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Posts Tagged ‘regulation’



How the FPPC Should (and Shouldn’t) Meddle Online

Monday, August 16th, 2010

Calbuzz is generally not too keen on any regulatory movement, cause or organization, especially not one that’s intent on regulating us. But we have to say there are good reasons to extend – carefully — to the online world some of the disclosure requirements on political campaigns that now apply in the old media world of broadcast and print.

The trick is for California’s Fair Political Practices Commission to use a light touch so as not to kill the baby in the crib. Internet political communications still are in their infancy. You Tube, for example, by which so much of today’s online political messaging is conveyed, wasn’t even created until February 2005 and it didn’t really catch on in the political world until the 2008 cycle.

When the FPPC considers rule-making this fall, the fundamental principle should be this:

Keep the burden of disclosure on the candidates, campaigns and advocates without creating undue burdens on the media through which they choose to communicate. (Especially us.)

We agree with the FPPC report on this issue that:

When a committee or candidate engages in campaigning, the public should know that the communication is being paid for, regardless of the form that communication takes. In the current networked world, political communication by a regulated committee or candidate that occurs over the Internet is the functional equivalent of a broadcast ad, and an email is the functional equivalent of a mailer.

Fortunately, the FPPC and its staff have been cautious, open and deliberate as they approach the issue. They recognize, for example “that it is difficult to regulate a moving target. Innovation is not predictable and could be stifled by moving too quickly and regulating too strictly.”

Who’s paying for what: The FPPC report recognizes that you can’t require the same disclosure for a postage-stamp-sized web ad, a tweet or a Facebook message that you demand in a TV commercial. But you could require that a web ad or even the name of a tweeter or Facebooker  who’s pushing campaign communications should link to a page on which it’s disclosed who is behind the message so that an online reader understands where the message is coming from and who’s paying for it.

As the report noted:

Some paid advertising does not allow adequate room for disclaimers required by current law (e.g., some forms of electronic advertisements, twitter communication, etc.). In those cases, candidates and committees must provide information in ways that are practicable given the limitations of the medium (e.g., on the website that is accessed when one clicks on an ad; on pages providing information about the source of tweets; on appropriate places in social networking sites; through information that pops up when the mouse is rolled over word or phrase).

The Maryland Board of Elections recently passed new electronic media rules to provide just such flexibility. The Maryland regulations provide that if electronic media advertisements are too small (e.g., a micro bar, a button ad, a paid text advertisement that is 200 characters or less in length, or a small paid graphic or picture link) to contain an “authority line,” the ads will comply with the required disclosure of the political committee authorizing the message if the ad allows the viewer to click on the electronic media advertisement and the user is taken to a landing or home page that prominently displays the authority line information.

That makes sense to us.

Sock puppets and web whores: There’s one place where we’re not sure the FPPC goes far enough: requiring online communicators like bloggers to disclose if they are being paid by a campaign or political committee for more than the standard value of their advertising.

The rationale for not requiring disclosure by sock-puppet bloggers is this: 1) the FPPC does not want to dampen robust free speech on the internet and 2) payments to bloggers will be disclosed in the campaign or political committee’s expenditure reports.

We heartily agree with the principle of doing nothing to dampen free speech on the Internet,or anywhere else. But there is a big difference between Steve Poizner placing an ad on Calbuzz at the same rate that ad space is sold to anyone else, compared to Meg Whitman paying $15,000 a month to Green Faucet, the parent of the Red County blog, in order to secure a steady stream of favorable coverage and support masquerading as news coverage.

One is just a business transaction in which the web site selling advertising is not a paid mouthpiece for a campaign but instead a free agent on the Internet.

The other is little more than paid campaign communications. Blogs that are subsidized by a political committee – and who have thereby crossed the line into paid advocacy — ought to be required to make that clear to their readers.

Voluntary disclosure is not good enough. There are too many unscrupulous cheats out there and too many web whores. Moreover, it’s nothing for a campaign with big resources to set up a web site that looks like a neutral observer but which is, in reality, just an extension of the campaign.

At the very least, expenditure reports should be modified to specify  “internet communications,” and “online advertising.” Something along the lines in the FPPC report, which calls for:

…requiring that expenditure reports contain more detail of payments for activity on the Internet, including payments to bloggers, so that these payments can be more easily discerned. The brief description on the expenditure report would include the name of the recipient of payment for electronic communication, the purpose of the payment, and the name of website or other similar address where the communication (blog, tweet, Facebook page, etc.) appears.

