Social Media and Regulatory Compliance: Avoiding Potential Problems

Stewart Mader, May 5 2010

Regulatory Compliance is a growing issue for corporate social media efforts. Jessica Scarpati reviews emerging compliance issues that could cost a company millions if they’re not properly handled. For example:

“If you’re a registered financial advisor and somebody posts a tweet that says, ‘Everyone should go out and buy Dell stock’ … and you favorite that with a star, that’s an endorsement and you could be fined millions of dollars.”

This is why social media engagement needs to be guided by a plan that sets guidelines, addresses compliance, and provides training so employees are aware of the seemingly harmless activities that can cause problems.