Legal Liability for Proxy Use in Business: What is Legal for Arbitration and SMM

If you work with Facebook Ads, manage client accounts on Instagram, or scrape prices on marketplaces — the question of the legality of using proxies has surely crossed your mind. Many arbitrage specialists and SMM professionals avoid this topic, but ignorance of legal nuances can lead to serious problems: from account bans to claims from platforms.

In this article, we will explore the legislative aspects of using proxies for commercial purposes, analyze the real risks for different business sectors, and provide specific recommendations on how to operate legally and safely.

Legal status of proxies: what the legislation says

Let's start with the main point: the use of proxy servers is completely legal in most jurisdictions, including Russia, EU countries, and the USA. Proxies are a technical tool for routing internet traffic that has many legitimate applications: from ensuring the security of corporate networks to accessing regional content.

The legislation of different countries considers proxies as a neutral technology. For example, there are no articles in Russian legislation that explicitly prohibit the use of proxies for commercial activities. The same situation exists in the USA and Europe — the mere fact of using proxies is not a violation of the law.

However, it is important to understand the difference between the legality of the technology and the legality of the specific actions you take with it. Proxies are a tool, and legal responsibility depends on how you apply it. Using residential proxies to access Facebook ad accounts from different regions is one thing, while using proxies for hacking accounts or committing fraud is entirely different.

Key legal principles

Let's consider specific situations. If you use proxies to run advertising campaigns for clients from different regions — this does not directly violate the law, but it may violate the platform's rules (Facebook, Google Ads). If you scrape public data from marketplaces for price analysis — this is in a gray area: formally you are accessing public information, but you may be violating the website's terms of use.

Special attention should be paid to personal data. If your activities using proxies involve the collection or processing of users' personal data (for example, email addresses from social networks), you must comply with GDPR requirements in Europe or the personal data law in Russia. Violating these norms can lead to serious fines — up to 4% of the company's annual turnover in the case of GDPR.

Using proxies for commercial purposes: main scenarios

Let's analyze typical business scenarios for using proxies and their legal status. This will help understand where the real risks lie and where concerns are unfounded.

1. Traffic arbitrage and paid advertising

Arbitrage specialists use proxies to manage multiple Facebook Ads, TikTok Ads, and Google Ads accounts. The main task is to avoid linking accounts by the platforms' anti-fraud systems. From a legal perspective, there are two aspects here:

Legislation: Running ads through proxies does not violate the laws of Russia, the USA, or the EU, provided that the advertised products are legal and the advertising complies with advertising legislation requirements. Problems may arise if you promote prohibited goods or use deception in advertising materials — but this is not directly related to proxies.

Platform policies: The situation is more complicated here. Facebook and Google officially prohibit the use of multiple accounts by one person or company without special permission. Using proxies and anti-detect browsers (Dolphin Anty, AdsPower, Multilogin) to bypass these restrictions formally violates the user agreement.

2. SMM and multi-accounting on social networks

SMM agencies manage dozens of client accounts on Instagram, TikTok, VK, using proxies to separate digital fingerprints. This is standard practice for professionals, but it is also in a gray area.

Legislation: Managing client accounts through proxies does not violate the law if you have official contracts for SMM services and do not engage in illegal activities (spam, distribution of prohibited content, artificially inflating metrics).

Platform policies: Instagram and TikTok prohibit automation and the use of tools that mimic user actions. However, manually managing accounts through anti-detect browsers with proxies is not formally considered automation. The risk of blocking exists, but it is more related to suspicious activity (mass subscriptions, likes) than to the mere fact of using proxies.

Many agencies successfully use mobile proxies to work with Instagram and TikTok for years without issues, adhering to activity limits and mimicking natural user behavior.

3. Scraping and monitoring e-commerce

Marketplace sellers and analytics services use proxies to scrape prices on Wildberries, Ozon, Yandex.Market, Avito. This is one of the most controversial areas from a legal perspective.

