California - SEMs you're held liable

[Discovery]

Holding marketing agencies liable for damages caused by the services they market for is becoming a popular method for local and federal dept. to extract money from private businesses.

Under many new laws state and federal depts. are holding marketing organizations to the same licensing requirements as the services they market for. One high profile industry right now is in foreclosure or mortgage modification. California has passed a law called "The foreclosure consultant act" or legally the CIVIL CODE SECTION 2945-2945.11

In regards to marketing:

Who does the state consider responsible?

2945.9. (a) A foreclosure consultant is liable for all damages
resulting from any statement made or act committed by the foreclosure consultant's representative in any manner connected with the foreclosure consultant's (1) performance, offer to perform, or contract to perform any of the services described in subdivision (a) of Section 2945.1, (2) receipt of any consideration or property from or on behalf of an owner, or (3) performance of any act prohibited by this article.

(b) "Representative" for the purposes of this section means a
person who in any manner solicits, induces, or causes (1) any owner to contract with a foreclosure consultant, (2) any owner to pay any consideration or transfer title to the residence in foreclosure to the foreclosure consultant, or (3) any member of the owner's family or household to induce or cause any owner to pay any consideration or transfer title to the residence in foreclosure to the foreclosure consultant.

In my view that means any marketing company who conducts advertising for said foreclosure, real estate, or mortgage company/consultant.

What's the penalty?

Okay here's the translation: $1k-$25k PER incident and up to 12 months imprisonment.

Wow, I could sell 10 leads and get more time in prison than the terrorists in Gitmo did!

Advertising notification to stay compliant:

The registration form (to become and stay licensed) shall be accompanied by a copy of all print or electronic advertising and other promotional material, and scripts of all telephonic or broadcast advertising and other statements used or proposed to be used in connection with acting as a foreclosure consultant.

Now that will be great! How about I export my campaigns and deliver them to the state of CA every time I change them. Think they'll be able to keep up?

Protection or extortion?

Yes we do need to have laws to protect the consumer as there are fraudulent companies out there that need to be taken down. However, this poor policy is misguided and deters legitimate businesses and offers the Government as the only saving grace for consumers...

The licensing requirements are so time consuming, costly and penalties so severe that many legitimate services will simply avoid offering the service. Who will be left over? Either nobody, or just the crooks and cheats who don't care about the law.

How exactly will that serve the homeowner who needs help.

An aside: they have also slipped into this law not just Foreclosure consultants, but any debt relief, financial, advice, or content that offers to guide a consumer. This can easily be construed to mean the millions of content websites currently running adsense ads, no?

The FCC is seeking to take over domain names, shut down radio stations and breaking up media companies like Clear Channel communications who do not subscribe to the same political theology under the auspice of "fairness" is cause for great concern. Laws like this one CA has passed is a precursor to bigger things to come.

[cryptblade]

Normally, Discovery, I would say you Californians like to think the country follows you, which is not true.

But, in this case with Democrats in power and Republicans (*sigh* my GOP) retreating (thanks Arlen Specter), this may indeed be precursor to bigger things to come.

The "Amazon tax" is already being considered for the federal level. The feds will likely push for an internet tax as well. What will be next?

I personally think if the government is so desperate for money and can't or won't stop spending, they should make prostitution legal (before even remotely thinking about drugs), and charge taxes on prostitutes and their johns as well as charging licenses and permits to become a hooker. They also should charge high fees for marriages and charge for gay marriages and officially tell them they are now married and now fall under a higher tax bracket as a couple - and therefore must pay more.

But somehow, I think that would be a huge outcry and would never pass.

[Discovery]

Now don't get me fired up crypt...

How did you like that fly over yesterday. Just a calming site having a jumbo jet circle lower Manhattan and the Statue of Liberty with two fighter jets in hot persuit. Now, come on, they didnt need to tell anyone in NY about this little PR stunt did they? These same folks are also going to now run our Auto industry, financial industry, health care and education from crib to crypt.

Swine flu? What's the concern? I thought swine flu had already run rampant in DC for decades? Just like pages, aids and interns it will take its course.

Ya, I am SO relieved we wont have our taxes increased.. False advertising?!!! WTF? I have read Obama's entire website. It states everywhere that 95% of us will have our TAXES decreased. It does not say, Federal taxes, state taxes, local taxes, self employment taxes, nor any of the millions of taxes. It says 95% of us will have a TAX decrease. Outright lie. If I put a claim like that in one of my ads the FTC would be on me like Paris on a Christian model. But in this case you can actually win a presidency on a false claim.. and yet marketers are crucified for making a mistep in a 95 character ad? - PS: this is true for all politicians on all sides.

Sphinxter I mean Spector... is that not false advertising? Claim you're a Republican and when your ass is on the line change parties? What about the voters who voted for him based on his party? Not that I care, if Pegrossi wanted to switch to the Republican party would we want her? They can have this con, along with Snow, GW and McCain.

California is getting pretty crazy. I'm thinking of moving to another country... perhaps Texas?

[AussieWebmaster]

This stuff is getting scary

[AussieWebmaster]

I wonder if this legislation could hold Ripoof Reports liable for the slander and libel they publish - and Google for pushing them higher in the rankings?