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Archive for the ‘Government Affairs’ Category

The Quiznos-Subway “Battle Royale”

Tuesday, February 5th, 2008

petermarinello.jpg If you haven’t seen it yet, there’s an interesting advertising dispute brewing between Quiznos and Subway sandwich shops. It seems Quiznos invited the public to submit homemade videos in a contest intended to target its rival, Subway. The contest rules stated that video submissions were meant to draw “a comparison between Quiznos and Subway with Quiznos being superior.”

One of the videos showed a Subway sandwich running to a Quiznos store to find more meat. Another showed two submarines looking like sandwiches, with the Subway submarine being destroyed because it did not have enough meat.

Subway subsequently sued Quiznos, alleging that several of the homemade videos made false claims and depicted its brand in a disparaging manner. In addition, Subway also objected to ads that Quiznos itself created, showing people on the street choosing Quiznos over Subway. The legal question here is because Quiznos did not create the submissions, so should it be held liable for user-generated content created on its behalf?

From a claim substantiation standpoint (assuming that the “more meat” claim is one of the false statements), I wouldn’t want to be the attorney representing Quiznos in this one. You see, knowledge is a dangerous thing. In my opinion, once an advertiser is made aware that claims are being disseminated in the marketplace without the prerequisite underlying support, the advertiser is responsible and must exercise a reasonable effort to remove the videos/ads from circulation. As Richard Leighton, a partner at Keller and Heckman who specializes in advertising and trademark law noted in a New York Times article: “It’s not like Quiznos said, ‘Do any interesting video you can.’ They provoked it, instigated it, so it may be that the consumers, in this case, are effectively their agents.” (more…)

D.C. Getting Hipper By the Minute

Friday, January 18th, 2008

barb1.jpg Let’s face it, Washington is not known for being hip, but last night’s party held at Google’s D.C. office was very cool. They were celebrating the opening of their Government Affairs office and I was thrilled to be invited. U.S. Representatives, FCC Commissioners, business leaders and a sea of 30-somethings bent on improving the world sipped on “YouTubes” (a cocktail concoction) and munched on sushi, while Xbox games played on walls throughout the office draped with dramatic colors and distinctive furniture.

How nice it was to hear from Google’s president, Eric Schmidt, that Google understands the importance of working within the system to affect change. He was talking about Net Neutrality—a battle ERA members share with Google. It’s always a pleasure to hear a CEO who “gets it” and makes the commitment to be an active player.

However, perhaps the biggest thrill of the evening for me was meeting the “father” of the Internet—no not Al Gore, but the inventor himself —Vint Serf! I was pleasantly surprised by how gracious and humble he was in light of his tremendous contribution to society.

It was a great evening. As I headed to my car, I was heartened to feel the energy and excitement surround not the party itself, but rather the spirit of the industry. The future is indeed very bright.

Barbara Tulipane is ERA’s president and CEO

Obama & Huckabee: Best Chance For an Open Internet?

Thursday, January 10th, 2008

patavatar.jpg My mother always told me that it was inappropriate to discuss religion and politics. I thus find it fascinating that when she’s not talking about the Pittsburgh Steelers, she’s usually discussing those two very topics. As a current resident of Washington, D.C., I’m beginning to see how crazy things are going to get here over the next year. With MySpace’s primary, the Iowa Caucus and the New Hampshire Primary all taking place in the past few days, I thought it may be the right time to throw my hat into the ring of one of the two unmentionable topics: politics.

Social media has become an increasingly important issue within each of the campaigns for the presidency. Howard Dean’s grass root Internet fundraising that raised eyebrows in ’04 is today an integral part of each candidate’s campaign. Just by browsing through their separate websites, I found a space on each page for citizens to get involved with the candidate on a social media level—whether it be through Facebook, MySpace, YouTube, Linkedin, Flickr, etc. But, as most blogs and pundits continue to discuss what the Internet’s impact on politics will be, I’d like to ask perhaps a much more important question: What will politics’ impact be on the Internet?

