Yellow Pages Association

Public Policy

Policy News
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Serving as the leading industry voice before federal, state and local governments, the Yellow Pages Association addresses a broad range of issues critical to our members. Our public policy arm represents Yellow Pages stakeholders’ interests before key agencies (FTC, FCC, SBA, etc.) in congressional committees, the courts and state legislatures and regulatory authorities. Together we can accomplish what we cannot do individually to protect the health of the Yellow Pages industry.

2008 is proving to be the directory industry's most challenging year to date with regard to efforts at the state level to restrict directory publishers' ability to freely deliver phone books. In each of the situations outlined below, the YPA is actively involved in educating legislators and agency staff about the misconceptions regarding directory manufacturing. A critical point being that trees are not harvested to make directory-grade paper, instead the industry almost exclusively uses the residuals of lumber making and, increasingly, post-consumer recycled content, in the manufacturing of directory paper. In addition, we explain how our publishers and suppliers have made significant investments over the past decade so that directories are manufactured in a manner that is extremely sensitive to the environment. We also stress the importance of directory advertising to local economies, particularly small businesses, as well as the efforts already made by the industry through the Joint Environmental Guidelines to promote a voluntary industry opt-out. It is more critical than ever for print publishers to sign the pledge, if they haven't already, showing their companies support of the Environmental Guidelines. A copy of the pledge letter sent by YPA and ADP may be found by clicking here.

Below is a brief desrcription of the most threatening proposals and links to documents submitted by YPA in response:

Minnesota

The MN Pollution Control Agency issued a report that, in its current form, recommends to the Minnesota State Legislature that legislation be drafted in the Spring 2008 legislative session mandating that directory publishers deliver directories only on an opt-in basis. This means that publishers would only be allowed to deliver directories to households and businesses that had affirmatively responded to an offer sent by the publisher. YPA has filed comments to the MPCA urging that its report be amended and that the opt-in language regarding directory delivery be removed.

At the request of the MPCA, YPA has also engaged in face-to-face meetings in St. Paul to personally meet with agency staff as they prepare their final report to the MN legislature. It is our intent to prevent a seriously flawed proposal from becoming a seriously flawed precedent.

Hawaii

Both the House and Senate legislative chambers in Hawaii have introduced legislation (HB 1981 and SB 2628, respectively) requiring that White and Yellow Pages directories only be delivered on an opt-in basis. Again, this requires publishers to send an offer to area residents and businesses and publishers will only be allowed to deliver books to those customers that affirmatively responded.

YPA worked with Local Insight Media and Hawaiian Telcom on testimony that was read before the Senate hearing held by the Energy and Environment Committee on February 7th. Both the Senate and House bills were defeated.

Washington

The Washington state legislature has introduced House Bill 3326. This legislation mandates that publishers and distributors of telephone directories abide by an opt-out registry. Specifically, a publisher must develop a way for recipients to opt-out of delivery, provide clear instructions to the recipient regarding how they may opt-out and the opt-out instructions must be printed on the front or back cover of the directory.

HB 3326 was passed by the House Technology, Energy & Communications Committee on February 6th by a vote of 8 to 4. The bill has now been passed to the House Rules Committee for further consideration. On February 19th HB 3326 was defeated.

Should you have questions about any of these legislative efforts, please do not hesitate to contact YPA's director of public policy, Amy Healy, at amy.healy@ypassociation.org.

E-mail marketing

Is your company sending unsolicited e-mails to customers and potential customers? The Federal Trade Commission has outlined what all commercial e-mailers need to know in order to comply with the federal CAN SPAM law.

The CAN-SPAM Act: Requirements for Commercial Emailers

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January 29, 2008

Minnesota Pollution Control Agency (MPCA) has issued a report that, in its current form, recommends to the Minnesota State Legislature that legislation be drafted in the 2008 legislative session mandating that directory publishers deliver directories only on an opt-in basis. This means that publishers would only be allowed to deliver directories to households and businesses that had affirmatively responded to an offer sent by the publisher. YPA has filed comments to the MPCA urging that its report be amended and that the opt-in language regarding directory delivery be removed.

Please click here to read a copy of YPA's comments. Should you have any questions, please do not hesitate to contact YPA's director of public policy, Amy Healy at amy.healy@ypassociation.org.

November 10, 2007

The Texas Attorney General wants restitution from a false Yellow Pages company that deceived businesses, churches and nonprofits, a spokesman said Friday.

