Washington Report

Keeping Members Informed About Regulatory Issues

Contents
May 2000

MISCELLANEOUS

ANNUAL COMPENDIUM NOW AVAILABLE

The DMA Compendium of Government Issues Affecting Direct Marketing in 1999, a review of federal, international and state legislation during the previous calendar year, is now available. The Compendium provides a synopsis of the background, direct marketing impact, current status, and relevant DMA activities for each issue. The 150-page book covers postal, privacy, Internet, and telemarketing issues, as well as ethics and consumer affairs. The section on state legislation covers not only new laws passed in 1999, but also bills still pending and a list of dangerous bills that were defeated.

The first copy is free to DMA members, and additional copies are $19.95 for DMA members and $29.95 for non-members. For your initial free copy, contact Scott Speer at 202-861-2420 or sspeer@the-dma.org. Additional copies should be ordered either online at The DMA Bookstore located at /bookstore/cgi/bookstore or from the PMDS Book Distribution Center at 301-604-0187.

VIRGINIA DAY ON CAPITOL HILL

On May 10th The DMA held its 40th State Day on Capitol Hill. DMA staff coordinated meetings between member companies throughout Virginia and members of the Virginia Congressional Delegation. It was the fifth Virginia Day that The DMA has held since the program began in 1995.

DMA members participating in the visits included Charlie Judd of NTS Marketing in Lynchburg, VA; Thomas Freshwater of Plow & Hearth in Madison, VA; Jim Ray of McFeely's in Lynchburg, VA, and Chip Sharkey of Lillian Vernon in Virginia Beach, VA.

The first meeting was held with Congressman Bob Goodlatte, R-VA. This meeting was the most successful in terms of entertainment and substance. Representative Goodlatte was generous with both his time and his thoughts. Amid a hectic legislative day, in which the House floor vote for the Internet Tax Moratorium extension was taking place, Mr. Goodlatte invited the group to the House Gallery to witness first-hand the legislative process and also offered historic facts about the Gallery's historic artwork and architecture. Following the meeting Mr. Goodlatte went to the House floor and voted in favor of the moratorium's extension.

There were further quality meetings throughout the day, the first of which included a detailed discussion with Congressman Virgil Goode (I-VA) about postal reform. The group then met with Congressman Jim Moran's Chief of Staff, Paul Reagan to discuss privacy and Representative Moran's leadership role on high-tech issues that affect our industry. Congressman Owen Picket's Chief of Staff Jeanne Evans met briefly with the group and discussed Internet taxation. Later that day the Congressman voted to extend the current moratorium. Another meeting that went extremely well was with Congressman Rick Boucher (D-VA). Mr. Boucher expressed his willingness to take a leadership role on the Internet tax issue along with other technology issues currently under consideration in the House.

SOME PROGRESS MADE TOWARD ACCEPTANCE OF INTERNATIONAL ACCOUNTING STANDARDS

The May 23 New York Times reported that a group has been established, headed by Paul A. Volcker, the former Federal Reserve chairman, to choose 14 people who will in turn set new international accounting standards. The goal is to come up with standards that will be accepted in both the United States and Europe, which would make it possible for companies to compile one set of books for investors everywhere.

Past efforts to establish truly international accounting standards have failed because, according to the Times, "standards vary widely among nations and because the United States, with the most comprehensive standards and in some ways the most restrictive, has been loath to accept international standards." So far the U.S. has been able to compel companies to adhere to American standards by making compliance a condition of listing on American stock exchanges, but technological advances may soon create international stock markets through which an investor in the United States could buy shares in a foreign company that has no American listing.

Mr. Volcker and the other 16 members of the new organization (referred to as "trustees") not only have to choose the members of the standard-setting group, they must also raise money to keep the new entity in business. Mr. Volcker said he hoped the board would be appointed by the end of this year. The Times reported that "the 14 members are to be chosen based on technical expertise. At least five of them are to have experience as practicing auditors. Seven of the 14 board members are to be liaisons with national accounting standards bodies, like the Financial Accounting Standards Board in the United States." There is no guarantee that the S.E.C. or the equivalent authorities in other countries will accept any international standards drawn up by the new group.

The Times notes that "[t]he politics of accepting international standards in the United States have shifted somewhat in recent years. A few years ago, much of corporate America was pushing for it, in some cases because they hoped international standards would be looser than American ones. But some of that support has vanished because more recent international standards have been more rigorous."

In addition to Mr. Volcker and several other Americans, including a former S.E.C. chairman, countries represented among the other trustees South Africa, Brazil; Italy, Canada, Japan, The Netherlands, Germany, Hong Kong, the U.K., France, and Australia.

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