But legal issues don't stop at things companies are doing wrong. The companies also can be the victim.
Customers also are out there using social media, and sometimes, doing so illegally.
Clay Calvert, JD, Ph.D., is the director of the Marion B. Brechner First Amendment Project at the University of Florida.
One thing Mr. Calvert said is there is an increasing number of cases in which customers are claiming to have been "ripped off" or "cheated" by a company or making negative claims about a company's customer service or business practices. Then it turns out that customer never visited the store at all.
"Somebody can be defamed in 140 characters. And many people don't seem to realize that," Mr. Calvert said.
People using social media assume they have anonymity on the internet and think it's a free-for-all on which they can say whatever they feel without consequence, Mr. Calvert said.
Customers also can get so angry they make what is called "a true threat" of violence, Mr. Calvert said. Some courts define threats of true violence using a test that says: "If a reasonable person would foresee that an objective rational recipient of the statement would interpret its language to constitute a serious expression...[then] the message conveys a 'true threat.' "
And those are not protected by the First Amendment, he said.
Even with all that said, it's not wise to skip social media because there can be legal issues. Using social media is just like anything else in business. Be careful, use common sense, read an agreement before signing and think through a decision before making it.