Net Neutrality is one of ERA’s most important advocacy issues on Capitol Hill. Preserving a free and open Internet, as opposed to a two-tiered system controlled by the telecoms, is vital to the Internet’s thriving e-commerce. If you don’t think it’s a big deal, perhaps you haven’t heard that Comcast was recently caught interfering with Internet traffic. Of the major candidates in both parties, only Democrat Barack Obama’s website tackles this very important issue. Under “Issues,” he has a section devoted entirely to technology, while other candidates make no mention. Of the Republican candidates, Mike Huckabee has shown promising signs of favoring Net Neutrality. Perhaps our fellow Americans in Iowa had electronic retailers in mind as they braved near-freezing temperatures to make Obama and Huckabee the victors. Where were you New Hampshire? Forget gay marriage and Iraq, your bottom line may be at stake depending on the outcome of this year’s election!

I’d ask for your thoughts, but I’m sure that you know better than to discuss politics…right?

Pat Cauley, eMedia editor, Electronic Retailer Magazine

DRTV? You Bet

Monday, January 7th, 2008

garrubbo.jpg Some say that ERA appears to have abandoned its original DRTV members in favor of online technologies and advancements. I want to say without any qualms that ERA has not abandoned the DRTV segment of the membership at all. Indeed, DRTV is alive and well at ERA and the association’s commitment to it is demonstrated in many of its offerings, from education and research to the self-regulatory program, and to government affairs advocacy.

At the Annual Convention last September, the Opening Session was dedicated to three celebrities who use television to sell their products primarily through infomercials, as well as interviews with the CEOs of HSN and ShopNBC, both live television shopping channels. In the third quarter of the year, ERA commissioned a research study on The Evolving Role of Direct Response Television in Multichannel Marketing Execution. The research demonstrated that DRTV continues to grow as a marketing medium, but concludes that it has evolved into a driver of multichannel marketing. More significant, in order to make DRTV profitable on the front end, while also driving a multichannel marketing strategy, it shows that DRTV marketers are accelerating their adoption and customization of emerging technologies, especially in the interactive sphere. (more…)

The FTC joins the 21st Century!

Thursday, January 3rd, 2008

barb.jpg Before the holidays, the FTC invited a small group of industry representatives to preview their tutorial for ways businesses can protect the personal information that they collect. Frankly, I didn’t look forward to attending what I thought would be yet another boring presentation on data security. Boy was I wrong! The FTC actually produced a video that even our industry would be proud of. It’s interactive, it’s fun, and it was developed with the intended audience in mind.

Click here to view the FTC video!

I strongly encourage you to share it with your fellow employees—it’s the least painful way to learn the five basic principles to protecting your customers’ information: take stock, scale down, lock it, pitch it and plan ahead. I could be wrong, but perhaps the FTC has learned a thing or two from the direct response industry—and that’s knowing your audience. The only thing this video missed was the CTA…let’s keep that one a secret!

Barbara Tulipane, ERA president and CEO

Streamlined Sales Tax May Destroy Level Playing Field

Tuesday, December 18th, 2007

barb.jpg It was bad enough when a large brick-and-mortar retailer told members of Congress at last week’s hearing on Streamlined Sales Tax (SST) that online retailers have an unfair advantage over companies like his. Indeed, the entire argument surrounding SST is one of evenhandedness across selling channels. The debate is complex and often touches on seemingly contradictory or ambiguous points. But what really floored me was when a Congressman in support of this retailer’s testimony remarked that he missed the days when he could walk into a store and yep, you guessed it, “everyone knew his name.”

If Congress is really concerned about a level playing field, then perhaps they should recognize that the Internet allows that small main street retailer to compete against the larger retailers through direct-to-consumer tools. Electronic retailers use these tools to create a conversation with their customers. In fact, when I log onto my skin care provider’s site, they greet me by name, know my preferences and assist me in learning about products relevant to my skin. Now that Congressman harkens back to the old days when a retailer knew their customer on a first-name basis; today the Internet provides this experience.

As technology permits a myriad of consumer shopping options, and if the argument is that remote retailers should collect sales tax to level the playing field, then I encourage Congress to ensure that Internet retailers have unfettered access to their consumers with a free and open Internet. But that’s another posting…

-Barbara Tulipane, ERA president and CEO