Legislation

FTC Issues Final CAN SPAM Rules
The Federal Trade Commission issued its final rules regarding what constitutes a commercial message under the CAN SPAM Act on December 16. These rules will help associations and businesses determine whether a message is primarily commercial in nature and therefore subject to CAN SPAM requirements. The CAN SPAM Act took effect January 1, 2004, and charged the FTC with "defining the relevant criteria to facilitate the determination of the primary purpose of an electronic mail message."

The final rules differentiate between "commercial" and "transactional or relationship" messages. A "commercial" message is defined as one that is primarily intended to sell a product. A "relationship or transactional" would be any message that provides product or service information and updates or confirms a payment not subject to CAN SPAM requirements. The rules rely on the recipient "reasonably" interpreting the subject line or body of a message to determine the message's primary purpose based on position, size and font of commercial portions. An FTC summary of the final rules is available online at www.ftc.gov/opa/2004/12/canspamfrn.htm.

Anti-Commercial Group Proposes Food Ad Restrictions
The assault on food advertising was ramped up this week by the Center for Science in the Public Interest (CSPI). The group held a press conference on January 6 to propose new food marketing guidelines to children. Using a variety of props, and by their own admission, the most "egregious" examples of advertising and marketing the group pressed ahead with its campaign to end all advertising of food it considers insufficiently nutritious by criticizing self-regulation. The group demonized the work of the Children's Advertising Review Unit (CARU), claiming that the group cannot be trusted to do regulate advertising because CARU acknowledges the advertising industry's First Amendment rights.

AAF President & CEO Wally Snyder responded to the claim: "The Children's Advertising Review Unit guidelines and the successful efforts of the Ad Council are well serving children and 'tweens' and display a high level of industry responsibility. CARU is doing an excellent job of monitoring advertising to children to be sure of its appropriateness. With CARU enjoying a near-perfect record in resolving children's advertisement issues, this body should be allowed to continue its impressive track record." AAF does not believe advertising bans or heavy restrictions are the solution to any problem. In fact, advertising can be a part of the solution by promoting physical activity and balanced diets.

Workshop to Consider Healthy Habits
The Institute of Medicine's Committee on Food Marketing and the Diets of Children and Youth will hold a workshop to examine ways to encourage healthy diet choices. The workshop "Marketing Strategies That Foster Healthy Food and Beverage Choices in Children and Youth" will be held January 27, 2005. Three panels representing the food industry, the marketing industry and researchers will comprise the program. AAF representatives will attend the event.

Spyware Legislation Reintroduced
Rep. Mary Bono (R-CA) reintroduced her spyware legislation (HR 29), the "Securely Protect Yourself Against Cyber Trespass Act, or SPY ACT, on the first day of the 109th Congress. The complete text of the bill is not yet available but is expected to be identical to the spyware legislation she introduced last year. A press release from Rep. Bono's office indicates that the bill includes a provision to prohibit the display of advertisements that cannot be closed. Rep. Bono's previous spyware bill was passed by the House in 2004 but did not pass the Senate before the end of the 108th Congress. For background information please see The Government Report, October 14, 2004.

President Bush Signs Internet Tax Moratorium Legislation
President Bush signed into law the Internet Tax Non-Discrimination Act (ITDA) that retroactively extends the Internet Tax Freedom Act of 1998 through November 2007. The new law extends the 1998 moratorium on Internet access taxes to include new technology such as broadband DSL and wireless Internet access.

The ITFA was a temporary access tax moratorium that was renewed in 2001 and expired in 2003. In a press release, bill sponsor Sen. George Allen (R-VA) said "This new law will help bridge the 'economic digital divide' particularly allowing more people with lower incomes as well as those in small towns and rural areas to have access to the commercial, educational, medical and informational empowerment of high-speed broadband."