By Tom Dellner (Photos by Roger Hagadone)

With little fanfare, ERA's government affairs team fights hard every day to protect the electronic retailing industry's bottom line. Electronic Retailer sat down with Bill McClellan, ERA's vice president of government affairs, to learn more about the team, its mission, the key issues facing the online retailer and to get to know the talented staff of lobbyists who represents the association on Capitol Hill.

Electronic Retailer: What is the mission of ERA's government affairs team?

Bill McClellan: The mission is simple: to protect the industry against government action, either legislative or regulatory. Whenever an issue arises that could potentially have a negative impact on the industry, the government affairs group acts as a stopping place where members can air grievances. We then advocate for the members and the industry as a whole.

ER: What individuals and groups comprise the team?

McClellan: There are a number of efforts that go on continuously and simultaneously. The first is our electronic retailing self-regulation program (ERSP), which is administered by the Council of Better Business Bureaus with policy oversight provided by the National Advertising Review Council. Peter Marinello is ERSP's director, and is an attorney who evaluates claims of substantiation for problematic advertising.

One of ERA's most successful initiatives, ERSP is designed to improve industry business practices and increase consumer confidence, while also giving direct response professionals a forum to review claims independently of federal regulation. This program allows advocacy and consumer groups, direct response marketers and other interested parties the opportunity to refer suspect advertisements in an effort to remove offenders from the airwaves expeditiously.

We also have our Government Affairs Committee. Chaired by Brent Thompson--vice president of government affairs at IAC Interactive--the Committee is made up of in-house counsel from a broad spectrum of ERA member companies and respected lobbying shops. It also utilizes a core of government affairs professionals from companies like eBay and IAC which gives us an extremely strong bench in terms of strategies to employ on the Hill. They've done a superb job of helping shepherd ERA through Net Neutrality and a number of other issues.

We also have our Political Action Committee (PAC), through which ERA pools financial resources to promote a powerful and unified voice in the U.S. legislative process. One hundred percent of PAC proceeds are used to fund federal candidate and committee contributions.

And, finally, we have our team of lobbyists from Mehlman Vogel Castagnetti, Inc. [please see our in-depth profile of the lobbyist team].

It's important to note, however, that our team is more than any one person or committee. We are lucky to have a CEO in Barbara Tulipane who recognizes the importance of advocacy and dedicates the necessary association resources to ensure success. We've had incredible buy-in from ERA's Board of Directors and from the membership as a whole. One of the things that has been most heartening to me is the amount of volunteerism and the willingness of the Board and members to do what it takes to make the industry better, to promote it and advocate on its behalf.

ER: How do you go about identifying the issues that are most crucial to the industry?

McClellan: We have, in my opinion, a very effective surveillance system. First of all, our Government Affairs Committee members represent every facet and sector of our industry and always have their ears to the ground and bring relevant issues to the forefront. Member companies having a problem with, say, a particular regulation will come to us. It's then my job to determine whether it's relevant enough to the industry as a whole to bring to the Committee. We also work with a variety of Internet-based coalitions that provide information about emerging issues.

Finally, regulators and legislators will come to us and give us a "heads up" on issues that are going to be placed on the front burner so that we can educate the industry and give our members the ability to prepare.

ER: When deciding whether to take up an issue, is winnability a consideration?

McClellan: Absolutely, but it's never the determining factor. Take Net Neutrality. From the onset, everyone said "don't touch it, there's no way you can win." But some issues are so important that you've got to put up the best fight you can, even if the odds seem long. And, in the case of Net Neutrality, we were successful. Even if you're not successful in terms of the outcome of the vote, your advocacy can often put your industry in a better position in terms of how the legislation is crafted or written.

ER: Back to our lobbyist team. Why did ERA decide to go with an outside firm, and why did it settle on Mehlman Vogel Castagnetti (MVC)?

McClellan: To get the support we have at MVC (a team of five with the ability to draw from a pool of additional lobbyists as needed) would have simply been cost prohibitive.

We chose MVC because they give us tremendous reach and a terrific breadth of issue expertise and contacts. For example, they have lobbyists with outstanding relationships with House Republicans and others with a great reputation among House Democrats. And they have the same thing on the Senate side. Plus, and maybe most important, they've developed an incredible reputation in the Internet and technology space, standing head and shoulders above other firms in terms of issue expertise in these areas and representation of that community. They're the perfect gateway to Capitol Hill for ERA.

