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New York -- The Securities and Exchange Commission on Tuesday said that companies can social media platforms such as Twitter and Facebook to make significant announcements as long as they alert investors about which sites they plan to use for the disclosures.
"Most social media are perfectly suitable methods for communicating with investors, but not if the access is restricted or if investors don't know that's where they need to turn to get the latest news," said George Canellos, acting director of the SEC's division of enforcement, in a statement.
The announcement was triggered by a probe stemming from a post last summer on the personal Facebook page of Netflex CEO Reed Hastings that stated Netflix's monthly online viewing had exceeded one billion hours for the first time. The SEC said the information had not been revealed through more traditional means. The SEC said it did not initiate an enforcement action or allege wrongdoing in that case.