Successful implementation of the first inflation-capped postal rate increase, protecting advertising revenues, and eliminating threats to intellectual property were among the successful highlights for the MPA Washington office in 2008. Working with Congress, the former and incoming Administrations, a range of agencies, and state legislatures, MPA’s Washington office ensured that key magazine industry interests were protected and secure.

Postal

2008 was a watershed year for postal rate-setting, with completion of implementation of the new postal reform law passed at the end of 2006. With constant vigilance on postal issues that directly impact members’ bottom lines, MPA was successful in pushing for the 2008 rate increase to be implemented under the new law’s inflation ceiling rather than under the old rate-setting system, which could have been used by the Postal Service one final time in 2008. The resulting across-the-board rate increase, which was capped at 2.9%, could have been as high as 20% under the old rate-setting system. Toward the end of 2008, MPA initiated and spearheaded an ongoing effort to help address the postal service’s challenged financial situation by lobbying Congress to enact legislation that would extend the Postal Service’s retiree health benefit payment schedule, thus providing the Postal Service with temporary financial relief during these difficult economic times and helping to ensure that the Postal Service does not need to seek an exigent, above-inflation increase due to major recession-related volume declines.

Advertising Restrictions

A primary focus for MPA’s Government Affairs arm each year is the protection of First Amendment rights of magazine publishers as they relate to commercial speech (advertising), and 2008 was no different. Both Congress and federal agencies, including the Federal Trade Commission and the Food and Drug Administration, continued to focus attention and concern on advertising categories important to magazine publishers, such as prescription drugs, alcohol, food, and entertainment products.

In particular, tobacco and direct-to-consumer (DTC) prescription drug advertising were called out by Congress, with MPA working to ensure a proposed moratorium on DTC advertising did not pass. In the face of continuing threats of a legislatively-imposed moratorium, MPA expanded our efforts to help protect one of the industry’s top advertising categories, including meeting with a broad spectrum of involved parties to help educate them on the benefits of print advertising.

In 2008 MPA also worked on a growing issue of concern for publishers – protection of online behavioral advertising. In response to self regulatory Principles issued by the Federal Trade Commission, MPA, in conjunction with a number of other associations and companies, offered strong comments in support of continued self regulation, and a distinction for contextual advertising and first party data collection and use practices.

First Amendment Issues

In what was a significant threat to both intellectual property and technological advances publishers might adopt, MPA was able to remove a potentially damaging statutory damages provision from an intellectual property bill that was eventually passed into law. MPA also continued to push forward on the federal shield law, with the bill finally receiving consideration on the floor of the Senate, despite continued Bush Administration opposition. MPA also worked to advance other First Amendment priorities, including legislation protecting publisher’s use of orphan works and legislative efforts to protect publishers against libel tourism.

Taxes

In light of the significant revenue shortfalls many states are facing, 2008 saw the resurgence of recurring state efforts to broaden tax bases to raise revenue. While it ultimately failed in the courts, MPA opposed a constitutional amendment in Florida that would have mandated reconsideration of existing tax exemptions, including for magazine subscriptions.

In 2008, the Federal government also grappled with massive deficits and searched for ways to raise revenues. This has included discussion of potential limits on the corporate tax deductibility of advertising expenses. In comments on several occasions in 2008, the current White House Chief of Staff raised the possibility of reductions or elimination of advertising expense deductibility, either for specific categories of advertising, such as prescription drugs, or more broadly. MPA’s 2008 lobbying efforts included grassroots meetings with Members of Congress to highlight the significant negative impact of limitations on the deductibility of advertising on the economy.

Consumer Protection

MPA actively worked on a number of consumer protection-related issues. At the state level, “Do Not Mail” legislation continued to be a threat, with 12 states considering 15 bills. MPA, as part of the Mail Moves America coalition, helped slow or stop the movement of all of these bills, by communicating with legislators about the importance of direct mail for consumers, businesses and the economy. In New York, MPA actively worked to defeat a bill that would have allowed for a retroactive and descendible right of publicity for deceased celebrities. MPA government affairs staff worked to modify or stop state proposals on expiration date notification and automatic renewals, and opposed bills in several states, including New York on online behavioral advertising. Due to the efforts of MPA and others none of these bills passed in 2008.

Environment

In 2008, our efforts centered on environmentally preferable paper procurement and greenhouse gas emissions. MPA commissioned a report looking at the differences between virgin and recycled fiber. MPA provided members access to a newly developed tool which helps paper purchasers consider the environmental aspects of their paper purchases. In addition, in advance of likely legislation on greenhouse gases, MPA began to look at the carbon footprint of titles, and of the industry as a whole, to gauge what the potential impact of any regulation may be.