Legal Pitfalls of Using UGC in Your Videos–And How to Avoid Them

User-Generated Content (UGC) is everywhere, and for good reason. A customer’s selfie, an unboxing video, or a viral TikTok can be marketing gold. People trust real voices more than polished ads. That authenticity makes UGC incredibly powerful.

But using it comes with risk. Just because content is public doesn’t mean it’s free to use. One wrong move and you could face copyright claims or worse. The line between sharing and stealing? Blurry at best.

For instance, just a couple of years ago, a major brand reposted a creator’s video without asking–and the backlash was quick and severe. The influencer called them out publicly, and legal threats followed. Reputation damage aside, it was a clear lesson: permission matters. UGC isn’t a legal free-for-all.

In this article, we’ll break everything down, including how to use UGC legally, what rights you need, how business structures help protect you, and much more. Let’s take the first step in keeping you safe and creative. 

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What Counts as UGC?

UGC is any content created by someone outside your business or brand. It’s made by real people, including customers, fans, or even strangers online. And it can be incredibly effective in building trust.

Common examples of UGC include:

• Instagram photos featuring your product.
• TikTok videos with your service in the background.
• YouTube unboxings or reviews.
• Customer testimonials
• Comments or posts praising your brand.

Where you’ll often find it:

• Instagram Stories or Reels
• TikTok clips and duets
• YouTube vlogs or tutorials
• Reddit threads or niche forums
• Product reviews on your site or platforms like Amazon.

UGC is tempting because it’s authentic and relatable. It shows real people enjoying your product or talking about your brand. That kind of social proof can boost conversions and engagement, and do so without a big production budget. But using it without permission? That’s where problems start.

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The Most Common Legal Pitfalls of Using UGC

Here are some of the most common mistakes creators and brands make when using user-generated content in videos:

Lack of Proper Permission

Just because someone tags your brand doesn’t mean they’re giving you legal permission to use their content.

• Tagging or using a public hashtag does not equal consent.
• Always get written or documented approval before reposting someone’s content.

Violation of Publicity Rights

If your video features someone’s face, voice, or other identifiable features, you need their approval prior to using the content.

• Using someone’s likeness without permission can lead to lawsuits.
• Publicity rights vary by state, but they’re legally enforceable.

Copyright Infringement

Even reposting something as common as a meme or viral video can violate copyright.

• You must either own the content or have a license to use it.
• Copyright infringement can include use of music, images, video clips, and more.

Trademark Concerns

 Be cautious about featuring brand logos or recognizable products.

• UGC that includes branded apparel, signs, or packaging can create legal risk.
• Avoid unintentional product placements that may imply an endorsement.

Misrepresentation and Endorsement Risks

Don’t imply someone supports your brand unless they’ve clearly agreed to.

• The FTC requires disclosures for endorsements.
• Failing to clarify relationships can damage trust and lead to fines.

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How to Legally Use UGC in Your Videos

Using UGC the right way doesn’t have to be a headache or overly problematic. Really, it just takes a little planning and clear communication. Here’s how to legally and respectfully feature user-generated content in your videos:

Get Explicit Permission

Always ask before you use someone’s post in your marketing.

• Written consent should include what content is being used, where it will appear, and for how long.
• DM screenshots can work in casual cases, but for anything commercial, a signed release form is safer.
• If you’re working with influencers, consider using a simple agreement template to keep it official.

Use UGC Rights Management Tools

Take advantage of tools designed to help streamline UGC permissions.

• Instagram’s branded content tools allow creators to tag your business properly and grant usage rights.
• Platforms like Tint and Creator.co can help automate the permission process and track content rights.

Add Clear Terms to Your Campaigns

 If you’re running a hashtag campaign or contest, set expectations from the start.

• Use legal disclaimers like “By submitting, you grant us the right to use your content.”
• Include terms and conditions that outline usage rights, how the content may be modified, and who owns what.

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Build Legal Protection into Your Business

Using USG under your personal name might seem harmless at first; however, it can open the door to major legal risks. If someone claims copyright infringement, misrepresentation, or violation of their publicity rights, you could be held liable on a personal level. That’s why creators and startups alike often form a Limited Liability Company (LLC) to separate personal and business responsibilities.

