CDT POLICY POST Volume 5, Number 28  December 13, 1999

A BRIEFING ON PUBLIC POLICY ISSUES AFFECTING CIVIL LIBERTIES ONLINE
from THE CENTER FOR DEMOCRACY AND TECHNOLOGY

CONTENTS:
(1) Federal Regulators Review Campaign Finance Rules for the Internet
(2) CDT Launches Web Resource for Netizen Comments
(3) Background - What's at Stake
(4) Policy Post Administration

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(1) FEDERAL REGULATORS REVIEW CAMPAIGN FINANCE RULES FOR THE INTERNET

Federal regulators are asking for public input on how they should apply to
the open and inexpensive world of the Internet restrictions designed to
regulate political speech in the expensive, centralized world of radio and
TV.

The Federal Election Campaign Act is a complicated law regulating
contributions to, expenditures by and public statements expressing support
for candidates for federal office. It places limits on how much money can
be spent by individuals.  It requires reporting of certain contributions
(including "in-kind" contributions of goods and services), and it mandates
labeling of political statements.

As both politicians and voters turn to the Internet, the Federal Election
Commission (FEC) has begun applying these rules to campaign-related speech
on the Internet -- with troubling results. In its initial rulings, the FEC
failed to take into account the unique, user-controlled nature of the
Internet. It issued a series of opinions that threatened to burden - even
silence - the voice of average citizens taking advantage of the power of
the Internet to state their political views.

The FEC is now reexamining its position.  It has issued a "Notice of
Inquiry," asking for public comment on the extent to which it should
regulate campaign-related speech on the Internet.

The FEC's "Notice of Inquiry" is at
http://www.cdt.org/speech/political/noi9924.html

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(2) CDT LAUNCHES WEB RESOURCE FOR NETIZEN COMMENTS

CDT has created a new online resource to make it easier for Web users to
voice their opinions on whether campaign-related activities on the Internet
should be regulated.

The Federal Election Commission has posed a series of very detailed
questions.  CDT has broken down those questions into nine categories and
created a Web-based form where you can type in your comments on any and all
of the issues and send them to the FEC with a single click.

This is a crucial opportunity for Netizens to influence a Washington policy
debate.  The site should be of interest to anyone who wants to voice a
political opinion on the Internet, run a politically-oriented email list,
or develop a Web site criticizing, parodying or supporting a politician.

Act now!  The deadline for public comments is January 4.

CDT's resource for filing your comments with the FEC is at
http://www.cdt.org/action/

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(3) BACKGROUND - WHAT'S AT STAKE

The rapidly growing use of the Internet by ordinary citizens to express
political opinions and participate in electoral activities - one of the
medium's most promising aspects - is on a collision course with federal
campaign finance law.

The federal campaign finance law, originally adopted in 1971, was aimed at
decreasing the influence of money on elections.  Campaign finance reformers
were concerned with the corrupting influence of money, the domination of
TV, and the resulting drop in the quality of electoral debate. They wanted
to limit the amount of money spent and require disclosure of the
sponsorship of advertisements.

The resulting law was designed for the centralized, scarce, expensive and
gatekeeper-dominated media of radio, television and print. In contrast, the
Internet is uniquely decentralized, abundant, inexpensive, interactive and
user-controlled.  The Internet supports a diversity and abundance of speech
not possible in other media - much of it spontaneous and independent from
campaign committees and the political parties.

However, initial efforts by the Federal Election Commission to apply the
campaign finance law to Internet communications have imposed burdens
ill-suited to the new medium.  For example, the FEC has ruled that a
hyperlink to a candidate's Web site might be a regulated contribution and
that someone using a personal homepage to express support for a candidate
might have to file disclosure statements.  More recently, the FEC has given
greater leeway to the political parties to use the Internet, but it has
left the ordinary citizen in limbo.

In October, CDT issued a report warning of the risks this approach posed to
free expression and democratic values.  Entitled "Square Pegs and Round
Holes: Applying the Campaign Finance Law to the Internet," the report is
online at http://www.cdt.org/speech/political/financereport.shtml

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(4) POLICY POST ADMINISTRATION

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Detailed information about online civil liberties issues may be found
at http://www.cdt.org/

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Policy Post 5.28 Copyright 1999 Center for Democracy and Technology