Digitally savvy corporations can finally stop worrying that their last Tweet or Facebook post might have inadvertently disclosed material information to investors. The Securities and Exchange Commission recently issued a new “Guidance Update” that provides welcome direction on when and how social media may be used by publicly traded companies while remaining in compliance with federal regulations.

The SEC has long been concerned with timely disclosure of company information to the public. In 2000, the agency promulgated Regulation FD in an effort to prevent earnings and other important information from trickling out to investors and the public at large. Through the use of the SEC’s online filing system, EDGAR, and the processes set forth in Reg FD, timely notification could be made. The problem? Reg FD does not address the digital world we now live in.

Continue reading " All the Public Companies: Put a #Hashtag on It "

Netflix CEO Reed Hastings is in the news again, not for enraging subscribers over a price increase or for presiding over a steep decline in share price, but for using social media to tout a company milestone.

Hastings took to his Facebook page in June and praised his staff for achieving a monthly viewing rate in excess of 1 billion hours for the first time in the company’s history.

Continue reading " Assessing the Net of Disclosure: Should the SEC “Like” Facebook? "

Social media is changing the regulation landscape for a number of industries. However, as companies and brands try to stay relevant by participating in online discussions, they must be mindful of preexisting rules and regulations that govern a great deal of the social engagement taking place. Even regulators struggle to understand evolving technologies and issue new guidance or adapt existing rules. The goal is to find a balance between complying with regulation and still finding opportunities to create engagement online.

In this week’s PRSA “Friday Five” post — an analysis of the week’s biggest public relations and business news and commentary — we explore how companies within different industries are affected by social media regulations and how they are finding balance in a social world stifled, yet protected, by online regulation.

Delaware Schools to Be Barred from Students’ Social Media Lives (Law Blog/The Wall Street Journal)

With the development and expansion of sites like Facebook, MySpace, YouTube, and Twitter, a number of schools are taking an increased interest in their students’ use of social media sites both during and after school hours. Some colleges and universities have required students to download social media monitoring software on their personal electronic devices or accounts as a condition of their scholarship or athletic participation. Recently, The Wall Street Journal reported that Delaware is on the verge of prohibiting schools from monitoring students’ social media activity without  explicit consent. The state Senate unanimously voted to ban public and private schools from requiring students to allow access to their social media lives, the Los Angeles Times reported. Attorney Bradley Shear, who helped draft Delaware’s social media law, said “schools and employers that require access to social media are violating the First Amendment.”

Continue reading " Friday Five: Regulating Social Media Practices "