By Melony Roy
PHILADELPHIA (CBS) – Chief executives are now allowed to tweet, post, or blog as long as they inform investors about their social media strategy first.READ MORE: 2 Young Unresponsive Children Rushed To Hospital After Mother Jumps Out Window, Philadelphia Police Say
In an attempt to regulate information in the digital age, the Securities and Exchange Commission has outlined new rules that clarify how public companies can use Facebook, Twitter and other social networks.
Assistant Professor at Wharton School, University of Pennsylvania Dr. Andrea Matwyshyn explains the SEC rules.READ MORE: Philadelphia Man Christian Williams Found Dead Inside Car In Cheltenham Township, DA Says
“So the principle behind regulation FD is that there has to be fair disclosure and that no particular market participant should have preferential access to information over any other participant.”
This decision comes after an SEC investigation of Netflix CEO Reed Hastings’ personal Facebook post about Netflix monthly online viewing exceeding 1 billion hours for the 1st time.
“That investigation triggered an internal recognition by the SEC that perhaps there truly is lack of clarity in this space”MORE NEWS: Philadelphia Health Commissioner Dr. Thomas Farley Resigns Over Mishandling Of Remains Belonging To Victims Of 1985 MOVE Bombing
Matwyshyn also says technology gallops ahead of the law regularly and the SEC is just starting to catch up to some of these issues.