An LLC gives you more than just peace of mind. It shields your personal assets, including retirement accounts, cars, or your home, from lawsuits tied to your business. It also enhances your professionalism, making it easier to negotiate contracts with influencers, content creators, and vendors. Plus, when you’re signing UGC release forms or rights agreements, it’s best to do so as a business entity.

Know, however, LLC requirements vary by state. For example, the requirements to form an LLC in New York include publishing formation notices about the new entity in two newspapers and filing a Certificate of Publication. This is something not required in Texas or California. Always check your state’s specific rules before filing.

Another important part of forming an LLC is hiring a registered agent. This is the person or service designated to receive legal notices and official documents on behalf of your LLC. Most states require one in order to keep your business in good standing, and having a reliable agent ensures you never miss a legal notice or government deadline.

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What Goes in a UGC Release Form

A UGC release form is your safety net. It gives you clear, written permission to use someone’s content without the risk of legal issues later. While a casual “OK to use!” in a DM might work in some situations, it’s not always enough, especially if the content is important to your campaign.

Here are key clauses every UGC release form should include:

• Permission to use the person’s image, voice, name, and submitted content.
• No expectation of compensation, unless you’ve agreed otherwise.
• A perpetual, worldwide license to use the content in marketing, social media, and advertising.
• A clear statement about whether the agreement is revocable or irrevocable.

When is a DM okay?

• If you're reposting a casual story shoutout or customer review with attribution, a screenshot of their permission via DM may be sufficient.
• If you're using UGC in paid ads, product packaging, or long-term brand materials, always get a signed release form.

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What About Group Videos and Crowd Footage?

Group videos can be tricky, especially when filmed in public spaces. In general, you don’t need individual consent for people who appear incidentally in public settings. But if someone is visibly featured or speaking, it’s smart to get permission in writing.

Filming on private property or featuring minors raises the stakes. You'll usually need parental consent for kids and explicit permission from adults if the footage is used for marketing. When in doubt, blur faces or edit voices to avoid potential legal issues. Always err on the side of caution when uploading crowd footage, especially in promotional content.

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Best Practices With an International Audience

Using UGC from international users? Targeting audience members abroad? That’s a great way to broaden your reach, but it comes with extra legal layers.

If the content includes personal data tied to someone's identity, the GDPR (General Data Protection Regulation) may apply. This is true even if you're not based in Europe.

Other key things to know:

• The EU has strict image rights laws–you often need explicit, written consent to use someone’s face.
• In Canada, privacy and publicity laws vary by province, and rules around minors are especially strict.
• Consent must be clear and freely given, not implied by a hashtag or public post.

Tips for staying compliant across borders:

• Use release forms that are GDPR-friendly.
• Avoid using content from minors unless you have parental consent.
• When in doubt, ask a local legal expert before publishing internationally-sourced content.

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What to Avoid at All Costs

Some UGC mistakes can land you in serious trouble–or worse, damage your reputation. So, follow this advice.

Never edit someone’s content to change the meaning or message, especially in a way that misrepresents them. That’s a fast track to legal claims and broken trust with your audience.

Another hard no… turning someone’s personal loss or hardship into “inspirational” marketing without their clear, informed consent. Even with good intentions, it can come across as exploitative.

And finally, don’t ignore takedown requests. If a creator asks you to remove their content, do it promptly, even if you think you’re in the right. Pushing back can escalate things quickly into legal territory. A good rule of thumb is that if you find yourself in doubt, ask for permission and stay respectful.

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If in Doubt, Bring in Legal Help

When you’re just getting started with UGC, a few templates and best practices can go a long way. But once your campaign starts to grow, or if you’re using sensitive content, it’s smart to bring in legal help.

If your videos include minors, health-related topics, or you’re planning to monetize the content through ads or licensing, the risks get more serious. Having a lawyer review your release forms and usage rights can save you from major headaches later on.

Legal advice is especially helpful when you’re unsure where fair use ends and infringement begins. UGC might seem casual, but your business should treat it with care. A quick legal check now can offer many layers of protection.

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