<p>The SEC action highlights the potential for legal trouble when company executives like Hastings, who has more than 200,000 Facebook fans, communicate with the public via social media. Regulation Fair Disclosure, aimed at preventing selective reporting, was passed by the SEC in 2000, before the use of social-media outlets like Facebook and Twitter exploded.</p><p>"This may be a case when the SEC needs to play catch-up," said Charley Moore, executive chairman and founder of San Francisco-based online legal services firm Rocket Lawyer. "Disclosing information to 200,000-plus Facebook users is basically the same as issuing a press release."</p><p>Regulation FD requires public disclosure, such as through a press release on a widely disseminated news or wire service, or by "any other non-exclusionary method" that provides broad public access. In June, Hastings had posted on his company blog that members were viewing "nearly a billion hours per month." With neither the June blog post nor the July Facebook post did he issue a press release or an 8-K filing with the SEC.</p><p>Not 'Material'</p><p><a href="http://www.washingtonpost.com/business/netflix-ceo-hastings-faces-sec-threat-over-facebook-posting/2012/12/07/620868a0-4081-11e2-8a5c-473797be602c_story.html">Keep reading...</a></p><p>Read also:</p><p><a href="http://dealbook.nytimes.com/2012/12/07/netflix-in-hot-water-over-facebook-post/">Netflix in Hot Water Over Facebook Post</a> (New York Times (blog))</p><p><a href="http://articles.chicagotribune.com/2012-12-06/business/sns-rt-us-netflix-secbre8b51ip-20121206_1_netflix-facebook-post-sec-notice">Netflix says CEO comments triggered SEC action</a> (Chicago Tribune)</p><p><a href="http://www.fool.com/investing/general/2012/12/07/hastings-use-of-facebook-to-communicate-raises-sec.aspx">Hastings&#039; Use of Facebook to Communicate Raises SEC Questions</a> (Motley Fool)</p><p>Explore: <a href="http://news.google.com/news/more?ncl=dWejGdBh2CI-P5M_G0C2S4XVXuFWM&ned=us">441 additional articles.</a></p>