Colorado House Bill 1193 was introduced this week, proposing a tax on “affiliate sales.” The target goes beyond normal state consumer tax proposals put out in the last year by various States and makes a demand on businesses that uses distributed advertising mechanisms to pay sales taxes on Colorado sales. According to the bill, any business that has over $10,000 in sales from Colorado citizens through any type of affiliate, CPA or direct response system shall be “deemed to be doing business in this state.”

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Last week the Supreme Court ruled in Citizens United vs. the FTC that political contributions from businesses are covered under the Constitution as Free Speech. They ruled that a corporation can use its finances to fund commercials against specific candidates or any cause they want. You can say what you want about the politics of the Supreme Court Decision last week on Citizens United Vs. The FTC, and argue with me all day if they are correct in their decision, however the positive implications on the interactive advertising business are clear in more way than one.

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   I received quite a few emails today from people agreeing that my view point in regards to the FTC’s new rules regarding bloggers was correct. A few people felt that I advocated that there be no compliance in regards to marketing, and that people should be able to sell unsafe items, scam people, rip people off and similar. I clearly stated in the article that was not the case, that the FTC should be focusing on obvious criminals – not small businesses that are promoting their product. As someone who has been intimately involved in law enforcement and exposed more than one obvious scam, I am not an advocate for any sort of anarchy when it comes to business – I believe that the industry, the IAB, the businesses do need to sit down, talk out with everyone, including the FTC, about these issues and create best practices.

  My statement was clearly that I do not believe it is the duty of the government to regulate free speech in any form, whether it be political, religious or business. Restricting business growth, especially during this economic depression is not in anyone's best interest.

  Anyone who has read my writing over the last 10 years know I believe in ethics in advertising, period.

The Federal Trade Commission (FTC) is one of the most unique parts of our government. It has a wide range of powers given by law, which encompass among other things the ability to pass rules and regulations against “unfair and deceptive acts or practices.” The FTC often issues “guidelines” which are no more than notices that they will push for prosecution or civil action against individuals in violation their guidelines. Although these guidelines are often up for public debate, they are not passed by any governing body such as Congress, yet affect us often more than any newly passed law would. While many people see that the FTC is a consumer rights entity within the government, a growing amount of people sees that the FTC is a part of a growing, overreaching government that is interfering with the ability of businesses and often individuals to conduct business in this market economy.

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