Representatives Anna Eshoo, D-CA and Jan Schakowsky, D-Il and Senator Cory Booker, D-NJ have introduced the Banning Surveillance Advertising Act which would prohibit companies from targeting ads to consumers except for broad, location-based targeting and contextual ads. The AAF opposes this legislation. We support limitations on the use of sensitive data, such as medical and financial information, in targeting interest-based advertising. However, this bill goes much too far. Responsible interest-based data driven advertising helps drive the digital economy. We believe businesses and consumers both benefit when those consumers are served ads for products and services that they are more likely to be interested in. AAF member Google recently published a blog post outlining their opposition to this and other anti-tech bill. No action is currently scheduled on the legislation. In a related action, Accountable Tech has filed a petition for proposed rulemaking to the Federal Trade Commission asking it to prohibit surveillance advertising claiming, wrongly AAF believes, that it is an “unfair method of competition.” The AAF-supported Privacy for America has submitted comments to the Commission in opposition to the petition explaining that A ban on data-driven advertising practices would not be a good use of the Commission’s resources and would cause immense disruption and harm to the online economy, deny consumers access to the vital ad-supported services on which they rely, and potentially lead to more centralized marketplaces thanks to an increase in the cost of starting new businesses and attracting new customers. The Commission has not yet indicated how or if it will act on the petition.
As state legislatures reconvene for their 2022 sessions, we are starting to see the introduction of privacy bills in many jurisdictions. AAF, through our affiliation with Privacy for America, supports the passage of federal privacy legislation. We generally oppose state privacy bills, not only because they tend to be overly onerous, but because we believe that a single privacy standard nationwide would better serve consumers, businesses and regulators tasked with enforcing the law. Despite our opposition, we often file comments with state legislators suggesting ways to better align their proposals to existing laws in other states. Already this year AAF, our national allies as well as AAF Seattle and AAF Spokane submitted comments on legislation being considered in Washington. Together with AAF Baltimore, we have commented on a measure before the Maryland legislature. We have also provided our views to lawmakers in reaction to a bill in Alaska. Proposals have also surfaced in Delaware, Florida, Indiana, Kentucky, Mississippi and Pennsylvania. Not all of these will receive serious consideration. AAF, and where possible our local clubs, will provide comments where necessary and appropriate. Supporting our position that a national privacy standard is necessary, the Information Technology & Innovation Foundation recently release a study showing the potential high cost of a patchwork of inconsistent state privacy laws. The study estimates out-of-state costs of between $98 billion and $112 billion annually with $20-23 billion falling on small businesses.
As much as we were looking forward to bringing together AAF’s grassroots network in Washington, DC for AAF’s Advertising Day on the Hill on March 16-17, 2022, we have made the difficult decision to transition the event to online only on March 17. Unfortunately, health concerns surrounding COVID-19 and ongoing security measures on Capitol Hill would prevent us from making a strong in-person showing with elected officials and their staffs. The virtual Advertising Day on the Hill will still provide attendees a robust briefing on the issues of importance facing the advertising industry as well as information on how to engage with elected representatives and staff online or in their home districts to educate them about the issues important to the advertising industry and the vital role that advertising plays in driving the U.S. economy. Registration is open and the cost is only $25. Be on the lookout for more details soon about AAF’s Virtual Advertising Day on the Hill. Please contact AAF EVP of Government Affairs, Clark Rector if you have any questions.