Ron Lanton 12/9/21 Ron Lanton 12/9/21

The Platform Accountability and Transparency Act (PATA) Introduced to Ensure Social Media Platform Transparency

Senators Coons (D-DE), Kloubuchar (D-MN) and Portman (R-OH) have introduced a bi-partisan proposed bill that would require social media companies to provide vetted, independent researchers and the public with access to certain platform data.

According to the bill’s press release, PATA proposes the following:

Under PATA, independent researchers would be able to submit proposals to the National Science Foundation, an independent agency designed to promote the progress of science by approving research and development proposals from researchers across the sciences. If the requests are approved, social media companies would be required to provide the necessary data subject to certain privacy protections.
- Companies that failed to comply would be subject to enforcement from the Federal Trade Commission (FTC) and face the potential loss of immunity under Section 230 of the Communications Decency Act.
Additionally, the bill would give the FTC the authority to require that platforms proactively make certain information available to researchers or the public on an ongoing basis, such as a comprehensive ad library with information about user targeting and engagement.
The proposal would also protect researchers from legal liability that may arise from automatically collecting platform information if they comply with various privacy safeguards.

The bill can be viewed here.

This bill is important to watch as part of an ongoing trend of increasing policy scrutiny on the tech sector.

Lanton Law is a national boutique regulatory law and lobbying firm that focuses on technology and healthcare/life science. Our technology practice monitors relevant policy and regulatory decision makers and we counsel clients on emerging trends within this rapidly developing field.

If you are an industry stakeholder with questions about the current landscape or if you would like to discuss how your organization’s strategic initiatives might be impacted by either Congress, regulatory agencies or legal decisions, contact us today.

Ron Lanton 10/28/21 Ron Lanton 10/28/21

Rohit Chopra of the Consumer Financial Protection Bureau testified before the House Financial Services Committee on Changing Tech Stakeholder Influence

Rohit Chopra who is the Director of the Consumer Financial Protection Bureau testified before the House Financial Services Committee regarding how “Congress has tasked the CFPB with monitoring market conditions to spot risks, ensure compliance with existing law, and promote competition in order to protect families and honest businesses.”

He outlined the Bureau’s concerns with today’s tech and fintech market influences.

“Technological progress holds the potential for enormous benefits to households and the economy, particularly with respect to real-time consumer payments. At the same time, the desire of Big Tech to gain greater control over the flow of money in the economy raises a number of questions. For example, how will these firms harvest 2 and monetize data they collect on our transactions? What criteria will they use to decide who is removed from the platform? How will they ensure that payment systems adhere to consumer protections? Will Big Tech giants have an incentive to impede the entry of new firms seeking to offer competitive products and services? With this in mind, the CFPB has issued orders to dominant firms such as Facebook, Google, Apple, Amazon, Square, and PayPal to shed light on some of these questions. We will also be studying some of the practices of Chinese tech giants, including services provided by WeChat Pay and AliPay. These efforts complement other work within the Federal Reserve System to ensure families and businesses can rely on a fast and reliable payments system. It will also inform other initiatives to ensure that our evolving payments landscape is in alignment with our national interest. Given the state of today’s economic conditions, the Bureau also intends to ramp up its monitoring of other markets and their impact on specific population segments.”

Mr. Chopra’s testimony can be viewed here. Throughout the year we have seen where the fintech and technology stakeholder interests have begun to merge due to a changing marketplace.

Lanton Law is a national boutique regulatory law and lobbying firm that focuses on technology and healthcare/life science. If you are an industry stakeholder with questions about the current landscape or if you would like to discuss how your organization’s strategic initiatives might be impacted by either Congress, regulatory agencies or legal decisions, contact us today.

Ron Lanton 10/5/21 Ron Lanton 10/5/21

First Meeting of the President’s Council of Advisors on Science and Technology Occurs

The White House held the first meeting of the President’s Council of Advisors on Science and Technology Occurs (PCAST). PCAST deals with “1) U.S. competitiveness, security, and international science and technology leadership; and 2) U.S. public health and pandemic preparedness.”

