Internet Communication Disclaimers and Definition of “Public Communication”, 77467-77480 [2022-27132]

Download as PDF 77467 Rules and Regulations Federal Register Vol. 87, No. 242 Monday, December 19, 2022 This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510. The Code of Federal Regulations is sold by the Superintendent of Documents. FEDERAL ELECTION COMMISSION 11 CFR Parts 100 and 110 [Notice 2022–22] Internet Communication Disclaimers and Definition of ‘‘Public Communication’’ Federal Election Commission. Final rule. AGENCY: ACTION: The Commission is adopting final rules to amend its regulations concerning disclaimers on public communications on the internet. The Commission is implementing these amendments in light of technological advances since the Commission last revised its rules governing internet disclaimers in 2006, and to address questions from the public about the application of those rules to internet communications. The Commission’s purpose in promulgating these rules is to apply the Federal Election Campaign Act’s disclaimer requirements to general public political advertising on the internet. The Commission is also revising the definition of ‘‘public communication’’ to clarify how it applies to general public political advertising on the internet. DATES: The effective date is March 1, 2023. SUMMARY: Mr. Robert M. Knop, Assistant General Counsel, or Ms. Joanna S. Waldstreicher, Attorney, 1050 First St. NE, Washington, DC 20463, (202) 694– 1650 or (800) 424–9530. Documents relating to the rulemaking record are available on the Commission’s website at https://sers.fec.gov/fosers/ rulemaking.htm?pid=74739. tkelley on DSK125TN23PROD with RULES FOR FURTHER INFORMATION CONTACT: The Commission is revising its regulatory definition of ‘‘public communication’’ and requirements regarding disclaimers on certain public communications placed for a fee on the internet. SUPPLEMENTARY INFORMATION: VerDate Sep<11>2014 17:05 Dec 16, 2022 Jkt 259001 The new regulations are intended to give the American public improved access to information about the persons paying for and candidates authorizing certain internet communications, pursuant to the Federal Election Campaign Act (the ‘‘Act’’). The regulations clarify how the disclaimer requirements apply to various types of internet communications and allow certain internet communications to provide disclaimers through alternative technological means. Transmission of Final Rules to Congress Before final promulgation of any rules or regulations to carry out the provisions of the Act, the Commission transmits the rules or regulations to the Speaker of the House of Representatives and the President of the Senate for a thirty-legislative-day review period. 52 U.S.C. 30111(d). The effective date of this final rule is March 1, 2023. Explanation and Justification I. Background 1. Current Statutory and Regulatory Framework Under the Act and Commission regulations, a ‘‘disclaimer’’ is a statement that must appear on certain communications to identify the payor and, where applicable, whether the communication was authorized by a candidate. 52 U.S.C. 30120(a); 11 CFR 110.11; see Citizens United v. FEC, 558 U.S. 310, 366–67 (2010) (‘‘Citizens United’’) (citing Buckley v. Valeo, 424 U.S. 1, 64, 66 (1976). With some exceptions, the Act and Commission regulations require disclaimers for public communications: (1) made by a political committee; (2) that expressly advocate the election or defeat of a clearly identified federal candidate; or (3) that solicit a contribution. 52 U.S.C. 30120(a); 11 CFR 110.11(a). In addition to public communications by political committees, ‘‘electronic mail of more than 500 substantially similar communications when sent by a political committee; and all internet websites of political committees available to the general public’’ also must have disclaimers. 11 CFR 110.11(a)(1). These final rules modify the definition of ‘‘public communication.’’ 11 CFR 100.26. Specifically, as PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 explained below, the term ‘‘public communication’’ now includes ‘‘communications placed for a fee on another person’s website, digital device, application, or advertising platform.’’ The content of the disclaimer that must appear on a given public communication depends on who authorized and paid for the advertisement. If a candidate, an authorized committee of a candidate, or an agent of either, pays for and authorizes the communication, then the disclaimer must state that the communication ‘‘has been paid for by the authorized political committee.’’ 11 CFR 110.11(b)(l); see also 52 U.S.C. 30120(a)(1). If a public communication is paid for by someone else, but is authorized by a candidate, an authorized committee of a candidate, or an agent of either, then the disclaimer must state who paid for the communication and that it is authorized by the candidate, authorized committee of the candidate, or an agent of either. 11 CFR 110.11(b)(2); see also 52 U.S.C. 30120(a)(2). If the communication is not authorized by a candidate, an authorized committee of a candidate, or an agent of either, then ‘‘the disclaimer must clearly state the full name and permanent street address, telephone number, or World Wide Web address of the person who paid for the communication, and that the communication is not authorized by any candidate or candidate’s committee.’’ 11 CFR 110.11(b)(3); see also 52 U.S.C. 30120(a)(3). Every disclaimer ‘‘must be presented in a clear and conspicuous manner, to give the reader, observer, or listener adequate notice of the identity of the person’’ that paid for the communication. 11 CFR 110.11(c)(1). Commission regulations contain certain exceptions to the general disclaimer requirements. For example, under the ‘‘small items exception,’’ disclaimers are not required for public communications placed on ‘‘[b]umper stickers, pins, buttons, pens, and similar small items upon which the disclaimer cannot be conveniently printed.’’ 11 CFR 110.11(f)(1)(i). Under the ‘‘impracticable exception,’’ disclaimers are not required for ‘‘[s]kywriting, water towers, wearing apparel, or other means of displaying an advertisement of such a nature that the inclusion of a disclaimer would be impracticable.’’ 11 CFR 110.11(f)(1)(ii). E:\FR\FM\19DER1.SGM 19DER1 77468 Federal Register / Vol. 87, No. 242 / Monday, December 19, 2022 / Rules and Regulations 2. History of Disclaimers on Internet Communications a. 1994 Rulemaking The Commission first addressed internet disclaimers in its 1994 rulemaking regarding communications disclaimer requirements. The Commission’s initial proposal was silent as to internet communications. See Communications Disclaimer Requirements, 59 FR 50708 (Oct. 5, 1994). However, after publishing the Notice of Proposed Rulemaking, the Commission considered an advisory opinion request from a political committee that intended to ‘‘provide a forum for publicly available information on selected public officials’’ on its website. Advisory Opinion 1995–09 (NewtWatch) at 1. The Commission concluded that the committee’s use of a website was ‘‘a form of general public political advertising under 11 CFR 110.11’’ 1 that required a disclaimer. Advisory Opinion 1995–09 (NewtWatch) at 2. The Commission codified this interpretation in its final rule, explaining that ‘‘internet communications and solicitations that constitute general public political advertising require disclaimers’’ and that ‘‘[t]hese communications and others that are indistinguishable in all material aspects from those addressed in [Advisory Opinion 1995–09 (NewtWatch PAC)] will now be subject to’’ disclaimer requirements. Communications Disclaimer Requirements, 60 FR 52069, 52071 (Oct. 5, 1995). tkelley on DSK125TN23PROD with RULES b. BCRA and the 2002 Rulemaking In 2002, Congress enacted the Bipartisan Campaign Reform Act of 2002, Public Law 107–155, 116 Stat. 81 (2002) (‘‘BCRA’’). In BCRA, Congress added new specificity to the disclaimer requirements, expanded the scope of communications covered by the disclaimer requirements, and enacted ‘‘stand-by-your-ad’’ requirements. Congress also added a new term, ‘‘public communication,’’ which did not reference the internet: ‘‘The term ‘public communication’ means a communication by means of any broadcast, cable, or satellite communication, newspaper, magazine, 1 Commission regulations at the time did not define or otherwise reference ‘‘public communications.’’ Instead, in determining whether a communication required a disclaimer, the Commission considered whether the communication used a specific format (i.e., any broadcasting station, newspaper, magazine, outdoor advertising facility, poster, yard sign, direct mailing), or if it otherwise constituted ‘‘general public political advertising.’’ See 11 CFR 110.11(a)(1) (1995). VerDate Sep<11>2014 17:05 Dec 16, 2022 Jkt 259001 outdoor advertising facility, mass mailing, or telephone bank to the general public, or any other form of general public political advertising.’’ See 52 U.S.C. 30101(22). In implementing BCRA, the Commission promulgated a new regulatory definition of ‘‘public communication’’ that mirrored the statutory language but added that ‘‘[t]he term public communication shall not include communications over the internet.’’ 11 CFR 100.26 (2002); Prohibited and Excessive Contributions: Non-Federal Funds or Soft Money, 67 FR 49064, 49111 (July 29, 2002). The Commission also promulgated new rules to implement BCRA’s changes to the disclaimer provisions of the Act. See Disclaimers, Fraudulent Solicitations, Civil Penalties, and Personal Use of Campaign Funds, 67 FR 76962 (Dec. 13, 2002). The new disclaimer rules applied to ‘‘public communications’’ as well as political committee websites and the distribution by political committees of more than 500 substantially similar emails. Other than these two specific types of internet-based activities by political committees, however, internet communications were not subject to the disclaimer requirements. Id. at 76963– 64 (explaining that ‘‘[t]his is the Commission’s only divergence from the 11 CFR 100.26 definition of ‘public communication’ ’’). c. The Shays Litigation and Subsequent Internet Communications Rulemaking In 2004, the U.S. District Court for the District of Columbia considered a case in which the plaintiffs alleged, inter alia, that the Commission had erred in requiring that a ‘‘coordinated communication’’ could only be a ‘‘public communication’’ or ‘‘electioneering communication’’ because this would mean that internet communications, ‘‘no matter how closely they are coordinated with political parties or a candidate’s campaign, cannot be considered ‘coordinated’ under the [Commission’s] regulations’’ by virtue of being specifically excluded from the definition of ‘‘public communication.’’ Shays v. FEC, 337 F. Supp. 2d 28, 65 (D.D.C. 2004) (‘‘Shays’’), aff’d, 414 F. 3d 76 (D.C. Cir. 2005), reh’g en banc denied (Oct. 21, 2005). The court agreed with the plaintiffs, finding that ‘‘Congress intended all other forms of ‘general public political advertising’ to be covered by the term ‘public communication.’ ’’ Shays at 70. The court reasoned that ‘‘[w]hile all internet communications do not fall within this descriptive phrase, some clearly do.’’ Id. at 67. The court concluded that ‘‘[w]hat PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 constitutes ‘general public political advertising’ in the world of the internet is a matter for the FEC to determine.’’ Id. at 70. Following that ruling, the Commission amended the definition of ‘‘public communication’’ to include ‘‘internet communications placed on another person’s website for a fee.’’ 11 CFR 100.26; internet Communications, 71 FR 18589 (Apr. 12, 2006) (‘‘2006 Internet E&J’’). Under the new definition, ‘‘when someone such as an individual, political committee, labor organization or corporation pays a fee to place a banner, video, or pop-up advertisement on another person’s website, the person paying makes a ‘public communication.’ ’’ 2006 Internet E&J, 71 FR at 18593–94. Furthermore, ‘‘the placement of advertising on another person’s website for a fee includes all potential forms of advertising, such as banner advertisements, streaming video, popup advertisements, and directed search results.’’ Id at 18594; see also id. at 18608 n.52 (noting that, as used in a different context, the ‘‘terms ‘website’ and ‘any internet or electronic publication’ are meant to encompass a wide range of existing and developing technology’’ including ‘‘social networking software’’). The Commission explained that the revised definition of ‘‘public communication’’ also affects, among other provisions, ‘‘the requirement to include disclaimer statements on certain communications pursuant to 11 CFR 110.11.’’ Id. at 18589 n.2. After the adoption of these regulations in 2006, the Commission considered several advisory opinion requests that concerned the application of disclaimers to internet communications. The queries centered on whether certain communications are exempt from the disclaimer requirements under the impracticable or small items exceptions at 11 CFR 110.11(f)(1) or whether they may incorporate technological modifications to satisfy the disclaimer requirements.2 The Commission was first asked to apply the small items exception or impracticable exception to text-limited 2 See Advisory Opinion 2017–12 (Take Back Action Fund); Advisory Opinion 2010–19 (Google); see also Advisory Opinion Request 2013–18 (Revolution Messaging) (Sept. 11, 2013); Advisory Opinion Request 2011–09 (Facebook) (Apr. 26, 2011). In addition to the advisory opinion requests concerning internet advertisements, another advisory opinion request asked the Commission to apply the impracticable exception in support of truncating a political committee’s name in disclaimers on its mass emails and on its website. See Advisory Opinion 2013–13 (Freshman Hold’em JFC et al.) at n.4. E:\FR\FM\19DER1.SGM 19DER1 Federal Register / Vol. 87, No. 242 / Monday, December 19, 2022 / Rules and Regulations tkelley on DSK125TN23PROD with RULES internet advertisements in 2010. Google proposed to sell AdWords search keyword advertisements limited to 95 text characters; the proposed advertisements would not include disclaimers but would link to a landing page (the purchasing political committee’s website) on which users would see a disclaimer. See Advisory Opinion 2010–19 (Google). The Commission concluded that Google’s proposed AdWords program ‘‘under the circumstances described . . . [was] not in violation of the Act or Commission regulations,’’ but the advisory opinion did not answer whether Google AdWords ads would qualify for the small items or impracticable exception. Id. at 2. In response to two subsequent advisory opinion requests concerning the possible application of the small items exception or impracticable exception to small internet advertisements, the Commission was unable to issue advisory opinions by the required four affirmative votes. See Advisory Opinion Request 2011–09 (Facebook) (Apr. 26, 2011) (concerning application of exceptions to zero-to-160 text character ads with thumbnail size images); Advisory Opinion Request 2013–18 (Revolution Messaging) (Sept. 11, 2013) (concerning application of exceptions to mobile banner ads). Finally, the Commission considered an advisory opinion request in 2017 asking whether paid image and video ads on Facebook ‘‘must . . . include all, some, or none of the disclaimer information specified by 52 U.S.C. 30120(a).’’ Advisory Opinion Request 2017–12 (Take Back Action Fund) at 4. The Commission issued an opinion concluding that the proposed Facebook image and video advertisements ‘‘must include all of the disclaimer information’’ specified by the Act, but, in reaching this conclusion, Commissioners relied on two different rationales, neither of which garnered the required four affirmative votes. Advisory Opinion 2017–12 (Take Back Action Fund) at 1. d. Current Rulemaking On October 13, 2011, the Commission published in the Federal Register an Advance Notice of Proposed Rulemaking (‘‘ANPRM’’) soliciting comment on whether to modify disclaimer requirements at 11 CFR 110.11 for certain internet communications, or to provide exceptions thereto, consistent with the Act. The Commission received eight comments in response. Six of the commenters agreed that the Commission should update the disclaimer rules VerDate Sep<11>2014 17:05 Dec 16, 2022 Jkt 259001 through a rulemaking, though commenters differed on how the Commission should do so. On October 18, 2016, the Commission solicited additional comment in light of legal and technological developments during the five years since the ANPRM was published. The Commission received six comments, all but one of which supported updating the disclaimer rules. Commenters, however, differed on whether the Commission should allow modified disclaimers for all online advertisements or exempt paid advertisements on social media platforms from the disclaimer requirements.3 On October 10, 2017, the Commission again solicited additional comment in light of the ongoing legal, factual, and technological developments in this area. During this reopened comment period, the Commission received submissions from 149,772 commenters (including persons who signed on to others’ comments), of which 147,320 indicated support for updating or strengthening the disclaimer rules or other government action; 2,262 indicated opposition to such efforts; and 190 did not indicate a discernable preference. On March 26, 2018, the Commission published in the Federal Register a Notice of Proposed Rulemaking in this rulemaking. See Notice of Proposed Rulemaking, Internet Communication Disclaimers and Definition of ‘‘Public Communication,’’ 83 FR 12864 (Mar. 26, 2018) (‘‘NPRM’’). During the comment period, the Commission received submissions from 165,801 commenters (including persons who signed on to others’ comments), of which a large 3 On November 2, 2016, the Commission published in the Federal Register a Notice of Proposed Rulemaking in a separate rulemaking: Technological Modernization, 81 FR 76416 (Nov. 2, 2016); see also 87 FR 54915 (Sept. 8, 2022) (request for additional comment). That NPRM proposed changing the reference to ‘‘website’’ in the definition of ‘‘public communication’’ to ‘‘website or internet-enabled device or application.’’ The purpose of the proposed change was to reflect post2006 changes in internet technology—such as the development of mobile applications (‘‘apps’’) on smartphones and tablets, smart TVs and devices, interactive gaming dashboards, e-book readers, and wearable network-enabled devices such as smartwatches and headsets—and to make the regulatory text more adaptable to the development of future technologies. The Commission asked several questions about its proposed change, including whether the term ‘‘internet-enabled device or application’’ is a sufficiently clear and technically accurate way to refer to the various media through which paid internet communications can be sent and received; whether there is a better way to refer to them; and whether it would help to provide examples of such paid media. The Commission has decided to amend the definition of ‘‘public communication’’ in the instant rulemaking because the term is closely tied to the internet communication disclaimer requirements. See NPRM at 12865. PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 77469 majority supported one or the other of two alternative proposals or supported revising disclaimer rules generally. In addition, the Commission received three comments and twelve ex parte communications after the comment period. As discussed above, this NPRM proposed to revise the definition of ‘‘public communication’’ to include communications placed for a fee on another person’s ‘‘internet-enabled device or application,’’ in addition to communications placed for a fee on another person’s website. Id. In addition, the Commission requested comment on two proposed revisions to its disclaimer rules that were intended to clarify, for various types of paid internet public communications, the disclaimers required and, in certain circumstances, when a paid internet public communication could employ a modified approach to the disclaimer requirements. Alternative A proposed applying the full disclaimer requirements that apply to radio and television communications to public communications distributed over the internet with audio or video components. Alternative A also proposed applying the type of disclaimer requirements that apply to printed public communications to text and graphic public communications distributed over the internet. Finally, Alternative A proposed allowing certain small text or graphic public communications distributed over the internet to satisfy the disclaimer requirements through an ‘‘adapted disclaimer.’’ Alternative B proposed to treat internet public communications differently from public communications disseminated via print and broadcast media. Alternative B proposed a requirement that disclaimers on internet communications be clear and conspicuous and meet the same general content requirements as other disclaimers, without imposing the additional disclaimer requirements that apply to print, radio, and television communications. Alternative B also proposed to allow certain paid internet advertisements to satisfy the disclaimer requirements through an adapted disclaimer, depending on the amount of space or time necessary for a clear and conspicuous disclaimer as a percentage of the overall advertisement. In the event that an advertisement could not provide a disclaimer even through a technological mechanism, Alternative B proposed to create an exception to the disclaimer requirement specifically for paid internet advertisements. In May 2018, the Commission held a hearing on the regulatory changes E:\FR\FM\19DER1.SGM 19DER1 tkelley on DSK125TN23PROD with RULES 77470 Federal Register / Vol. 87, No. 242 / Monday, December 19, 2022 / Rules and Regulations proposed in the NPRM and received testimony from 18 witnesses over the course of two days. The witnesses included campaign finance reform organizations, experts in technology and advertising, and political party committees. The witnesses testified on issues relating to defining ‘‘public communications,’’ how internet advertising has evolved and how it is used, incorporating flexibility in the regulations to accommodate new technologies as well as business decisions, and how internet communications are different from print and broadcast media. Finally, on June 20, 2019, the Commission made public two alternative proposals from Commissioners, seeking additional public comment on updated proposed revisions. Proposal A would have provided that ‘‘[t]he term general public political advertising shall not include communications over the internet, except for (1) communications produced for a fee and those placed or promoted for a fee on another person’s website or digital device, application, service, or platform, and (2) such communications included in section (1) that are then shared by or to a website or digital device, application, service, or platform.’’ 