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AAF Government Report | October 2024

October 2024

Proposed DC Data Tax and Health Data Restrictions

As reported previously, the District of Columbia Tax Revision Commission is considering many tax recommendations, including an excise tax on companies that “extract” data from DC residents. At an October meeting to discuss the recommendations, the Commission agreed to a proposal to pause any decision about final recommendations until further research could be done. Prior to the meeting, AAF expressed our opposition to the proposed data tax. The Commission cannot enact any taxes but makes recommendations to the full DC City Council.

The DC City Council Committee on Health conducted a public hearing on the Consumer Health Information Privacy Protection Act of 2024. AAF believes consumers deserve privacy protections for their health data. However, as our comments explained to the Committee, this bill, while well-intentioned, is a significantly flawed attempt to provide those protections and could significantly restrict consumers’ ability to receive relevant and important information. Further action has not yet been scheduled.

Ad Tax Does Not Survive Nebraska Special Session

The Nebraska legislature concluded its special session to consider property tax reform without adopting the proposal by Governor Jim Pillen (R) to tax many advertising services. AAF Nebraska was instrumental in the tax being defeated. An alert was issued urging members to contact lawmakers in opposition. Robert Richardson, the chapter’s legislative chair, has previously testified against the tax. Despite the defeat, many observers in Lincoln believe the Governor may try again to tax advertising in 2026. AAF Nebraska and AAF will keep a close eye on the action and continue to educate lawmakers about the importance of advertising in Nebraska and the harm an ad tax would cause.

California Privacy Updates

California Governor Gavin Newsome (D) vetoed legislation that would have required Internet browsers to offer a tool allowing consumers to opt-out of all online advertising across the web. In his veto message the Governor noted that most internet browsers already offer an opt-out option or allow for downloadable plug-ins and stated, “It’s best when design questions are first addressed by developers, rather than by regulators”. AAF urged the Governor to veto the bill as it “is unnecessary, ambiguous, and would significantly harm healthy market competition that benefits California consumers and the economy.”

AAF filed comments with the California Privacy Protection Agency regarding its notice of proposed rulemaking to update the state’s regulations governing data broker registration. Our concerns include the proposed definition of a direct relationship between brokers and consumers, the requirement that parent companies and subsidiaries register as separate entities, and other unclear requirements in the regulations.

AAF Opposes Restrictions on Census Data Collection

AAF has signed on to a letter urging House Speaker Mike Johnson (R) and Minority Leader Hakeem Jefferies (D) to oppose a provision in the Commerce, Justice, Science Appropriations Bill stating “None of the funds in the Act may be used to enforce involuntary compliance, or to inquire more than twice for voluntary compliance with any survey conducted by the Bureau of the Census.” The letter emphasizes the importance of complete and accurate Census data and notes that the 2020 Census had counted only 28% of U.S. households after the first two contacts. The Appropriations Bill is still awaiting final approval. We are cautiously optimistic the provision will not be included in the final version.

2025 AAF Advertising Day on the Hill

Registration is open for AAF’s Advertising Day on the Hill, Thursday March 13, 2025. This is the event where the AAF grassroots marks the beginning of a new Congress by coming to Washington, DC to meet with lawmakers and educate them about the importance of advertising to the economy, to businesses, and to consumers.

In the morning, participants will learn from experts about the critical issues concerning advertising, including possible limits to advertising tax deductibility and privacy. The afternoon will be spent on Capitol Hill meeting in the offices of your Senators and Representatives about the issues that matter to you.

Already confirmed as a speaker is Samuel Levine, Director of the Federal Trade Commission’s Bureau of Consumer Protection. The Bureau includes the Divisions of Advertising PracticesMarketing Practices, and Privacy and Identity Protection.

Advertising Day on the Hill is one of the most important events on the AAF calendar. Register now to join us in Washington, DC to make your voice heard.

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