The White House held the first meeting of the President’s Council of Advisors on Science and Technology (PCAST). PCAST deals with “1) U.S. competitiveness, security, and international science and technology leadership; and 2) U.S. public health and pandemic preparedness.”

“PCAST focused its meeting on two topics: U.S. competitiveness, security, and international science and technology leadership; and U.S. public health and pandemic preparedness. The meeting provided PCAST with an opportunity to hear from representatives of a broad range of sectors, including federal, state, and local governments, academia, and industry.”

Additional details on this meeting can be found here.

Lanton Law is a national boutique regulatory law and lobbying firm that focuses on technology and healthcare/life science. We continue to monitor the policy and legal developments around the FTC.

Ron Lanton 8/16/21 Ron Lanton 8/16/21

Bipartisan Antitrust Legislation to Promote App Store Competition Introduced

Last week U.S. Senators Richard Blumenthal (D-CT), Marsha Blackburn (R-TN), and Amy Klobuchar (D-MN) introduced the Open App Markets Act.

Last week U.S. Senators Richard Blumenthal (D-CT), Marsha Blackburn (R-TN), and Amy Klobuchar (D-MN) introduced the Open App Markets Act. According to the press release, “ The Open App Markets Act would protect developers’ rights to tell consumers about lower prices and offer competitive pricing; protect sideloading of apps; open up competitive avenues for startup apps, third party app stores, and payment services; make it possible for developers to offer new experiences that take advantage of consumer device features; give consumers more control over their devices; prevent app stores from disadvantaging developers; and set safeguards to continue to protect privacy, security, and safety of consumers.”

Lanton Law is a national boutique regulatory law and lobbying firm that focuses on technology and healthcare/life sciences. If you are an industry stakeholder with questions about the current landscape or if you would like to discuss how your organization’s strategic initiatives might be impacted by either Congress, regulatory agencies or legal decisions, contact us today.

Ron Lanton 6/17/21 Ron Lanton 6/17/21

U.S. Senate Passes the Innovation and Competition Act

Earlier this month the U.S. Senate passed a rare bi-partisan bill called the United States Innovation and Competition Act, which seeks to improve America's competitive edge by investing billions of dollars in scientific and technological innovations – including artificial intelligence, computer chips and robotics. The bill would boost funding for research and technology manufacturing to increase America's competitiveness, strengthen national security and grow the economy. The bill’s future is uncertain in the U.S. House of Representatives, where the House has a similar bill but it is unlikely that there will not be some kind of compromise between the House and Senate, especially where national security is concerned.

Lanton Law’s technology practice has been monitoring similar legislative and legal developments. If you are a technology or healthcare/life science stakeholder with questions about the current landscape or if you would like to discuss how your organization’s strategic initiatives might be impacted by either Congress, regulatory agencies or legal decisions, contact us today.

Ron Lanton 6/17/21 Ron Lanton 6/17/21

Protecting Rural Telehealth Access Act Introduced

Via a recently released a press release describing how a group of bipartisan Senators including Joe Manchin (D-WV), Joni Ernst (R-IA), Jeanne Shaheen (D-NH), and Jerry Moran (R-KS) have introduced the bipartisan Protecting Rural Telehealth Access Act to make current telehealth flexibilities permanent.

“This legislation would ensure rural and underserved community healthcare providers are able to continue offering telehealth services after the current public health emergency ends. These services include the ability to offer audio-only telehealth appointments because many rural Americans don’t have reliable, affordable broadband access.”

