Ad Groups Warn of FTC Power Threat

  |  January 20, 2010   |  Comments

Ad trade groups including the Interactive Advertising Bureau sent a reminder letter to lawmakers stating concerns about possible new Federal Trade Commission authority over ad practices.

Advertising trade groups including the Interactive Advertising Bureau sent a letter to the Senate Commerce Committee to remind legislators of their concerns that the Federal Trade Commission could become too powerful. The organizations suggested the FTC could acquire too much authority as a result of changes that could be included in reauthorization of the agency, expected sometime early this year.

"While we support the FTC's mission to prevent and punish unfair and deceptive acts or practices, we believe that the current limits on the FTC's discretion are appropriate given the significant consequences of any enforcement action for a targeted company and its shareholders and employees," stated the letter, signed by 29 organizations, including the IAB, Online Publishers Association, American Association of Advertising Agencies, American Advertising Federation, Association of National Advertisers, Direct Marketing Association, and Shop.org.

The missive was sent to the Senate Committee on Commerce, Science and Transportation, which is expected to reauthorize the FTC, possibly in conjunction with financial industry reform legislation. Today's letter follows a series of complaints regarding new FTC authority.

The FTC has long argued that current rulemaking requirements have prevented it from taking actions in a timely manner, and wants the rulemaking process to be more streamlined. Those obstacles could be removed in conjunction with the agency's reauthorization. The commission could also be awarded the ability to slap civil penalties on businesses engaging in alleged deceptive or unfair practices.

Though it is unclear if or how such changes might come about, there are indications that a financial industry reform bill making its way through Congress could grant the FTC the additional authority, as it reauthorizes the agency.

"Taken together, these provisions grant such sweeping powers that the FTC could essentially act as an unelected legislature governing industries and sectors across the economy," stated the coalition's letter.

The groups also lamented a lack of "opportunity for affected industries to appear at a hearing to present their concerns about the potential effect of these provisions on American commerce and our economic future."

ClickZ Live San Francisco Revolutionize your digital marketing campaigns at ClickZ Live San Francisco (August 10-12)!
Educating marketers for over 15 years, our action-packed, educationally-focused agenda offers 9 tracks to cover every aspect of digital marketing. Join over 500 digital marketers and expert speakers from leading brands. Register today!

ABOUT THE AUTHOR

Kate Kaye

Kate Kaye was Managing Editor at ClickZ News until October 2012. As a daily reporter and editor for the original news source, she covered beats including digital political campaigns and government regulation of the online ad industry. Kate is the author of Campaign '08: A Turning Point for Digital Media, the only book focused on the paid digital media efforts of the 2008 presidential campaigns. Kate created ClickZ's Politics & Advocacy section, and is the primary contributor to the one-of-a-kind section. She began reporting on the interactive ad industry in 1999 and has spoken at several events and in interviews for television, radio, print, and digital media outlets. You can follow Kate on Twitter at @LowbrowKate.

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Today is our #1 newsletter.
Get a daily dose of digital marketing.

COMMENTS

UPCOMING EVENTS

Featured White Papers

US Consumer Device Preference Report

US Consumer Device Preference Report
Traditionally desktops have shown to convert better than mobile devices however, 2015 might be a tipping point for mobile conversions! Download this report to find why mobile users are more important then ever.

E-Commerce Customer Lifecycle

E-Commerce Customer Lifecycle
Have you ever wondered what factors influence online spending or why shoppers abandon their cart? This data-rich infogram offers actionable insight into creating a more seamless online shopping experience across the multiple devices consumers are using.

WEBINARS

Jobs

  • Sr. Marketing Specialist, PPC
    Sr. Marketing Specialist, PPC (Charter Communications) - StamfordSr. Marketing Specialist, PPC– Digital Marketing Charter Communications...