after the constable delivers possession of the property, additional issues may arise if the tenant has left their personal property at the residence. Further, a tenant could delay the eviction if they file an appeal of the court’s decision.

Self-Help Evictions

In some instances, landlords take measures into their own hands. For example, they may change the lock or shut off utilities. So here’s a word of advice if you’re a landlord considering this approach – don’t do it.

Most states frown on landlords forcing tenants from the property. You can only evict a tenant following a successful lawsuit. Even then, only a sheriff or constable can evict the tenant.

More importantly, the tenant can ask for an injunction prohibiting their removal during the court action. In addition, they can sue you for damages plus violations. Finally, the court can grant the tenant the right to stay on the property.

Need to Evict Someone?

Landlords are often unaware of the numerous legal requirements to evict a tenant. However, if a landlord doesn’t follow the correct procedures and provide the proper notices, it can lead to redoing steps in the process.

Missteps can form a basis for a tenant to file an appeal, further delaying the landlord’s recovery of possession. Even worse, they could lead to the tenant suing the landlord.

You can learn more about your rights by reading the Consumer Guide to Tenant and Landlord Rights. Published in June 2022, the guide covers legal requirements and best practices for renting a property.

Ultimately, a real estate attorney well-versed in landlord-tenant law can provide cost-effective assistance so that the process proceeds as smoothly as possible.

Our law firm has offices in Bucks County and Montgomery County, PA. The Best Lawyers in America recognized 16 of our attorneys for 2023. So, you can count on our firm to deliver experienced representation for any legal issue.

For more information about landlord-tenant law, contact Kevin Cornish at (610) 275-0700 or by email at kcornish@highswartz.com.

The information above is general: we recommend you consult an attorney regarding your circumstances. This information is not legal advice or a substitute for legal representation.

Legal Issues with Social Media

Datareportal reports that 4.7 billion people worldwide use social media, spending an average of two hours and 29 minutes on it a day. That's more than half the world. 

So, it's not surprising that social media law has emerged and includes criminal and civil aspects. Owing to the numerous legal issues with social media activities, many law firms now have internet and social media lawyers dedicated to counseling businesses and individuals on applying its laws on state and federal levels.

What is Social Media Law?

Social media law focuses on the legal issues associated with user-generated content. Some of its top concerns are the right to privacy, defamation, and intellectual property law covering trademarks, logos, and other copyrighted material.

Social media covers a lot of ground, and social networking is one key component. But it extends beyond that. It covers any technology allowing online communications. Facebook and Twitter immediately come to mind.

But there are also blogs, wikis, chat rooms, reviews, comments, and more. For example, a web page with a comments section is part of social media. In short, any website that involves interaction is social media.

The U.S. Department of Health & Human Services (HHS) has strict policies that govern social media use. You can read more about the policies and standards here.

Moreover, numerous state, federal, and foreign statutes apply to social media law. You can view some of the more critical laws here.

Top Legal Issues with Social Media

Some of the top issues are:

  1. Copyright Infringement
  2. Defamation
  3. Privacy and Confidentiality
  4. Misleading Information
  5. Business Contracts

Let's look closer at each of those potential legal concerns.

Copyright Infringement

It's easy to cut and paste content from sites on the internet. But using content from another site can result in criminal and civil liability.

Intellectual property laws govern the use of trademarks and copyrights. Copyright relates to the authorship of original works like art, books, music, and more.

Consequently, it's essential to have policies governing your business' online content publication. You should have someone review posts and messages for legal compliance before publication. When using third-party content, you should attribute the content to that party to avoid any copy infringement. A social media lawyer can help draft appropriate guidelines.

Defamation

First Amendment rights do not protect defamatory statements. Such statements typically fall under two categories:

    1. Libel: Tangible, written statements
    2. Slander: Spoken words or gestures

The criteria for either is that the statement was objectively false, seen or heard by a third party, and caused financial injury. The comment is also unprivileged by law.

It's always best to show caution when commenting about a third party. Social media platforms make those comments immediately viewable by millions of people and can quickly create a legal issue for you. Note that sharing or liking another person or business' defamatory comment can present a legal issue for you. And if you make an ill-advised comment while at work, you potentially put yourself and your employer at risk.

Two recent Pennsylvania employment termination cases give this same advice to adult social media users. In both cases, courts upheld terminations for employees’ mean-spirited off-duty social media comments.

Privacy & Confidentiality

Privacy laws govern the collection, use, disclosure, and storage of personal information. Moreover, you must inform individuals that you are collecting such information. And you cannot disclose that information unless it's for specific purposes. It's common to see businesses to require a signed agreement to use your NIL (Name, Image, and Likeness) in any social media content produced by the employer.

Europe implemented the General Data Protection Regulation (GDPR) in 2018. It spelled out rules to guarantee the protection of personal data. The United States has no such law, however, the California Online Privacy Protection Act (OPPA) approved legislation covering online privacy. So, if you're conducting business in the state, it's necessary to comply with its requirements.

Any personal data collected must be stored securely. As a result, data breach lawsuits have become commonplace, impacting businesses both large and small. For example, Equifax suffered a data breach exposing the personal information of 147 million people. The settlement included up to $425 million distributed to those affected.

Misleading Claims

It's best to substantiate any claims made on social media to avoid legal issues. Consumer protection laws prohibit businesses from making false, deceptive, and misleading claims about products or services.

The same goes for reviews of a company or service. It's common practice for companies to capture reviews through social media channels. But, of course, those reviews need to be legitimate and not falsified or misleading. The same holds for endorsements. Google and other search engines are getting better daily at identifying fake reviews, and will not hesitate to penalize company websites.

Business Contracts

Businesses of all sizes execute contracts, including non-disclosure agreements, confidentiality agreements, and non-compete agreements. Interestingly, On January 5, 2023, the Federal Trade Commission (FTC) proposed a rule to ban non-compete clauses. This has since been approved and has retroactively negated many of these clauses. That being said, social media communications can set the stage for breaches of the formerly stated contracts.

For example, employees must be aware of business contracts with non-disclosure agreements. Imparting essential knowledge detailed in such agreements can lead to a lawsuit. Here's another example. Let's say you recently hired an employee. A recently hired employee has a non-compete agreement from their former employer preventing him from contacting former clients. The employee then changes his status on LinkedIn, which sends out an update to clients, including some former clients. In the past, this scenario could open the door for a suit claiming a breach of contract against the former employee.

Tips to Avoid Legal Issues with Social Media

Even though social media focuses on sharing information and free expression, it's not without legal risks for businesses and individuals.

Here are some things you can do to mitigate your risks of legal action as a business owner:

  1. Social Media Policy: Work with an employment or business lawyer to create a policy document covering all aspects of social media communications. It's essential to document how employees use social media in the workplace and what they can say.
  2. Permissions for Licensed Content: Ensure you get explicit consent to use copyrighted materials such as images.
  3. Monitor Content: Establish standards for publishing content. Then monitor and moderate content and posts. If something seems inappropriate, remove it.
  4. Train Employees: Keep your employees and subsequently your handbooks and policies updated with the latest social media laws and regulations.

As an employee, you must understand that any comments you make on social media during the workday can impact your business. The same holds for you outside business hours. Your comments on social media can land you in hot water.

Talk to a employment or business lawyer If You're Facing a Legal Issues with social media

Social media and the laws governing it can substantially impact a business and its employees. Don't hesitate to contact us if you are in need of guidance.

Our law firm has offices covering Bucks and Montgomery Counties in Pennsylvania We have attorneys experienced in intellectual property law, business law, and employment law. We also have top litigation attorneys to support you with any lawsuit concerns, either presenting or defending a suit.