Section 17(b)

Section 17(b) of the Securities Act of 1933 is the federal anti-touting rule that makes it illegal to publish, give publicity to, or circulate any communication describing a security in exchange for compensation — directly or indirectly — without fully and prominently disclosing the consideration received and from whom. It is the rule the SEC uses to bring enforcement actions against undisclosed paid promotions, including paid social media posts, paid newsletters, and paid press placements that don't carry conspicuous "this is a paid advertisement" disclosure. Why it matters: Section 17(b) is the single most-violated securities law in modern PR and influencer marketing for issuer companies. Every paid press release, paid social post, paid newsletter mention, paid podcast spot, or paid blog post about a security must carry a clear, prominent disclosure of the payment — the existence of compensation alone is not the violation; the failure to disclose it is. PR programs for any SEC-regulated issuer (including Reg A+ and crypto token issuers) must treat Section 17(b) as a standing operational constraint, not an edge case.