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05/26/2025

TikTok as New Sales Channel – Legal Challenges of Shoppable Content and Social Commerce

Online shopping has rapidly evolved over the past few years. With trends such as Shoppable Content and Social Commerce, new interactive shopping experiences are emerging that speak to consumers more directly and intuitively. As of March 31, 2025, TikTok now features an integrated shop function, opening new avenues for sales. However, these developments also raise a number of legal questions – we explain what needs to be considered.

 

What is the TikTok Shop?

The TikTok Shop is an integrated e-commerce platform within the TikTok app that allows users to purchase products directly from videos, livestreams, or the Shop tab without leaving the app. The shopping experience is seamlessly embedded into TikTok content: while scrolling through the feed or watching a livestream, products can be viewed, selected, and purchased with just a few clicks within the app. Businesses can present their products with creative and entertaining content, selling directly where trends arise and the target audience's attention is high. Influencers use the TikTok Shop to tag products in videos or demonstrate them live, earning commissions on each sale.

By combining entertainment and shopping, a seamless and impulse-driven shopping experience is created, which is particularly effective for brands and smaller retailers. The platform also offers personalized product recommendations and innovative tools such as live shopping events to boost sales and build customer loyalty. For users, the shopping experience is often personalized, as the TikTok algorithm suggests products that match their interests – similar to "strolling" through a shopping street without having to search explicitly.

 

What exactly are Shoppable Content and Social Commerce?

Before we dive into the legal aspects of these new sales developments, it is worth taking a brief look at the terms themselves.

Shoppable Content describes digital content – such as posts on websites, videos, or streams – that is directly linked to products or services. Users can immediately be directed to the respective product in the online shop through embedded links, tags, or QR codes and complete the purchase without leaving the platform.

Social Commerce represents a specific form of Shoppable Content. Here, sales occur via social networks like TikTok. Influencers and companies use their reach on these platforms to promote and directly offer products. New technical features – such as the TikTok Shop – promote a seamless purchase process.

Overview of Legal Challenges

1. Disclosure Requirements and Transparency

Advertising must be clearly identifiable as such. This also applies to Shoppable Content and Social Commerce, as they ultimately serve the sale of products and are thus classified as advertising.

Influencers and companies can comply with this obligation by using hashtags like #ad or #sponsored. Special conditions may apply to self-promotion. Disclosure is not required if it is clearly recognizable to viewers that advertising is self-promotion, for example, through transparency about the relationship between the company and the product.

 

2. Consumer Protection in Distance Selling

In digital direct sales, companies are required to inform consumers comprehensively – for example, about prices, delivery conditions, return rights, or contract details. Especially with Shoppable Content and Social Commerce, where the purchase process is often significantly shortened, it is crucial to provide this information visibly and understandably.

 

3. Data Protection

The collection and processing of personal data is subject to GDPR. This includes user behavior, click data, or purchase histories. Companies and influencers must ensure that they have a lawful basis for processing – particularly for advertising purposes, explicit consent is often required.

 

4. Copyright

When using media content – such as images, videos, or music – copyright must always be taken into consideration. This is especially the case for the use of third-party content in social media posts or product presentations.

 

5. Competition Law

All advertising statements must be factually correct and not misleading. Violations can quickly lead to warnings – especially if prices, availability, or product claims are inaccurate or exaggerated.

 

Conclusion

Shoppable Content and Social Commerce offer great potential in the new TikTok Shop to expand digital sales channels and modernize the shopping experience. At the same time, their use requires a good understanding of the legal framework. Companies and influencers should therefore familiarize themselves early with topics such as disclosure requirements, data protection, copyright, and consumer protection – not only to avoid legal risks but also to strengthen their target audience's trust and ensure long-term market success.

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