INDISCRIMINATE ADVERTISING - PART II [Editorial] - Editorial

Online Newsletter, Oct, 2002

INDISCRIMINATE ADVERTISING - PART II

Indiscriminate advertising is a horrendous blight.

While it has come more recently to the Internet, it is not new - but it sorely needs regulating in all of its forms as has been attested over the years.

While billboard advertising has disappeared along many of the old U.S. highway routes, as the new federal Interstate highways were built, they are not forgotten. Mile after mile of what looked like shanty-town signs on both sides of the highways used to be the norm as America took to the road in the twenties and thirties.

Ultimately most towns, cities, and states took action by means of ordinances, and it is not unusual today because of these regulations that size and placement of signs is highly restricted. -- Federal highways have been protected from billboard advertising by "The Highway Beautification Act of 1965" [PL 89-285] under President Johnson. Indeed, President Johnson's wife, Lady Bird Johnson, also promoted the plan for regulating billboard highway advertising in 1967 throughout all of the U.S. -- It has worked very well. The Highway Beautification Act replaced the existing "Bonus Act" [PL 85-381] of 1958 which was repealed and replaced.

Indiscriminate advertising is not limited to just the Internet information superhighway and vehicle highways. To name a few (we may have missed some):

Internet - As noted in last month's 'Online Newsletter' editorial, this includes mass mailings, junk mail (spam), and cookies. -- Services such as Postini are a help, but regulations to eradicate it entirely will be difficult outside the U.S.

Television and Radio - What is shown on U.S. television and radio is regulated by the FCC. The FCC has existing laws that can be enforced to limit the types and volume of advertising. (If this can be done for cigarette advertising, it can be done for -any- advertising.)

Wireless (fax and cell phones) - While this is already prohibited, it has been rarely enforced. -- We said in our editorial in the November 2001 issue that the TCPA was the tool to use, not new toothless legislation from Congress. -- Now, a record fine of over $5 million has been imposed in July by the FCC against fax.com for "junk faxes" under the TCPA [Telephone Consumer Protection Act], and is the FCC's first such fine against a "fax broadcaster". How long does it take for government agencies to get to work? -- Companies are just beginning to realize that "freedom of speech" under the First Amendment does not apply to unsolicited commercial advertising.

Telemarketing - Supposedly, this is being regulated by the FTC and other government agencies. -- If so, then why does my "TeleZapper" phone device shut off half of these calls? -- Here again, TCPA regulations need to be enforced by the FCC.

Telephone "Holds" - How many times have you been placed on hold by the company you are calling (including technical support, and other toll calls you pay for) and be forced to endure the company's advertising recordings while you wait for a "live body" to answer the phone? -- This practice should be prohibited altogether.

Busy Line - We note that Qwest no longer is running its 75 cent ads when a telephone number is busy (see 'Online Newsletter' September 2001 p.1). -- Guess too many state attorney generals and federal government scrutiny have made Qwest think twice about the $500 per incident fines.

Postal Services - The U.S. Postal Service will likely go bankrupt because of junk mail. Half of USPS volume is junk mail. (Have you looked at your mailbox recently?) "Junk mail" made its first debut here. -- As one writer notes: "In 1991, 62 million trees were cut for junk mail. ... In 1989, 63.7 billion pieces were sent, including 55 billion catalogs. ... Individually, an average of 41 pounds are sent to every adult...." Also mentioned is that junk mail requires 25 billion gallons of water for pulp paper processing. -- The current USPS was formed under "The Postal Reorganization Act of 1970" [PL 91-375] as an independent establishment under the executive branch. USPS is the second largest U.S. employer with 900,000 workers. -- Reduce mail rates and employees, and return the USPS to its former status as an agency with better oversight to eradicate and regulate junk mail.

Now, in early September 2002, the U.S. Postal Service says it expects to earn $600 million in the next fiscal year. This is quite a change from the $3 billion deficit in its earlier forecast. ... And all of this with 55,000 fewer employees, it says, despite the fact that the USPS will end the 2002 fiscal year with a $1.2 billion loss. The USPS is also boasting that its rates won't go up again until at least 2004 (why?), while acknowledging increasing competition from email and other electronic services and competitors such as Fedex and UPS. -- It seems like the USPS is still testing everyone's common sense and has a huge credibility gap considering its poor history as an autonomous agency - especially of interest to those in Congress who would like to return it to full government authority and oversight. -- The USPS may just be trying to stave off the inevitable such as Amtrak is now finding. -- While it's interesting to note adoption of some of this editor's recommendations above (written earlier this summer), it still doesn't address the issue of "junk" or mass mailings and a host of other management issues.