Public Relations and Law 

Public Relations and Legal Considerations  

There are two general legal principals that professionals must consider when doing PR work. 

The law always proceeds the needs and desires of an organization/employer

Communication between a PR person and its client are confidential, but they are not privileged

This means - communication is discoverable in a legal proceeding

Contributions to political candidates

Courts have ruled that campaign spending (expenditures) falls under the First Amendment

Expenditure is what the candidate or party spends.

Advertising purchased on behalf of a candidate -- but without the candidates knowledge or approval -- is considered an expenditure

Contribution is what is given to the candidate-these fall under Federal Election laws

If the advertising is done with the knowledge of the candidate it is considered a contribution

Government agencies and units at the federal level cannot spend public money on advertising or promotion as legislated by the Gillett Amendment of 1913.

Many states have similar laws.

Universities that are funded by the public cannot use public funds to promote their institution.

This is considered a conflict of interest. They must use privately-raised funds.

Public Disclosure

Company must reveal how stock is being evaluated by stockbrokers, analysts, and potential investors

Information must be timely, factual and accurate

Insider Trading

If you work for a publicly traded company, you must certainly will have information unknown to the general public or other stockholders

If this information is used illegally to trade on that company’s stock, that is insider trading

Many PR agencies will prevent their employees from owning stock in companies they represent