Why You Shouldn’t Get Legal Advice from TikTok and Social Media

By: Attorney Lindy Laurence 

In today's digital age, accessing information through social media platforms like TikTok, Instagram, and Facebook is incredibly easy. However, relying on these platforms for legal advice can have serious consequences. In this blog post, we discuss the risks of getting and taking legal advice from TikTok, social media, and other unverified sources.

TikTok and the amplification of fraud

TikTok has been known to amplify various trends, from dance challenges to celebrity reactions. However, it has also played a role in promoting tax fraud which is definitely not as fun as the “Floss Dance". This summer, users posted videos on how to (illegally) claim tax refunds from the Australian government, and the idea quickly gained traction.

This scheme resulted in the largest tax fraud in Australian history, and its simplicity is alarming. Individuals registered for an Australian Business Number, similar to a US EIN, and used it to claim goods and services tax refunds through a government portal. The Australian Tax Office astonishingly disbursed A$4.6 billion ($2.97 billion) in fraudulent refunds to 56,000 claimants, each receiving around A$50,000.

The method of dissemination becomes almost irrelevant when the fraud is as straightforward as filling out a form and clicking “submit”. Although TikTok served as the platform, any social media post would have sufficed.

Part of the blame lies with influencers who spread the misinformation and assured followers that the worst-case scenario would be repaying the government, effectively framing the fraud as a short-term loan opportunity. However, most of the blame falls on the Australian Tax Office for its lack of oversight. The scheme was so simple that many claimants didn’t realize their actions were fraudulent.

US business owners are also vulnerable to scams

Business owners in the United States are similarly vulnerable to scams and bad advice. Take, for example, the massive fraud that surrounds the Employee Retention Tax Credit. The Employee Retention Credit (ERC) is a refundable tax credit designed to encourage companies to keep employees on their payroll. The relief was passed as part of the CARES Act in 2020 to help US businesses and employees stay afloat during the pandemic. But there has been a boom of third-party companies creating aggressive marketing campaigns to con taxpayers into claiming relief they don’t qualify for.

The IRS has received over 3.6 million claims since the program started, and is evaluating hundreds of criminal cases related to the credit. While these investigations and audits may seem drastic, these measures by the IRS are necessary to protect small businesses from the deceptive practices of credit mills (before things get too far out of hand, like in Australia). By implementing stricter regulations and taking action against fraudsters, the IRS aims to safeguard the integrity of the employee retention tax credit program and ensure that it benefits those who genuinely qualify for it.

Here are 5 reasons why you shouldn’t get legal advice from TikTok and social media:

1. They are not your lawyer or tax professional.

   If a person on the internet proposes a suggestion for a business, the person speaking doesn't have access to your business documents or accounting, so they don’t know your specific situation.  Without a one-on-one consultation between you and a professional, the things they suggest should not be taken as specific advice.

2. They might not actually be a professional.

   One of the major risks associated with seeking legal advice on TikTok and social media is the lack of expertise and qualifications of those providing the information. Unlike lawyers who undergo years of rigorous education and training, influencers on these platforms may not possess the necessary knowledge or credentials to provide accurate legal advice. Relying on their advice can lead to misinformation, misunderstandings, and potential legal troubles.

3. They are oversimplifying complex situations.

   Legal issues are often complex, and their analysis requires a deep understanding of the law. However, due to the limited time constraints of social media platforms, advice given in these spaces tends to oversimplify legal matters. Complex legal problems cannot be adequately addressed in short video clips. Since everyone's legal situation is different, attempting to navigate a unique and intricate legal scenario based on oversimplified advice can jeopardize your business and potentially have irreversible consequences.

4. They may not live in your jurisdiction, so different laws may apply to you.

   Another danger of obtaining legal advice from unverified sources is the inconsistency and misinterpretation of laws. Every jurisdiction has its own set of laws and regulations, and what may apply in one region may not be applicable elsewhere. Unreliable sources might generalize or misconstrue legal principles, leading you astray and causing unnecessary complications in your situation.

5. They cannot be held responsible for what happens if it goes poorly.

   Seeking legal advice from untrustworthy sources can also have ethical implications. Lawyers adhere to a code of ethics that includes maintaining client confidentiality, avoiding conflicts of interest, and providing competent representation. Unverified individuals on social media may not uphold these ethical standards, potentially exposing your private information or misleading you for personal gain. Unfortunately, individuals on TikTok and social media who dispense legal guidance often operate outside the boundaries of accountability. If their advice leads to negative consequences, it is virtually impossible to hold them responsible.

Conclusion

While social media platforms like TikTok offer entertainment and connection, don't rely upon them as a source for legal advice. Instead, it is essential to consult with licensed attorneys who specialize in small business and tax law, like those of us at Rational Unicorn! Our expertise, qualifications, and accountability will ensure that you receive accurate and targeted advice, and can take action to protect yourself from potential legal pitfalls. At Rational Unicorn, we may not be the best dancers, but we do spotlight real legal experts who provide reliable and trustworthy guidance that is based on your unique and individual situation. Reach out today and connect with us!