For now, the report says:

We do not recommend requiring disclosure in blogs at this time because of our concern about stifling this robust and growing source of political discourse. We considered an alternative that would require bloggers compensated by a campaign committee to disclose on their blogs that they have material connections to a campaign. This was based, in part, on a recent Federal Trade Commission guideline requiring bloggers endorsing products to disclose their financial connections to the manufacturers of the product. Requiring disclosure of paid bloggers would also be analogous to Section 84511 of the PRA mandating disclosure of paid spokespersons in ballot measure ads.

We recommend instead that the Commission continue to monitor the development of activity on weblogs and assess whether disclosure through expenditure reports is sufficient to ensure voters know when a blogger is part of a political campaign and when she is acting as an interested citizen expressing her political views. If the Commission determines that the failure to require more disclosure of compensated political bloggers has undermined the right of the public to be informed about the course of political communication, the issue of appropriate regulation should be revisited.

Calbuzz prediction: unless the FPPC requires disclosure, plenty of unethical bloggers, tweeters and Facebookers will fail to tell readers who’s buying their loyalty.

In search of a bright line: There are some other issues still to be fleshed out. For example, who is to be considered “news media” and who is not.

The report says the Political Reform Act’s media exemption (on advocacy) “should be interpreted to include online media sources, whether or not they also participate in print or broadcast media.”

Importantly, however, blogging should not automatically be considered to trigger the media exemption unless the blog meets the standards for being considered part of the media. It is not necessary to expand the media exemption to include uncompensated bloggers who are unaffiliated with campaigns because they are protected by the exemption recommended above for volunteer uncompensated political communication.

This gets really tricky.

Relevant passages in the Political Reform Act define news media as “a regularly published newspaper, magazine or other periodical of general circulation which routinely carries news, articles and commentary of general interest” or “a federally regulated broadcast outlet” or certain kinds of newsletters or regularly published periodicals.

What does that make an online political news site like Calbuzz? Or partisan sites like Calitics or FlashReport? Or an aggregator like Rough & Tumble? All of which have or would gladly accept, advertising from candidates and political committees. What would you call Red County? Or California Majority Report? Do they “meet certain standards for being considered part of the media?” Or are they advocates for causes and candidates?

Click on the “eBay: Don’t Buy It Now” ad on this page and you get taken to California Working Families which tells you the page is “Paid for by California Working Families for Jerry Brown for Governor 2010, a Coalition of Public Employees, Firefighters, and Building Trades Organizations. I.D. # 1324632.  Not authorized by a candidate or a committee controlled by a candidate.” That’s the way it should work.

Likewise, if you click on “It’s Time for a New California” on the FlashReport home page, you get taken to Meg Whitman’s campaign home page which tells you at the bottom “Paid for by Meg Whitman For Governor 2010.” They probably ought to include their FPPC identification, but that’s a quibble.

But if you click on erichogue on Twitter, there’s no way to know that the screeching right-wing tweets from the conservative radio commentator just might be influenced by that $1,000 payment he got in the last reporting period from the Whitman campaign.

So what’s his Hogue News?  He’d like us to believe his site is “news media.” But he’s already proved he’s a for-rent mouth breather. Trouble is, the only people who know are those who’ve followed the arcane news about campaign finance or those who’ve read through Whitman’s expenditure reports and stumbled across the payment to him.

It won’t do for the FPPC to define “news media” in a way that includes only the dead and dying old media, as the current regulations do. But it also won’t do to ignore the fact that some online practitioners feel no compunction to level with the public about their status as paid advocates.

Plenty of free parking: Calbuzz would be happy to participate in further discussions with the FPPC on these issues. And if the FPPC would like to buy an ad on our site, they can find the rate card right here.

Three Weeks to Go: Krusty Holds Campaign Kickoff

Tuesday, May 18th, 2010

Casting himself as a populist who will “rein in greed,” Jerry Brown held the first official event of his campaign for governor Monday, promising to fight tax cuts for the wealthy, the repeal of climate change legislation and the scapegoating of public employees.

The attorney general, who has enjoyed the political luxury of laying low amid an uncontested Democratic primary and a concurrent brutal brawl for the Republican nomination, surfaced at a rally at UC Santa Barbara, three weeks and one day before the June 8 election. There, he assailed his GOP rivals as tribunes of the rich whose enormously expensive TV campaigns feed the “continuing corruption of the political process.”