According to the press release the proposed Act would:

Allow payment-parity for audio-only health services for clinically appropriate appointments. During COVID-19, recognizing not everyone has access to the technology in their home, Congress made allowances for audio-only telephone services to be used to allow doctors to reach patients wherever they are.
Permanently waive the geographic restriction allowing patients to be treated from their homes. Pre-COVID-19, the home was allowed as an eligible originating site in Medicare and some Medicaid programs, but only for very specific services, and only for the patient, not the provider.
Permanently allow rural health clinics and Federally Qualified Health Centers to serve as distance sites for providing telehealth services.
Lift the restrictions on “store and forward” technologies for telehealth. Currently this is only allowed in Hawaii and Alaska.
Allows Critical Access Hospitals (CAHs) to directly bill for telehealth services.

Lanton Law is a national boutique law and lobbying firm that focuses on healthcare/life science and technology. Our telepharmacy practice has been helping pharmacies and physicians with operational issues, mergers and acquisitions, regulatory inquiries, audits, licensure, employment issues and contracting.

Ron Lanton 6/17/21 Ron Lanton 6/17/21

White House Releases Report Outlining Steps to Strengthen Critical Supply Chains

In February 2021, President Biden issued an Executive Order to direct a government-wide “approach to assessing vulnerabilities in, and strengthening the resilience of, critical supply chains.”

The key findings highlight recommendations from its “comprehensive 100-day supply chain assessments for four critical products: semiconductor manufacturing and advanced packaging; large capacity batteries, like those for electric vehicles; critical minerals and materials; and pharmaceuticals and active pharmaceutical ingredients (APIs).”

Lanton Law has several years of experience with supply chain issues. Our firm is a national boutique regulatory law and lobbying firm that focuses on healthcare/life science and technology.

Ron Lanton 6/17/21 Ron Lanton 6/17/21

House Lawmakers Release Anti-Monopoly Agenda for “A Stronger Online Economy: Opportunity, Innovation, Choice”

According to press release, the House Committee on the Judiciary’s Antitrust Subcommittee Chairman Cicilline (D-RI) and Ranking Member Buck (R-CO) announced their antitrust bi-partisan agenda outlined below:

“‘A Stronger Online Economy: Opportunity, Innovation, Choice’ consists of five bipartisan bills drafted by lawmakers on the Antitrust Subcommittee, which last year completed a 16-month investigation into the state of competition in the digital marketplace and the unregulated power wielded by Amazon, Apple, Facebook, and Google.”

The “American Innovation and Choice Online Act” to prohibit discriminatory conduct by dominant platforms, including a ban on self-preferencing and picking winners and losers online. The bill is sponsored by Chairman Cicilline and co-sponsored by U.S. Rep. Lance Gooden (TX-05).

The “Platform Competition and Opportunity Act” prohibits acquisitions of competitive threats by dominant platforms, as well as acquisitions that expand or entrench the market power of online platforms. The bill is sponsored by U.S. Rep. Hakeem Jeffries (NY-08) and co-sponsored by Ranking Member Buck.

The “Ending Platform Monopolies Act” eliminates the ability of dominant platforms to leverage their control over multiple business lines to self-preference and disadvantage competitors in ways that undermine free and fair competition. The bill is sponsored by U.S. Rep. Pramila Jayapal (WA-07) and co-sponsored by U.S. Rep. Lance Gooden (TX-05).

The “Augmenting Compatibility and Competition by Enabling Service Switching (ACCESS) Act” promotes competition online by lowering barriers to entry and switching costs for businesses and consumers through interoperability and data portability requirements. This bill is sponsored by U.S. Rep. Mary Gay Scanlon (PA-05) and co-sponsored by U.S. Rep. Burgess Owens (UT-04).

The “Merger Filing Fee Modernization Act” updates filing fees for mergers for the first time in two decades to ensure that the Department of Justice and Federal Trade Commission have the resources they need to aggressively enforce the antitrust laws. This bill is sponsored by U.S. Rep. Joe Neguse (CO-02) and co-sponsored by U.S. Rep. Victoria Spartz (IN-05).

Lanton Law has been monitoring both Congress and the FTC for our technology and healthcare clients, especially as both Congress and the FTC have taken a more aggressive tone on antitrust issues lately.

