Transcripts For CSPAN3 Political Advertisement Hearing 20171030

Additional disclosure and disclaimer on broadcast, satellite, radio ads. Some proposed increased disclaimer and disclosure laws or internet platforms and proposed a role for ftc. Interplay between these three regulatory agencies and how they apply the law is something the Oversight Committee is uniquely situated to examine and i hope we dig into that today. In many ways an example of i. T. s subcommittees efforts to examine emerging technology. Theres a level of urgency in importance in this hearing that cannot be understated. Since the sun rose on our democratic experiment our adversaries have sought to destroy what our forefathers fought for. Our adversaries sought to use our nations unique qualities to undermine robust and resilient democracy but now the tools have changed. As weve seen in recent months and weeks russia has attempted to influence our democratic process utilizing among other tools political advertisements on major American Social media platforms. With every Technological Advancement, our nations regulatory posture has evolved to meet the changing needs of the day. Today i hope to explore questions related to the need for reform of our nations political advertisement laws and regulation regulations. As always im honored to be exploring these issues in a bipartisan fashion with my friend and Ranking Member, the honorable robin kelly from the great state of illinois. Always good to be with you. I thank my colleagues and witnesses and fellow citizens who have joined us today in person or who are watching online for participating today. Now is my honor to to recognize Ranking Member of subcommittee on Information Technology miss kelly for her opening statement. Thank you, mr. Chairman, and thank you for holding this important hearing. Today well examine federal laws on federal advertising one month after facebook revealed russia spent 100,000 to buy 3,000 ads to influence the 2016 election. Those ads reached 10 million americans. These are just the numbers we know of. There are likely many more ads directly and indirectly by the russian government. U. S. Finance law prohibits foreign money in elections but allows foreign money to purchase issue ads. All political ad must carry a disclaimer, which discloses who the buyer of the ad is. But this requirement does not extend to digital ads like those on facebook. The russian government exploits these loopholes. In the 2016 elections russians on were able to take advantage of our outdated rules and mounted campaigns on facebook, twitter and google. They microtargeted their ads, sometimes posing as Community Activists with the intention of turning americans against americans. They sought to sway voterings in critical congressional districts and swing states with fake news. The last time the federal Election Commission updated these elections was april 2011, more than ten years ago. That was before the iphone had been introduced. Twitter was still in development and facebook was only for college students. In fact, 35 of the 42 members of the Oversight Committee were not yet in congress. Myself or the chairman included. Much has changed in that time, our president ial candidate effectively used twitter to wage a successful president ial campaign. Its time we recognize it in todays World Television and radio are not the only media carrying political ads. I am confident that we can prevent meddling by russia by protecting the First Amendment rights of americans. I was encouraged to see the fec recently reopened its 2011 Comment Period on social media political advertising after these russian meddling revelations. However, im still concerned about systemic problems with the fec that have led to years of gridlock. We cannot continue waiting for action, our adversaries have shown they can act quickly and exploit our inability to enforce the law. According to recent polls, 64 of americans want regulation on social media advertising, and an astonishing 78 of americans want payment disclosure for political advertisements. I couldnt agree more. Its clear that americans want transparency and more accountability in social media, political advertising. Congress and the Intelligence Community need to fully investigate what happened in 2016. I commend the chairman for his leadership and willingness to hold todays hearing. Congress must work to insure the integrity of our elections. Recently senators warner and klobuchar and mccain and representatives kilmer and kaufman introduced the bipartisan honest abe ads act. It will increase transparency and online political advertising by requiring Online Platforms to disclose copies of ads and their targeted audiences. This bill is a great start. Thank you for our witnesses. I look forward to hearing your thoughts and ideas on how we can protect our democracy, thank you mr. Chairman. I also ask for unanimous consent that representatives sarbanes kilmer and cartwright be allowed to join us today and participate in the hearing. So ordered. Thank you Ranking Member kelly. We now introduce our witnesses. We have allen dickerson. Mr. David travern, mr. Jack goodman, owner of the law offices of jack goodman. Mr. Randall rothenberg, and mr. Ian vanderwalker. Senior counsel for Brennan Center for Justice Democracy Program at the New York University school of law. Welcome to you all. And pursuant to committee laws, all witnesses will be sworn in before you testify. Please rise and raise your right hand. Do you solemnly swear or affirm the testimony youre about to give is the truth, the whole truth, and nothing but the truth, so help you god . Thank you. Let the record reflect that all witnesses answered in the affirmative. In order to allow time for discussion, please limit your opening testimony to five minutes and your entire written statement will be made part of the record. I appreciate those written statements. It really was helpful in better understanding these issues. For those who are looking for great outline of these questions were going to be debating here today, i would suggest you go to the oversight website to review those statements. As a reminder, the clock in front of you shows your time remaining. The light will turn yellow when you have 30 seconds left and red when your time is up. So mr. Dickerson, youre up first and youre now recognized for five minutes. Used to courts. Chairman herd, Ranking Member kelly, distinguished members of the subcommittee, thank you for the invitation to appear on behalf of senate for competitive politics. The internet has fundamentally transformed the ways in which we communicate with one another. It has become ubiquitous. Its on our desks, next to our alarm clocks and in our pockets. Today a large portion of americans walk around every day carrying devices that can instantly connect them with anyone in the world electric almost anywhere. In fact, in 2014, a Supreme Court reported survey data indicated 12 of americans use their cell phones in the shower. The internet revolution has allowed americans to absorb, produce and distribute content without Third Party Intermediaries. This no longer have to see if an editor has accepted or they no longer have to bare the expense and burden of buying broadcast and political ads. As judge john cain observed when he struck down a Colorado Campaign finance law, it must be remembered that the internet is the new soapbox. Its the new town square. In a way that makes the 1980s revolution in desktop publishing appear almost quaint, the internet has made us all publishers, distributors and speakers. Every american has the opportunity to be tom payne. William lloyd garrison. One suspects those authors would approve. According as the federal Election Commission itself is recognized, the blossoming of online speech is delicate and great caution must be taken when burdening the rights of american speakers. That does not mean, as i explained at some length in my written testimony that its a wild west without rules. It does mean the current Regulatory Environment strikes a balance in favor of a flourishing civil society. Further efforts to license or regulate the placement of small bore issue advertising, particularly those who do not advocate for any outcome, will drive out the poorest and least sophisticated online speakers. They will affect not wealthy corporations, which can afford the experts to insure compliance, but rather grassroots activists passionate about the issues of the day. Moreover efforts to shift liability from licensed speech onto Online Platforms will simply require those companies to pass on those costs onto those same small budget consumers. And it will create incentives to limit small dollar ad buys and grassroots speakers in favor of sophisticated entities that can vet in advance. The result will be an internet that is less free, less open and less available to ordinary americans. Of course, the internet presents challenges. To take one example, foreign threats are a valid and a vital concern. They cannot justify regulations whose burdens will fall on americans overwhelmingly. The deterrence of foreign actors is a familiar problem. It is accomplished through means of diplomacy, counterintelligence and military readiness. Campaign finance law, and particularly the possibility of a fine levied to the fecs Civil Enforcement authority adds relatively little to that mix. Instead, additional Campaign Finance rules will further restrict access to the internet the new public square, by average americans and small groups. The First Amendment stands against those efforts. It is a bulwark against the passions of the moment and a reminder that our dedication to liberty and unfettered public debate is a strength and not a weakness. Nor does Technological Advancement change the constitutions fundamental guarantees. The First Amendment writes to free speech are not circumscribed because they become easier for the american to exercise. As always then, when dealing with political speech, speech to the Supreme Court has recognized to be at the center of the First Amendments protections, our guiding principle must be restraint. Thank you. I look forward to the subcommittees questions. Thank you, mr. Dickerson. Mr. Travern youre recognized for your opening remark. Thank you very much chairman herd, members of the subcommittee on Information Technology. Thank you very much for asking me to participate in todays hearing. I represent the news media alliance, nonprofit trade association representing nearly 2000 news publishers across the United States. Our members include some of the Largest Global news organizations, as well as local newspapers focusing on issues that impact the daily lives of citizens in every state and congressional district. Alliance members share a Common Mission to inform society in an accurate, thoughtful and responsible manner. Our news organizations have long made substantial investments and high quality