“We have the ideas but we have to push back,” Brown told a crowd of about 200 students, faculty and staff who gathered on a gloomy day on a sloping lawn near the lagoon on the beachfront campus.

The other side, kind of the apostles of darkness and ignorance, are well heeled. They have great political consultants. And they intend to bombard the airwaves. It’s almost like a hostile takeover of the public airwaves and of democracy itself. We gotta’ fight back and you’ve gotta fight back and I need your help.

After months of avoiding campaign events, other than low-key fundraisers, Brown emerged on the trail with a raft of full-throated populist rhetoric and a notable shortage of specific proposals that went much beyond opposition to conservative policies embraced by Meg Whitman and Steve Poizner as the two battle for the right to oppose him in the general election.

‘Krusty the General portrayed both eMeg and the Commish as beneficiaries of the unregulated financial markets of recent years, casting their millions in campaign spending as symptomatic, not only of inequities in the economy, but also of the coarsening of political discourse in the nation.

Photos by Joseph A. Garcia, Ventura County Star

There’s no content there. It’s like, I don’t know who they’re appealing to, I don’t think they read much about the history of this country. Thomas Jefferson and the founders said we need an educated citizenry… it means when you’re having a campaign at least you could speak to the intellect and not to whoever they’re speaking too — they’re so banal.

If you want to know how to write and think, just look at those ads and it’s the exact opposite. I think, I don’t think they’re even healthy for the mind. I think they’re contaminating the children who may see these things.

Brown walked to the microphone with two pages of notes but wrapped them tightly in his hand in lieu of consulting them. His stump skills seemed rusty from disuse, as he winged his way through a 20-minute speech that careened from point to point on a course more disjointed than linear; several times, his sentences drifted off, before he ended them with an awkward “…anyway.”

At several points. he told his audience he wouldn’t name his foes, referring to them just as “two Republicans.” A moment later, he added:

“There’s two people. I’ll mention them – Whitman,” he said, before appearing briefly to forget the name of California’s state insurance commissioner, “and…Poiz…ner.”

Brown said that the type of campaigns being run by the two Republicans is partly to blame for the anger among voters and the low regard in which they hold government and elected officials.

That’s dangerous in a democracy, if the mechanism of our collective decision making is so discredited, what does that say about the viability of the whole set of our institutions? It is dangerous and you have a stake in this, your future is at stake here. It’s at stake in the continuing corruption of the political process, the degeneration of political discourse into the manipulation of these 30 second ads fed by massive sums made on Wall Street.

Brown repeatedly returned to the need for government regulation, saying the financial meltdown and the huge oil spill in the Gulf of Mexico both represent a set of Republican policies that is reflected in Whitman and Poizner’s desire to roll back AB 32 environmental regulations and to cut taxes for the richest Californians, policies he said he would resist.

They want to reduce taxes on the wealthiest people in the state and how’s that going to help you?

They say, ‘we only need police out on the streets,’ well, we need police in the corporate suites just as much because, boy, they can rip you off. Walk down the wrong street, yeah, somebody can hit you over the head and take your money, take your life, well, on Wall Street they really ripped us off…it’s the greatest bank robbery in the history of the United States, maybe the world, $11 trillion – there’s 11 trillion fewer dollars, about an 18% reduction in our wealth, that’s a big pay cut for America…

That was promoted by some of the same characters who are promoting these Republicans…We tried no regulation on Wall Street and that caused the biggest crash in the history, not just in this country, but the whole world…You need to rein in greed, you need to rein in risk…and that’s what this campaign is about.

Brown invited questions at the end of his talk, but danced around when asked for specifics about how he would change the tax structure and deal with the budget deficit, except to say he would encourage more “collaboration” between Democrats and Republicans.

He also equivocated when asked whether or not he supported furloughs for state employees to save money in the budget, except to say that he  believes the Republicans are unfairly casting blame on public workers:

They always want a scapegoat. What’s our problem? They say, ‘well, it’s the public employees, it’s the teachers, it’s the police, it’s the fire.’ No it isn’t – it’s the Wall Street people who destroyed 11 trillion dollars worth of our wealth. And I don’t know if we should have the same people who profited from that then take the reins of power, and not only have the money but the political power at the same time.

I think we ought to keep them separate and the best way to keep them separate is to separate the two Republicans from any chance of getting to be governor of California.

There were no injuries.