Legislation: Scraping publicly available data is not a violation of the law in Russia and most countries. However, there are nuances:

• If the data is copyright protected (for example, unique product descriptions, photographs), copying them may violate copyright laws
• If scraping creates excessive load on the server and disrupts its operation, it may be classified as a DDoS attack
• Some data may contain personal information about sellers, which requires compliance with personal data laws

Platform policies: Almost all marketplaces prohibit automatic data collection in their user agreements. Wildberries, Ozon, and others actively combat scraping by blocking IP addresses. Using proxies helps bypass these blocks, but formally violates the website's terms of use.

4. Testing and analytics

Marketers use proxies to view competitors' ads from different regions, test the geo-targeting of their campaigns, and check how websites display in different countries. This is the safest scenario for using proxies.

Legislation: No violations. You are simply viewing publicly available content from different locations.

Platform policies: Usually not violated, as you are not creating multiple accounts or performing mass actions. The only limitation is that some streaming services (Netflix, YouTube Premium) prohibit bypassing geo-blocks in their terms of use.

Platform policies: Facebook, Instagram, TikTok, and marketplaces

Understanding the policies of specific platforms is critically important because they define the practical risks for your business. Even if using proxies is legal from a state perspective, violating platform rules can lead to the loss of accounts and budgets.

Facebook and Instagram (Meta)

Meta has some of the strictest rules in the industry. The Facebook user agreement explicitly prohibits:

• Creating more than one personal account
• Using accounts for commercial purposes without Business Manager
• Using automation and bots to interact with the platform
• Providing false information about yourself or your location

Facebook's anti-fraud system analyzes hundreds of parameters: IP addresses, browser digital fingerprints (canvas fingerprint, WebGL), behavioral factors, payment data. Linking accounts can lead to a chain ban — blocking all associated profiles and advertising accounts.

Practical reality: Thousands of arbitrage specialists and agencies use anti-detect browsers (Dolphin Anty, AdsPower) with proxies to work with Facebook Ads. The key to success is quality account separation and natural behavior. Using quality residential or mobile proxies significantly reduces the risk of bans.

TikTok and TikTok Ads

TikTok actively combats multi-accounting and automation, but its systems are less sophisticated than Meta's. The main prohibitions in the user agreement are:

• Using bots and automation to inflate views, likes, followers
• Creating multiple accounts for spam
• Using VPNs to bypass geographic restrictions (important for countries where TikTok is restricted)

For TikTok Ads, the situation is similar to Facebook — the platform does not welcome multiple advertising accounts for one person, but does not fight against it as aggressively. Many arbitrage specialists note that TikTok is more lenient towards proxies and anti-detect browsers.

Google Ads and YouTube

Google has clear rules regarding advertising accounts. The Google Ads policy prohibits:

• Creating multiple accounts to bypass blocks or restrictions
• Using fake information during registration
• Attempting to deceive moderation systems

Google is less aggressive in banning for using proxies than Facebook, but it pays more attention to payment data and the quality of advertised websites. The main risk is not the mere fact of using proxies, but non-compliance of the ads with Google's policies.

Wildberries, Ozon, and other marketplaces

Marketplaces combat scraping at the technical level: rate limiting, blocking suspicious IPs, CAPTCHA. User agreements usually contain clauses prohibiting automatic data collection:

• Wildberries: "The use of automated means to access the Site is prohibited"
• Ozon: "The use of robot programs, spiders, and other automated devices is prohibited"
• Yandex.Market: similar restrictions in robots.txt and user agreement

Practice: Marketplaces block IP addresses upon detecting scraping, but rarely go beyond technical measures. Lawsuits against scrapers are rare and concern large commercial projects that resell data or create significant load on servers. Using data center proxies with IP rotation allows effectively bypassing these restrictions.