journalism to achieve that mission. Our journalists and publishers are held to high standards, as detailed in the American Society of news editor statements of principles and the Society Journalists code of ethics. Not only are we potentially liable for knowingly publishing something thats false, our very brands are built on trust with our readers. Because of this, our commitment to truthful and accurate reporting has also informed our approach to advertising. Push lischers have long played an Important Role ensuring the integrity of advertisements that appear next to their content. When it comes to political advertisements, the legal responsibility for complying with federal Election Commission rules clearly falls on the advertiser. Nonetheless, news publishers have taken an active role in insuring that proper disclosures are made and all ads placed on publications reflect honesty and integrity thats the foundation of our brands. As technology evolved publishers have carried forward our responsibility to provide accurate content and the internal controls that go with that to our digital products. These efforts are now much more difficult because of the growth of Online Platforms like google and facebook that act as intermediaries in the distribution of news, content and advertising. Publishers previously worked to insure the integrity of both their content and the advertising that appeared next to it. Now we have less control over advertising because of program act program attic deliver through platforms. These challenges are largely caused by the massive growth and inability to control an eco system that was built with a specific intention of not exercising responsibility over the integrity of content or the advertising that sustains its foundation. This exacerbated by the fact that google and facebook now control the distribution and monetization of online news and information. Theyre the top two sources of traffic for online news publishers, they also collect most of the revenue. With google and facebook receiving approximately 71 of all Digital Advertising dollars in the United States last year, which includes political advertising. News publishers have worked tirelessly to respond to rapidly changing Business Models, my members now represent some of the most innovative and engaging digital publishers in existence. We have created the new businesses without compromising in the integrity of our journalism. It is time that google and facebook and other Online Platforms do their part as well. While they have profited greatly from their immense market power, they have yet to accept fully the responsibility that comes with that position. When it comes to political advertising, Congress Also needs to make the same adjustments the rest of the economy is making and move away from a platform specific perspective. My members deliver their news content wherever their readers want it, on desktops, in print, mobile devices. If Congress Sees fit to impose requirements on certain kinds of political speech, then those rules shouldnt be defined by the delivery platform. As a corollary, congress should revisit the need for current platform specific requirements to see if they appropriately apply to our converged Digital World. If Congress Continues to legislate by platform, technology will simply continue to outpace the rules. The alliance believes the fec rules should be updated to require disclosures within an Internet Advertisement to identify the sponsor of an ad. Google and facebook should update their Business Models and opaque algorithms that accelerate distribution of socalled fake news and viral messaging so highquality reputable content is elevated in search and news feeds. I believe these changes would lead to a healthier journalism industry, a better informed citizenry and more united country. Thank you very much for your time. Thank you, sir. Mr. Goodman, youre now recognized for five minutes. Thank you, good afternoon, mr. Chairman, Ranking Member kelly and members of the subcommittee. My name is jack goodman. Im pleased to present testimony on political advertising. Although i have decades of experience working with broadcast stations on political advertising, i do not appear today on behalf of any present or former client. And the views i express are entirely my own. Broadcasters have long been considered americas most trusted source of news. Far more than any other medium, broadcast news involving politics is subject to detailed regulations. This affects what ads the station must accept, information about sponsors they must obtain and disclose to the public and the prices they charge for political ads. In my experience, stations take their compliance efforts very seriously. The fccs political broadcasting staff is exceptionally helpful, but even experienced broadcasters and their counsel frequently encounter questions as to which no clear answer exists. Disclaimer as i will refer to it, information in ads about their sponsor, these are often referred to as sponsor id requirements. Disclosure refers to requirements for sponsors of political advertising to reveal who they are and who determines their policies. Both the fcc and the fec have rules governing aspects of both disclosure and disclaimer. But agencies have sought to avoid conflicting regulations and very importantly both believe that broadcasters and their employees should not be required to serve as unpaid government enforcement agents or unofficial private investigators. The fccs disclaimer rule for all political advertising is that the ad must include a statement saying either paid for or sponsored by whoever is actually writing the check, paying for it. These disclaimer rules limit the type of ads stations can sell. Short messages cannot be used because a disclaimer will not fit. Thus, inflexible disclaimer rules can prevent the use of some formats for political speech. Turning to disclosure, broadcasters and Cable Systems must maintain public inspection files. Including the political file. Television station public files are now online and all stations will have their files online by next march. For candidate buys the station is required to disclose the candidate, the requested schedule, and the cost of the ads. Disclosure requirements for noncandidate ads which include both independent expenditures relating to elections and ads about issues or referenda are more complex. The rules require detailed disclosure for any ad that communicates a political matter of National Importance. The act explains these include references to a legally qualified candidate, any election to federal office or a National Legislative issue of public importance. This definition is, to say the least, unclear. For example, is reference to a legally qualified candidate intended today encompass issue ads about state and local races . Determining what is a National Legislative issue can also be challenging. If congress is considering a gun control bill, and a separate gun measure were introduced in a state legislature, would an ad be subject to expanded disclosure . The requirements disclose sponsors author and details are difficult to enforce. Some ad agencies simply refuse to provide requested information. Stations infrequently receive orders to issue ads that do not identify any individual or even if the station insists are given one name. Stations face similar problems in getting Accurate Information about issues in the ad. The rule itself is ambiguous. For example, if there are issue ads next year opposing senator kaines, is reelection of senator kaine an adequate description of the issue . And what if an ad discusses more than one issue, does each one need to be disclosed . Another problem can arise if time is reserved in advance and the advertiser does not decide which specific issue to address until just before the ad runs. Because of these problems, even the most conscientious station has problems with what would be in the political file. Political broadcasting rules is instructive. Any new rules applicable to broadcasters or other media need to be flexible to be adapted to new and varying speech formats. And if new Disclosure Requirements are created, the responsibility for collection should not be placed on the media, but instead on a Government Agency with authority to interpret the rules, invest in resources and power to impose sanctions for noncompliance. Thank you very much. Thank you, mr. Goodman. Mr. Rothenburg youre now recognized for five minutes. Chairman herd, Ranking Member kelly, members of the subcommittee, thank you for the honor of testifying today. I would like to get straight to the point. Throughout my 11 year tenure, the Interactive Advertising bureau has always stood for Greater Transparency and disclosure in the Digital Advertising supply chain, regardless of whether the ads are political or commercial. Because we believe transparency and disclosure are necessary for consumer safety. And brand safety. So we strongly support efforts by this congress and the federal Election Commission to clarify, reconcile and strengthen the disclosures required of political parties, candidates, and campaigns. But as a representative of the economys Fastest Growing sector, ieb also believes our industry itself can go even further to implement supply chain protections that would fortify the trustworthiness of Digital Advertising in media in political advertising and commercial advertising alike. Ieb has a proven track record of taking and implementing responsibility across our 650 plus member companies. Together with multiple partner associations, we have created some of the media industrys strongest selfregulatory mechanisms, programs that have been lauded by the white house, Congress Department and the federal trade commission. Through the Digital Advertising alliances Privacy Program we have provided consumers more control over their personal data and Digital Advertising environments. Through the trustworthy accountability groups and antifraud registry and auditing program, we have worked closely with u. S. And Law Enforcement bodies to root criminal activity from the ad supported internet. We were warning about and guarding against russian bot traffic years before it became a washington concern. Our long experience with the diverse, innovative and untidy world of advertising and media persuades us in this industry there is a role for government regulation. But durable reform can only happen when the Digital Advertising community adopts tougher, tighter comprehensive controls for who is putting what on its sites. Since its passage in 1971, the federal Election Campaign act has mandated disclaimers on all political advertising that advocates the election or defeat of a candidate. But much of the fake news and fake ads at the center of the current storm did not engage in such overt candidate support. There were not a bunch of secretive russian moles purchasing vote for trump or hillary for president