Barbara Sommer and her company, Ad Telamerica Inc., which does business as Yellow Pages Directories, has been charged in an El Paso district court of sending misleading direct mail pieces. More than 2 million businesses and individuals througout the nation received them, according to Tom Kelley, spokesman for the attorney general's office. The forms were printed with the words "FINAL NOTICE" in all capital letters, giving recipients the false impression that they maintained such a listing in the past, according to a media release. The attorney general's legal action, brought under the Texas Deceptive Trade Practices Act, seeks $20,000 for each violation, the release states. Some 19,000 of the forms delivered by Sommer's company were answered, Kelley said. The attorney general's office is asking residents who may have been a victim of the scheme to contact them at (512) 463-2100.

Source: http://www.news-journal.com/news/content/news/11102007_attorney_general.html

August 22, 2007

The New York State Assembly is considering legislation that would restrict the delivery of unsolicited advertising material, including independent and non-affiliated telephone directories. The legislation, A. 8807, would authorize a registry for residents who wish to opt-out of such printed advertising matter.

YPA strongly opposes A. 8807 as it creates an uneven playing field for directory publishers. YPA President Neg Norton has contacted the sponsor of A. 8807, Assemblywoman Nancy Calhoun, urging that all directory publishers be exempt from this legislation. YPA's letter was also sent to all members of the Assembly's Committee on Consumer Affairs and Protection which has jurisdiction over the legislation.

Please click here to read a copy of YPA's correspondence. Should you have any questions, please do not hesitate to contact YPA's director of public policy, Amy Healy at amy.healy@ypassociation.org.

August 4, 2007

Many feel duped by Canadian directory

Catherine Pritchard

Q: A volunteer at our small church accidentally agreed to an ad in something called The Official Yellow Pages when the caller kept badgering her. She thought the caller was talking about the small, free listing that we always have in the regular yellow pages and she kept saying that and the caller eventually got her to say she was authorized to OK the ad, which she thought was the usual listing. We didn’t realize anything was up until we started getting calls from a collection agency and they played me a tape of the whole conversation. They say we have to pay $399.95 for the ad or $199 to cancel it. What can we do? — S.D., Spring Lake

A: Your volunteer is hardly alone in feeling bamboozled and fast-talked by this Canadian company (Click here to continue reading)

July 5, 2007

Update on the legislative effort in Maine to impose a 5% sales tax on directory advertising.

YPA is pleased to report that due to opposition from YPA and other business groups, the taxation bill died just prior to the legislature's adjournment at the end of June. The tax bill was passed by the Maine House but stalled in the Senate. YPA's lobbying effort included working on amendment language that, had the Senate taken up the tax bill, would have modified the directory tax to make it almost negligible.

The most important objective that was achieved, besides defeating the tax on directory advertising, was educating key legislators in Maine about why an ad tax is harmful to local economies, that no other state has an ad tax and a tax on directory advertising is essentially a tax on small businesses. These arguments resonated with legislators and should prevent a directory tax from being introduced in the next legislative session.

Rest assured that YPA will continue to challenge any state legislature that unfairly targets directory advertising -- and no other forms of advertising -- in its effort to balance its budget.

June 8, 2007

Checks mailed from alleged check-mailing scheme

FRANKFORT, Ky. - Restitution checks are being sent out in Kentucky to the alleged victims of a check soliciting scheme, Attorney General Greg Stumbo said Friday.

The checks total $70,000 and will be mailed to more than 800 consumers and small business owners. It is the result of a settlement between Stumbo Yellow Pages Inc., Electronic Directories Companies and Continental Recovery and Filing Solutions.

Yellow Pages Inc. is alleged to have mailed checks to consumers for $3.47 and then claimed the consumer was obligated to pay $177 for Internet directory services when the checks were cashed.

"Scams like this are targeted by my office," Stumbo said. "Small business owners were harassed and defrauded by these bad actors. I am pleased to provide this recovery to affected citizens."

Stumbo also boasted that Kentucky is a "pioneer" in the area -- "We have now become a model for the nation in stamping out this abusive practice," he said.

After consumers did not pay the $177 bill, it was turned over to Continental Recovery and Filing Solutions, a collection agency.

Stumbo says state law provides that checks being mailed as a solicitation must contain certain mandatory disclosures. He adds that the companies violated the Consumer Protection Act.

