One of the highlights at this year’s Consumer Electronics Show (CES) was the parade of new connected vehicle technologies. Automakers and their suppliers rolled out a number of...19 January 2017
SEC Clarifies Stance on Social Media Disclosures
The report—which notes that the SEC has decided not to pursue enforcement action against Hastings or Netflix—acknowledges that there is uncertainty concerning the application of Regulation FD and the SEC’s 2008 Guidance on the Use of Company Web Sites to social media. The report confirms that the principles outlined in the 2008 Guidance—particularly the requirement to notify the investing public of the distribution channels a company will use to disseminate material, nonpublic information—apply equally to disclosures made through social media channels. The report encourages companies to identify on their corporate web sites the specific social media channels that they intend to utilize for the dissemination of material nonpublic information to give investors and the market the opportunity to take steps necessary to subscribe to, join, register for or review that channel. The report also notes that, although every case must be evaluated on its own facts, the disclosure of material, nonpublic information on the personal social media site of an individual corporate officer, without advance notice to investors that the site may be used for this purpose, is unlikely to meet Regulation FD requirements even if the individual has a large number of subscribers, friends or other social media contacts.