internet banner ads. Rather, there were sophisticated posts about social and political issues, some of which were made more widely available because the operators were paid to amplify them in peoples feeds. Some of the scandalous messaging was not even placed for payment. Both social influence advertising and unpaid advocacy fall outside the scope of federal Campaign Disclosure rules. Americans have First Amendment rights to shout on street corners, put signs on their lawns and post on social media without registering as political committees or reporting how much they spend on megaphones or smartphones. There is one more complex challenge current Disclosure Rules to the internet, the traditional regulations from fec and the fcc require disclosure by campaigns and by the media running the ads. In that world, the media are in full control. No programming of any sort runs on a television station or magazine that hasnt been vetted by those companies. In the Digital World by contrast, every page is cobbled together from multiple sources and assembled on the fly inside a users internet browser, articles, videos, sponsored links and social commentary come together from scores of server computers. Underneath the visible page, scores of other suppliers may be contributing measurement, ad verification and pricing services. Only a portion of the advertising is sold directly by publishers, the greater portion is sold and distributed by Third Party Technology companies which do their work via automated systems. Programmatically in industry parlance. Legislative proposals that would require websites to field expensive disclosure mechanisms create burdens on struggling media organizations yet would barely capture illicit communication that is placed problematically. We would like congresss support for strengthening the mechanisms we already have built by which Digital Media Companies Police their chains for bad actors and provide Greater Transparency into who is putting what on their sites. We can monitor the financing chain whether the paid support takes the form of conventional advertising or whether it shows up in less familiar formats. Thank you for the opportunity to appear before you today. Thank you mr. Rothenberg. Thank you, mr. Vanderwalker youre recognized for five minutes. Thank you. Good afternoon. On behalf of Brennan Center for justice i thank the subcommittee for holding this hearing. We appreciate the opportunity to share with you our recommendations concerning federal political advertising laws and regulations particularly as they relate to the ability of foreign powers to participate in elections. We focus on democracy and justice and has studied Campaign Finance for 20 years working to develop and defend effective and constitutionally sound policies. There are gaping holes in our regulation of paid political ads in contrast to radio and television, much of the spending on internet is untouched by key regulations. It includes requirement to report spending on mass media ads, the ban on Foreign Nationals buying such ads and the requirements that broadcasters retain public files of political ads. Its time for this to change. The internet is only going to grow in its importance to politics. The 1. 4 billion spent online in 2016 was eight times higher than 2012. Failure to subject ads on the internet to the same disclosure regime as other media will leave the public without Key Information about who is trying to influence them. It will allow more mischief from foreign adversaries. Like russias meddling in 2016. The honest ads act introduced in in the senate by klobuchar, mccain and warner and in the house by representative kilmer offers a promising framework to ensure such disclosure. Congress could also close other loopholes that allow secrecy and potentially foreign money, like spending by dark money organizations and foreign owned corporations. The steps are surely needed, investigations into the 2016 election have revealed a widespread multipronged effort by the russian government to alter the course of debate. Injecting propaganda and divisive messages into the american political discussion. As has been mentioned, firms linked to kremlin about thousands of ads on several platforms seen by millions of people. The ads have not been released to the public but they reportedly discuss political issues, including messages advocating the election of candidates. All while the russians disguised their opportunity with fake profiles designed to look like they were controlled by americans. The Intelligence Community is confident that russia will be back. Of course, we must watch for copy cats, china, north korea and even isis. Most immediately the challenge to the American Peoples political sovereignty and the First Amendment values of transparency in politics requires updating Campaign Finance laws for the internet age. Congress should include paid ads on the internet and the definition of Election Communications from Mccain Feingold bill, which requires disclosure of expenditures above 10,000 on ads that mention candidates. This would have two benefits. It would expand the ban on foreign spending, and it would increase transparency around online ads making information about who is paying for them publicly available. In addition, Online Platforms should be required to maintain public files of political ads. That would essentially extend to the internet the federal Communications Commission requirement that broadcasters maintain a public file of political ads. And Online Platforms, along with other businesses that sell ads should be required to make efforts to prevent political ads from being sold to Foreign Nationals. All these are present in the honest ads act. Moving beyond the internet, holes in Campaign Disclosure rules allow dark money to spend money organizations to spend on politics without revealing their donors potentially hiding foreign sources of funds. In order to close the holes, congress should enact the disclose act. Another blind spot in Campaign Finance results from corporations ability to spend on elections. Congress should extend it to foreign to Domestic Corporations substantially owned or controlled by Foreign Nationals as representatives get money out of foreign u. S. Elections act would do. Finally these proposals need vigorous enforcement. Deadlocks at the fec have increased and passed up chances to strengthen regulations. Congress can reform the agency, including by making the number of commissioners odd and requiring at least one member to be nonpartisan. Thank you, and im happy to answer any questions you may have. Id like to thank the gentlemen for your remarks. Were going to start the first line of questioning with the gentleman from michigan, mr. Mitchell. Youre recognized for five minutes. Thank you, mr. Chair. It appears to me that a number of the individuals testifying are conflating general or social ads, opinion posts, as being the political ads as being the same thing. As mr. Rothenberg notes, there were sophisticated posts about social issues some of which were made widely available. By operators, including those outside the United States. Now, let me ask you, how are we going to determine whats fake news and real news . Who determines that for us . Well, i wouldnt ask the platforms to determine it. That doesnt answer my question. Who determines that . If were going to say were going to stop fake news in some manner in america trust me, you should see my facebook post. Its not exactly a wonderful thing to read. Trust me. Who is going to determine what is fake news and stop it . No one is going to determine whats fake news. Theres a preexisting i agree that conflating political ads with bad content is incorrect. There is a preexisting Regulatory Regime about political ads. Then unquote unquote fake news front, theres a twofold problem. People get garbage over their news feeds online in the same way that good information is delivered to them. I only have five minutes. Let me ask the next question for you. Okay. Which is a number of the newspapers that you represent print add variety of articles about the upcoming tax reform and tax cut bill thats pending. They quoted a variety of sources as being that the rich are going to benefit. That the majority of the tax cuts are going to be for the rich, and quoted some sources. Did you detail the Funding Sources of those groups that made that quote . With regard to those pieces or other pieces, you know who to complain to. You can complain to the publisher or reporters. Most of the things were talking about with all due respect, no newspaper in my community reported any of those sources. In fact, as it comes to the tax bill thats pending, the tax brackets have not been published, yet somehow if you read the newspapers in my community they have determined how the tax bill is going to work based upon some groups that are funded by ill admit Progressive Left groups that say any tax cuts are going to be bad. My question for you is if were going to start being fair in terms of information put out would you not be responsible for posting this comes from a group that is largely funded by pick whatever term you want to do. Would you not post what their why would you not do that if you want to talk about it. Congressman, what i would say. You know who to complain to, which is the publisher and the reporters whose names are attached to that content. I assure you it hasnt had much difference. The distinction i want to suggest to your group, theres a difference between your responsible for the people you employ. Their opinions they put forward. You know in opinion ads who the writer is. Ive done a number of them. Youre responsible for that contact content or the individual who makes their opinion piece is responsible for the content. Thats clear. The difference is on the internet, the provider is not responsible for it. They didnt write it, didnt hire them, they didnt determine who they are, yet you want them held to a standard like your newspaper and its an entirely different format. I wouldnt assert that. You did in your testimony with all due respect. Let me move on real quick. Just a minute left here. Mr. Vanderwalker, can you help me understand, given your perspective on it, were going to allow the federal government to determine what is appropriate content in social media . Were going to determine thats a political ad, thats not . Were going to leave it up to a group of people to decide that . No. The idea is to incorporate an existing framework that already is out there. The election and communications is a bright line test. Candidate mentions within a certain time period above a certain spending threshold. Lets stop here. Its clear the bright line hasnt worked, as mr. Rothenberg notes and mr. Dickerson, the reality is a lot of these posts are questioned as influencing the election fell well outside the bright line. So who is going to determine that . Well, again, the bright