Bloggers Beware: Free-Speech Means Freedom, but it Does Not Mean Free (by Ben Doherty)

Blogs provide companies accessible forums because they facilitate the free-flow of information and communications concerning topics ranging from company news to significant industry developments. However, earlier this year, the SEC revisited its legal regulations pertaining to “Internet-based speech” and applied existing standards to company-hosted blogs and shareholder forums, which means that corporate bloggers should proceed with caution!

Before posting your blog, some sample regulations bloggers should keep in mind include:

• "All communications made by or on behalf of a company are subject to the antifraud provisions of the federal securities laws whether those statements are made on a company-sponsored Web site or on a third party Web site.” • “Companies need to have in place controls and procedures to monitor statements made by or on behalf of the company in blogs, electronic shareholder forums, and other interactive Internet-based communications.” • When including a third-party hyperlink within your posts, you imply to your readers that “the information thereon is interesting and useful.” To avoid confusion and potential legal troubles, include your reasoning for referencing the link, and be clear in alerting your reader that the subsequent information is not directly associated with you or your company.

Any transgressions could result in imposed penalties from the SEC. So, fellow blogger, take the necessary steps to ensure your blog posts are in compliance with these regulations. We should all remember that “While speech is free, the cost of litigation surely is not!”

If you have questions about whether your corporate or business-related blog may put you at risk, please contact Exemplar's CyberLaw Team for advice.