In a major victory for advertising and marketing groups, the final report of the conference committee on financial reform does not include an expansion of the rulemaking powers of the Federal Trade Commission. The committee’s decision to omit an earlier proposal adopted by the House of Representatives to give the FTC greatly expedited powers to draft new rules, along with severe new fines, was the result of a hard-fought and uphill campaign staged by the 4A’s and other advertising, media and client groups.

“We believe that the expansion of the FTC authority could have caused severe damage to all facets of the marketing industry,” said Dick O’Brien, head of the 4A’s Washington Office. “This was a major change, almost unprecedented, in FTC powers and procedures.”

The final decision on FTC powers came at 3:05 AM in the morning as the House and Senate conferees completed work on their report, reconciling the two versions of the financial reform bills passed earlier by each house. The reconciled bill will be voted on by both houses and, if approved, sent to the President for his signature as early as July 4th.

“While we are certainly pleased with this outcome,” O’Brien said, “it is clear that this fight is not over. We expect this issue to resurface in the new Congress. We’re continuing our meetings with key Congressional leaders and staff and preparing to make our case.”