line keeps you someone from determining it. Certainly there are things outside of the bright line, but having a bright line and having people understand that they can post if its below a spending threshold protects speech and protects the ability of people to talk about legislative issues without having a Decision Maker have to make judgment calls every time. Let me suggest to the group, and i suggested internally to other members, our first responsibility here is to protect the constitution. The First Amendment is the First Amendment for a reason. We need to defend that even if people think its fake news. The idea were going to allow a group of regulators to regulate what we see in terms of social media or other formats offends me and i will oppose that in any way i can. Thank you. I yield back. The honorable robin kelly from illinois is now recognized. Thank you, mr. Chairman. In january of this year the Intelligence Community released its assessment that russian president Vladmir Putin ordered an influence campaign aimed at the u. S. President ial election. According to that assessment, and i quote, moscows influence campaign followed a russian messaging strategy that blends Covert Intelligence operations such as cyber activity with overt efforts by russian agencies, state funded media, Third Party Intermediaries and paid social media users or trolls. Only one month ago, as i said before, facebook revealed a company linked to the russian government bought 3,000 ads aimed at amplifying divisive issues. The ads are believed to have reached 10 Million People in the United States. To be clear, this is just the ads we know about and people they have reached. There are likely to be more advertisers due the nature of Digital Advertising. Mr. Vanderwalker, are our current laws and regulation sufficient to prevent future influence campaigns by foreign actors . If not, why not . Well, unfortunately too much of the internet is left out right now. We have, as i mentioned, a regime that applies to political spending at mass media. But now the internet is far more important than it was then and its only gaining in importance. It should be brought into the regime that exists so that spending above certain thresholds on electioneering thresholds should be covered. A similar requirement of disclosures for political ads under the fcc rule for broadcasters should be should be applied to internet ads as well when theyre paid for. Okay. Mr. Rothenberg, your testimony characterized this as a supply chain issue. What do the members of your industry that are part of that supply chain need to do to prevent this issue . I think they need to participate in both our existing programs of industry wide selfregulation that have been very successful. Weve built them to give consumers disclosure and control over their privacy, over their data flows and Digital Advertising environments. Weve built another that requires disclosure to prevent fraudulent activity from taking place. So i think we need much more aggressive participation in those, and we would welcome congresss support for that. And i think we can build out from those programs to create better conditions for not just disclosure, but i call it supplier qualification. I mean, basically, if you take a couple steps back, if you think about your local supermarket or even something as large as your local walmart, nothing goes on those shelves without it having gone through a series of sluice gates that give everyone a bit of assurance those products are safe. We have created mechanisms that can do the same thing. I think we ought to build out those mechanisms and get more comprehensive participation in them. Thank you. Besides lack of selfregulation, of advertising appearing on social media, there is also the proliferation of fake accounts. On election day thousands of fake accounts coordinated messages on disparaging secretary clinton and democrats. Mr. Chavern, print media still contains a large amount of advertising, what is its responsibility . In terms of advertising . Those that its traditionally had and upheld, which is to develop a safe and trusting environment for its readers. Most of our content is now delivered digitally. And the biggest things we can do there are let people know where the information has come from. What is the source of the information . The Biggest Issue from my perspective with quote, unquote, fake news is that it comes out of nowhere. People dont know where it comes from and its fed to them in the same way other legitimate news is fed to them. The best thing any platform or news source can do is be clear about where the news is coming from, what the source of it is. Just out of curiosity, do you, with print media, you said you want to provide a safe and trusting do you feel like most of your readers feel that way or trust what they read . I think they do find it is we have an extremely loyal and actually growing audience for our news product. The audience for our news product is bigger than its ever been in history across all the platforms. And the fact of the matter is, people want credible information about their world and community. And they primarily come to us to get it. Should digital political ads be held to a different standard than political ads in other media . No. I come back to the were in a platform agnostic world, where you get information 16 different ways, which is all good. But the rules cant be cant be divied up by platform. We need to come up with a set of rules that goes with the content, not with the platform. What do you think that you can do to do a better job helping readers distinguish between the real news and content that comes from questionable sources or the fake news . I mean, theres always been crazy conspiracy theories. I think weve all got uncles who at thanksgiving dinner told us crazy stuff. But thats always been different from the newspaper in your driveway or whats on tv. Whats happened now is it all gets put in a blender and fed to you so that the real news sources and crazy conspiracy theories come the same way. You dont want platforms and anybody else censoring content. But you need to give readers more information, indicate where its coming from. And these algorithms, which we are all subject to in our lives need to give credit to people who pay reporters for real reporting. Thank you. I yield back. Now i would like to recognize my friend and colleague from the great state of texas mr. Farenthold. Youre now recognized for five minutes of questions. Ms. Kelly asked you a question. I dont think you adequately answered. Are there any federal government regulations on a political ad that is placed in the newspaper . Is there anything a newspaper has to do . By law . As the primary responsible party, no, its on the advertiser. And you say federal regulations should be platform neutral. So it would also by extension be the federal government should not place any regulations on internet platforms, as well, and treat them the same as a print newspaper. Is that correct . As long as the regulation around the advertisement itself is the same. As long as if there are disclosure regulations on whoever theyre from, they have to be whether its online or on your watch. You know, people are consuming content in every way. So the requirements whoever they may fall on, should fall without regard to the platform. All right. So mr. Roth chb rothenberg is there anybody on the panel who disagrees with that . Well, i would just add one kind of coda to it. The law has i defer to mr. Goodman on this, too. The law has long recognized that broadcasting is different because of the scarcity of the airwaves but held to the public trust. Im an old radio guy. Right. So with that as a known exception, you know, platform agnosticism makes sense, yes. All right. So lets talk a little about theres a difference in the way ads are placed. Theres been a lot of you know, who is buying these ads and the disclosures. Typically in the newspaper you actually probably talk to a salesman or talk to somebody on the phone. If youre going to buy something on an Online Platform, its typically done online. Lets say im boris or natasha from moscow and have a pile of rubles ive converted into american dollars, go buy a cash card visa, rent a post office box and aint nobody gonna know im a Foreign National. Do you see that as a problem . Well, as i said in my testimony, its not necessarily a popular point of view across my entire industry, every company should know to some degree of comfort and certainty who its doing business with. Thats a fundamental principle, whether youre making a car or whether youre running a grocery store. So i think that it is okay not just possible but necessary to have some kind of supplier qualification and customer qualification safeguards in place. So now lets go to the other problem that people are complaining about in social media. I think theres you may actually have more affect in elections on, say, twitter or maybe facebook with bots. Just posting something at no cost. A bad actor may spend 100,000 hiring a programmer to create bots and start posting stuff. Thats how do we deal how is there a technological way to detect that . I understand thats a problem in the industry worldwide, dealing with bots. What do you do about that . And how do you not get legitimate people who are trying to exercise their First Amendment rights wrapped up in that . Sir, you have just identified the absolute total nut of the problem. The dilemma. But its not unsolvable. I dont think you can come up with anything that will ever be 100 fullproof, because the technology is very low barrier to entry and will always evolve. Its like a game of whacamole. Theyre always going to find new ways to do things. But i keep coming back. Im sorry i sound like a broken record. Nobody actually knows what a record is these days. But im sorry i keep repeating myself. But i think elements of supplier qualification, knowing with whom youre doing business up and down the supply chain, and building that into a comprehensive selfregulatory program will go and goes a long way to reducing the bot traffic. Under some sort of self regulatory program, youre going to have to have the ability of a social media platform or website operator, whomever, to recheck something. Where do you draw the line that theyre being treated fairly . Lets say i i start blake uggel or whatever the new Search Engine is, and im going to turn down ads from liberals because im a conservative. How do we address that . Well, first of all, its your right. You can do anything you want and prevent anybody you want from coming on. If you want to grow and you want to create a larger business, you want to be as open as possible. So you have to find a balance. I know that may come off as a little mealy mouthed, but there is a balance between using Technology Systems and human oversight to determine the quality of your supply chain participants. But how does