Lanton Law is a national boutique regulatory law and lobbying firm that focuses on healthcare/life science and technology. If you are an industry stakeholder with questions about the current landscape or if you would like to discuss how your organization’s strategic initiatives might be impacted by either Congress, regulatory agencies or legal decisions,contact us today.

Ron Lanton 6/17/21 Ron Lanton 6/17/21

Lina Khan Sworn in as FTC Chair

The Federal Trade Commission (FTC) released a June 15th press release announcing Lina Khan as the Chair of the FTC, with her term expiring on September 25, 2024. Ms. Khan was confirmed by the U.S. Senate on June 15, 2021.

Lanton Law has been monitoring the FTC for our technology and healthcare clients. This move may signal that the Biden Administration and Congress may take on a more aggressive role in antitrust policy. Technology stakeholders should take note.

Ron Lanton 5/14/21 Ron Lanton 5/14/21

New Executive Order on Cybersecurity Released in Response to Ransomware Attack

In the wake of the Colonial Pipeline attack, President Biden has signed the Executive Order on Improving the Nation's Cybersecurity.

In the wake of the Colonial Pipeline attack, President Biden has signed the Executive Order on Improving the Nation's Cybersecurity. The EO has a number of provisions including:

Establishes a “Cybersecurity Safety Review Board” comprising public- and private-sector officials, which can convene after cyber attacks to analyze the situation and make recommendations.
Requires IT service providers to tell the government about cybersecurity breaches that could impact U.S. networks, and removes certain contractual barriers that might stop providers from flagging breaches.
Plans for enhancing software supply chain security

This comes amid an increase in cyber attacks on private healthcare and technology companies as well as the federal government.

Ransomware attacks are becoming a bigger threat and being prepared from a compliance and risk management standpoint is becoming more crucial. Having appropriate cyber policies in place is one step. We have other solutions.

Lanton Law is a national boutique law and lobbying firm that focuses on technology and healthcare. If you are an industry stakeholder with questions about the current landscape or if you would like to discuss how your organization’s strategic initiatives might be impacted by either Congress, regulatory agencies or legal decisions, contact us today.

Ron Lanton 5/4/21 Ron Lanton 5/4/21

Florida Proposed Privacy Bill Fails

H.B. 969 titled Consumer Data Privacy has failed to become the nation’s third comprehensive consumer privacy law.

H.B. 969 titled Consumer Data Privacy has failed to become the nation’s third comprehensive consumer privacy law. The legislature adjourned without reaching a legislature agreement between the House and Senate as the Senate voted 29-11 to send the bill back to the House. The main controversy around this bill not being able to advance is centered on whether a consumer should have a private right of action to sue a company for an alleged violation.

Lanton Law’s technology practice has been monitoring privacy developments nationwide. If you are an industry stakeholder with questions about the current landscape or if you would like to discuss how your organization’s strategic initiatives might be impacted by either Congress, regulatory agencies or legal decisions, contact us today.

Ron Lanton 4/28/21 Ron Lanton 4/28/21

Tech Stakeholders Alert: FTC Workshop on Dark Patterns

The Federal Trade Commission (FTC) has announced an April 29, 2021 virtual workshop to examine digital “dark patterns,” a term that has been used to describe a range of potentially manipulative user interface designs used on websites and mobile apps.

The Federal Trade Commission (FTC) announced an April 29, 2021 virtual workshop to examine digital “dark patterns,” a term that has been used to describe a range of potentially manipulative user interface designs used on websites and mobile apps.

“Bringing Dark Patterns to Light: An FTC Workshop” will explore the ways in which user interfaces can have the effect, intentionally or unintentionally, of obscuring, subverting, or impairing consumer autonomy, decision-making, or choice. For example, some sites sneak extra items into a consumer’s online shopping cart, or require users to navigate a maze of screens and confusing questions to avoid being charged for unwanted products or services.

