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For Immediate Release:
11/2/2005
Contact:
Gary Kalman, (202) 546-9707
Gary Kalman, 202-546-9707 x311
U.S. PIRG

Subverting Campaign Finance Rules Online

Fact Sheet on H.R. 1606

The Online Freedom of Speech Act is on the House Suspension Calendar and is scheduled for a vote on Wednesday, November 2, 2005.

• A blanket exemption as in H.R. 1606 for even paid communications on the Internet will open up huge new soft money loopholes in the federal campaign finance laws.

• The Internet exemption would allow federal candidates to coordinate with corporations, labor unions and wealthy donors in the expenditure of unlimited amounts of soft money for Internet banner and video ads supporting their campaigns, or attacking their opponents.

• The legislation would thus allow a federal candidate, to sit down with a wealthy donor and write a campaign ad and then give the ad to the donor and permit him or her to spend an unlimited amount on buying banner ad display space on popular websites to run the ad. The same would be true for the spending of corporate or union funds in coordination with a candidate.

• The Internet exemption would also allow national political parties to spend unlimited amounts of soft money for paid ad campaigns on the Internet to support or oppose federal candidates.

• This legislation would allow a state party to use soft money to buy banner ads or video ads on popular websites to support or oppose federal candidates.

• This blanket Internet exemption, while opening these new huge soft money loopholes, is unnecessary to ensure that individual bloggers engaged in political communications over the Internet are not subject to the campaign finance laws.

• The FEC is already considering proposed rules that would affirm that campaign finance laws do not apply to individual bloggers without opening huge soft money loopholes in the laws.

The campaign finance laws should not, and do not, limit political discourse by individual bloggers on the Internet. At the same time, the campaign finance laws must not be subverted by opening huge soft money loopholes that would allow the Internet to become the vehicle for candidates, parties and others to again raise and spend unlimited amounts of soft money to influence federal campaigns.

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