somebody know then, for instance, say my algorithm to determine whats in a users news feed, i could suddenly weight that to conservative messages, and it might be years before somebody figures that out. Its true. The same has long existed in every other medium as well. Theres been political bias, sometimes its subtle, and sometimes its not so subtle. You find that on cable news, im sure. You choose your channel, i think, these days. And you choose your technology. Thank you very much. I see my time has expired. I now recognized distinguished gentleman from maryland, mr. Raskin, for five minutes. Mr. Chairman, thank you very much. And thank you for calling this really important hearing. Mr. Rothenberg, youve spoken eloquently about building integrity into the supply chain which leads to the obvious question, what went wrong in 2016, and why are we in the situation were in . Why didnt that happen . Well, to quote a former secretary of defense, you cant plan for the unknown unknowns. We did very explicitly in going back over the 11, 12 years ive been in this job, working with our partner associations, the association of natural advertisers, the four as, which represents the agencies, built very effective self regulatory programs for known knowns. Consumer privacy controls for bot fraud. But nobody had anticipated illicit russian actors. So you think youre ready next time or getting ready for next time . Well, you know, i was intelligence agencies say they are coming back as early as 2018. They will be. But ill give you kind of a warning born of my older profession. Back way back in my dark past history, i covered politics and political media for the new york times. And i developed a principle back in the late 80s that were always covering the last election. The media and the Way Communications happen are always outrunning our thoughts about whats going to happen. I dont think anybody anticipated the degree to which twitter was going to be a massive social influence, let alone bots. So, yes, i think its we can very much be prepared for the bot traffic problem. But we dont know what mole is going to pop up in that game. Gotcha, thank you. Mr. Vandewalker, youve made what seems like intuitively obvious point that the internet is properly analogized to tv and radio in terms of its in terms of the medium, in terms of its impact, in terms of how it works. And therefore, the rules that apply to election conversations in the tv context and broadcast context should apply to internet. And were all familiar with that. We have to say that we paid for this ad, and we stand by this ad and all of that kind of stuff. But what about the problem, which has kind of been floating around from the beginning of the hearing, that it seems as if the hundreds and hundreds of facebook pages and twitter messages and bots that were put out by the russians, many of them were just meant to sow chaos and inject poison into the american body politic. They would not fall within the electioneer and Communications Definition that weve got under the mccainfeingold legislation. Can anything being done about that or as mr. Rothenberg is suggesting, weve learned our lesson from 2016 and now the public is going to be much more wary, or should be, and the media themselves and the Internet Companies themselves should be try to be on top of this problem . Right. I mean, i think as you noted, we should close the doors that we know we can close. I dont think thats all that can be done. For example, the political ad database encompassed in the honest ads act goes beyond electioneering communication because it involves issues of legislative National Importance and would create a publicly available record. That researchers could use to try to piece together whats coming from where, who is being targeted, and what are the messages. That could be, i think, extremely valuable in understanding what the next attacks are and how to respond. And then i think i think there are more things to be done, sort of outside the realm of Campaign Finance. Thats going to require and thats going to require industry and Congress Working together in the ways that mr. Rothenberger has proposed and really figuring out how to get on top of this thing. Let me ask you another question. The Supreme Court in the blooming decision upheld our traditional ban on Foreign Nationals spending money in u. S. Elections. Thats not covered by Citizens United if they are not a u. S. Individual or corporation. However, foreign money could take over Domestic Corporations, as you were suggesting before, and money could be channeled through this Citizens United loophole directly into the political system. Is that something that you think we can tighten up, as well . Yes. Definitely, you know, regulation has in many ways not caught up with Citizens United, even though it was several years ago now. A corporations ability to spend unlimited amounts on politics either directly or through super pacs requires dealing with the problem that even a Domestic Corporation can be wholly owned or controlled by foreign powers. And that should be tightened up. One of the ways would be to as has been proposed, set some kind of percentage ownership percentage by Foreign Nationals or Foreign Governments and say, above this, even a domestically cited or incorporated corporation cant spend on politics. Mr. Chairman, thank you very much. I yield back. I recognize myself for five minutes. This question is to everybody on the panel. You can say yes, no. You can elaborate. Just dont take too long. If you would elaborate. Mr. Vandewalker, im going to start with you and well go your left to yalls right. Laws like the federal Election Campaign act, mccainfeingold, Supreme Court cases like Citizens United, do those refer to and should those cover all political advertisements, whether express advocacy or issue advocacy, despite the platform . Mr. Vandewalker . Yes. I think our Campaign Finance regime at its heart is about transfers of money designed to influence politics. Whether that means buying a political ad, writing a check check directly to a candidate. There are a lot of ways that can play out in detail. But, yes, i think no, issues are protected. Youre already three quarters of the way down that slope. When its about candidates and actual advocacy for or against the candidate, clearly that falls within the scope thats what i asked, i asked for express advocacy, you should vote for this guy or dont vote for that guy. Or the issue saying call your congressman about this. Should that fall under these laws and Supreme Court cases whether youre sending a piece of mail in the mailbox or its a digital app. You cant have video rules applying to audio and vice versa, but sure. A degree it doesnt matter the medium. To the extent speech can be regulated. It doesnt matter how you say it. My First Amendment expert, mr. Dickerson many. Yes, as regards the platforms with a caveat. The amount of money thats being regulated is important. The fact that its cheaper to rung an add in some medium versus another doesnt change the speaker. In that sense, if were talking apples to apples, certainly. So if somebody coming from the great state of texas where im in the only competitive district in the state. Im very familiar with all of the political advertisements that may or may not be running against me. If somebodys running ads against me, theres a public file. Is that correct . I guess mr. Goodman, if theyre doing it on television . If theyre doing it on radio, television theres a public file. Depending on whether they are your opposing candidate or an independent group, different information would be in that file. And what law governs that. Its largely the Communications Act and there were amendments to that act by the Mccain Feingold act in 2002. Is that the same for print . The in terms of the public file . Do i know how no, theres not a public file requirement. I would take this opportunity i think this is a time where congress can look and see what requirements are needed across the platforms. We have different requirements now, i think looking forward. You have to say whats proper. Should it be available on the internet . Right. Mr. Rothenberg youre next. On that one. About when it comes to specifically digital platforms. Are you talking about the public file . Yeah. I think its hard under the law and under First Amendment history to require the public file. To reside with different media. Its hard to take something that was based on the stewardship of the airways and port it over to something as diverse as the internet. What i dont understand is why you cant place those requirements on the campaigns themselves. They know what theyre spending, where theyre spending it. They can create the public file. So my first question to you all were rules that govern express add vow scaasi should apply to all mediums but were saying when it comes to the public file and making sure that what advertisements in timing and amounts, that should only apply to broadcasters . Is that what i just heard . Interesting, what i would say is, you can apply it, but you should place the burden on the campaigns, not on the media that are not responsible for selling the ads. Mr. Dickerson, can you help me understand any First Amendment issues with this notion of a public file . Well, the most basic is that its not costless. Its not its not costless, its necessarily burdening speech, in the sense that certain types of advertisers have to do things that others dont. Weve largely lived with that, because as i explained in my written testimony, the sort of speech being done on broadcast seems to be large amounts of money thats to express advocacy. Are you saying that i should have to do it on television but somebody else shouldnt have to do it in another medium . I would question the utility in a lot of the exercise im not sure this is used from the First Amendment standpoint. If were going to have them, we need to be sure that oath political actors i want to make sure when i ask the question, its a narrow expressed advocacy. Now i would like to recognize the gentleman from massachusetts, mr. Lynch, youre recognized for five minutes. Thank you very much, mr. Chairman, and i want to take a special moment to thank you and to thank Ranking Member kelly for holding this hearing. This is incredibly important. I want to thank the Panel Members as well. And although Ranking Member kelly mentioned that its only been a month since facebook came out and said, yes, the russians did purchase 100,000 on facebook to influence the election. It has been a very long time since members of congress have been asking to have an investigation on the interference of a Foreign Government, in this case, russia, with our democratic elections. It goes back a long way, and this is the first time, mr. Chairman, you are the first you are the first to hold a public hearing on the hacking of our election. And i want to thank you for that. I