May 22, 2015

• Flawed Illinois Data Breach Bill Moving
• Tax Writing Committees Still Hope to Enact Tax Reform
• DAA Announces Enforcement Date for Mobile Principles

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Flawed Illinois Data Breach Bill Moving

AAF, the Chicago Advertising Federation and AAF-Northern Illinois have sent a letter to all members of the House urging them to oppose SB 1883 a well-intentioned, but seriously flawed piece of legislation intended to protect consumer data and require reports of data breaches that pose a threat of identity theft or economic harm.

SB 1883 would create an overly-broad definition of personal information, including “consumer marketing information;” increase the regulatory burden on businesses; and require over-notification of data breaches, without a counterbalancing benefit to Illinois residents. The bill would require businesses send breach notices to Illinois consumers even when there is no risk of identity theft or economic harm.

In addition, many provisions of the bill go beyond or conflict with requirements of other states, putting an undue burden on companies seeking to do business in Illinois.
The legislation has passed the Illinois House Judiciary-Civil Committee and is awaiting action by the full House. 

Tax Writing Committees Still Hope to Enact Tax Reform

Professional staff members from both the U.S. Senate Finance Committee and House Ways and Means Committee have said that they still hope to pass comprehensive corporate tax reform this year.  Finance Committee working groups, including the one looking at new revenue options, are expect to submit their reports to the full committee by the end of May.

Tax reform proposals introduced in the previous Congress by the former chairmen of both committees would have limited the first year federal tax deduction for advertising expenses to 50%, with the rest amortized over 5 to 10 years.

Many local AAF members have joined with other members of the Advertising Coalition to meet with members of the tax writing committees to explain the importance of keeping advertising fully deductible in the year in which it is incurred to both the industry and the economy.

DAA Announces Enforcement Date for Mobile Principles

The AAF supported Digital Advertising Alliance (DAA) has announced September 1, 2015 as the date that enforcement of DAA Mobile Guidance Principles will begin.  This included guidance specific to mobile, such as cross app data, precise location data and personal directory data.  As with other DAA Principles, oversight will be provided by the Council of Better Business Bureaus and the Direct Marketing Association.

As of September 1, companies that collect and use data across sites or apps for interest based advertising will be require to demonstrate compliance with the DAA Principles as they relate to mobile activity.