Some of the topics the workshop will examine include:

how dark patterns differ from sales tactics employed by brick-and-mortar stores;
how they affect consumer behavior, including potential harms;
whether some groups of consumers are unfairly targeted or are especially vulnerable;
what laws, rules, and norms regulate the use of dark patterns; and
whether additional rules, standards, or enforcement efforts are needed to protect consumers.

The FTC will be seeking public comment on the following topics with a deadline to submit comments by May 29, 2021.

Defining dark patterns
Prevalence of dark patterns
Factors affecting dark pattern adoption
Dark patterns and machine learning
Effectiveness of dark patterns
Harms of dark patterns
Consumer perception of dark patterns
Market constraints and self-regulation
Solutions

Dark pattern policy discussion has increased over the last few months. If you are a technology stakeholder, it is a discussion to take note of.

Lanton Law is a national boutique law and lobbying firm that focuses on fintech, technology and healthcare. If you are an industry stakeholder with questions about the current landscape or if you would like to discuss how your organization’s strategic initiatives might be impacted by either Congress, regulatory agencies or legal decisions, contact us today.

Ron Lanton 4/20/21 Ron Lanton 4/20/21

Congressional Legislation on Big Tech is Forthcoming

The U.S. House Antitrust Subcommittee Chairman Cicilline (D-RI) issued a statement shortly after the Committee marked up and approved the Committee’s report which after a 16 month investigation examined the state of competition within the digital economy.

The Congressman’s statement stated:

“Amazon, Apple, Google, and Facebook each hold monopoly power over significant sectors of our economy. This monopoly moment must end. I’m grateful to my colleagues on both sides of the aisle who worked with me over the past two years to compile this Report, which makes clear that Congress and the antitrust enforcement agencies must step up to restore a competitive marketplace, enhance innovation, and protect our democracy. Now that the Judiciary Committee has formally adopted our findings, I look forward to crafting legislation that addresses the significant concerns we have raised.”

The report is expected to become an official committee report shortly. Lanton Law has been closely monitoring legislation from Senator Klobuchar (D-MN) and Congressman Cicilline (D-RI) and we strongly believe that this year we will see legislation based off of this Committee report to strengthen antitrust laws aimed at tech companies.

Ron Lanton 4/20/21 Ron Lanton 4/20/21

Lanton Law Monitoring Central Bank Digital Currency Developments

According to Investopedia “a central bank digital currency (CBDC) uses an electronic record or digital token to represent the virtual form of a fiat currency of a particular nation (or region). A CBDC is centralized; it is issued and regulated by the competent monetary authority of the country.”

CNBC did a great story on this subject where they highlighted that countries like China and others are exploring a digital dollar, especially since technology is pushing society towards being cashless. The issue is how to reach the “unbanked” and ensure that they have access to the financial system.

Lanton Law is a national boutique law andl obbying firm that focuses on fintech, technology and healthcare. If you are an industry stakeholder with questions about the current landscape or if you would like to discuss how your organization’s strategic initiatives might be impacted by either Congress, regulatory agencies or legal decisions, contact us today.

Ron Lanton 4/12/21 Ron Lanton 4/12/21

Cybersecurity & FY 22 Discretionary Funding Request

The President’s request for fiscal year 2022 discretionary funding has been released. Below are a few mentions for cybersecurity:

To support agencies as they modernize, strengthen, and secure antiquated information systems and bolster Federal cybersecurity the discretionary equest recommends $500 million for the Technology Modernization Fund, an additional $110 million for the Cybersecurity and Infrastructure Security Agency, and $750 million as a reserve for Federal agency information technology enhancements.

With increased hacking and ransomware attacks, cybersecurity is going to be more front and center for both policy and legal discussions. For example in this request by the Administration, the attack on SolarWinds Corp. and Microsoft Exchange’s email servers were expressly mentioned. For stakeholders that traffic in data, cybersecurity policies are essential. Ensuring compliance with federal and state requirements are key and we can help.