May 15, 2007

North Carolina Senate Bill S. 591, the Option to Stop Delivery of Phone Books - Update

YPA is pleased to report that North Carolina Senate Bill S. 591, the Option to Stop Delivery of Phone Books, was defeated by a voice vote on May 15 by the North Carolina Senate Committee on Commerce, Small Business and Entrepreneurship.

As previously reported in YP Connection, S. 591 would have required that directory publishers maintain a Do-Not-Deliver list for all directories distributed in North Carolina, mandate the public notification of the opt-out-option be printed on the front cover of the directory and provide civil fines of $250.00 for violations of the bill.

"Defeating this bill was extremely important to all directory publishers. YPA was proud to work with our member companies to that end," said YPA president Neg Norton.

However, YPA anticipates additional attacks on directory publishers' ability to distribute directories to be introduced in the future. YPA will continue to monitor, advocate and work with its members on behalf of the industry. Please contact Amy Healy, director of public policy, at amy.healy@ypassociation.org with any questions on this issue.

March 23, 2007

Phone Book Delivery Opt-Out Under Consideration in North Carolina

The North Carolina State Senate is considering legislation (S. 591) that would require all local telephone directory publishers to allow NC residents to Opt-Out of receiving the directory. Specifically, S. 591 would:

Require public notification of the Opt-Out option be conspicuously printed on the front cover of the directory

Mandate that publishers in NC use thirty percent post-consumer recycled content

Provide civil penalties of $250.00 for each violation

Encourage the annual collection of discarded telephone directories for recycling

YPA is working with several of our member companies to defeat this measure. Early reports from meetings with the sponsoring legislator, Senator Janet Cowell, tell us that she is serious about the bill and has obtained the co-sponsorship of nine other NC Senators - both democrat and republican.

Click here to read YPA President Neg Norton’s letter to Senator Cowell sent on March 23rd with copies to the Chairman and Vice Chairs of the committee of jurisdiction as well as to all of the co-sponsors of S. 591. Be assured that YPA will closely monitor this important issue. Should you have any questions, please contact YPA director of public policy, Amy Healy at amy.healy@ypassociation.org.

February 7, 2007

YPA Works to Prevent Attorney Advertising Restrictions in New York

YPA filed official comments during the open comment period. We focused on three main components of the proposed rules: the limitations on the use of graphics including the prohibition of the use of courtrooms and courthouses, the prohibition on the use of paid testimonials and the unnecessary labeling requirements for computer generated advertising. The final version of the rules is much less prohibitive than the proposed rules. These new rules go into effect January 1, 2007. Here are some highlights:

The new rules do not prohibit the use of a courthouse or courtroom or other similar legal graphics.

The new rules also do not prohibit the use of paid testimonials. However, if someone has been paid for the testimonial it must be disclosed in the ad.

Regarding the mandatory ATTORNEY ADVERTISING disclaimer for computer generated advertising: In our comments, YPA asked the NY courts to clarify that internet directories should be treated the same as printed directories which are exempt from the ATTORNEY ADVERTISING label. The new rules state that advertising in a directory "and any web sites related thereto" are exempt from the ATTORNEY ADVERTISING label.

A complete copy of the new rules is available at http://www.nycourts.gov/rules/attorney_ads_amendments.shtml. If you have specific questions on how the rules may affect you, you should consult with your legal advisor.

The attorney advertising heading has come under a great deal of scrutiny over the last several years and we expect this to continue. YPA has been and will continue to be dedicated to protecting this important heading from onerous advertising restrictions. Should you have any questions please feel free to contact me or YPA’s director of public policy, Amy Healy at amy.healy@ypassociation.org.

July 7, 2006

The U.S. Postal Service Announces Significant Rate Increases

To cover increasing operational costs, the USPS will raise postage rates in the spring, 2007. Operating the largest commercial vehicle fleet in the world, aone-cent increase in the cost of fuel means an $8 million cost increase for the USPS. Yellow Pages directories are often shipped via the U.S. Postal Service to remote or rural locations as well as for nearly 100% of secondary distribution. For details on the changes by class of mail, price comparisons and frequently asked questions, please visit the following USPS site: http://www.usps.com/ratecase/welcome.htm

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June 21, 2006

U.S. Congress Considers Telecom Reform Legislation that Affects Directory Publishers Access to Listings

Both the House of Representatives and the Senate are considering legislation that would allow VoIP providers direct access to numbers from the North American Numbering Plan in the same way traditional telephone companies now get them. The reason this is significant for the directory industry is that, under this legislation, VoIP providers would not be obligated to pass the numbers on to directory publishers as phone companies now must do. This is the Section 222(e) obligation. VoIP providers could refuse to pass them, only pass them to specific publishers or charge unreasonable rates for the listings.

