DMA Urges Senate Leadership to Keep Proposals for FTC Expansion out of 'Restoring American Financial Stability Act'

Washington, DC, April 22, 2010 — Direct Marketing Association (DMA) today was joined by 40 other trade associations and business coalitions in sending a letter to Senate Majority Leader, Harry Reid (D-NV), and Senate Minority Leader, Mitch McConnell (R-KY), urging them to keep proposals for expansion of the Federal Trade Commission (FTC) out of the Senate’s current debate over financial regulatory reform.

The letter expressed strong opposition to the inclusion of provisions that would significantly expand the FTC rulemaking and enforcement authority in the “Restoring American Financial Stability Act” (RAFSA). Granting the FTC broad new authority over virtually every sector of the American economy is not a necessary or relevant response to the causes of the recent recession. RAFSA should be focused on strengthening the stability of our economy, not regulating industries that had nothing to do with the financial crisis at a time when businesses are struggling to both survive and create new jobs.

“The financial troubles of the past year have not been laid at the FTC’s doorstep, and provisions to expand the Commission’s authority are out of place in financial reform legislation,” said Linda Woolley, DMA’s executive vice president, government affairs. “Our letter represents thousands of American businesses, all of whom urge the Senate to keep proposals for FTC expansion out of RAFSA.”

The associations believe these FTC-related issues deserve their own consideration and debate in the more appropriate context of an FTC reauthorization, as has been done in the past. DMA and the other associations strongly urge the Senate to focus its current debate on restructuring the financial regulatory system, and not rush to make changes to the FTC that would have a fundamental impact on a broad segment of the business community.

Signatories to the letter included:

Alliance of Automobile Manufacturers

American Advertising Federation

American Association of Advertising Agencies

American Bakers Association

American Business Media

American Financial Services Association

American Frozen Food Institute

Association of International Automobile Manufacturers, Inc.

Consumer Data Industry Association

Consumer Electronics Association

Consumer Healthcare Products Association

Council for Responsible Nutrition

Direct Marketing Association

Direct Selling Association

Electronic Retailing Association

Financial Services Institute, Inc.

Financial Services Roundtable

Food Marketing Institute

Interactive Advertising Bureau

International Franchise Association

Internet Commerce Coalition

Magazine Publishers of America

Marketing Research Association

National Association of Mutual Insurance Companies

National Association of Professional Background Screeners

National Association of Realtors

National Association of Wholesaler-Distributors

National Automobile Dealers Association

National Business Coalition on E-Commerce and Privacy

National Council of Chain Restaurants

National Restaurant Association

National Retail Federation

Natural Products Association

NetChoice

Online Publishers Association

Retail Industry Leaders Association

Shop.org

Snack Food Association

Software & Information Industry Association

U.S. Chamber of Commerce

United States Organizations for Bankruptcy Alternatives

To view this letter and a copy of the January 20, 2010, letter to the Senate Committee on Commerce, Science & Transportation, please click here.

For more information please visit www.dmaaction.org.

About Direct Marketing Association (DMA)

The Direct Marketing Association (www.the-dma.org) is the leading global trade association of businesses and nonprofit organizations using and supporting multichannel direct marketing tools and techniques. DMA advocates standards for responsible marketing, promotes relevance as the key to reaching consumers with desirable offers, and provides cutting-edge research, education, and networking opportunities to improve results throughout the end-to-end direct marketing process. Founded in 1917, DMA today represents companies from dozens of vertical industries in the US and 48 other nations, including nearly half of the Fortune 100 companies, as well as nonprofit organizations.

In 2009, marketers – commercial and nonprofit – spent $149.3 billion on direct marketing, which accounted for 54.3% of all ad expenditures in the United States. Measured against total US sales, these advertising expenditures generated approximately $1.783 trillion in incremental sales. In 2009, direct marketing accounted for 8.3% of total US gross domestic product. Also in 2009, there were 1.4 million direct marketing employees in the US. Their collective sales efforts directly supported 8.4 million other jobs, accounting for a total of 9.9 million US jobs.

The Power of Direct: Relevance. Responsibility. Results.

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