Ron Lanton 4/8/21 Ron Lanton 4/8/21

Verizon Enters the Telehealth Market

According to a Verizon press release, the company announced its new telehealth venture called BlueJeans Telehealth.

“According to the “The Future of Telehealth - Balancing Security and Ease of Use” white paper, healthcare organizations (81%) expect to see a greater investment in telehealth solutions over the next 2-3 years, with 85% of decision-makers identifying “ease of use” as a top-five driver in producing good outcomes from telehealth. While many hospitals and health clinics have adopted video conferencing services during the pandemic for providing patient care, BlueJeans Telehealth was designed from the ground up for healthcare organizations to simplify the virtual join and visit experience and offer greater access to care, provide more flexibility for providers and patients, improve safety and extend the reach of services available.”

Verizon went on to describe the service.

“BlueJeans Telehealth delivers an intuitive experience for patients, providers and administrators. Using the device of their choice, patients can easily and quickly meet with their providers through their desktop or mobile browser or the BlueJeans app. BlueJeans with Dolby Voice Audio® provides high-quality audio, minimizing disruptions to the visit so patients and providers can communicate important clinical information clearly. Providers and administrators will also benefit from a streamlined experience, as visits are embedded directly within their existing Electronic Health Record (EHR) workflows.

To simplify administrations and reimbursements, licensing is based on a per-visit model, which allows for straightforward data capture and reporting—an important aspect considering 59% of survey respondents cited uncertainty about telehealth reimbursement as a top challenge for adoption and utilization moving forward. BlueJeans Telehealth licenses will also be available in a named host format.”

Lanton Law has been active with telehealth/telemedicine policy advocacy as well as interpreting current laws while giving clients strategic advice on potential regulatory pitfalls.

Lanton Law is a national boutique law andlobbying firm that focuses on healthcare/life science and technology. If you are an industry stakeholder with questions about the current telemedicine landscape or if you would like to discuss how your organization’s strategic initiatives might be impacted by either Congress, regulatory agencies or legal decisions,contact us today.

Ron Lanton 3/29/21 Ron Lanton 3/29/21

Senator Markey and Congressman Lieu Reintroduce Bill Seeking to Improve the Cybersecurity of IoT Technology

Senator Markey (D-MA) and Congressman Lieu (D-CA) have reintroduced the Cyber Shield Act. The proposed legislation will create a voluntary program to identify and promote internet-connected products that meet industry-leading cybersecurity and data security standards, guidelines, best practices, methodologies, procedures, and proc- esses, and for other purposes.

According to the legislators’ press release, the proposal will specifically establish an advisory committee of cybersecurity experts from academia, industry, consumer groups, government, and the public to create cybersecurity benchmarks for IoT devices – such as baby monitors, home assistants, smart locks, cameras, cell phones, and laptops. IoT manufacturers can then voluntarily certify that their products meet those cybersecurity benchmarks, and display this certification to the public with a “Cyber Shield” label that will help consumers identify and purchase more secure technology for their homes.”

The bill can be viewed here.

Our reliance on technology has become even more vital with the effects of COVID-19. With all of the hacking and malware attacks we have witnessed against various data stakeholders, we foresee cybersecurity as a major policy area that will continue to be expanded.

Lanton Law is a national boutique law andlobbying firm that focuses on technology and Health IT.If you are an industry stakeholder with questions about the current landscape or if you would like to discuss how your organization’s strategic initiatives might be impacted by either Congress, regulatory agencies or legal decisions,contact us today.

Ron Lanton 3/29/21 Ron Lanton 3/29/21

Congressional IoT Legislation Introduced to Prepare for 5G Networks.

Congresswoman DelBene (D-WA)and Congressman Katko (R-NY) have introduced the Internet of Things (IoT) Readiness Act of 2021.

