1 00:00:00,080 --> 00:00:02,720 Speaker 1: Time now for the Bloomberg Law Report. It's brought to 2 00:00:02,800 --> 00:00:07,520 Speaker 1: you by American Arbitration Association, International Trade or Business Dispute 3 00:00:07,720 --> 00:00:11,080 Speaker 1: Resolve Faster with the International Center for a Dispute Resolution, 4 00:00:11,360 --> 00:00:14,560 Speaker 1: the leader in alternative dispute resolution around the world. I 5 00:00:14,720 --> 00:00:18,120 Speaker 1: see DR dot org. Let's get to the legal stories 6 00:00:18,160 --> 00:00:20,480 Speaker 1: we are watching this morning with Joan Donnegher and the 7 00:00:20,480 --> 00:00:26,599 Speaker 1: Bloomberg Washington Newsroom. Congress will finish the month with forward 8 00:00:26,640 --> 00:00:29,560 Speaker 1: momentum on tax reform after the Senate passed a budget 9 00:00:29,560 --> 00:00:32,320 Speaker 1: resolution that will allow the process to pass with a 10 00:00:32,360 --> 00:00:35,320 Speaker 1: simple majority. Next, it's the House is turned to act 11 00:00:35,880 --> 00:00:39,720 Speaker 1: how Subcommittee will examine rules for online political ads, including 12 00:00:39,720 --> 00:00:43,840 Speaker 1: a newly reopened federal Election Commission process that good strengthened 13 00:00:43,880 --> 00:00:47,320 Speaker 1: disclaimer requirements, and the i r S will focus on 14 00:00:47,360 --> 00:00:51,599 Speaker 1: reducing regulatory burdens and crafting rules to implement a new 15 00:00:51,680 --> 00:00:55,600 Speaker 1: process for auditing partnerships in the coming year. Bloomberg Law 16 00:00:55,920 --> 00:01:00,000 Speaker 1: everything you need, all on one legal research platform, include 17 00:01:00,160 --> 00:01:04,440 Speaker 1: guidance analysis and Bloomberg Market Intelligence. Find out more at 18 00:01:04,440 --> 00:01:09,440 Speaker 1: Bloomberg law dot com. Now another legal news Let's take 19 00:01:09,480 --> 00:01:12,520 Speaker 1: a look at a new bipartisan plan in the Senate 20 00:01:12,560 --> 00:01:15,800 Speaker 1: to put new requirements on political ads on social media. 21 00:01:16,120 --> 00:01:19,080 Speaker 1: For more in the story, Bloomberg lawhos stun Grosso speaks 22 00:01:19,080 --> 00:01:23,039 Speaker 1: with Bradley Smith, a professor at Capitol University Law School 23 00:01:23,240 --> 00:01:27,600 Speaker 1: and former chairman of the Federal Election Commission. Professor, why 24 00:01:28,240 --> 00:01:32,920 Speaker 1: have online political ads been exempt from the regulations that 25 00:01:33,040 --> 00:01:36,679 Speaker 1: paid TV, radio and print ads have been subjected to 26 00:01:36,920 --> 00:01:41,000 Speaker 1: for years? Well, this is a misconception. They're not actually 27 00:01:41,000 --> 00:01:45,039 Speaker 1: exempt from those requirements. Rather, there hasn't always been in 28 00:01:45,080 --> 00:01:49,520 Speaker 1: the Federal Ution Campaign Act and exemption where disclaimers are impractical, 29 00:01:49,600 --> 00:01:51,920 Speaker 1: where the items are too small, for example, applies to 30 00:01:51,960 --> 00:01:55,640 Speaker 1: bumper stickers, pens, buttons, all kinds of things like that, 31 00:01:56,200 --> 00:01:59,720 Speaker 1: and for many uh Internet ads, for many small you know, 32 00:01:59,720 --> 00:02:03,400 Speaker 1: twee eats and and Facebook type ads, it is simply 33 00:02:03,440 --> 00:02:05,840 Speaker 1: not practically put that disclaimer there. So that is the 34 00:02:05,880 --> 00:02:08,639 Speaker 1: basis on which these ads did not carry a disclaimer. 35 00:02:08,919 --> 00:02:12,120 Speaker 1: Let me ask you this Facebook did not get an 36 00:02:12,160 --> 00:02:16,840 Speaker 1: exemption from the disclaimer requirement in even as Google did. 37 00:02:17,360 --> 00:02:20,680 Speaker 1: So why hasn't Facebook been forced to comply or face 38 00:02:20,760 --> 00:02:24,160 Speaker 1: some kind of penalties. Well, at the time, one of 39 00:02:24,160 --> 00:02:27,520 Speaker 1: the questions has been whether or not this exemption for 40 00:02:27,600 --> 00:02:31,240 Speaker 1: what's often called the small items exemption should apply to 41 00:02:31,360 --> 00:02:35,400 Speaker 1: various Internet type advertising and digital platforms, and that has 42 00:02:35,520 --> 00:02:37,880 Speaker 1: varied with the question of you know, what is the 43 00:02:37,960 --> 00:02:40,840 Speaker 1: cost how practical is it to do? So what you 44 00:02:40,919 --> 00:02:44,240 Speaker 1: had was a series of advisory opinion request where companies 45 00:02:44,280 --> 00:02:47,680 Speaker 1: were asking, you know, in specific situations, do we need 46 00:02:47,720 --> 00:02:50,440 Speaker 1: a disclaimer on this, that or the other. So there 47 00:02:50,480 --> 00:02:54,120 Speaker 1: are different situations each time. In Google's case, the Commission 48 00:02:54,360 --> 00:02:57,360 Speaker 1: voted that no disclaimer was necessary. In the Facebook case, 49 00:02:57,760 --> 00:03:00,639 Speaker 1: the Commission ended up splitting three to three, which means 50 00:03:00,680 --> 00:03:03,280 Speaker 1: essentially they didn't give Facebook and opinion one way or 51 00:03:03,320 --> 00:03:06,280 Speaker 1: the other. But it's a practical matter. Since you need 52 00:03:06,840 --> 00:03:10,440 Speaker 1: four commissioners to vote for an enforcement action, uh, and 53 00:03:10,480 --> 00:03:13,000 Speaker 1: you have three commissioners say no, you don't need a disclaimer, 54 00:03:13,360 --> 00:03:16,200 Speaker 1: it was logical for Facebook to assume that they weren't 55 00:03:16,200 --> 00:03:19,760 Speaker 1: going to have to go through that putting a disclaimer 56 00:03:19,760 --> 00:03:21,520 Speaker 1: on all those ads are turning away as where that 57 00:03:21,639 --> 00:03:25,680 Speaker 1: was not in their estimation practical. And as Bradley Smith, 58 00:03:25,680 --> 00:03:28,799 Speaker 1: the professor at Capital University Law School, speaking with the 59 00:03:28,800 --> 00:03:31,799 Speaker 1: Bloomberg's to doing Grosso, you can listen to Bloomberg Law 60 00:03:31,840 --> 00:03:35,640 Speaker 1: weekdays at one pm Wall Street Time here on Bloomberg Radio, 61 00:03:35,880 --> 00:03:38,520 Speaker 1: and find more illegal news at Bloomberg law dot com. 62 00:03:38,880 --> 00:03:42,200 Speaker 1: Attorneys will find exceptional legal research and business development tools 63 00:03:42,200 --> 00:03:46,520 Speaker 1: there as well. Visit Bloomberg law dot com for more information.