The new proposal to establish a consumer protection agency and expand rules covering regulation of financial services could have negative effects on the advertising and marketing industry.

As currently being discussed, the consumer protection changes would significantly expand the powers of the Federal Trade Commission and its rulemaking authority and could adversely affect advertising agencies. Among other actions, the proposal seeks to establish large new penalties for “aiding and abetting” consumer fraud, among other items.

The 4A’s and other groups are moving aggressively to request rewriting of the sections of the proposals that would most severely inhibit truthful advertising of legal products.

For more information on the consumer protection debate, contact the 4A’s Washington office.