Congresswoman DelBene (D-WA) and Congressman Katko (R-NY) have introduced the Internet of Things (IoT) Readiness Act of 2021. The bill proposes to direct the Federal Communications Commission to collect and maintain data on the growth in the use of Internet of Things devices and devices that use 5G mobile networks in order to determine the amount of electromagnetic spectrum required to meet the demand created by such use, and for other purposes. The proposed legislation can be viewed here. Both legislators are the co-chairs of the Internet of Things Caucus.

COVID-19 has directly resulted in ramping up our technology needs. We foresee policymakers placing more emphasis on infrastructure, especially around communications and technology so that our country can remain competitive.

Lanton Law is a national boutique law and lobbying firm that focuses on technology and Health IT. If you are an industry stakeholder with questions about the current landscape or if you would like to discuss how your organization’s strategic initiatives might be impacted by either Congress, regulatory agencies or legal decisions, contact us today.

Ron Lanton 3/2/21 Ron Lanton 3/2/21

Illinois Biometric Information Privacy Act (BIPA) Lawsuit Causes Facebook to Pay Settlement

On February 26, 2021 in the United States District Court Northern District of California, the Court found that Facebook was ordered to pay $650 million. This issue derived from the underlying lawsuit alleging whether the collection of an individual's biometric data in violation of the Illinois Biometric Information Privacy Act is sufficient to establish Article III standing. As a result of this dispute, the company’s automatic facial recognition tagging features are now an opt-in feature instead of being an opt-out choice.

The Illinois Biometric Information Privacy Act enacted in 2008 was an important first step in developing policy on biometrics. According to the law, a private entity possessing biometric information accessible to the public must have a retention schedule and policy for permanently destroying biometric information. Additionally, there are restrictions on how a private entity may collect, capture, purchase, receive through trade, or otherwise obtain a person's or a customer's biometric identifier or biometric information. Most importantly, this law requires obtaining written consent prior to collecting biometric information as the law provides a private right of action for anyone injured under the Act.

Lanton Law’s technology practice which includes biometrics and privacy issues, has been monitoring the Illinois Biometric Information Privacy Act for some time. We have posted several blogs addressing this issue as companies continue to evolve biometrics into the business models. As 2021 unfolds we confidently believe that legislative and regulatory oversight will increase leading to more litigation that fine tunes points left unanswered about this emerging field.

We at Lanton Law can help. Our legal and policy tools can help offer your organization a clear path forward to navigate what will be changing policies for technology stakeholders. Contact us today to discuss your options.

Ron Lanton 2/20/21 Ron Lanton 2/20/21

Technology Industry Groups File Lawsuit Targeting Maryland Digital Ad Tax

A coalition of technology stakeholder associations that include the Computer & Communications Industry Association (CCIA), along with the U.S. Chamber of Commerce and the Internet Association, are suing Maryland Comptroller Peter Franchot (D), over the state’s recent enactment of the state’s online advertising tax; a first in the nation law. We previously wrote a blog post on this tax.

According to the lawsuit, the plaintiffs “seek a declaration and injunction against enforcement of Maryland House Bill 732 (the Act) insofar as it imposes a “Digital Advertising Gross Revenues Tax” on sellers of digital advertising services. The Act is a punitive assault on digital, but not print, advertising. It is illegal in myriad ways and should be declared unlawful and enjoined.

Additionally plaintiffs argue “The premise of the law is deeply flawed. Taxing digital advertising revenue will have the opposite of the Act’s intended effect, reducing resources to support the creation and availability of high-quality ad-supported content, leaving the online field overrun by low-quality “junk” content. Meanwhile, the Act will raise costs for consumers and make it more difficult for businesses to connect with potential customers. Simply put, the Act will harm Marylanders and small businesses and reduce the overall quality of internet content—all while doing nothing to stave off the dissemination of misinformation and hate speech.”

We’ll continue to monitor these events as it is almost a certainty that other states will attempt to pass similar legislation. Technology stakeholders including those in digital commerce will continue to be at risk. We at Lanton Law can help. Our legal and policy tools can help offer your organization a clear path forward to navigate what will be changing policies for technology stakeholders. Contact us today to discuss your options.