A coalition of 30 advertising groups, including the American Association of Advertising Agencies and the Interactive Advertising Bureau, has taken out a full-page ad in a Washington, D.C., paper warning about the potential negative effects of a proposed FTC reform bill.
The groups say a hidden provision in the bill will expand FTC power and restore rule-making and enforcement authority to the agency, Ad Age reports.
The bill in question is the "Restoring American Financial Stability Act," which has already been passed by the House of Representatives. The Senate is currently drafting its version of the bill, and the ad groups are leading an effort to have the FTC provision stripped from the bill.
The bill features three initiatives that would increase the FTC's power. These include expedited rule-making, the ability to issue fines for false and deceptive advertising, and an "aiding and abetting" rule that would fine those who assist in making false advertising.
The third initiative is drawing the most ire because, as constituted, it would mean that both ad agencies and media outlets could be fined for creating and distributing false advertising.
