AAF Government Report | July 2018

July 31, 2018

  • California Enacts New Consumer Privacy Law
  • AAF Comments to NTIA
  • Chairman Brady Releases Framework for More Tax Reform
  • AAF Day on the Hill Date Set
California Enacts New Consumer Privacy LawOn June 28, California Governor Jerry Brown Jr. signed into law the “California Consumer Privacy Act of 2018” which will take effect on January 1, 2020. The law went from introduction to passing in a matter of days. The measure was hurried through the legislature in response to the California Privacy Ballot initiative which was due to be certified on July 1. The initiative would have been extremely restrictive, requiring the Internet to operate differently in California than in the rest of the world. Upon passage of the law, Alistair Mactaggart, the driving force behind the initiative, agreed to withdraw it from the November ballot.

While not as onerous as the ballot initiative, the new law is still very restrictive. The good news is that even many of the bill’s supporters recognize that there are flaws in the law which will need to be amended before taking effect in 2020. This will give the advertising industry the opportunity to work with legislators and activists to try to craft a measure that will address lawmakers’ privacy concerns and still allow companies reasonable use of data to conduct business to the benefit of both them and consumers. A measure enacted by ballot initiative cannot be amended by the legislature.

A comprehensive summary of the new law, prepared by our friends at Venable LLP, is provided here.

AAF Comments to NTIAThe AAF has joined with many of our sister trade associations to provide comments to the National Telecommunications and Information Administration on “International Internet Policy Priorities.”  The comments expand on our view that the free flow of data online, used in a responsible manner, fuels the economic engine of the Internet and that data-driven advertising provides great benefits to consumers by allowing them to access vast amounts of content and services at little or no cost.

The comments also highlight our support for a regulatory scheme that combines effective self-regulation, such as that provided by the Digital Advertising Alliance, with targeted laws focusing on particular areas where misuse of data could cause discernible harm to consumers.

Chairman Brady Releases Framework for More Tax ReformHouse Ways and Means Committee Chairman Kevin Brady, R-Texas, has released a framework for what is being called “Tax Reform 2.0.” The framework proposed making the middle-class tax cuts permanent.  They are currently scheduled to expire at the end of 2025. It also proposes ways to encourage savings and allowing new businesses to write off more of their start-up costs.

No mention is made in the framework of replacing any revenue lost through the tax cuts. We know that limiting the tax deductibility of advertising was seriously considered during consideration of the tax cuts enacted last year.

There is no parallel effort currently ongoing in the Senate and enactment of new tax cuts this year is highly unlikely. AAF will closely monitor developments for any mention of advertising and vigorously oppose any effort to limit its tax deductibility.

Advertising Day on the Hill Date SetThe next Advertising Day on the Hill will be in Washington, DC on March 6 and 7, 2019. Mark your calendars and watch this space for more information this summer and fall. For sponsorship opportunities contact AAF’s Executive Vice President of Government Affairs, Clark Rector at crector@aaf.org.


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