Don’t expect the Securities and Exchange Commission to start cutting back on the reporting it requires from public companies, but legal experts are debating whether a recent court decision could mean several of its disclosure requirements—including current regulations and those under consideration—are unconstitutional.
The debate stems from a ruling by the U.S. Court of Appeals for the District of Columbia that struck down part of an SEC rule requiring companies to disclose on their Websites whether some of their products may contain “conflict minerals.” The court decided that the online disclosures amounted to “compelled speech,” in violation of companies’ First Amendment rights.