mean, we go all the way bug to september 2015 when the fbi actually contacted the dnc to say the russians are hacking your website. And the Democratic National committee did not act promptly on that warning. And so the hacking continued. And en this in june 2016 it became public the russian hacking, widely reported, in december 2016, every single one of the u. S. Intelligence agency heads went public and said that with high confidence. This is december 2016, with high confidence they could say the russians were hacking our election. In september 2016 senator feinstein and adam schiff came forward and said, based on their positions as Ranking Members of the intelligence committee, they had information from their hearings that the russians were hacking our elections. And yes, again, last month facebook came out and said, yeah, the russians purchased with rubels, 100,000 in ads and interfered with our elections. So all that happened and today is the five day of the hearing. Today is the first public hearing were having on the infinishments made by a Foreign Government on the United States elections. Thats shameful it took so long. Were talking about campaigns in general, and limitations on campaign advertising. Im going to repeat my request. And when i say repeat, back in december 2016, december 14th, i submitted this letter to the chairman of our committee at that time, asking him for a hearing. On the russian interference with our election, no response. On april 3rd, 2017, i repeated the effort again. Wrote a letter to this committee. This is the Oversight Committee. This is our national election. Can we please have a hearing on the russian interference with our election. No response. I thought maybe it was just me. I asked all my fellow congressmen, could we please have a hearing on the russian interference in our election. They hacked the rnc and the dnc. Both parties. We should be bipartisan about the integrity of our elections, up until today, no action, and were having a hearing today on political advertising, but we still havent had a single public hearing on the russian interference in our election. Ironically, today i did learn that mr. Godlatt has announced the 11th hearing on the clinton investigation. The department of justice decision on secretary clinton. So its you know, we got to get together on this stuff. And i know it might be painful for everyone. I actually asked miss washer man schultz would she come and testify . Yes, she would. It would be difficult but she would help us delve into what actually happened. Let me ask you, youre familiar with the honest ads act that my friend mr. Kilmer and senator mccain put out there. Seems straightforward, give me your opinion on that. We think its an excellent framework to apply to the to address the problem of political spending, which to close doors on foreign spending that can come in and effect elections. By bringing the internet into an established framework that exists for political spending and other mass media. Thank you. Thank you, mr. Chairman for your indulgence. I cant i appreciate the kind words, i also want to highlight there have been a number of hearings opened and closed on the house permit select committee on intelligence. I havent seen them. On the issue of this. But this again, making sure that were glad we have this, doing this in a bipartisan way. With that, its now a pleasure to recognize the gentleman from the commonwealth of virginia, mr. Conley, for five minutes. Thank you, mr. Chairman, thank you for having the hearings. I finds it a remarkable moment in our democracy, when so many up here can hear and see no evil when it comes to russian interference with the american process. The perspective of who benefited, but can beat a dead horse when it comes to what kind of server was used for someones emails. I think thats an indictment of the enables and complicit behavior we have seen all too much of since mr. Trump was signed in as president of the United States. What could be more sacred that prof tekting everyones franchise and the integrity of that process in a democracy, when its interfered with, deliberate when i, strategically targeted by a foreign adversary, not an ally, an adversary, why wouldnt we be doing everything in our power on a bipartisan basis to make sure that can never happen again . And thats really the context of this hearing. Mr. Goodman, from a legal point of view, in my state, the great commonwealth of virginia, when i do a campaign ad, if i do one. Im required by law at the end of it to have a trailer saying, i paid for this, this is my campaign ad. Its a stand by your ad kind of requirement in law. In a sense thats circ um scribing my free speech, is it not . To some extent it is the courts have so far never questioned the ability of the government to require disclosure, and with respect to one part of that, which is the im gerald connelley and i paid for this ad, that at least with respect to the fcc is something you can choose to do or not do. But if you dont do it, you are not entitled to the candidate discount rate. Right. So so its your choice. There is a precedent for circ um scribing certain forms. No one has questioned those particular requirements in court. The Supreme Court has in all of its cases said that disclosure is largely the remedy. I would think this would be within the scope of disclosure. So mr. Vanderbocher, given the fact that there is precedence of circ um describing what otherwise would be free speech, tobacco advertising, for example. The government makes a producer of a certain product add words to its packaging it does not want to ad, but are required by law. This precedent, no one wants to infringe the First Amendment. But one of our friends on the other side of the aisle earlier, made it seem as if the choice were gut the First Amendment or deal with this problem. It seems to me those are not the only two options in front of us. Thats right. There are limits on the amount of speech in various ways. And its important to recognize there are First Amendment interests on both sides. That is the listener has an interest. The democratic interests in voters knowing whos piping up for a candidate. That tells you something about what that candidate stands for. Holding candidates accountable for the Financial Support they get. As well as being able to evaluate. Is this message about some political issue coming to me from an Environmentalist Group or a oil industry . And which one of those do i trust . Do boris and natasha operating in the outskirts of moscow trying to corrupt the american election, do they have the same first unfetterred rights that anybody else does in the United States . No. They dont . Why not . Well, for a number of reasons, you know, Constitutional Rights in general are diminished at most at the very least, for Foreign Nationals not within the United States. Its important to note that in the democracy sphere, we have this selfgoverning community, we are governing ourselves and that is why we have a democracy and First Amendment that allows political debate. And, therefore, we have a right to protect ourselves from boris and natasha . Right. Thank you. You are now recognized for your five minutes of questions. Thank you for holding this important hearing on our disclosure laws. Regardless of our political affiliations, we all agree our elections are the cornerstone of our democracy and transparency and the security of elections must be protected at all costs. Foreign efforts to undermine our elections and the elections of other western democracies must be taken seriously. This congress has a responsibility to ensure all future elections are protected against foreign meddling. Mr. Vanderwalker, we heard the suggestion and seen at least in written testimony. That Russian Internet ad buys were simply too small given the amount of money spent on election earring ads. Any effort by a foreign adversary to sway our electios s regardless of whether they have an impact on the outcome of our election are troubling . Yes about first of all, we havent seen the extent. But any amount trying to influence american elections is problematic. You know, mr. Vanderwalker, earlier this month, facebook stated about 10 Million People, 10 Million People had seen these ads. How concerning would you say those estimates are, and how does that impact the Publics Trust of our news media, and our Democratic Institutions . I think its very troubling. And again that should not be considered an upper bound facebook said thats the audience the paid ads reached. The same profiles produced unpaid content that reached tens of millions more. We dont yet know. Thats one of the problems with not having very much disclosure in this area. We still dont know the extent of the reach we need more information about whos trying to sway our political opinions. It may have reached tens of millions of people, not just 10 million. Through the fwrch of ads, russia was able to spread lies, inflammatory rhetoric, and other propaganda in the hopes of swaying voters both in the United States and france among other places. Multiple news reports found that on facebook alone, there were hundreds of profiles linked to russian agents that spread false information regarding one of the president ial candidates as well as issues like immigration guns and other divisive topics. During the french elections there were similar efforts to spread false information regarding one of their president ial candidates. In your opinion, are we taking as a body in congress the issue of foreign infiltration of our internet sites seriousliness. Theres been a lot of discussion, from our perspective at the brennen center. We certain loy think more action could be taken. There are bills that have been introduced that help address this problem. Do you anticipate the russians and others are going to continue these efforts in the ramp up to 2018 . Everything ive seen from the Intelligence Community indicates that, yes, they are. Thank you. The gentleman from the great state of washington. And a friend, welcome to the Oversight Committee. Youre always welcome. Youre now recognized for five minutes. Thanks. For overseeing this important hearing, but letting me sit in with your subcommittee. The democratic republic has become vulnerable to foreign actors that want to disrupt our system of government to influence electoral outcomes from the reports weve read so far, foreign actors targeted American Voters to have the maximum impact on our elections. Thats unacceptable and something republicans and democrats agreed needs to stop. Thats why we introduced the honest ads act the bill would have the federal Election Commission rules in place similar to whats already in place for tv and radio ads. Thats vital if were going to enshore transparency to affirm the publics right to know. Thats increasingly important if were going to keep foreign money out of our politics. Based on some of the comment