YPA has been lobbying both houses of Congress urging them to subject VoIP providers to the same obligations as traditional phone companies if Congress is going to grant them direct access to numbers.

Please see YPA President Neg Norton's letter which was sent to every member of the House and Senate Commerce Committee. The Commerce Committees have jurisdiction over telecom reform legislation.

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Pennsylvania Legislature Considers Advertising Tax – Yellow Pages Would Be Affected

The Pennsylvania state senate is considering legislation, known as SB 854 that would remove the sales tax exemption from advertising and other services such as financial planning, public relations, management consulting and executive recruitment.

According to the Pennsylvania Department of Revenue, approximately $350 million annually would be generated from the ad tax alone. Advertising includes advertising agencies, broadcasters, and print and outdoor media.

The Yellow Pages Association^TM is working with national advertising associations such as the American Association of Advertising Agencies (4As) to track and defeat the proposal. Read More...

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YPA Participates in Small Business Administration Forum
At the invitation of the Small Business Administration (SBA), YPA participated in a roundtable forum at SBA headquarters in Washington, D.C., on January 11 to discuss the economic impacts of the Federal Communications Commission's (FCC) proposed rule implementing the Junk Fax Prevention Act of 2005 (JFPA).

Although the JFPA was signed into law in 2005, the FCC is tasked with deciding how specific sections of the law, which governs unsolicited facsimile advertisements, should be implemented. Issues remain such as how a business must provide an “opt-out” mechanism to its customers, the definition of an unsolicited advertisement and length of time a business has the right to fax to its existing customer base. Amy Healy, YPA director of public policy made the case that restrictive implementation rules would not benefit the business community – which does not engage in junk faxing – or its customers. The National Association of Realtors, National Newspaper Association, National Federation of Independent Businesses and other major trade associations participated in the forum.

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YPA Files Comments with the FCC on Implementation of Fax Rules
To formally make the Yellow Pages industry’s view known to the FCC, the Yellow Pages Association^TM filed extensive comments on January 18 arguing for less-restrictive rules implementing the JFPA in general and relating the open issues to the Yellow Pages industry in particular.

Read More...

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Junk Fax Prevention Act
The YPA is pleased to announce that a bill intended to halt unwanted commercial faxes while still allowing businesses to communicate with their customers recently passed both the Senate and House, and was signed into law by President Bush. The bill (S. 714) maintains the "existing business relationship" exemption to general restrictions on sending commercial faxes that has worked well for many years. Sen. Gordon Smith (R-OR), introduced the legislation which passed the Senate by unanimous consent, quickly followed by House approval.

After both Houses passed S. 714, the President signed The Junk Fax Prevention Act of 2005 into law on July 9. The bill codifies the Established Business Relationship (EBR) exemption. This means that, if you have an existing business relationship with someone, you are considered to have permission to fax them something based on that business relationship.

Click below for a summary and/or a copy of the bill signed into law.

S. 714 Legislation Copy
S. 714 Legislation Summary

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Advertising Tax - Opposition to a Sales Tax on Yellow Pages Advertising

Across the country, state legislatures are looking for new or untapped sources of revenue to combat budget shortfalls. Unfortunately, many states are considering a tax on advertising in general which would impose a tax on Yellow Pages advertising. Some states are even looking at a sales tax on Yellow Pages advertising specifically, as was the case recently in the Nebraska Legislature. (The Yellow Pages Association^TM was pleased to work with several of its members to defeat this specific proposal). An advertising tax is certainly not a new idea. However, the Yellow Pages Association^TM contends it is misintentioned.

For many small businesses, their current use of print Yellow Pages advertising represents the most significant marketing endeavor they undertake. The majority of the Yellow Page Industry’s 3.6 million advertisers are small businesses with limited advertising and marketing budgets. We believe it would be a great disservice to the small business community throughout the United States to impose such a tax. Certainly, such a tax would persuade businesses to locate to jurisdictions without such a tax, harming the local economy.

The Yellow Pages Association^TM will continue to work with its members and other interested parties to defeat advertising tax proposals as they are brought before state legislatures.

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Policy News

Updates on our Public Policy

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State Watch

Click here to link to the Yellow Pages Association^TM State Information Website providing weekly reports on state legislative activity and updates on regulatory information the Yellow Pages industry.

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