Risks for arbitrage specialists and paid advertising professionals

Traffic arbitrage is a field where the use of proxies has become standard practice. However, the risks here are maximized due to strict policies of advertising platforms and high financial stakes.

Main risks

1. Blocking of advertising accounts

This is the most common and painful risk. If a connection between accounts is detected, Facebook may block all associated profiles, advertising accounts, and Business Manager. Losses can amount to:

• Frozen advertising budget (from several thousand to hundreds of thousands of rubles)
• Loss of time creating and warming up new accounts (2-4 weeks)
• Loss of accumulated statistics and audiences
• The need to change the entire infrastructure (proxies, browser fingerprints, payment data)

2. Chain bans and account linking

Modern anti-fraud systems analyze not only IP addresses but also dozens of other parameters: browser fingerprints (canvas, WebGL, WebRTC), cookies, payment data, behavioral factors. If even one parameter matches between accounts, the system may link them and block all at once.

Typical mistakes that lead to linking:

• Using one proxy for multiple accounts
• Insufficient isolation in the anti-detect browser (WebRTC leak, identical canvas fingerprints)
• Identical payment data or cards from the same bank
• Suspiciously similar behavior (identical ad texts, creatives, targeting)
• Switching between accounts from one device without changing the digital fingerprint

3. Legal risks

For arbitrage specialists, legal risks are minimal if basic rules are followed:

• The advertised products are legal (no drugs, weapons, counterfeit goods)
• Advertising materials do not contain deception or false promises
• Compliance with advertising legislation requirements (labeling, age restrictions)
• No copyright violations (using someone else's trademarks, photos without permission)

The mere fact of using proxies and multiple accounts does not entail legal responsibility. Facebook may block your accounts, but it cannot sue you for using proxies — this is a violation of the user agreement, not the law.

How to minimize risks

Risks for SMM agencies and multi-accounting

SMM specialists and agencies are in a somewhat different situation compared to arbitrage specialists. They usually work with client accounts based on official contracts, which reduces legal risks, but technical risks of blocking remain.

Specific SMM risks

1. Blocking of client accounts

This is a critical risk that can lead to loss of clients and reputational damage. If Instagram or TikTok blocks a client's account due to suspicious activity (linking to other accounts, automation), you may incur financial and reputational losses.

The situation is particularly dangerous when you manage accounts of competing brands in the same niche — anti-fraud systems may link them and block all at once.

2. Liability to clients

If the SMM services contract does not specify the risks of blocking and your liability is limited, the client may demand compensation for the loss of account, followers, and content. It is important to include clauses in the contract regarding:

• Risks of blocking social media accounts
• Limitation of your liability in case of blocking due to the platform's fault
• The client's obligation to provide accurate data and comply with platform rules
• Regular backup of content

3. Automation and bots

Using automation services for mass subscriptions, likes, comments is a direct violation of the rules of all social networks. If you use such tools, the risk of blocking is very high.

However, manually managing accounts through anti-detect browsers with proxies is not considered automation. You are simply working with multiple accounts from one computer, which is not prohibited as long as activity limits are observed.

Legal protection for SMM agencies

To protect themselves legally, SMM agencies are advised to:

• Formalize official contracts for services with a clear description of work and limitation of liability
• Obtain powers of attorney or official permissions to manage client accounts
• Document all actions: screenshots, reports, correspondence — this will protect you in case of disputes
• Keep backups of all client content (posts, photos, videos) off the platforms
• Inform clients about risks and obtain their written consent for the methods used

From a legal standpoint, managing client accounts based on a contract is a legal activity. Problems may arise only if you:

• Publish prohibited content (extremism, pornography, drug propaganda)
• Use personal data of users without consent
• Violate copyright (publish someone else's content without permission)
• Engage in fraud or deception

Risks for e-commerce: scraping and monitoring competitors

The e-commerce sector actively uses proxies for scraping competitor prices, monitoring product availability, and market analysis. This is the most legally contentious area of proxy use.

