The Securities and Exchange Commission said Tuesday that companies can use social media outlets like Facebook and Twitter to announce key information as long as they give notice to investors about which sites will be used to disseminate the information. This decision is in compliance with Regulation Fair Disclosure (Regulation FD).
The SEC said it supports companies seeking new ways to engage with shareholders and the market. But the agency will apply disclosure rules to social media and other emerging forms of communication in the same way that it applies those rules to the websites of public companies.
The SEC’s report of investigation stems from an inquiry launched when Netflix CEO Reed Hastings posted statistics about the company’s streaming video service on his personal Facebook page last year before Netflix had shared that information with investors.