Ad Industry Fights Expansion Of FTC Powers

Ad Industry Expresses Concerns

The U.S. CHAMBER OF COMMERCE and 40 advertising industry trade associations have sent a letter to Senate Majority Leader HARRY REID (D-NV) and Minority Leader MITCH MCCONNELL (R-KY) to oppose expansion of the FEDERAL TRADE COMMISSION's enforcement authority over "virtually every sector of the American economy," including advertising.

"The proposed expansion of FTC authority envisioned in H.R. 4173 would reverse the considered decisions of two earlier Congresses, granting such sweeping powers that the Commission could essentially act as an unelected legislature, governing industries and sectors that had nothing to do with the financial crisis," the letter states, adding, "Granting the Federal Trade Commission broad new authority across all but a few sectors of the American economy is not a necessary or relevant response to the causes of the recent recession."

H.R. 4173 would allow the FTC to expand its rulemaking and enforcement capabilities and adds enforcement powers to seek civil penalties for unfair or deceptive acts without the requirement of coordination with the DEPARTMENT OF JUSTICE.

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