FTC Denied Powers that 'Threatened MR'

The US Congress has today approved sweeping reforms of the country's financial system, but rejected a provision giving the government extensive regulatory control of industries including market research via the FTC. The MRA had argued the clause could have 'threatened the entire research profession'.

The proposals were part of the new Wall Street Reform and Consumer Protection Act. MRA (The Marketing Research Association) lobbied many Members of Congress and Congressional staff, as part of a large coalition of organizations ranging from advertisers and marketers to manufacturers and restaurants.

The original version of the Bill would have restored to the FTC (Federal Trade Commission) regulatory authority taken from it in the 1970s, removing its obligation to notify business of new rules in advance, listen to disputes and work with offenders to bring them into compliance before fining them; and replacing them with the power to introduce rules rapidly and fine immediately. For example, the MRA says the FTC would have been able to publish national legal standards for what constitutes a 'representative' sample and 'good' survey research, with little external input, and levy fines on those deemed to be falling below them.

Following debate, such changes have been rejected for the moment, but MRA stresses that the issue won't go away: 'The Chairmen of the House Energy & Commerce Committee and the Senate Commerce Committee remain intent on FTC expansion'.

MRA's Director of Government Affairs, Howard Fienberg, PLC, comments: 'Current FTC procedures prevent the agency from micro-managing your business or swiftly putting you out of business with minimal notice or debate. An unbridled FTC could put an end to the successful self-regulation of the research profession.' He adds: 'MRA looks forward to a thorough public debate on reauthorizing the powers and authority of the FTC, rather than an ill-considered provision slipped into a massive and unrelated piece of legislation.'

MRS's position on the issue is set out in a paper available online at www.mra-net.org/ga/documents/positions/mra_issue_paper_-_FTC_authority.pdf .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.