Direct from Washington: The Impact of Federal Legislation on Direct & Interactive Marketers.

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Presentation transcript:

Direct from Washington: The Impact of Federal Legislation on Direct & Interactive Marketers

What to Watch in Washington:  Consumer Financial Protection Agency  Proposed Expansion of FTC Authority  Postal Service Relief  Online Privacy & Security

Consumer Financial Protection Agency What Is it? A new independent watchdog agency (CFPA) with regulatory and enforcement authority over consumer financial products. Potentially regulating far beyond financial services (ex: advertisers or marketers providing services to that sector). Expands FTC rulemaking and enforcement authority. Status: H.R passed by House in November, with exemption for marketing and advertising activities. Senate Banking Committee currently drafting its version of financial regulatory reform, including proposed CFPA.

Proposed Expansion of FTC Authority What Is it? Buried in the CFPA proposal are four provisions that would significantly expand the powers of the Federal Trade Commission (FTC): –Simplified APA rulemaking authority; –Immediate civil penalty authority; –Authority to prosecute companies for “aiding and abetting;” –Independent litigating authority. Status: Passed by House as part of H.R in December. Senate Commerce Committee considering provisions as part of its work on FTC reauthorization.

Online Privacy & Security What Is it? Rep. Rick Boucher (D-VA) preparing online privacy legislation. FTC continues to hold “Exploring Privacy” workshops. Legislation would create national standard for data security and data breach notification. Status: Draft privacy legislation expected in the House this spring. Industry-wide implementation of Self-Regulatory Principles for Online Behavioral Advertising continues. House passed data security bill in December; Senate has two similar bills awaiting floor consideration.

Postal Service Relief What Is it? Postal Service was headed for an $8 billion dollar loss before the USPS Financial Relief Act reduced its Retiree Health Benefit Fund payment to $1.4 billion for FY USPS’ short-term financial viability may once again depend on a midnight legislative patch in 2010, but passing additional relief will be difficult in an election year with several labor contracts set for renegotiation. Status: USPS Financial Relief Act was passed in December. USPS considering 5-day service and new business models.

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