Compliance in Live Commerce: Four Risk Areas Brands Can’t Ignore

Live commerce is booming, but brands must navigate claims about their products, pricing & stock scarcity and competitor commentary risk.

Live commerce is no longer a fringe channel. It’s fast becoming a core retail route for brands, agencies and social commerce teams. At the same time, platforms are imposing stricter content and commerce policies, while regulators are stepping up enforcement

This puts claims made by hosts in the spotlight where they risk platform bans, or, more seriously, regulatory scrutiny over their practices. This applies to both branded live channels and claims made by affiliates in the brand name.

For multinational brands, the live commerce compliance challenge is real. The opportunity to simply follow the approach of smaller, more flexible and ultimately, less compliant, brands or to use suppliers who don’t enforce their normal strict standards is a risky choice.

Live commerce sits at the intersection of marketing, ecommerce, entertainment and regulatory compliance. That means more complexity, more accountability, and higher stakes when things go wrong.

This article explores four risk areas that brands must address in their live commerce operations. These include product claims, pricing mechanics, stock and scarcity messaging, and commentary about the competition. Each area carries specific risks that are intensified by the speed and pressure of live selling formats.

1) Claims: From “Best” to Health-Related Statements

When a live host tells viewers that a product is “the best on the market” or that it “reduces inflammation” or “eliminates wrinkles,” the brand is entering risky territory. Whether it’s a superlative or a health-related promise, both platform guidelines and consumer protection laws are clear. The crux of Live Commerce compliance is You must be truthful, specific and able to back up any claims with credible evidence.

What to watch

• Platforms like TikTok Shop prohibit exaggerated promises and vague or unverifiable performance claims. For example, hosts are not allowed to say things like “this is the lowest price you’ll find anywhere.”
• Health-related or cosmetic claims must be substantiated with appropriate documentation. Statements like “clears acne in three days” or “permanently reduces wrinkles” are prohibited unless supported by approved data and allowed under local regulation.
• In the UK, the new Digital Markets, Competition and Consumers Act gives regulators the power to fine companies up to 10 percent of global turnover for misleading commercial practices.

Examples of risky claims

• Saying “best in class” without any benchmark, award or verifiable comparison
• Using “before and after” transformations that suggest medical or permanent results
• Claiming nutritional or wellness benefits like “boosts immunity” without regulatory clearance, clinical studies or the right licenses

How to stay compliant

• Only use language like “best” or “top-rated” when you have documented evidence. Keep that evidence on file and ready to produce if challenged.
• Ensure hosts follow a scripted or semi-scripted outline that avoids unverified claims. Don’t rely on improvisation when legal risks are involved.
• Moderate chat and viewer comments actively. If someone makes a false claim or repeats misleading language, your team should address or remove it in real time.
• Regularly review platform policies and ensure your messaging complies across all regions where your content is viewed or sold.
  

2) Pricing: Two Core Areas Where Brands Slip Up

Pricing can be a minefield in live commerce. Unlike static web pages, the urgency and immediacy of live video amplify pricing claims and increase the risk of misleading consumers. Two common problem areas are “always on sale” positioning and statements like “this is the best deal anywhere.”

Sale fatigue and the “always discounted” problem

If a product is always listed as “on sale” but never actually sold at the original price, regulators may deem the discount misleading. In most markets (different regulations per market), such tactics can fall under unfair commercial practices. TikTok Shop’s own policies also require price claims to match actual offer history and prohibit misleading promotion windows.

Misleading “best price” or “lowest price” claims

When a host says, “You won’t find this cheaper anywhere,” that’s a comparative claim. If you sell the same product at a lower price elsewhere or if it was never really sold at the higher “was” price, you’re misrepresenting the deal.

Why live formats amplify the problem

• Hosts are encouraged to drive urgency, often with “tonight only” pricing that’s not genuinely exclusive
• Price tiers (standard, coupon, special deal) can be confusing or misleading if not explained properly
• Discounts that look dramatic during the stream may have no real basis in the product’s price history
  

How to stay compliant

• Maintain a pricing log for every product featured in live commerce. Track when and where each price was offered.
• Use absolute terms like “lowest price” only when backed by actual market comparisons. Otherwise, qualify your language.
• Review scripts and live talking points with your pricing and legal teams.
• Coordinate your live commerce platform with your inventory and pricing systems. Don’t let hosts offer discounts that haven’t been cleared.