Kelly Bingel Birthplace: Dalton, GA Current Residence: Arlington, VA Education: Georgetown University, JD; Louisiana State University, BA in Journalism Relevant Work Experience: Worked for Sen. Blanche L. Lincoln for 10 years as Chief of Staff (2003-2005), Legislative Director (1999-2003) and Communications Director (1993-1996); Lobbyist for AT&T (1996-1998); Reporter for The Tulsa Tribune (1990-1992). Areas of Expertise: Telecommunications and technology, tax, healthcare, trade and energy. Career Highlights: Meeting and working with an amazing assortment of interesting people. What Makes for a Strong Advocate/Lobbyist? Honesty. A sincere interest in other people. In Addition to Net Neutrality, What is the Most Important Issue Facing the Online Marketer Today? Potential new taxes from states and localities. David Castagnetti Birthplace: Massachusetts Current Residence: Bethesda, MD Education: John McCormack Institute, University of Massachusetts, MSPA; Lake Forest College, BA Relevant Work Experience: Director, Congressional Affairs, John Kerry's 2004 Presidential Campaign; Partner at Bergner, Bockorny, Castagnetti & Hawkins; Chief of Staff, Senator Max Baucus (D-MT); Chief of Staff, Rep. Norm Mineta (D-CA); Career began in the office of Rep. Ed Markey (D-MA). Areas of Expertise: Trade, technology, tax and transportation. Career Highlights: Working on John Kerry's Presidential Campaign, directing Congressional operations. What Makes for a Strong Advocate/Lobbyist? An effective lobbyist is hard working, a quick study and maintains strong relationships. In Addition to Net Neutrality, What is the Most Important Issue Facing the Online Marketer Today? Streamlined sales tax and privacy. Elise Pickering Birthplace: Washington, D.C. Current Residence: Alexandria, VA Education: Chapman University, BA, Political Science Relevant Work Experience: Rep. Bill Dannemeyer, (R-CA); Rep. Roscoe Bartlett, (R-MD); Rep. John Shadegg, (R-AZ); Southern Company; Bush Cheney '04; Executive Director, Republican Policy Committee. Areas of Expertise: Energy and commerce issues. Career Highlights: Working with every Republican Senator and House Member in the re-election effort of the President. What Makes for a Strong Advocate/Lobbyist? Someone who is honest and knows what to ask for in a meeting. In Addition to Net Neutrality, What is the Most Important Issue Facing the Online Marketer Today? The Streamlined Sales Tax Project. David R. Thomas Birthplace: Lake Forest, IL Current Residence: Washington, D.C. Education: Vanderbilt University, BA Relevant Work Experience: Deputy Director of Legislative Affairs, Office of Vice President Al Gore; Director of Congressional Relations, Federal Trade Commission; Chief of Staff, Congresswoman Zoe Lofgren. Areas of Expertise: Technology and homeland security. Career Highlights: Attending the Kyoto Global Warming Conference with Vice President Gore. What Makes for a Strong Advocate/Lobbyist? Relationships. A good lobbyist knows how to build, strengthen and maintain solid relationships with people both in government and the private sector. In Addition to Net Neutrality, What is the Most Important Issue Facing the Online Marketer Today? Internet tax. Alex N. Vogel Birthplace: San Francisco, CA Current Residence: Upperville, VA and Washington, D.C. Education: George Washington University School of Law, JD; University of California at San Diego, BA, U.S. History Relevant Work Experience: Attorney, Wiley, Rein & Fielding; General Counsel, Quayle for President; Deputy General Counsel, RNC; General Counsel, National Republican Senatorial Committee; Chief Counsel, Senate Majority Leader Bill Frist, M.D.; Co-founder, MVC. Areas of Expertise: Technology, telecommunications, tort reform and financial services. Career Highlights: Helping win the Senate for Republicans in 2002: the longest, most rewarding election night of my life. What Makes for a Strong Advocate/Lobbyist? People always focus on volume, and that's a mistake. It's a lot more important to listen--both to your clients and to policymakers. Do you know them? Do they trust you? If the answer to these two questions is yes, you have a solid foundation. In Addition to Net Neutrality, What is the Most Important Issue Facing the Online Marketer Today? There is an explosion of interest among policymakers in consumer data and privacy--information that marketers need to effectively do their jobs. In Congress, and even the 2008 Presidential campaigns, privacy is the next great battlefield.

 

The Core Issues, Simplified

Net Neutrality Net Neutrality might loosely be defined as the underlying tenet preserving the free and open Internet. Advocates believe that without Net Neutrality, network owners or service providers will be able to discriminate among content providers, deciding what content or applications are made available, restricting the choices currently available to Internet users. Or, electronic retailers could be charged fees for the use of high-speed service, creating a tiered system which would permit "gatekeepers" to profit from the control of the pipeline. In 2006, a major overhaul of the Telecommunications Act failed to pass despite more than $175 million spent in advertising, lobbying and campaign contributions, because of the mobilization of the business community and concerned citizens who urged their Senators and Congressmen to oppose any bill that failed to preserve Net Neutrality.

The Streamlined Sales Tax Project To oversimplify, the Streamlined Sales Tax Project (SSTP) deals with the challenge of collecting sales tax on purchases from out-of-state retailers. It seeks a Congressional mandate forcing the remote retailer to collect sales taxes even in those states in which they have no physical presence. The position of many in the electronic retailing industry is that, rather than requesting a controversial Congressional mandate which may create an unfair burden given the complexity and variance of many state sales tax plans, sales tax states should continue to work to simplify their sales tax requirements while enforcing use tax compliance and ensuring that multichannel retailers collect sales tax as required by current law.

Privacy While it is unquestionable that the security of online consumers' uniquely sensitive information must be protected, in order for e-commerce to reach its potential, consumers must have confidence in sharing certain personal information as part of an online transaction. ERA believes that government should balance privacy concerns against businesses' interests in sharing or purchasing data that will enable them to compete in today's marketplace, as well as against the benefits to consumers (convenience, personalization and protection against fraud and identity theft) that access to certain personal data can provide.