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president targets advertising in state of the union
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In his State of the Union address March 1, President Joe Biden took aim at social media companies and advertising to children. According to the President,
We must hold social media platforms accountable for the national experiment they’re conducting on our children for profit.
It’s time to strengthen privacy protections, ban targeted advertising to children, demand tech companies stop collecting personal data on our children.
The AAF agrees that children are deserving of protections online. The comprehensive privacy framework put forward by the AAF supported Privacy for America specifically addresses protecting children,
Special Protections for Individuals Over 12 and Under 16 (Tweens). The framework includes a robust set of safeguards for data collected from tweens, an age group that needs protection but is actively engaged online and not subject to constant parental oversight. Specifically, the framework would prohibit companies from transferring tween data to third parties when they have actual knowledge of age. It also would ban payment to tweens for personal data, except under a contract to which a parent or legal guardian is a party. Finally, companies would be required to implement data eraser requirements allowing individuals to delete data posted online when they were tweens.
We look forward to working with the Administration and Congress to enact comprehensive privacy legislation that protects all consumers and allows them and businesses to reap the many benefits of the responsible use of data.
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ad tax introduced in kentucky
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Kentucky State Representative Jason Petrie (R-Elkton) Chair of the House Appropriations and Revenue Committee introduced HB 8, which would expand Kentucky’s 6% gross receipts sales and use tax base to 39 new services, including advertising and graphic design services.
Prospects for the legislation are uncertain, but since the sponsor is chairman of the revenue raising committee, it could move quickly. AAF has alerted our Kentucky members to ask them to lawmakers and contact urge opposition to any effort to tax advertising.
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AAF continues to file comments regarding state privacy proposals advocating for a national privacy standard and offering suggestions for those state bills to better align with existing laws in other states. We often have short notice to file, but when time allows, we are joined on the comments by ad clubs to emphasize to lawmakers that the issues are of concern to both the local and national advertising industry.
Recent letters have been submitted in New York, Florida, Massachusetts, and Nebraska. We continue to monitor proposals in other states including Arizona, Connecticut, Iowa, and Utah and will provide input to lawmakers as necessary.
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The House version of an omnibus tax bill in Iowa caused a great deal of unease in the industry regarding its possible targeting of advertising for taxation. At issue was undefined language in the bill that would have expanded the sales tax base to include “cloud computing,” “web hosting” and “digital automated services.” The concern was these terms were vague enough they could be interpreted to include digital and other advertising.
AAF Des Moines Government Relations Director Tom Woody was among the industry leaders who communicated concerns about the issue with state lawmakers. In the end, the Senate version of the bill, without the troublesome language, replace the House version and was sent to the Governor.
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advertising day on the hill
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Registration is open for the American Advertising Federation’s Virtual Advertising Day on the Hill, Thursday, March 17 from Noon to 3:00 pm Eastern Time. This jam-packed event will tell you everything you need to know about the important issues confronting advertising, including taxes and privacy, and how to communicate your concerns to your Senators and Representatives.
In addition to experts on the issues, confirmed speakers include Shannon Smith, Counsel to the U.S. Senate Committee on Commerce, Science and Transportation and Serena Viswanathan, Associate Director, Division of Advertising Practices, Federal Trade Commission.
Even in a virtual world, it is important to be knowledgeable about the issues confronting our industry and be able to educate lawmakers about the importance of advertising to consumers, businesses and the economy.
Register today and join us for this important event, AAF Advertising Day on the Hill.
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The AAF protects and promotes advertising at all levels of government through grassroots activities. Our nation-wide network monitors advertising-related legislation on local, state and federal levels. We put our members face-to-face with influential lawmakers while encouraging self-regulation as a preemptor to government intervention, when appropriate of course. To learn more about our advocacy efforts, click here.
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