BILL ANALYSIS ---------------------------------------------------------- |Hearing Date:April 8, 2002 |Bill No:SB | | |1240 | ---------------------------------------------------------- SENATE COMMITTEE ON BUSINESS AND PROFESSIONS Senator Liz Figueroa, Chair Bill No: SB 1240Author:Figueroa As Introduced Fiscal:Yes SUBJECT: Advertising. SUMMARY: Provides that solicitations by e-mail and over the Internet by a web-site are governed by the same laws that govern when and how solicitations by mail may use words or symbols that imply a governmental connection with the solicitation. Existing law: 1)Prohibits the use of government-related logos, words, or symbols in mail solicitations that might create the misimpression that the individual or business is connected with the government. 2)Provides that symbols, words, etc., may be used in the mail solicitation if the individual or business conspicuously discloses on the solicitation that there is no connection to the government. This bill: 1)Prohibits the use of government-related logos, words, or symbols in solicitations by email and over the Internet by a web-site that might create the misimpression that the individual or business is connected with the government. 2)Provides that symbols, words, etc., may be used by email and on a web site if the individual or business conspicuously discloses on the solicitation that there is no connection to the government. SB 1240 Page 2 FISCAL EFFECT: Unknown. COMMENTS: 1.Background. According to the author, soon after the enactment of SB 771 (Figueroa, Chapter 695, Statutes of 2001) - the California law that will by 2003 create a state-run telemarketing "Do Not Call" list -- a web site appeared calling itself "The California Do Not Call List." The web site prominently displayed a picture of the State Capitol and mentioned Senator Figueroa in the lead paragraph. Apparently, the non-profit organization sponsoring the site charged an at-cost fee and represented that it would, on behalf of a paying consumer, strive to remove a consumer's name from telemarketing lists. After news reports containing quotes from the Attorney General's office about the site were published, the web site changed its name and its design. 2.Purpose. According to the author, the purpose of this measure is to treat all written solicitations involving the use of government-inspired words, logos, and symbols the same by requiring them to follow the same truth-in-advertising law. The author believes that no public policy is advanced by permitting e-mail advertisers and web-sites to confuse the public by the use of government-associated words or symbols without a disclosure. The author feels that the usefulness of real government web sites could be diminished if the public has a difficult time distinguishing between the "real" web site and others. The author believes that current law and this bill are modest - both expressly permit the use of government-oriented symbols, so long as the user discloses that the solicitation is not in fact a government document. SUPPORT AND OPPOSITION: Support:None Received Opposition:None Received Consultant:Ed Howard