Category: Advertising Restrictions

11 States Now Have Laws Limiting Artificial Intelligence, Deep Fakes, and Synthetic Media in Political Advertising – Looking at the Issues

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Artificial Intelligence was the talk of the NAB Convention last week.  Seemingly, not a session took place without some discussion of the impact of AI.  One area that we have written about many times is the impact of AI on political advertising.  Legislative consideration of that issue has exploded in the first quarter of 2024, as over 40 state legislatures considered bills to regulate the use of AI (or “deep fakes” or “synthetic media”) in political advertising – some purporting to ban the use entirely, with most allowing the use if it is labeled to disclose to the public that the images or voices that they are experiencing did not actually happen in the way that they are portrayed.  While over 40 states considered legislation in the first quarter, only 11 have thus far adopted laws covering AI in political ads, up from 5 in December when we reported on the legislation adopted in Michigan late last year.

The new states that have adopted legislation regulating AI in political ads in 2024 are Idaho, Indiana, New Mexico, Oregon, Utah, and Wisconsin.  These join Michigan, California, Texas, Minnesota, and Washington State which had adopted such legislation before the start of this year.  Broadcasters and other media companies need to carefully review all of these laws.  Each of these laws is unique – there is no standard legislation that has been adopted across multiple states.  Some have criminal penalties, while others simply imposing civil liability.  Media companies need to be aware of the specifics of each of these bills to assess their obligations under these new laws as we enter this election season where political actors seem to be getting more and more aggressive in their attacks on candidates and other political figures.

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Proposal To Allow Radio And TV To Air Cannabis Ads Introduced In Senate.

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There is yet another path open to potentially allowing cannabis advertising on radio and television stations. Senator Ben Ray Luján (D-NM) has introduced a bill that would permit radio and television stations to accept advertising for legal cannabis products if the station is licensed in a state that permits the advertising of medical or adult-use cannabis.

The proposed Secure and Fair Enforcement (SAFE) Advertising Act is similar to a provision tucked inside the proposed Federal Communications Commission budget for fiscal year that begins Oct. 1. But unlike the budget maneuver under which the ad moratorium would only last for one-year, Luján’s bill would permanently remove any doubt about whether stations could accept cannabis advertising.

“As more states enact common-sense cannabis legislation, it’s crucial that radio and TV stations can accept advertising without fear of losing their license,” said Luján in a statement. “With health and safety measures in place, this legislation will allow broadcasters to accept cannabis advertisements in accordance with state laws.”

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Maryland Passes Digital Ad Tax

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Wendy Davis, DigitalNewsDaily

Facebook, Google and other online companies could face new taxes in Maryland, if a bill passed this week is signed by the governor.

The measure, SB2, would impose new taxes on companies that glean than $100 million in digital ad revenue. Rates would vary from 2.5% to 10% of revenue attributable to Maryland, with the percentage tied to global revenue: Companies taking in between $100 million and $1 billion in digital ad revenue globally would be taxed at the 2.5% rate, while those taking in more than $15 billion would be assessed at the 10% rate.

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Appeals Court Hands Missouri Broadcasters Another Win In Battle Over Booze Ad Laws.

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A federal appeals court in St. Louis has given Missouri broadcasters a reason to pop a few corks. The court upheld a lower court ruling that struck down three state laws that put restrictions on alcohol advertising. The three-judge panel in the Eighth Circuit Court of Appeals was unanimous in its decision, which said the state limits violated First Amendment free speech rights. The appeals court said the Missouri laws, which severely restrict alcohol distributors and producers from most retail advertising, aren’t needed to ensure an “orderly” marketplace.

“Missouri fails to show how the statute, as applied, alleviates to a significant degree the harm of undue influence,” wrote U.S. Circuit Judge Jane Kelly in the 15-page decision. She said the state attempted to use “consensus and history” to defend its statutes. But she said that effort was “misplaced” because it relied too heavily on what other states have done and wasn’t focused on Missouri’s own history or the particular regulations at the center of the fight. “The fact that other states and the federal government have tied-house laws does not make Missouri’s version constitutional,” wrote Kelly.

The court noted that under the law a bar could run an ad which says “drink Coors Light, now available at Joe’s Bar” but a producer or distributor could not.

The Missouri Broadcasters Association (MBA) has been leading the charge to have the state’s regulations struck down for nearly a decade. Missouri has had some of the strictest alcohol advertising rules in the country, employing a three-tiered system of alcohol producers, distributors and retailers designed to keep producers and distributors from having “undue influence” over places that sell or serve their products. But broadcasters have said the rules unfairly disadvantaged local radio and television stations and newspapers since internet ads weren’t covered by the laws.

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