Legal status of scraping

Scraping public data is in a gray area of legislation. On the one hand, the information is publicly available, and any user can view it. On the other hand, automated mass data collection may violate:

• The website's user agreement — almost all marketplaces prohibit automatic data collection in their terms of use
• Copyrights — if you copy unique product descriptions, photographs, texts, this may be a copyright violation
• Personal data law — if you scrape information about sellers containing personal data
• Unfair competition law — in rare cases, scraping may be classified as obtaining trade secrets illegally

Judicial practice: In Russia and the CIS countries, judicial practice regarding scraping is sparse. There have been isolated cases where large marketplaces filed lawsuits against scraping services, but most cases concerned the commercial resale of scraped data in large volumes.

Scraping for personal use (monitoring competitor prices to adjust your own) usually does not lead to legal consequences. The risk increases if you:

• Create a commercial service based on scraped data
• Resell the collected information
• Publish scraped data publicly
• Create significant load on the target website's servers

Technical risks

The main risk for scrapers is not legal, but technical. Marketplaces actively combat scraping:

• IP address blocking — the most common measure. Wildberries, Ozon block IPs upon detecting suspicious activity
• CAPTCHA — a request to confirm that you are a human, not a bot
• Rate limiting — limiting the number of requests from one IP in a given time
• Changing website structure — marketplaces periodically change the HTML structure, which breaks scrapers
• Honeypot traps — hidden elements on the page that are only visible to bots

Using proxies solves most of these problems. IP rotation through a pool of proxies allows bypassing blocks and rate limiting. For scraping marketplaces, data center proxies are usually used due to their speed and affordable price, but residential proxies are suitable for more delicate tasks.

Recommendations for safe scraping

Important: If you are creating a commercial scraping service or data aggregator, it is advisable to consult a lawyer. For large projects, it makes sense to obtain official permission from the platform through APIs or partnership programs — this fully legalizes your activities.

How to protect your business: legal precautions

Regardless of your area of activity, there are a number of universal measures that can help minimize legal risks when using proxies for commercial purposes.

1. Documenting activities

If you operate as a business (individual entrepreneur or LLC), it is important to properly document your activities:

• Business registration — operate officially, pay taxes. This will protect you in case of disputes with clients
• Correct OKVED codes — specify activity codes that correspond to your services (for example, 73.11 for advertising agencies, 63.11.1 for data processing)
• Contracts with clients — always formalize written contracts for services with a clear description of work, deadlines, and responsibilities of the parties
• Acts of completed work — document each stage of work to protect against claims

2. Limiting liability in contracts

When working with clients, it is important to include clauses in contracts that limit your liability for the actions of third parties (platforms):

It is also important to specify:

• The client's obligation to provide accurate information
• Prohibition on using your services for illegal activities
• The right to suspend work upon detecting violations by the client
• Limitation of the amount of compensation in case of disputes

3. Compliance with personal data legislation

If your activities involve the collection or processing of personal data, it is necessary to:

• Notify Roskomnadzor about the beginning of personal data processing (for Russia)
• Obtain consent from users for processing their data
• Ensure data protection — use encryption, restrict access
• Have a privacy policy on the website if you collect data through web forms

To work with clients from the EU, it is necessary to comply with GDPR requirements, which include users' rights to delete data, access information about what data is stored, and other requirements.

4. Copyrights and intellectual property

When creating content for clients or scraping data, it is important not to violate copyrights:

• Do not copy someone else's texts, photographs, videos without permission
• Use licensed stock photos or create your own content
• When scraping, do not copy unique product descriptions — rework the information
• Do not use someone else's trademarks and logos for commercial purposes

5. Choosing a reliable proxy provider

Legal risks can arise not only from your actions but also from the actions of the proxy provider. Choose providers that:

• Operate legally and have official registration
• Provide "clean" IP addresses that have not been involved in spam or fraud
• Guarantee confidentiality and do not keep logs of your activities