Why Compliance Matters in the Age of Clicks
In Nigeria’s fast-growing digital economy, a single marketing campaign can make or break a startup. What used to require expensive TV spots or billboards can now be achieved with a viral video or a few clever posts on social media.
But visibility comes with responsibility. One poorly worded ad or undisclosed partnership can lead to fines, lawsuits, or reputational harm. In this edition of TechBrief by TALP, we outline the essential legal and compliance issues every founder, marketer, and digital strategist should understand before hitting “publish.”
- Advertising Compliance: Honesty Still Sells
Under Nigerian law, all advertising must be clear, truthful, and fair. Whether it is a paid social media ad, an email campaign, or an influencer post, misleading claims can trigger penalties from the Advertising Regulatory Council of Nigeria (“ARCON”) or the Federal Competition and Consumer Protection Commission (“FCCPC”).
What does this mean for your startup?
- Be truthful about the nature and use of your product. Claiming your app offers “free unlimited access” when it actually requires a subscription after seven days? That is misleading.
- Disclose Sponsorship. Sponsored content or paid reviews by influencers must be clearly tagged as paid promotions.
- Avoid deceptive discounts. Displaying inflated “original prices” on your e-commerce platform to make sales look like huge deals is a violation of the Nigerian Code of Advertising.
- Avoid fear-based marketing. Ads suggesting that users’ data or safety are at risk without your product cross a regulatory line.
- Avoid coercion. Do not strong-arm your customers. As a digital lender, threatening to increase the interest rate of a customer’s loan if he/she does not take on a new product is illegal.
- Avoid bait-and-switch tactics. Promoting a N0 sign-up offer that suddenly reveals hidden fees or mandatory upgrades? That’s deceptive.
- Stand by your claims. If your ad provides performance guarantees or any form of warranties, make sure you have completed adequate tests to support your claims.
Tip: Always vet your messaging through a compliance or legal team before launch.
- Privacy and Data Protection: Trust Is the New Currency
Digital marketing often relies on collecting and processing personal data. Under the Nigeria Data Protection Act 2023 (NDPA), misuse or unlawful processing can attract significant fines. In 2023, the Nigerian Data Protection Commission fined Meta $32.8 million for privacy breaches linked to behavioural advertising on Facebook and Instagram. A penalty of that magnitude could be devastating for a small startup.
Best practices for startups:
- Get explicit consent. Always obtain clear permission before sending marketing emails or DMs, and provide clear, easy-to-use “opt-in” and “opt-out” (or “unsubscribe”) options.
- Stay within purpose. Use personal data only for the purpose consented to, don’t sell or repurpose it without further consent. For example, if someone provides their email to receive marketing on skincare products, it should not be sold or shared with a third party to promote financial products. Misusing data this way can be illegal and damage trust. Instead, focus on collecting and leveraging first-party data
- Use testimonials lawfully. Obtain written consent before sharing a customer’s name, image, or other personal data in your promotions.
- Limit data collection. The less data you collect, the lower your risk exposure.
- Be mindful of cross-border transfers. If user data leaves Nigeria (even via cloud servers), ensure compliance with NDPA safeguards and obtain necessary approvals. This includes ensuring proper consent, adequate safeguards, and any approvals required for transferring personal data across borders.
Tip: Conduct periodic data audits to verify compliance and prevent breaches before they occur.
- Intellectual Property: Market Creatively, Not Carelessly
Creative marketing thrives on originality. Yet, many campaigns stumble over intellectual property (IP) issues. Always confirm that you have rights to every photo, video, jingle, or brand element before posting.
Avoid common IP pitfalls:
- Using copyrighted images, music, or user-generated content without licences.
- Engaging in cybersquatting, brandjacking, or suggesting unauthorized brand partnerships.
- Overly aggressive “comparative advertising” that disparages competitors.
If you must compare, keep it factual, objective, and respectful. Building your own brand identity is safer and smarter than riding on another’s reputation.
- Mandatory Vetting: Every Ad Needs Approval
Many startups are unaware that every ad (including digital campaigns) targeting the Nigerian market (except obituaries, vacancy notices, financial statements, and immemorial) must first be vetted and approved by ARCON’s Advertising Standards Panel before release. Skipping this step can attract fines or mandatory takedowns.
While it may seem impractical to review every single ad in good time, ARCON has recently stepped up enforcement by imposing hefty penalties, such as the $37.5 million fine imposed on Meta in 2023 and the N500,000 fine imposed on Realhouse Communications (publishers of Castles Lifestyle Magazine) in 2025.
Tip: Factor vetting timelines into your campaign schedule. Early submission prevents costly delays.
Conclusion
Digital marketing is a powerful equalizer for Nigerian startups, but also a legal minefield. With regulatory oversight increasing, compliance is no longer optional; it is a competitive advantage. By aligning creativity with compliance, startups can build visibility, earn customer trust, and scale sustainably.
A strong compliance culture reduces risk and strengthens brand trust. Every startup can safeguard itself by:
- Seeking expert legal guidance before launching marketing campaigns.
- Establishing data-security and consent-management systems.
- Conducting regular compliance and privacy audits.
- Training marketing and sales teams on ethical communication practices.
Follow TALP’s TechBrief for more insights on navigating the intersection of law, innovation, and digital strategy in Nigeria’s evolving tech ecosystem.
Disclaimer: This article is for general informational purposes only and does not constitute legal advice.
