Here is the latest from Clark Rector, Senior Vice President, AAF National.
California Consumer Privacy Act Update
California regulators in the state Attorney General’s office continue their efforts to make the Californian Consumer Privacy Act (CCPA) ready for implementation by the January 1, 2020 deadline. As previously reported, AAF has written to the AG with our concerns and AAF Sacramento president Heather Smith and District 14 Governor Christopher Terrazas each testified at the February 5 forum in Sacramento to explain the impact the new law could have on smaller businesses in the state.
Underscoring our concerns about possible unintended consequences of the CCPA, Peter Feldman, Commissioner of the U.S. Consumer Product Safety Commission has written to the Attorney General and key legislators about the likely negative impact the CCPA’s “Right to Delete” provision would have on the ability of retailers, manufacturers and others to conduct efficient recalls of hazardous consumer products.
Simultaneously, state lawmakers are introducing legislation to amend the CPPA.
Assembly Privacy and Consumer Protection Committee Chairman Ed Chau has introduced a bill regulating data brokers that is in some parts duplicative of CCPA and in other parts contradicts the CCPA. AAF and our industry allies have written Chairman Chau expressing our opposition to the bill.
Senator Hannah-Beth Jackson has introduced legislation which would provide a Private Right of Action for consumers under the CCPA. This bill would allow individual consumers to sue companies for violations of the CCPA, even if there is no showing of harm. AAF believes this could subject companies to a torrent of unwarranted lawsuits with no corresponding consumer benefit. We have written to Senator Jackson with our concerns.
Washington, Texas Consider New Privacy Bills
Other states, including Texas and Washington are also considering comprehensive privacy legislation. AAF has written to lawmakers in Texas and alerted our clubs in the state about the bill. We have also expressed our opposition to the Washington proposal to key lawmakers in that state.
AAF Supports a New Paradigm for Privacy
As reported in January, and as was agreed to at the FTC hearings, AAF is supportive of the enactment of a national privacy standard, a so-called New Paradigm for privacy. In December, we joined in a letter to the Federal Trade Commission supporting the concept.
AAF has been participating in meetings with many allied associations and companies to flesh out the specifics of what a national privacy law might look like. In general, AAF and our allies support legislation that would:
- Protect consumers nationwide
- Establish new prohibitions on certain data practices, including eligibility, discrimination, assisting and facilitating fraud, and sensitive data
- Create a New Data Protection Bureau at the Federal Trade Commission
- Grant enhanced rulemaking authority to the FTC
- Ensure responsible advertising practices
- Require strong data security protections, and
- Authorize strict penalties for violations.
AAF will continue to work with our industry members and partners to advocate for a strong national privacy law that protects both consumers and industry.
Advertising Deductibility to Pay For Extenders?
The AAF has learned limitations on the tax deductibility of advertising has once again been discussed by some members of the tax writing House Ways and Means Committee. The Committee is considering so-called tax extenders. These are typically “temporary” tax cuts that Congress enacts and then renews on a regular basis. In theory, but not always in practice, the lost revenue must be replaced to make the budget impact neutral.
It is uncertain whether the committee will look for revenue to offset the extenders, but we understand that some members of the committee have mentioned advertising deductibility as possible source of money if they do. AAF encourages local clubs in the districts of Ways and Means members to remind lawmakers of the amount of economic impact and jobs that advertising supports in their home districts.
The AAF protects and promotes advertising at all levels of government through grassroots activities. Our nation-wide network monitors advertising-related legislation on local, state and federal levels. We put our members face-to-face with influential lawmakers while encouraging self-regulation as a preemptor to government intervention, when appropriate of course. To learn more about our advocacy efforts, click here.