The 4-A’s, the Direct Marketing Association and the AAF are among 30 groups that delivered a letter to the U.S. Senate and took out a full-page ad in the influential Capitol Hill newspaper, Roll Call, spearheading an effort to prevent the Federal Trade Commission from once again becoming the "nation's nanny."
The groups say a "hidden" provision in the already-passed House of Representatives' version of the Financial Reform Bill (H.R. 4173) would expand FTC power and restore the broad rule-making and enforcement authority the agency enjoyed prior to 1975, when Congress imposed restrictions on the FTC with the passage of the Magnuson-Moss Warranty Act.
The ad industry groups and others believe the provision that would grant the FTC greater power over unfair and deceptive ad practices has no business in a financial reform bill. They fear heavy-handed tactics and an atmosphere where the FTC has too broad an authority over many different industries.