3) Scarcity Messaging and Stock Claims

Saying “only five left” or “this is your last chance” can drive urgency and boost conversions. But if it’s not true, you’re misleading the customer. And increasingly, that comes with consequences.

Why this matters

• Consumer law treats fake scarcity as a form of pressure selling
• As an example, the new UK regulatory regime makes it easier for authorities to penalise these tactics, even without proving harm
• Live formats can quickly lose trust. If you say there’s “one left” and it’s still available hours later, audiences will call it out

Common pitfalls

• Using countdowns or inventory numbers that are fixed, scripted or not updated
• Repeating “last chance” messaging on the same product in multiple streams
• Creating false urgency on products that are widely stocked or easily restocked

How to stay compliant

• Integrate your live commerce platform with your inventory system so that live messaging reflects real stock levels
• Create rules for when hosts can use scarcity language. For example, only say “limited stock” when fewer than a certain number remain
• Train your moderators to correct or tone down misleading urgency in chat
• Provide clear messaging if a product is going to be restocked soon. Don’t suggest it’s gone for good if that’s not true

4) Competitor Mentions and Negative Comparisons

In the heat of a live session, it’s tempting to contrast your product with the competition. But unsupported or negative claims about rivals are risky in terms of live commerce compliance.

What’s at stake

• Platform policies like TikTok Shop’s prohibit malicious comparisons, which include any unsupported or disparaging remarks about other brands
• As an example, advertising law in the UK and EU allows comparative advertising, but only if it’s objective, verifiable and not misleading
• Hosts may go off-script, saying things like “unlike those cheap knock-offs,” which can breach both platform rules and advertising standards

Risk scenarios to avoid

• Claiming competitor products are dangerous, low quality or inferior without evidence
• Using customer reviews to disparage competitors without fair context
• Mentioning competitor brand names in a way that suggests affiliation or false comparison

How to stay compliant

• Pre-approve any comparisons you plan to use. Only mention competitor names if you have factual, verifiable data to support your claim
• Train hosts to stick to product features and benefits rather than attacking others
• Use phrasing that highlights your strengths rather than tearing others down. For example, “We offer a 3-year warranty” is fine. “They only offer one year” may need context
• Moderate chat discussions that spiral into bashing competitors or spreading misinformation

Final Thoughts…

Compliance in live commerce is no longer optional. For brands that want to operate at scale and across markets, it’s essential to treat compliance as part of the production process, not a legal afterthought. To summarise:

• Avoid exaggerated or vague claims, especially in health and beauty
• Be precise and honest about pricing, and back up any comparative claims
• Only use scarcity language when it reflects actual stock levels
• Keep competitor mentions factual, respectful and verifiable

With platforms and regulators now focusing more closely on live selling, brands that fail to build compliance processes into their live commerce operations risk reputational damage and enforcement action. Those that get ahead of the curve by aligning messaging, training teams, and integrating compliance into their analytics and workflows will be best placed to win long-term trust and growth

About Stickler & Compliance

Stickler has a suite of tools for Live Commerce allow you to tackle the compliance challenge in multiple ways:

Pre-Live: Workflow tools to help you build compliant scripts, Run-of-Show and product descriptions, signed off by your clients and team members, and then efficiently distributed to your team meaning you can maximise efficiency and stay compliant when going live at scale

During-Live: from host and moderation tools, that allow hosts to be guided through a complaint run-of-show whilst also keeping the spontaneity and authenticity of Live, Stickler provides tools that let your hosts and moderators do their best work whilst making sure they only use the descriptions and phrases you approve. We also have client monitoring solutions so you can tune in behind the scenes of your live streams and understand what is happening realtime.

Post-Live: We provide comprehensive tools that track every aspect of Live Commerce including transcribing your hosts and understanding what consumers say/comment and the host reaction. We run reporting on what was said and how to make sure no lines were crossed and you remained compliant. We have tools to feedback to hosts if they went too far in the moment and said something they shouldn’t say next time.

Storage & Reporting: Included with our systems is storage of your livestreams and all data associated with them. A central record of what was said, by whom and should any questions of claims arise from an errant description or there are any consumer claims against your business, we keep the streams for reference forever. We also have alert systems that will flag potential issues with your brand manager, legal team or the live team ,depending on what was said by whom.

Get in touch with us to learn more.