that is have been made. Requiring disclosure when someone purchases a radio or tv ad does not prohibit or inhibit free speech. Nor does holding those purchases in a public file. The Supreme Court has long recognized that commercial speech such as political advertisements is not subject to the same protections as a citizens comment to speak up in the public square. I appreciate your comment that applying those disclosures should be no different than what happens with radio and tv media. Certainly this bill doesnt solve all the problems we saw in this last election psych e78 el, this would solve the discrete issue of the americans right to know if someone is interfering with an election. You spoke to the challenges associated with, perhaps the burden of keeping the file. If the public file requirement were on the purchaser of the ad or on the campaign. I guess my question is, how could the government ensure compliance by foreign actors 23 we went in the direction you suggested previously . Im not sure you could assure that no matter whom you put the burden on, it will always be difficult if front groups and then front groups beyond front groups can take out the ads. It doesnt matter where the burden is placed in that regard. One of the problems i have is, its placing the burden on smaller publishers. When theyre not the ones that are responsible for placing most of those ads. Let me dive into the detail of that. The ads act would apply a political file requirement to the largest platforms that sell paid online political ads. It currently defines a large Online Platform, as those with 50 million unique visitors per month. I would suggest that might differentiate from the concern you just raised. I guess my question is, what is your view on that figure . Do you have a sense of what types of platforms would be captured at that level . Off the top of my head, its hard for me to deal with the specific metrics, other than clearly at this point in time, there are two large social media platforms that get the bulk of peoples attention and ad revenue. That may change over time, by the way, we will need some metric of size. I would come back to one thing. I certainly agree with mr. Rothenbergs statement, with regard to the honest ads act, the stated purpose of equal treatment, weve talked a lot about that today, and how there may be value in that. Were still studying the implications of all the components of it, in particular, the repository and database, and what kind of database for any platform is required in this new kind of converged digital age. Fundamentally, to answer your question. Theres two clear candidates right now in terms of Online Platforms, but well have to consider the fact that there may be others and different ones in the future as there always are. I can answer that, it would include Companies Like hearst, conde nast, meredith, fox, vice media, basically a lot of newspapers and magazines that are not in a position to take on extra burdens, Financial Burdens in reporting. 50 million unique users in the internet world is actually not a lot of. Thank you, mr. Chairman. The gentleman from maryland, youre recognized for five minutes. Thank you very much for permission to participate in the hearing. Thank you for taking this issue as seriously as you have, and i also want to thank Ranking Member kelly for her focus on this, and i want to thank my colleague from washington for his leadership on the honest ads act, which i think is a critical step as we prepare for the elections next week next year. It could be next week. Thats why we need to get ready for it, is there anyone on the panel who thinks that right now we have an adequate level of disclosure with respect to spending on political advertisements on online 34r59 forms to be ready for the next election. Does anyone think that disclosure 1 adequate . Mr. Dickerson . I predicted you would be the one to i do. I dont see anyone else, let the record show. I dont think its adequate, i think that if were going to be ready as you are saying, mr. Rothenberg, weve got to anticipate what comes next, its hard sometimes to do that, i would think putting a baseline regime of disclosure in place with respect to whats happening online would be one thing that we could do to be more ready than we are now. And so were obviously going to encourage our colleagues to continue to push very hard for this kind of disclosure, which as the hearing has indicated is not out of line with the expectations that have been created with respect to the broadcast industry overtime. And the public has indicated through polling data, it wants to see this kind of information as well. Im curious what you would say about whether advertisers should be allowed to make money from foreign election interference . I mean, how would you answer that question . Do you think that advertisers should be able to make money on foreign interference in our elections . Well, i think within reason we should be preventing foreign interference in our elections, and it follows with that, companies should not be able to make a profit from it. Others . Yes, i think the question needs to be refocused, the issue is not whether for example, somebody makes money off an ad, but whether an advertising thats foreign is permitted to participate in u. S. Elections, and i think that is one of the issues that if there are going to be further Disclosure Requirements, need to be addressed. That boris and natasha that have been mentioned before, yes, were u. S. Citizens and we have a u. S. Company, either an Online Platform or newspaper or tv station have no way really to determine whether thats accurate. And thats why i think this has to be a government responsibility. I do think it goes to the question of what kind of expectation we should have from the advertisers themselves. What sort of responsibility they should carry to promote this kind of disclosure, to keep track of these kinds of things, i dont think as you indicated that we can rely on campaigns to enforce these standards. I dont think thats realistic, i think the advertisers or the platforms receiving these purchase advertising are in a better position to do that, it may not be easy out of the gates to construct these new regimes or algorithms, they should be able to do this, in order to enhance disclosure. Im going to run out of time, i wanted to ask one other question of you. That is, you know, the fcc takes a lot of hits these days. In certain regards it is not functioning in the way it should. But there are some things that the sec is able to do pretty well it it collects information submitted by campaigns every quarter, digests that and produces it in a very accessible way on its Online Platform, so people can go there and get information about whats happening, in terms of spending on the campaigns themselves. Do you have any reason to think that the sec would not be able to handle the responsibility of administering whats being envisioned under the honest ads act in terms of information being collected, public files being produced, that being put into place, where the public can see it easily, isnt that a function that the sec could undertake at this point . Yes, thats one of the things theyre actually good at, and they recently revamped the public face of those disclosures, making them more searchable online and certainly policies could be developed in cooperation with social medias of the world, who are very good at putting things online, i think to make it all feasible and usable. Thank you, i yield back. Thank you, i recognize myself for another five minutes. Mr. Dickerson, i want to follow up on something mr. Vanderwalker said. Does a russian in russia have First Amendment rights in the United States . Russian in russia has fewer rights than a russian would have on american soil. Can the government of rurk ya buy an ad saying, come to moscow on broods cast television . I think there would be a restriction on home buying an ad, which would be explicit advocacy. That would would be illegal under u. S. Election laws. If they wanted to buy an ad that said dont send weapons to the ukraine. Assuming they comply with those Disclosure Requirements, theres no prohibition on their speaking in the u. S. Does the Foreign Agent registration act have anything to do with that disclosure or purchase of thats exactly what i was referring to. Got you. Mr. Chavern, can the russians run a political advertisement saying, dont send guns to the ukraine . I believe it would not count as express advocacy, and i if they said, call your congressman and tell them, dont support sending guns, american guns to the ukraine. Once you get into issue advocacy, i have the same i would have the same question as mr. Goodin about Foreign Agent. Mr. Rothen burger, can the russians run a digital ad that tells you to call your congressman and tell them not to support sending american guns to the ukraine . Mr. Chairman, im not an expert on that, so i cannot answer that question. Mr. Vanderwalker, do you have an opinion on either one of those three scenarios i just brought up . You know, so one of the things that could get at that is the political file requirement, which would not be prohibition, but would be. Is there some piece of law, court case that regulates whether the russian government could buy an ad on print, broadcast or digital that says call your congressman and tell them to not send guns to ukraine . Not that im aware of. And just for the record, im in support of sending weapons to the ukraine. Mr. Dickerson, your opinion on one of those three scenarios . My opinion is im pleased to finally hear the foreign registration act raised, it basically is a political file this is a law that requires any its a broad definition of political public communication at very low dollar thresholds to be file d with th government. I think a lot of the tragedy of this conversation is that in our efforts to get at russian activity. Were trying to expand laws that by definite impact american political speech. Given the scope of the existing fora, and it could be expanded to not only Foreign Agents but also foreign principles, that strikes me as a much narrower way of building the political file thats being discussed here, precisely because its targeting foreigners and not americans. Right now your understanding is that it is for agents of the government, not principles of the government . Thats my understanding. Mr. Raskin, youre now recognized. Thank you very much. Whats at stake here is the integrity of liberal democracy in our century. Vladimir puten and his agents understood they could not compete with us militarily, economically, and they could not compete with us politically on a fair stage, because they have nothing to sell but teyrannytyr. But he detected a little about the of an achilles heel, which is our openness. Our freedom of expression on the internet. Which might be the most wide open of all of the forums and media we