May 2015 Legislative Report

LEGISLATIVE COMMITTEE UPDATE May 12, 2015

June 2, 2015 Legal Issues in Social Media Webinar

Cynthia Sanders, Emily Billig and Jennifer Curry of Ober|Kaler are presenting a webinar that will help agencies and advertisers produce social media campaigns without producing legal issues, including:

o Sweepstakes and Contests on Social Media Platforms o Endorsements and Testimonials
o Copyright and Trademark Infringement
o Truth in Advertising

o Reputation and Bad Reviews o Industry Disclosures

May 4, 2015 MRC Issues New Viewability Standard for Mobile

Ad Week reports: The Media Rating Council is developing a set of guidelines for agencies and publishers used to measure countable mobile impressions. “We believe technical characteristics of the mobile ad serving environment may require the development of new or enhanced methods for determining the viewability of mobile-delivered ads,” the MRC said in its statement. “The ways in which users interact with content and ads in mobile environments may have different patterns than those observed in the desktop environment, possibly creating differences in where the moment of ‘opportunity-to-see’ occurs.”

PRO TIP: For now, MRC recommends that marketers measure mobile viewability the same as desktop. That means 50 percent of display ad pixels need to load in one second on publishers’ sites and apps. For video, 50 percent of pixels are required to load in two seconds.

May 4, 2015 4A’s and ANA Collaborate on Transparency

The American Association of Advertising Agencies (known as the “4A’s) and the Association of National Advertisers (ANA) have set up a new joint task force designed to identify material issues and to address them with constructive dialogue and pragmatic courses of action. The task force will be co- chaired by AAFB Alum Nancy Hill, CEO of the 4A’s, and Bob Liodice, CEO of the ANA.

Read the ANA announcement and list of task force members.
April 17, 2015 AAF Defends Advertising Deduction in Senate

The Senate Finance and House Ways and Means Committees are examining all aspects of the federal corporate income tax code – including tax preferences and deductions. Currently advertising expenses are fully deductible as ordinary business expenses. Last year the Committees chairmen submitted corporate tax reform plans that would limit the deduction for advertising to 50% in the current year with the remaining 50% amortized over five (in the Senate) or 10 (in the House) years.

The new chairmen pledged to start over with a blank slate for corporate tax reform, but are aware of their predecessors’ reform plans. AAF and the Advertising Coalition submitted comments to the Senate Finance Committee explaining the importance of preserving advertising’s status as a normal and necessary business expense fully deductible in the year incurred. AAF and many local members met with members of both Committees and their staff to explain the importance of maintaining the full deduction to the industry and the economy.

April 17, 2015 Data Breach Legislation Moving

Congress appears to be on track to pass a national Data Breach Notification law that would create a single standard for responses to data breaches instead of the current 50 state laws with differing requirements. Two bipartisan bills are moving through the House Energy and Commerce Committee. One bill, H.R. 1770, was passed by the Committee. A competing bill has been introduced by former Committee Chairman Joe Barton R-Tx and Rep. Bobby Rush D-Il. Two bills are alive in the Senate. One submitted by Senator Bill Nelson D-Fl. And another by Senators Tom Carper, D-De, and Roy Blunt, R-Mo.

April 17, 2015 Net Neutrality Challenged

As expected, the Federal Communications Commission recently adopted Net Neutrality rules have come under legal assault. AT&T and CTIA-The Wireless Association have filed lawsuits in the D.C. Circuit Court of Appeals challenging the rules. The National Cable & Telecommunications Association has also file suit against the rules the same court.

AAF Baltimore Legislative Committee

Cynthia B. Sanders, Esq. Ober│Kaler
100 Light Street Baltimore, MD 21202 cbsanders@ober.com 410-347-7367

Wendy McDermott, Esq.
Morgan Stanley
650 South Exeter Street
Baltimore, MD 21202 Wendy.McDermott@morganstanley.com

Clark Rector, EVP Gov Affairs American Advertising Federation 1101 Vermont Ave. NW, 5th Fl. Washington, DC 20005 crector@aaf.org

202-898-0089

Ashlene Larson, CEO
Ashlene Larson PR alarson@ashlenelarsonpr.com