Understanding a Company’s Potential Liability under the Securities Laws for Website Content -

These FAQs address the ways in which company websites and social media platforms can give rise to securities law liability, and how companies can protect themselves by instituting comprehensive policies and procedures. The Securities and Exchange Commission (the “SEC”) has acknowledged the role of company websites and social media platforms, such as Twitter, Facebook and YouTube (as well as their many competitors) (collectively, “social media”), in communicating with investors (e.g., for purposes of addressing Regulation Fair Disclosure, or “Regulation FD”). When we refer to “web content” herein, we are referring to the company’s website, as well as any content the company publishes via social media. These FAQs do not address the special concerns applicable to registered broker-dealers or registered investment advisers in their use of social media.