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Companies sharing corporate news on social media must inform investors

New SEC rule applies regardless of number of followers or friends

The Securities and Exchange Commission (SEC) does not care how many Twitter followers you have, you still have to follow its rule about sharing key company information on social media. “But I just hit 5,000 followers!” you might protest. “Surely that makes me special!” No. Nobody cares. Follow the rules.

The rule in question is actually a boon to companies who love sharing things on social media—on Tuesday the SEC decided to allow companies to share market-moving corporate news through posts on sites like Facebook and Twitter, as long as they have informed their investors how to find that information, the Wall Street Journal reports.

And yes, that applies even if a company’s or executive’s Twitter or Facebook reaches a broad audience. Even if you’re Coca-Cola, with almost 700,000 Twitter followers, to stay on the SEC’s good side, you should still inform your investors to check the Twitter feed for important information.

"We appreciate the value and prevalence of social media channels in contemporary market communications, and the commission supports companies seeking new ways to communicate,” the SEC said in its report.

 

Read more about social media on InsideCounsel:

NLRB sees increase in social media-related cases

Lawyers: Do not “friend” or “tweet” jurors and parties represented by counsel

Tackling social media challenges

How to enforce ownership of social media accounts

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