have. So he took advantage of that, i think everyone here agrees we were caught sleeping. And there were hundreds of millions of dollars spent to inject poison into our political process, and to try to gerrymander the outcome of our election. Now, let me ask this. First of all, can we do this in reverse . For example, would we be allowed to spend mafr money we wanted as a government or private entity in saudi arabia . In iran . In russia, in the fill pines . Do the authoritarian societies allow people from the liberal democracies to access their public with such ease . Does anyone have an answer to that . Yes, for generations we did that through the voice of america, and other arms of the United States government and did it effectively. What about the purchase of tv ads in saudi arabia or iran or russia. What about the kind of penetration of the public that tug place in 2016 here . Well, history shows us that we have all played games in each others countries, with each others media for generations. Im not defending it or decrying it, im just stating a fact that i think theres no doubt the u. S. Government has intervened to destabilize democracies as in chile, iran and thats something obviously that real democrats oppose, and have tried to stop in our history, but perhaps we need global understanding of giving people the right to fair and free elections. And then the right to pursue those elections without covert interference by foreign nations. It is unlawful for any Foreign National to make a donation in connection with a federal, state or local election. That doesnt use the language of express advocacy, it says any contribution. Would it be within the condy tugsal authority to ban and i think perhaps the chairman was asking this question too not just expressed advocacy spending by Foreign Nationals, corporations and governments, but also any political advertising taking place during the election season . Would we have the authority to do that to Foreign Nationals on the theory that they dont enjoy the First Amendment rights of the American People or indeed, i think even permanent residence of the country, people are here and are part of the country . Does anybody have an opinion on that . I think the problem is less a matter of the First Amendment than a matter of vagueness. As i know youre aware, the Supreme Court said that precisely that language was unconstitution ali vague, that actors couldnt determine what was and what wasnt covered. This is the danger with these sort of words. Weve drawn the line with expressed advocacy, and political advocacy. Because the line exists, we have two separate categories, and our Campaign Laws apply for american citizens on one side, but not the other, perhaps they could apply on both sides for people or entities, Foreign Governments and corporations that decide they want to get involved in our elections. What do you think about that . I think were already there. We want to go beyond that to all political spending during our campaigns. The russian government tried to get involved with black lives matter. Doing Everything Possible to exasperate tensions in our country. I think the department of state would have use on this. That is probably permissible congress has a poor track record on that. They have a right to speak through public platforms where theyre announced, and they have a right to do a facebook page, it seems to me when we talk about the expenditure of money in the political system, thats where it gets to be dangerous, you cant rerun an election. And one contaminated election can take a country down a very dark road. I yield back to you. Thank you, i recognize myself for another five minutes. This set of questions is for mr. Rothenberg, well start with you, mr. Rothenberg. How much does it cost a month to host a website . Oh, my goodness. I mean, you can do it for under 20 a month. Would you agree about the cost . Are you familiar with word press . Yes. Certainly. I had a blog on word press. How much does that cost . Right now i dont know. I think you can go up on word press for there may be a free option. I believe there is a free option. When people do advertising on a digital platform. They fill out some form, right . Upload the copy, that form gets stored somewhere, and that gets pushed out, right . Essentially, its a good summary. Theres an electronic record of it . That i cant speak to, i dont know how those are conducted. Could there be a spreadsheet . Yes, its possible. If you already own a website, with a google sheet, how much does that cost . Give me the question again, sir. If you already own a website, how much does it cost to publish a google sheet or excel document to that website . If i already have a word press site and i want to you can upload that simply, its de men mouse, yes. Zero cost, right . Im curious 37. Would you disagree with any of those oar would you agree with mr. Rothenbergs comments on all that . Yes. Im curious to know what burden were putting on someone to publish the information of whose advertising. Well, first of all, first of all, the ads that are going on to my word press blog, if ive enabled it to take advertising. Are not being bought not being sold by me directly. I have nothing to do with it, its all automated. What is the burden that were putting on the person that is displaying that ad on your individual website . Well, the way one of my concerns as i expressed before. With the way the honest ads act is worded. It would put the burden on me to keep those records. What is the burden. Even though i have no involvement in the actual sale or distribution of that advertising. I know its hard to address everyone, right . And i get that. But are they expunging all that information. The people collecting the advertisesing dollars . Presumably they have it, but youre asking me to keep the records. And i dont have any of those records. What burden would it be for them to publish the details of that . I dont know. It depends on who it is and where they are in the system. Mr. Good man, do you have an opinion . There are two questions, who is paying for the ad, that is what broadcasters already do. Theres a complaint that is not really informative, citizens for good government, who actually that is, its not clear. And the broadcaster goes back and asked, and says, whos your council, they dont give you an answer. I get that, im not asking for enforcement, im asking, what is the burden to publish the data thats already in hand. Thats currently uploaded to websites run by the fcc, and its proven not to be a very significant burden to most tv stations . The one thing i note is, in the website example you gave, obviously the website viewed by you, would have some sense of ads. I think you also have to take into account volume. And again. These prom attic systems have no human touch related to them. And the volume of ads in deciding, for example was it the same amount of effort to publish a ten line excel document or spreadsheet as it is to publish a 10 million line . I know the answer. Okay. Its the same level of effort. Because youre not collecting it, right . If youre collecting the information automatically, to display it theres no difference in displaying ten lines, versus a million lines. You may have to pay for the size of the file. But im getting at, i keep hearing over and over, the burden to publish data that is already in hand. You already have the data, whats the burden . Its where youre placing the burden. If youre placing the 3wurd on a place whoever has it. Whos collecting it . That depends on how you write the requirements . Mr. Dickerson, do you have an opinion on this exchange . No, im excited to hear the answer. Parting wisdom. I dont have any time left. Ill extend some of that time to you all, what didnt 10 seconds, mr. Vanderwalker, what is it that you wish this committee would know about this topic, that you havent been able to address . And thats the same question for all you all. Mr. Dickerson, it better be good, because youre going to be last, okay . And you dont have to say if the answer is we got it all, the answer is, we got it all. I think industry selfregulation, managed industry wide with tough and tight enforcement can go further than this congress can go in enforcing the rules. I think whatever you do, needs to be clear, so the rules are understandable. And the responsibility for enforcement is also well established. Lets take this moment to say what makes sense and who do we need . Mr. Dickerson, dont let me down. The courts have allowed us to establish requirements, only in so far as the underlying speech is directed at an election. To the extent that we are toying with using foreign intervention as an excuse to undo that burden, we are weighing into territory that is far less charted than some of the testimony has suggested. I want to thank you for being here today and appearing before us. The hearing record will remain open for two weeks for any member to submit Opening Statements or questions for the record. If theres no further business, without objection, the subcommittee stands adjourned. [inaudible conversations] tomorrow morning on cspan, brock long testifies before the Senate Homeland community about the federal response to this years hurricanes. Live on cspan, you can watch online at cspan. Org or by using the cspan radio app. Live on cspan three. Tomorrow afternoon, executives from google, facebook and 2wi9er testify on the 2016 elections, before a Senate Judiciary subcommittee. At 2 30 p. M. Eastern. You can watch live online or listen live with the radio app. Cspan, rah history unfolds daily. In 1979 cspan was created by americas Cable Television companies. Next, a conversation about how to improve medical care while reducing costs. Well hear from a former vice chairman of the payment advisory commission. From the National Institute for Health Care Management foundation, this is 2 15. Good afternoon. So wed like to go ahead and get started. Im nancy chockley, president and ceo. Im just delighted to welcome you all here today. We have an incredible panel of business and policy leaders they come at some of these problems from different perspectives. One unifying theme is their concern for what Rising Health care costs do for americans, and the need to increase value in our health care system. Each of them will present their own ideas on how to increase value and how they are increasing value in the health care system. We believe by bringing people together with different perspectives we can improve health care through evidence and collaboration. We have a wonderful audience today, i recognize some of you out there. We want to bring you in to the conversation. So at the end of the program, weve allowed for about 30 minutes of q a, if you could fill out the cards in your packets somebody will be around to pick them up, and then well use them to ask the panelists. We have had a last minute change to the agenda. Bob ricemiller was