4 It would have provided that internet public communications must include full disclaimers similar to those already required for print, radio, and television communications, including the stand-by-your-ad requirements for radio and television advertisements. Proposal A also provided that the small items and impracticable exceptions would not apply to internet public communications, but that an adapted disclaimer may be used for a communication containing text or graphic components when it would be impracticable to include a full disclaimer ‘‘due to factors inherent to the technology.’’ internet Ad Disclaimers Rulemaking Proposal (June 20, 2019) (‘‘Proposal A’’).5 Proposal B did not include a proposed revision to the definition of ‘‘public communication,’’ and provided that an adapted disclaimer may be used for ‘‘[a]ny internet public communication that cannot reasonably provide a disclaimer on the face of the communication.’’ Internet Communication Disclaimers, Proposed Rule (June 20, 2019) (‘‘Proposal B’’).6 In response to these proposals, the 4 https://sers.fec.gov/fosers/ showpdf.htm?docid=402921. 5 https://sers.fec.gov/fosers/ showpdf.htm?docid=402921. 6 https://sers.fec.gov/fosers/ showpdf.htm?docid=403127. VerDate Sep<11>2014 17:05 Dec 16, 2022 Jkt 259001 Commission received five comments, three of which did not express a preference for one of the alternative proposals, and two of which supported Proposal A. II. Revised 11 CFR 100.26—Definition of ‘‘Public Communication’’ As set forth below, the Commission is revising section 100.26, defining ‘‘public communication,’’ to clarify how it applies to general public political advertising over the internet, and—in light of the nuances of internet advertising and the rapid pace of technological change—to ensure that the disclaimer rule also applies appropriately to newer forms of general public political advertising over the internet. Commission regulations require a disclaimer for any ‘‘public communication’’ that contains express advocacy or solicits a contribution, and for all public communications by political committees. 11 CFR 110.11(a). The current definition of ‘‘public communication’’ includes only those internet communications ‘‘placed for a fee on another person’s website.’’ 11 CFR 100.26. Since the Commission promulgated this definition in 2006, internet activity has expanded from blogging, websites, and listservs to include social media networks (Facebook, Twitter, and LinkedIn), media sharing networks (YouTube, Instagram, TikTok, and Snapchat), streaming applications (Netflix, Hulu), and mobile devices and applications, as well as wearable devices (smart watches, smart glasses), home devices (Amazon Echo), virtual assistants (Siri, Alexa), and smart TVs and devices (home appliances, digital commercial billboards, and displays). As one commenter noted in response to the ANPRM, ‘‘[a]s consumers move toward virtual and augmented reality services, wearable technology, screenless assistants, and other emerging technologies, there is every reason to predict that advertisers will demand the ability to reach voters and customers on those technologies, and, in turn, new advertising configurations that have not yet been imagined will be developed.’’ In the instant NPRM, the Commission cited its earlier proposal in the Technological Modernization rulemaking to update the definition of ‘‘public communication’’ to account for new technologies. NPRM at 12868 (citing Technological Modernization (‘‘Technology NPRM’’), 81 FR 76416 (Nov. 2, 2016)). In both NPRMs, the Commission proposed to revise the definition of ‘‘public communication’’ to clarify how the definition applies to PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 newer forms of general public political advertising on the internet. NPRM at 12868 (citing Technology NPRM). Specifically, the Commission proposed to revise the definition to include communications placed for a fee on another person’s ‘‘internet-enabled device or application,’’ in addition to the existing inclusion of communications placed for a fee on another person’s website. Id.; Technology NPRM at 76433–34. In both NPRMs, the Commission highlighted the fact that when it promulgated the existing definition of ‘‘public communication’’ in 2006, it ‘‘focused on websites because that was the predominant means of paid internet advertising at the time,’’ and explained that in 2006 it ‘‘analogized paid advertisements on websites to the forms of mass communication enumerated in the definition of ‘public communication’ in the [Act] because ‘each lends itself to distribution of content through an entity ordinarily owned or controlled by another person.’ ’’ NPRM at 12864 (citing 2006 internet E&J, 71 FR at 18594); 52 U.S.C. 30101(22)); see also Technology NPRM at 76433. The purpose of the change proposed in both NPRMs was ‘‘to reflect post2006 changes in internet technology— such as the development of mobile applications (‘apps’) on smartphones and tablets, smart TVs and devices, interactive gaming dashboards, e-book readers, and wearable network-enabled devices such as smartwatches and headsets—and to make the regulatory text more adaptable to the development of future technologies.’’ NPRM at 12864–65; see also Technology NPRM at 76433–34. In pursuit of its goal of updating the definition of ‘‘public communication’’ to reflect recent technological changes and to accommodate future changes, the Commission asked ‘‘whether revising the definition to include communications placed for a fee on another person’s ‘internet-enabled device or application,’ in addition to communications placed for a fee on another person’s website, would be a clear and technically accurate way to refer to the various media through which paid internet communications can be and will be sent and received.’’ NPRM at 12868. The Commission asked whether it was clear that both the placement-for-a-fee element and the third-party element would apply to websites, internet-enabled devices, and internet applications. All but one commenter supported the revisions proposed by the Commission, though a subset of supporters suggested E:\FR\FM\19DER1.SGM 19DER1 tkelley on DSK125TN23PROD with RULES Federal Register / Vol. 87, No. 242 / Monday, December 19, 2022 / Rules and Regulations the Commission make additional revisions. For instance, one commenter stated that the proposed definition of ‘‘public communication’’ ‘‘is generally appropriate and will remain relevant as technology advances, but that it could be modified slightly to be clearer’’— specifically, to ‘‘more accurately capture[ ] the requirement for payment and a website, platform or device other than the speaker’s own.’’ Several commenters argued that ‘‘placed for a fee’’ should be included in the definition to include any future communication methods. Others suggested revising the definition by adding the term ‘‘services’’ in order to make the term more expansive to include future technology, or to add the term ‘‘promoted for a fee’’ to capture individuals paid to share content in cases where no payment is made to a platform. One commenter supported adding those who promote advertisements to the definition on the grounds that promotion multiplies the benefit of a given advertisement by widening its distribution to different audiences and all audiences should be aware of the sponsorship information. One commenter opined that the cost of producing content should trigger a disclaimer even if the content is posted for free. Other commenters proposed adding references to additional types of digital media, such as social media, platforms or video games. Only one commentator opposed revision of the current definition, recommending instead that the Commission evaluate each new technology under the current definition on a case-by-case basis. In the alternative, this commenter suggested that if the definition is to be revised, it should apply only to communications above a specific monetary threshold, whether calculated on a percommunication basis, or based on an aggregate amount per speaker. The commenter also proposed that the term ‘‘internet-enabled device or application’’ be replaced with references to specific technologies. Based on the comments received, the Commission has decided to revise the definition of ‘‘public communication’’ to better accommodate technological changes and reflect the range of ‘‘media through which paid internet communications can be and will be sent and received.’’ In doing so, it intends to regulate only communications placed for a fee ‘‘through an entity ordinarily owned or controlled by another person,’’ analogous to the forms of ‘‘public communication’’ already included in the definition. NRPM at 12868. The Commission is not VerDate Sep<11>2014 17:05 Dec 16, 2022 Jkt 259001 otherwise altering its existing interpretation of the term ‘‘public communication’’ or ‘‘general public political advertising.’’ The new definition of ‘‘public communication’’ includes ‘‘communications placed for a fee on another person’s website, digital device, application, or advertising platform.’’ This new definition implements the Commission’s goals of including the range of current internet media and being adaptable to the development of future technologies. It also reflects the Commission’s determination that—for purposes of the definition of ‘‘public communication’’—there is no basis to distinguish between paid advertising on a ‘‘website’’ and paid advertising via other internet-enabled technologies. The new definition therefore explicitly includes communications not only in the form of paid ads on websites, but also paid ads that otherwise meet the definition of ‘‘general public political advertising’’ and are disseminated via the internet or media that rely on the connectivity of the internet (including social media networks, streaming platforms, mobile applications, and wearable devices). This is because, like the more traditional forms of paid communications that are specifically listed in the existing definition of ‘‘public communication,’’ these forms of paid internet communications are inherently owned or controlled by third parties. In response to the NPRM, the Commission received numerous comments stating that while the proposed additions to the definition were appropriate, they were not sufficient to cover the range of paid internet communications in current use or flexible enough to cover those yet to be developed. The Commission also received comments stating that in addition to ‘‘placing’’ a communication for a fee, internet advertising is generally understood to include ‘‘promoting’’ a communication for a fee to amplify its reach and that omitting paid promotion from the definition of ‘‘public communication’’ would similarly leave the definition incomplete. The Commission is further revising the definition of ‘‘public communication’’ to clarify that it covers general public political advertising on various types of internet media that may not be captured by the existing definition (i.e., communications on digital devices, applications, or advertising platforms). This is to ensure that the same disclaimer requirements apply to general public political advertising across the internet PO 00000 Frm 00005 Fmt 4700 Sfmt 4700 77471 ecosystem. As one commenter stated, ‘‘[w]ebsites are only one type of digital communication that use the internet, and they are carrying a decreasing portion of internet traffic. Indeed, many, and perhaps most, political communications are not on websites.’’ This commenter also noted that smartphones, tablet apps and video streaming are better characterized as ‘‘devices,’’ ‘‘platforms,’’ or ‘‘applications,’’ rather than websites, and that the ‘‘Internet of Things’’ will likely become increasingly prevalent in the future. The Commission agrees and has revised the definition of ‘‘public communication’’ to include not only communications on another person’s ‘‘website,’’ but also those on another person’s ‘‘digital device, application, or advertising platform.’’ See NPRM at 12865 (‘‘[t]he Commission has decided to reintroduce the proposed change to the definition of ‘public communication’ in this rulemaking for the limited purpose of determining whether the term ‘internet-enabled device or application’ is a sufficiently clear and technically accurate way to refer to the various media through which paid internet communications can be sent and received.’’). The Commission does not agree with a commenter who opposed changing the definition on the theory that it ‘‘presumptively extend[s] federal regulation to all future technology indefinitely’’ and that the Commission instead should continue to assess emerging technologies on a case-by-case basis to see whether they are included in the definition. The definition does not extend to ‘‘all future technology,’’ but only to general public political advertising whose ‘‘placement’’ is ‘‘for a fee,’’ and which is distributed via a ‘‘website, digital device, application, or advertising platform’’ or analogous form of internet-enabled technology owned or controlled by a third party. Moreover, a system wherein the Commission would be called upon to determine whether a given technology falls within the definition on a case-by-case basis is inefficient and cumbersome for both regulated parties and the Commission. As internet communications continue to constitute greater proportions of political speech, revising the definition to explicitly encompass more than website communications provides clearer guidance to the public as to how the rule applies. E:\FR\FM\19DER1.SGM 19DER1 77472 Federal Register / Vol. 87, No. 242 / Monday, December 19, 2022 / Rules and Regulations tkelley on DSK125TN23PROD with RULES New 11 CFR 110.11—Disclaimer Requirement for Internet Public Communications and Adapted Disclaimers 1. New 11 CFR 110.11(c)(5)—Disclaimer Requirement for Internet Public Communications The Act and Commission regulations impose specific requirements for disclaimers on printed, radio, and television communications. See 52 U.S.C. 30120(a), (d); 11 CFR 110.11(c)(2)–(4). For printed communications, requirements for type size, color contrast, and placement on the page are designed to ensure that the disclaimers will be visible. 11 CFR 110.11(c)(2). Requirements for disclaimers on radio and television communications vary, depending on whether a candidate or another person pays for or authorizes the communication. Radio communications paid for or authorized by a candidate must include an audio statement spoken by the candidate, identifying the candidate and stating that the candidate has approved the communication. 52 U.S.C. 30120(d)(1)(A); 11 CFR 110.11(c)(3)(i). Radio communications that are not paid for or authorized by a candidate must include an audio statement identifying the person paying for the communication and stating that that person ‘‘is responsible for the content of this advertising.’’ 52 U.S.C. 30120(d)(2); 11 CFR 110.11(c)(4)(i). Television, broadcast, cable, or satellite communications paid for or authorized by a candidate must include a statement by the candidate, identifying the candidate and stating that the candidate has approved the communication, either through a full-screen view of the candidate making the statement or by a voice-over accompanied by a ‘‘clearly identifiable photographic or similar image’’ of the candidate; these communications must also include a similar statement ‘‘in clearly readable writing’’ at the end of the communication. 52 U.S.C. 30120(d)(1)(B); 11 CFR 110.11(c)(3)(ii)– (iii). Television, broadcast, cable, or satellite communications that are not paid for or authorized by a candidate must include the audio statement required by 11 CFR 110.11(c)(4)(i) and conveyed by a ‘‘full-screen view of a representative’’ of the person making the statement or in a voice-over by such person; these communications must also include a similar statement ‘‘in clearly readable writing’’ at the end of the communication. 52 U.S.C. 30120(d)(2); 11 CFR 110.11(c)(4)(ii)–(iii). In the years since the definition of ‘‘public communication’’ was revised to VerDate Sep<11>2014 17:05 Dec 16, 2022 Jkt 259001 include paid website advertising, technological developments have expanded the available formats and functionality of internet advertising. Many internet advertisements today include video, audio, and graphic components beyond the limited text available in earlier internet advertising considered by the Commission, as well as beyond the text and audiovisual components of print and broadcast media. Thus, the Commission proposed in the NPRM to add regulatory provisions clarifying, for various types of paid internet public communications, when and how the disclaimer requirements apply. The Commission sought comment on two alternative approaches, noting that ‘‘[t]he two proposals need not be considered as fixed alternatives; commenters are encouraged to extract the best elements of each, or suggest improvements or alternatives, to help the Commission fashion the best possible rule.’’ NPRM at 12864. Alternative A would have applied the full disclaimer requirements that now apply to radio and television communications, including the standby-your-ad content requirements, to public communications distributed over the internet with audio or video components, ‘‘based on the premise that these advertisements are indistinguishable from offline advertisements that may be distributed on radio or television, broadcast, cable, or satellite in all respects other than the medium of distribution.’’ Id. at 12870. Further, the Commission noted that the disclaimer requirements for radio and television communications ‘‘have been in operation for 15 years and are, therefore, familiar to persons paying for, authorizing, and distributing communications. Moreover, by applying the specifications for radio and television communications to audio and video communications distributed over the internet, the proposed regulations would ensure that internet audio ads could air on radio and internet video ads could air on television without having to satisfy different disclaimer requirements.’’ Id. at 12870. Alternative A also proposed to apply disclaimer requirements that now apply to printed public communications to text and graphic public communications distributed over the internet and proposed to establish a ‘‘safe harbor’’ for disclaimers appearing in ‘‘letters at least as large as the majority of the other text in the communication’’—tracking the current approach for disclaimers in printed materials—without making it a requirement. PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 Alternative B proposed to treat internet communications differently from communications disseminated via print and broadcast media, on the basis that the internet is a unique medium of communication and internet advertising is ‘‘inherently more diverse than a simple transition of similar content from print or broadcast television,’’ as it includes varying platforms, sizes, devices, individualized settings, interactivity, and duration. Id. at 12871. Alternative B, therefore, would have required disclaimers on internet communications to be clear and conspicuous and to meet the same general content requirement as other disclaimers, but without imposing additional specific disclaimer requirements that apply to print, radio, or television communications, such as type sizes, duration, or specific content. Both alternatives also proposed to allow alternative means of satisfying the disclaimer requirement for internet public communications that could not accommodate full disclaimers. These proposals, discussed further below, would have allowed for adapted disclaimers that provided the name of the person who paid for a communication and a technological means of accessing a full disclaimer. The Commission received comments supporting and opposing aspects of both proposals. On the question of applying existing radio and television stand-byyour-ad requirements to their analogues in internet communications, commenters were roughly equally divided. Commenters supporting Alternative A noted that under this alternative, more information would be available to the viewer, that it was flexible while promoting transparency, and that Alternative A was more likely to lead to disclaimer information appearing on the face of the communication, which, they argued, should be the default position. One commenter noted that where there is a divergence between the nature of online and traditional advertising, this difference supported more Commission scrutiny rather than less because of the availability of microtargeting for internet advertising. One commenter argued that it would be anomalous to apply the stand-byyour-ad requirements to a television advertisement distributed through a cable television network, but not to apply those requirements to the same advertisement distributed on a streaming internet platform by the same television station. The commenter also argued that stand-by-your-ad requirements do not impose any additional cost on the advertiser in the E:\FR\FM\19DER1.SGM 19DER1 tkelley on DSK125TN23PROD with RULES Federal Register / Vol. 87, No. 242 / Monday, December 19, 2022 / Rules and Regulations online space, and that if questions arise concerning their application to unusual formats, the Commission should address these scenarios case-by-case rather than afford digital communications a general exemption. In support of requiring disclaimers to appear on the face of a communication, one commenter stated that the clickthrough rate for ads containing links is less than 1 percent. Some commenters expressed their conviction that technical innovation will increasingly enable the requisite information to appear on the face of the communication, and that Alternative B would remove an incentive for technology companies to innovate by exempting communications from disclaimer requirements even when technical constraints would not preclude a disclaimer. Some comments noted that under Alternative B it would be possible to manipulate the content of the ad, such as the name of the sponsor, in order to qualify for exemption from disclaimer requirements. One commenter stated that ‘‘[a]lthough at first glance 10% appears to be an objective standard, in reality it is largely within the control of the advertiser. For example, a person seeking to avoid disclaimers might form an independentexpenditure-only committee or a 501(c)(4) nonprofit with an intentionally overlong name that would exceed 10% of many digital advertisements.’’ One commenter, expressing a preference for Alternative A, recommended modifying it to require ad sponsors to report their shortened as well as their full names (see discussion below for more detail) if they use their shortened names in the communication, and to require that disclaimers be placed in text as a title or headline of ads containing multimedia aspects. One commenter supported Alternative A’s rule for allowing an adapted disclaimer (discussed below) but opposed specific requirements for internet ads. One commenter recommended that the Commission require that disclaimers be made accessible to those with disabilities, who constitute, according to the commenter, nearly 20 percent of the population. Commenters supporting Alternative B stated that they preferred its flexibility, with one commenter suggesting modifying Alternative B to allow audio disclaimers of no more than four seconds. These commenters stated that Alternative B’s greater flexibility would render it more readily applicable to potential future technologies. Several commenters also questioned whether Alternative A’s extension of current radio and television disclaimer VerDate Sep<11>2014 17:05 Dec 16, 2022 Jkt 259001 specific requirements to internet communications is supported by statutory authority, noting that section 30120(a) applied to radio and television communications when originally enacted, and that it might be overbroad for the Commission to apply the law to internet activity. In response, other commenters argued that current statutory authority would support extending the current disclaimer regime to the internet, with one commenter noting that although section 30120(a) does not refer to the internet, it does not expressly preclude application to the internet either. One commenter observed that Alternative B has parallels in existing regulatory exceptions for small and impracticable items. One commenter stated that ‘‘Alternative B’s most important feature is its inclusion of a safe harbor provision, allowing speakers to use alternative disclaimers when the standard disclaimer would occupy more than 10% of the time or space of the underlying communication. Adopting this policy would ensure the Commission does not unduly burden speakers, interfere with their communications, or increase the cost of their communications.’’ One commenter argued that Alternative B provides a bright line for advertisers that could be further enhanced by defining other phrases, such as ‘‘on the face of the communication’’ or ‘‘clear and conspicuous.’’ The commenter stated that if the Commission were to adopt a more nuanced approach, the standards should be geared to the advertiser’s chosen communication medium. Another commenter argued that, to the extent that it might render certain shortform advertisements too expensive or impractical, Alternative A might be unconstitutional. Several commenters stressed the degree to which the current communicative landscape differs from that contemplated when the stand-byyour-ad requirements were enacted. One commenter noted that the current disclaimer regime dates from a time when radio and television were prominent, while the Commission’s 2006 internet rulemaking contemplated graphic website advertisements. This commenter opined that rules promulgated now, in an environment of social media and apps, need flexibility for future technical innovation. One commenter noted that the former advertising environment was simpler; there were radio, television, newspapers, magazines and billboards, in which there were one-to-one relationships between stations, companies and advertisers. The PO 00000 Frm 00007 Fmt 4700 Sfmt 4700 77473 commenter stated that in the online environment, in contrast, different components of an advertisement might be delivered or mediated by different servers. Other commenters noted that the online advertisement differs from the traditional advertisement by virtue of its greater interactivity with the user. Some commenters found aspects of both alternatives unsatisfactory. One commenter urged the Commission to allow the market to determine the appropriate threshold for when an adapted disclaimer would be appropriate. The commenter argued that disclaimers are not as important as the substance of the advertising, that individuals click on links in advertisements not so much to find disclaimers as to learn whether the advertisement is true, and that making assumptions based on an organization’s name can be misleading. Another commenter stated a preference for not applying disclaimer rules to ordinary internet users and expressed the view that both alternatives are overbroad and need to incorporate more technical specifications. Other commenters argued that both alternatives could impose a burden on speech and that any disclaimer requirement would detract from the speaker’s ability to communicate a message. The Commission agrees with the commenters who generally support the establishment of a disclaimer rule specific to internet public communications. Some commenters also noted that private standards enforced by platforms vary widely and that some form of standardization is necessary to ensure consistency. One platform apprised the Commission of efforts it had undertaken in this regard, but as another commenter pointed out, these may change at any time for legitimate commercial reasons. The Commission disagrees with the argument that any application of disclaimer rules to general public political advertising on the internet would be unconstitutional. Based on the comments received, the Commission is adding a new paragraph (c)(5) to section 110.11, setting forth specific disclaimer requirements for internet public communications. New section 110.11(c)(5)(i) first defines ‘‘internet public communication’’ as ‘‘any public communication over the internet that is placed for a fee on another person’s website, digital device, application, or advertising platform.’’ This language parallels the revised definition of ‘‘public communication’’ in section 100.26, and is similar to language proposed in Alternative B. The definition of ‘‘internet public E:\FR\FM\19DER1.SGM 19DER1 tkelley on DSK125TN23PROD with RULES 77474 Federal Register / Vol. 87, No. 242 / Monday, December 19, 2022 / Rules and Regulations communication’’ applies for the purposes of section 110.11 and serves to streamline references to this type of communication in the text of the regulations. The Commission does not agree with one commenter’s argument that providing a definition of ‘‘internet public communication’’ that includes those who adopt others’ political speech as their own by paying to place that speech on the internet (such as by paying a social media platform to ensure more advantageous treatment of a thirdparty’s advertisement in the platform’s search or prioritization algorithm), rather than confining the definition to those who originally pay to place the speech, would present a ‘‘constitutional infirmity’’ under the final rule. Like the revised definition of ‘‘public communication,’’ the defined term ‘‘internet public communication’’ relies on the characteristics of the communication itself, not the role any persons may have had in its creation or distribution, and it encompasses only paid communications. Therefore, individuals who share someone else’s speech without paying to distribute it will not be affected by this revision. New paragraph (c)(5)(ii) provides that ‘‘[a]n internet public communication must include a disclaimer that complies with the requirements of paragraphs (b) and (c)(1) of this section. The disclaimer requirement under this paragraph applies to any person that pays to place an internet public communication, regardless of whether that person originally created, produced, or distributed the communication.’’ This provision states the requirement that disclaimers must be included on internet public communications, and clarifies that, as with the existing disclaimer requirements, the provision applies to any communication that meets the definition of an ‘‘internet public communication,’’ without examining who may have played various roles in the creation and dissemination of the communication beyond the identity of the payor and whether a candidate authorized the communication. Finally, new 11 CFR 110.11(c)(5)(iii) sets forth the disclaimer requirements that are specific to particular types of internet public communications, in addition to the existing requirements of paragraphs (b) and (c)(1) that apply to all communications requiring disclaimers. Paragraphs (c)(5)(iii)(A)–(C) provide that a disclaimer required for an internet public communication must: (a) for such communications with text or graphic components, include the required written disclaimer, such that VerDate Sep<11>2014 17:05 Dec 16, 2022 Jkt 259001 the disclaimer can be viewed without the viewer taking any action; (b) be of sufficient type size to be clearly readable by the recipient of the communication; and (c) be displayed with a reasonable degree of color contrast between the background and the disclaimer’s text. New paragraph (c)(5)(iii) also includes requirements specific to video and audio communications. The new provision at paragraph (c)(5)(iii)(D) requires that for an internet public communication in which the disclaimer is displayed within a video, the disclaimer must be visible for at least 4 seconds and appear without the recipient of the communication taking any action. For an internet public communication with an audio component and no video, graphic, or text components, paragraph (c)(5)(iii)(E) states that the disclaimer must be included within the audio component of the communication. New paragraph (c)(5) therefore combines aspects of Alternatives A and B by treating internet public communications similarly to print, radio, and television communications insofar as it imposes specific requirements on particular types of communications that are analogous to those imposed on print and broadcast media, while also accounting for the ways in which internet public communications differ from print and broadcast media in other respects. The new internet disclaimer provisions do not impose the stand-by-your-ad requirements applicable to radio and television advertisements on internet public communications. Paragraphs 110.11(c)(5)(iii)(A)–(C) do not apply to audio-only internet public communications. These provisions concern written disclaimers and set readability requirements for their text size and contrast, and thus are inapplicable to audio-only communications. In contrast, paragraph (c)(5)(iii)(E) applies solely to audio-only internet public communications, specifying that for such communications the disclaimer must be an audio statement contained within the audio communication. One commenter stated that because disclaimers on video communications may appear only for four seconds, a viewer who does not watch the part of the ad with the statement would not see the disclaimer. The Commission acknowledges that not all recipients of internet public communications will necessarily see or hear required disclaimers, but does not consider this a sufficient reason to not require their inclusion. The new rule is similar to the longstanding rule for television PO 00000 Frm 00008 Fmt 4700 Sfmt 4700 communications, which likewise requires disclaimers to appear for at least four seconds. See 11 CFR 110.11(c)(3)(iii)(B), (c)(4)(iii)(B). The new regulation follows aspects of Alternative A by treating internet public communications similarly to print and broadcast media depending on the type of communication: (1) type size and contrast of written disclaimers must meet readability requirements similar to those required of print media and television; (2) disclaimers for internet communications consisting solely of an audio component (that is, without video, graphics, or text) must be provided within the audio component of the communication, similar to the existing requirement that radio communications must include audio disclaimers; and (3) disclaimers within internet video communications must be visible for at least 4 seconds, similar to the existing duration requirement for disclaimers on television communications. See 11 CFR 110.11(c)(2), (3)(i), (3)(iii). The new regulation retains the principle of Alternative B that internet public communications may differ from print and broadcast media. First, new paragraph (c)(5)(iii)(A) requires that ‘‘an internet public communication with text or graphic components must include the written disclaimer required by this paragraph, such that the disclaimer can be viewed without taking any action.’’ Therefore, any internet public communication that contains text or graphic elements must include a written disclaimer, even if the communication also includes video or audio components. For example, an audio advertisement might be presented on a social media platform within a panel also containing a written description. Paragraph (c)(5)(iii)(A) requires that because the communication includes a text component, it must include a written disclaimer. In addition, in some cases a viewer must take action to access some or all of the components of an internet public communication by, for example, clicking on a link or opening a pop-up window. New paragraphs (c)(5)(iii)(A) and (D) specify that disclaimers must be viewable without the recipient of the communication taking any additional action. For example, a graphic or video advertisement may be accompanied by a caption that contains a link to additional information. In the case of such a communication, new paragraph (c)(5) requires that the disclaimer be visible in the graphic or video, or in the caption, without the viewer having to take any additional action beyond E:\FR\FM\19DER1.SGM 19DER1 tkelley on DSK125TN23PROD with RULES Federal Register / Vol. 87, No. 242 / Monday, December 19, 2022 / Rules and Regulations viewing or watching the advertisement, such as clicking on or hovering over a link. Similarly, new paragraph (c)(5)(iii)(E) requires that for an internet public communication that contains an audio component but no video, graphic, or text component, the disclaimer must be included in that audio component, so that a recipient need not take any additional action beyond listening to the advertisement to obtain the disclaimer information. New paragraph (c)(5)(iii) also accounts for the variability and flexibility of internet communications by setting forth requirements for text size and contrast that allow for varying platforms, formats, and devices. New paragraph (c)(5)(iii)(B) requires that a disclaimer on an internet public communication ‘‘must be of sufficient type size to be clearly readable by the recipient of the communication. A disclaimer that appears in letters at least as large as the majority of other text in the communication satisfies this requirement.’’ New paragraph (c)(5)(iii)(C) requires that the disclaimer ‘‘must be displayed with a reasonable degree of color contrast between the background and the disclaimer’s text. A disclaimer satisfies this requirement if it is displayed in black text on a white background, or if the degree of color contrast is no less than the color contrast between the background and the largest text used in the communication.’’ The safe harbor for disclaimer text size is similar to that proposed in Alternative A, which provided that the text size requirement is satisfied if the disclaimer appears in ‘‘letters at least as large as the majority of the other text in the communication.’’ NPRM at 12873. In addition to the text size requirement, which parallels the text size requirement for print and television communications to ensure readability and prevent circumvention of the disclaimer requirement, the new rule also incorporates a color contrast requirement that similarly parallels the contrast requirement for print communications. Also, like the text size requirement, the color contrast requirement offers safe harbors: a disclaimer will satisfy the requirement if it is ‘‘displayed in black text on a white background, or if the degree of color contrast is no less than the color contrast between the background and the largest text used in the communication.’’ As with the text size requirement, the color contrast requirement is intended to ensure readability. In adopting these provisions, the Commission is not applying the stand- VerDate Sep<11>2014 17:05 Dec 16, 2022 Jkt 259001 by-your-ad requirements to internet communications. The statutory provision requiring stand-by-your-ad statements expressly applies only to radio and television ads. 52 U.S.C. 30120(d). Accordingly, the Commission does not have statutory authority to require stand-by-your-ad statements in internet public communications. The Commission is not adopting two commenters’ suggestions that any required disclaimers be machinereadable. These commenters pointed out that having machine-readable disclaimers would provide certain advantages for users. One commenter suggesting this observed that with machine-readable disclaimers, users could opt to receive monthly reports of ads they receive over time. Smart disclosure, which this commenter recommended be adopted in conjunction with machine readability, could warn users of bad links and could allow groups of users using browser extensions to track malicious links and alert the Commission of these. The Commission is not adopting this proposal because it is beyond the scope of the Commission’s statutory authority. 2. New CFR 110.11(g)—Adapted Disclaimers To clarify how the disclaimer requirements apply to internet public communications that are not capable of including a full disclaimer, the Commission is adding a new paragraph (g) to section 110.11, setting forth an alternative that applies specifically to internet public communications where a full disclaimer cannot be included due to character or space constraints intrinsic to the advertising product or medium. As discussed above, Commission regulations already contain certain exceptions to the general disclaimer requirements, namely the small items and impracticable exceptions. 11 CFR 110.11(f)(1). Alternatives A and B both proposed that some internet public communications could satisfy the disclaimer requirement by means of an ‘‘adapted disclaimer,’’ which would include an abbreviated disclaimer on the face of the communication, and an indicator that a technological mechanism was available to access a full disclaimer. Both alternatives proposed that ‘‘an internet public communication that provides an adapted disclaimer must provide some information on the face of the advertisement, and both alternatives require such information to be clear and conspicuous and to provide notice that further disclaimer information is PO 00000 Frm 00009 Fmt 4700 Sfmt 4700 77475 available through the technological mechanism.’’ NPRM at 12875. The two alternatives differed as to when an adapted disclaimer could be used in place of a standard disclaimer. Alternative A would have allowed the use of an adapted disclaimer when a full disclaimer could not fit on the face of a text or graphic internet communication ‘‘due to external character or space constraints.’’ Id. at 12874. Under this alternative, the determination of whether an internet communication could use an adapted disclaimer was intended to be an objective one: ‘‘the character or space constraints intrinsic to the technological medium are intended to be the relevant consideration, not the communication sponsor’s subjective assessment of the ‘difficulty’ or ‘burden’ of including a full disclaimer.’’ Id. Alternative B would have allowed the use of an adapted disclaimer when a full disclaimer would occupy more than a certain percentage of an internet public communication’s available time or space. Further, under Alternative B, two tiers of adapted disclaimers would have been permissible, depending on the time or space available in the communication to accommodate the disclaimer. The proposed first-tier adapted disclaimer would have required the identification of the payor plus an indicator on the face of the communication, while the proposed second-tier adapted disclaimer would have required only an indicator on the face of the communication. The two alternatives also differed as to what information must be presented on the face of the communication. Alternative A proposed that an ‘‘adapted disclaimer’’ would have consisted of ‘‘an abbreviated disclaimer on the face of a communication in conjunction with an indicator through which a reader can locate the full disclaimer’’ required. Id. at 12875. Alternative A would have further required that the adapted disclaimer identify the person or persons who paid for the communication, ‘‘in letters of sufficient size to be clearly readable by a recipient of the communication.’’ Id. at 12875–76. Under Alternative B’s proposed twotiered approach, the first tier would have allowed for an adapted disclaimer that included both the payor’s name, either in full or by ‘‘a clearly recognized abbreviation, acronym, or other unique identifier by which the payor is commonly known,’’ along with an indicator similar to that included in Alternative A. Id. at 12876. Under Alternative B, the flexibility to use either a payor’s full name or a clearly E:\FR\FM\19DER1.SGM 19DER1 tkelley on DSK125TN23PROD with RULES 77476 Federal Register / Vol. 87, No. 242 / Monday, December 19, 2022 / Rules and Regulations recognized abbreviation or acronym was ‘‘intended to address internet public communications that might not otherwise conveniently or practicably accommodate the payor’s name, such as character-limited ads, or where the payor’s name is unusually lengthy, or where the payor wishes to use the ad to promote its social media brand.’’ Id. at 12877. If the space or time necessary for a clear and conspicuous tier-one adapted disclaimer would occupy more than ten percent of the communication, the proposed second tier would have required only an indicator on the face of the communication. Id. Both alternatives proposed ‘‘that a technological mechanism used to provide access to a full disclaimer must do so within one step,’’ that the additional step be ‘‘apparent in the context of the communication,’’ and that the disclaimer, once reached, be clear and conspicuous. Id. at 12877–78. Both alternatives also provided similar illustrative lists of examples of technological mechanisms that could be used as part of an adapted disclaimer. For both alternatives these included, but were not limited to, ‘‘hover-over mechanisms, pop-up screens, scrolling text, rotating panels, or hyperlinks to a landing page with the full disclaimer.’’ Id. at 12878. Alternative B also proposed to include ‘‘voice-over,’’ ‘‘mouse-over,’’ and ‘‘roll-over’’ mechanisms. Id. at 12880. Alternative B also proposed an exception to the disclaimer requirements for ‘‘any internet public communication that can provide neither a disclaimer in the communication itself nor an adapted disclaimer.’’ Id. at 12879. This exception was intended to replace, for internet public communications, the existing small items and impracticable exceptions. Commenters were generally split on whether an adapted disclaimer should be available when a full disclaimer cannot fit due to external constraints, as proposed in Alternative A, or when a full disclosure would exceed a bright line in terms of space or time, as proposed in Alternative B. Several commenters felt that adapted disclaimers should only be used as a last resort when ‘‘character or space constraints intrinsic to the technological medium,’’ as opposed to self-imposed limitations merely reflecting the preferences of an online advertiser or platform, would not allow for a full disclaimer. One commenter noted that Alternative A’s ‘‘cannot fit’’ language references impossibility and is, therefore appropriate. Another commenter believed that permitting adapted disclaimers on ‘‘public VerDate Sep<11>2014 17:05 Dec 16, 2022 Jkt 259001 communications with text or graphic features but without a video or audio component’’ that had character or space limits intrinsic to the medium was a ‘‘forward-thinking’’ approach applicable to all platforms. Other commenters found Alternative A’s use of ‘‘technological constraints’’ that ‘‘cannot fit’’ too ambiguous, needing further clarification. Two commenters noted that rules or a framework based on communication size are not practical or effective, because the same ad could be used ‘‘across different platforms.’’ Another found that Alternative A did not account for the ‘‘burden’’ experienced by the speaker and is too restrictive. One commenter noted that rules focused on pixels, characters, seconds, font size, contrast and other visual factors were ‘‘too inflexible to withstand future technological’’ advancements. Another commenter recommended allowing ‘‘business decisions’’ about ad size, made in the ordinary course of business by ad sellers, to justify the use of an adapted disclaimer. One commenter expressed strong support for adapted disclaimers, preferring Alternative B because it allows more flexibility, arguing that Alternative A is too oriented toward print and broadcast media. However, the commenter stated that both alternatives are insufficiently sensitive to future technological changes, predicting that speech recognition technology will one day be the primary means of interacting with the internet. At the same time, this commenter argued that both alternatives should develop an adapted disclaimer scheme for all audio, video and banner ad formats; Alternative A in particular did not do this for video and audio, according to the commenter. At least two commenters suggested that the advisory opinion process could resolve when an adapted disclaimer was appropriate on a case-by-case basis and viewed the advisory opinion process as a way to handle questions surrounding digital advertisements’ continuing complexity and one commenter suggested that perhaps an expedited advisory opinion process could be designed for these questions. Another commenter expressed skepticism, however, about the utility of resorting to the advisory opinion process to resolve ambiguities in interpretation and expressed a preference for bright-line rules because of this while a second commenter opined that it would be difficult to resort to the advisory opinion process for this purpose close to an election; rather, if this situation were faced, the commenter would be inclined not to run the advertisement. PO 00000 Frm 00010 Fmt 4700 Sfmt 4700 Commenters were also split on the 10% rule proposed in Alternative B. Several commenters noted that a 10% bright line would provide advertisers with the ‘‘opportunity to game the rules to deny the public disclaimer information.’’ One commenter felt that the choice of 10% was based on untested assumptions rather than empirical data. Others described the 10% proposal as ‘‘arbitrary’’ and ‘‘not technologically neutral’’ or ‘‘impractical and confusing’’ and ‘‘hard to apply and enforce.’’ Two commenters opined that Alternative B’s two-step process was too complicated and unclear, and sacrificed clarity for expediency. Some commenters found 10% to be a reasonable percentage that ‘‘provides for disclosure but does not infringe on the message of the ad.’’ Other commenters supported a ‘‘bright line’’ because it imposes less of a burden on speech. For example, one commenter stated that ‘‘[r]equiring potential speakers to spend the time and resources to seek an advisory opinion [ ] imposes burdens of a constitutional magnitude, especially in a medium conducive to speakers with limited resources.’’ Another commenter stated that ‘‘[w]hile the First Amendment does not require that a speaker’s message take a certain percentage of the advertisement space, taking 10% of the advertisement space for which a speaker has paid is far more reasonable than taking 33% of the space.’’ Other commenters worried that any bright line was arbitrary and a ‘‘oneclick away rule’’ would be a better choice. Some commenters, while agreeing in principle with a defined percentage, suggested different percentages. One suggested 4%, while another, interpreting the Citizens United decision to tolerate 4-second disclaimers in 10-second advertisements, argued that any percentage up to 40% would be tolerable. Other commenters, however, argued against a 40% threshold. Several commenters argued that even with an adapted disclaimer, the face of the advertisement should at a minimum contain a ‘‘paid for by’’ statement with the name of the sponsor. Certain commenters favoring this position cited empirical studies showing that only a small percentage of links in online advertisements are actually clicked by users. Commenters also stated their preference for having the full information appear only one click away if a technological mechanism were to be used. Two commenters in this category opined that in addition to these, the user should be able to learn why he or she received the advertisement—one commenter referring to this as E:\FR\FM\19DER1.SGM 19DER1 tkelley on DSK125TN23PROD with RULES Federal Register / Vol. 87, No. 242 / Monday, December 19, 2022 / Rules and Regulations ‘‘algorithmic transparency,’’ signifying that advertisers should be required to disclose their targeting methods and that voters should be able to learn why they have been targeted. One commenter argued that the Commission should adopt a provision that the disclaimer requirements could be satisfied by an icon it had developed in the online commercial advertising domain that would be adapted by the commenter’s organization to the realm of political advertising, and which it characterized as widely recognized and understood. Other commenters opined on this proposed self-regulatory approach, arguing that Commission oversight would still be needed, and noting that as a private entity, the commenter or any other provider of an online advertising medium could modify or rescind the program at any time based upon considerations unrelated to ensuring implementation of the Act. After considering the comments received, the Commission has decided to provide an adapted disclaimer option for internet public communications. The new 11 CFR 110.11(g) provides that the disclaimer requirement may be satisfied with an adapted disclaimer when the full disclaimer ‘‘cannot be provided or would occupy more than 25 percent of the communication due to character or space constraints intrinsic to the advertising product or medium.’’ The Commission has previously allowed for a modified disclaimer under certain circumstances, recognizing that, although the ‘‘physical and technological limitations’’ of a communication medium may ‘‘not make it impracticable to include a disclaimer at all,’’ technological or physical limitations may extend to ‘‘one particular aspect of the disclaimer’’ requirements. Advisory Opinion 2004– 10 (Metro Networks) at 3. In such circumstances, the Commission concluded that a disclaimer was required but permitted modifications or adaptations of the technologically or physically limited aspects of the communication medium. See id. at 3–4 (concluding that reporters reading sponsorship message live from aircraft or mobile units could read stand-byyour-ad language, rather than candidate who was not physically present). In the new 11 CFR 110.11(g), an ‘‘adapted disclaimer’’ is defined as ‘‘a clear statement that the internet public communication is paid for, and that identifies the person or persons who paid for the internet public communication using their full name or a commonly understood abbreviation or acronym by which the person or VerDate Sep<11>2014 17:05 Dec 16, 2022 Jkt 259001 persons are known, which is accompanied by: (1) an indicator and (2) a mechanism.’’ New 11 CFR 110.11(g)(1)(i). An ‘‘indicator’’ is defined as ‘‘any visible or audible element associated with an internet public communication that is presented in a clear and conspicuous manner and gives notice to persons reading, observing, or listening to the internet public communication that they may read, observe, or listen to a disclaimer satisfying the requirements of paragraphs (b) and (c)(1) of this section through a mechanism.’’ New 11 CFR 110.11(g)(1)(ii). A ‘‘mechanism’’ is defined as ‘‘any use of technology that enables the person reading, observing, or listening to an internet public communication to read, observe, or listen to a disclaimer satisfying the requirements of paragraphs (b) and (c)(1) of this section after no more than one action by the recipient of the internet public communication.’’ New 11 CFR 110.11(g)(1)(iii). The new 110.11(g) combines elements of both Alternative A and Alternative B in setting forth the threshold for use of an adapted disclaimer. An adapted disclaimer may be used instead of a full disclaimer when a standard disclaimer ‘‘cannot be provided or would occupy more than 25 percent of the communication due to character or space constraints intrinsic to the advertising product or medium.’’ This rule incorporates the concept of time and space constraints inherent to the advertising medium from Alternative A, and the proposal from Alternative B to permit an adapted disclaimer depending on the percentage of the communication that would be occupied by a full disclaimer. In doing so, the Commission has adopted an objective and bright-line standard that will give the sponsors of internet public communications clear guidance as to when an adapted disclaimer may be used. The new rule’s reference to ‘‘character or space constraints intrinsic to the advertising product or medium,’’ similar to language proposed in Alternative A, is based on long-standing Commission precedent where the Commission allowed communications to include modified disclaimers due to the technological or physical limitations of the communication medium. The language is intended to make clear that the time or space available for a disclaimer depends on the limitations of the medium or technology used in a particular advertisement. The Commission has decided to also use a percentage of the communication as the threshold for use of an adapted disclaimer, as proposed in Alternative PO 00000 Frm 00011 Fmt 4700 Sfmt 4700 77477 B, with the intention that this will serve as a bright-line rule that enables speakers to determine for themselves whether they may avail themselves of this provision, rather than seek advisory opinions before engaging in political advertising online. The Commission has chosen not to specify how to measure the percentage (i.e., by pixels, seconds, characters, etc.), in order that the rule may remain flexible as new technologies are developed, and that speakers may use the most appropriate measurement for their communication. The Commission’s proposal of 10% in Alternative B elicited several comments opposing this threshold. Although one commenter approved of this threshold, some commenters noted that such a threshold would be easy to evade by lengthening or shortening of the name of the sponsoring organization appearing in the ad. Some commenters also argued that this percentage approach would be hyper-technical. Nevertheless, the Commission agrees with one commenter’s observation that a fixedpercentage approach is preferable to a potentially more complicated approach tailored to particular kinds of communications, which might then necessitate new definitions of the terms relating to the medium and additional revisions to the rule. The Commission has adopted a 25% threshold. The definition of ‘‘adapted disclaimer’’ requires that the communication state on its face that it is a paid communication, as proposed in Alternative A. It is especially important to clearly identify paid communications on the internet, where paid content can be targeted to a particular user and appear indistinguishable from the unpaid content that user views, unlike print and broadcast media, where paid content is transmitted to all users in the same manner and is usually offset in some way from editorial content. As one commenter observed, ‘‘[w]ith many forms of social media, a political ad may be transmitted and retransmitted such that a viewer would have no idea that it is paid advertising.’’ The Commission agrees with another commenter that ‘‘paid for’’ is necessary to ensure that the adapted disclaimer is easily interpreted by the viewer. An adapted disclaimer that includes an indicator but does not state that it is a paid communication would make it less likely that a viewer would understand the function of the indicator and access the mechanism to obtain the full disclaimer. As one commenter noted, ‘‘[t]he average click-through rate . . . for Facebook ads across all industries is .90%.’’ E:\FR\FM\19DER1.SGM 19DER1 tkelley on DSK125TN23PROD with RULES 77478 Federal Register / Vol. 87, No. 242 / Monday, December 19, 2022 / Rules and Regulations The definition of ‘‘adapted disclaimer’’ requires that the payor be identified ‘‘using their full name or a commonly understood abbreviation or acronym by which the person or persons are known.’’ This is similar to language proposed in Alternative B, which would have permitted an adapted disclaimer to identify the payor by full name or by ‘‘a clearly recognized abbreviation, acronym, or other unique identifier by which the payor is commonly known.’’ NPRM at 12876. Including the payor’s name on the face of the communication ensures that even persons viewing the communication without accessing the full disclaimer will be able to know who is speaking and will be better able to evaluate the content of the advertisement. Allowing a payor to use an acronym or abbreviation will offer flexibility for internet public communications that might not otherwise conveniently or practicably accommodate the payor’s name, such as character-limited ads, or where the payor’s name is unusually lengthy. Most commenters supported allowing an acronym or abbreviated name of a payor organization. However, some questioned whether an abbreviated name or acronym would likely be recognized. The Commission opted not to constrain the use of abbreviated names or acronyms beyond the condition that any such abbreviation or acronym be commonly understood or be one by which the payor is known. The provision is modeled after a longstanding provision in the Commission’s regulations that allows a separate segregated fund to include in its name a ‘‘clearly recognized abbreviation or acronym by which [its] connected organization is commonly known.’’ 11 CFR 102.14(c). Thus, many political speakers are already familiar with this standard and may have adopted abbreviations or acronyms for frequent use that are already ‘‘commonly understood.’’ The Commission has decided not to adopt the second-tier adapted disclaimer proposed as part of Alternative B, which would have permitted a speaker to include only an indicator on the face of a communication, without the name of the payor, if the space or time necessary for a clear and conspicuous tier-one adapted disclaimer would exceed a certain percentage of the overall communication. By requiring that an indicator be ‘‘clear and conspicuous,’’ the new rule will aid voters in evaluating the message they are viewing or hearing. As set forth in paragraph (c)(1), a disclaimer ‘‘is not clear and conspicuous if it is difficult to VerDate Sep<11>2014 17:05 Dec 16, 2022 Jkt 259001 see, read, or hear, or if the placement is easy to overlook.’’ 11 CFR 110.11(c)(1). An indicator also must be presented in a clear and conspicuous manner and therefore must not be difficult to see, read, or hear, or have a placement that is easy to overlook. The definition further provides that ‘‘[a]n indicator may take any form including, but not limited to, words, images, sounds, symbols, and icons.’’ This provides flexibility to speakers in determining the type of indicator that best serves their needs and their communication so long as it also satisfies the requirements of the regulation. Because the final rules permit an adapted disclaimer to be used for audio and video communications as well as text and graphic communications, the Commission is adopting the ‘‘clear and conspicuous’’ requirement as proposed in Alternative B, rather than ‘‘clearly readable’’ as proposed in Alternative A, in order to afford further flexibility to speakers in determining how to satisfy the requirement. See NPRM at 12876. Similar to the definition of an ‘‘indicator,’’ the definition of ‘‘mechanism’’ makes clear that a wide array of technologies may be used to provide access to full disclaimers, ‘‘including, but not limited to, hoverover text, pop-up screens, scrolling text, rotating panels, and hyperlinks to a landing page.’’ The Commission agrees with commenters who recommended that the adapted disclaimer be ‘‘techagnostic.’’ This non-exhaustive list of technologies affords speakers a great deal of flexibility in determining the best way to provide access to a full disclaimer depending on the platform or type of message, as well as flexibility to accommodate changes in technology and types of mechanisms that have yet to be developed. Alternatives A and B both proposed one of the key characteristics of a technological mechanism used in an adapted disclaimer: that the technological mechanism allow the person reading, observing, or listening to an internet public communication to read, observe, or listen to a full disclaimer ‘‘without navigating more than one step away’’ from the communication. NPRM at 12880; see also 12877–78. Both proposals explained that this meant ‘‘the additional technological step should be apparent in the context of the communication’’ and the disclaimer, once reached, should be ‘‘clear and conspicuous.’’ Id. at 12878. There was nearly universal agreement by commenters that the mechanism require no more than one action by the viewer in order to reach the full disclaimer PO 00000 Frm 00012 Fmt 4700 Sfmt 4700 information. The final rule incorporates this principle into the definition of a ‘‘mechanism,’’ providing that a mechanism used as part of an adapted disclaimer must enable access to a full disclaimer ‘‘after no more than one action by the recipient of the internet public communication.’’ The Commission is incorporating this requirement into the final rule to ensure that recipients of communications can access full disclaimer information with a minimum of additional effort beyond what would ordinarily be required to view a full disclaimer on the face of a communication. Certification of No Effect Pursuant to 5 U.S.C. 605(b) (Regulatory Flexibility Act) The Commission certifies that the attached rules would not have a significant economic impact on a substantial number of small entities. The rules would clarify and update existing regulatory language to reflect changes in technology and would codify certain existing Commission precedent regarding disclaimers on internet communications. The rules would not impose new recordkeeping, reporting, or financial obligations on political committees or commercial vendors. The Commission therefore certifies that the rules would not have a significant economic impact on a substantial number of small entities. List of Subjects 11 CFR Part 100 Elections. 11 CFR Part 110 Political committees and parties. For the reasons set out in the preamble, Subchapter A of Chapter I of Title 11 of the Code of Federal Regulations is amended as follows: PART 100—SCOPE AND DEFINITIONS (52 U.S.C. 30101) 1. The authority citation for part 100 continues to read as follows: ■ Authority: 52 U.S.C. 30101, 30104, 30111(a), and 30114(c). 2. In § 100.26, revise the second sentence to read as follows: ■ § 100.26 Public communications (52 U.S.C. 30101(22)). * * * * * The term general public political advertising shall not include communications over the internet, except for communications placed for a fee on another person’s website, digital device, application, or advertising platform. E:\FR\FM\19DER1.SGM 19DER1 Federal Register / Vol. 87, No. 242 / Monday, December 19, 2022 / Rules and Regulations PART 110—CONTRIBUTION AND EXPENDITURE LIMITATIONS AND PROHIBITIONS 3. The authority citation for Part 110 continues to read as follows: ■ Authority: 52 U.S.C. 30101(8), 30101(9), 30102(c)(2), 30104(i)(3), 30111(a)(8), 30116, 30118, 30120, 30121, 30122, 30123, 30124, and 36 U.S.C. 510. 4. In § 110.11, add paragraph (c)(5), redesignate paragraph (g) as paragraph (h), and add paragraph (g) to read as follows: ■ § 110.11 Communications; advertising; disclaimers (52 U.S.C. 30120). tkelley on DSK125TN23PROD with RULES * * * * * (c) * * * (5) Specific requirements for internet public communications. (i) For purposes of this section, internet public communication means any public communication over the internet that is placed for a fee on another person’s website, digital device, application, or advertising platform. (ii) An internet public communication must include a disclaimer that complies with the requirements of paragraphs (b) and (c)(1) of this section. The disclaimer requirement under this paragraph applies to any person that pays to place an internet public communication, regardless of whether that person originally created, produced, or distributed the communication. (iii) In addition to the requirements of paragraphs (b) and (c)(1) of this section, a disclaimer required by paragraph (a) of this section that appears on an internet public communication must comply with the following: (A) Except as provided by paragraph (g) of this section, an internet public communication with text or graphic components must include the written disclaimer required by this paragraph, such that the disclaimer can be viewed without taking any action. (B) The disclaimer must be of sufficient type size to be clearly readable by the recipient of the communication. A disclaimer that appears in letters at least as large as the majority of other text in the communication satisfies this requirement. (C) The disclaimer must be displayed with a reasonable degree of color contrast between the background and the disclaimer’s text. A disclaimer satisfies this requirement if it is displayed in black text on a white background, or if the degree of color contrast is no less than the color contrast between the background and the largest text used in the communication. VerDate Sep<11>2014 17:05 Dec 16, 2022 Jkt 259001 (D) If the disclaimer is displayed within a video, the disclaimer must be visible for at least 4 seconds and appear without the recipient of the communication taking any action. (E) An internet public communication with an audio component but without video, graphic, or text components must include a disclaimer that satisfies the requirements of paragraphs (b) and (c)(1) of this section within the audio component. * * * * * (g) Adapted disclaimers—(1) Definitions. For purposes of this section: (i) Adapted disclaimer means a clear statement that the internet public communication is paid for, and that identifies the person or persons who paid for the internet public communication using their full name or a commonly understood abbreviation or acronym by which the person or persons are known, which is accompanied by: an indicator and a mechanism. An adapted disclaimer must satisfy the requirements of paragraph (c)(1) and paragraphs (c)(5)(ii) and (iii) of this section. (ii) Indicator means any visible or audible element associated with an internet public communication that is presented in a clear and conspicuous manner and gives notice to persons reading, observing, or listening to the internet public communication that they may read, observe, or listen to a disclaimer satisfying the requirements of paragraphs (b) and (c)(1) of this section through a mechanism. An indicator may take any form including, but not limited to, words, images, sounds, symbols, and icons. (iii) Mechanism means any use of technology that enables the person reading, observing, or listening to an internet public communication to read, observe, or listen to a disclaimer satisfying the requirements of paragraphs (b) and (c)(1) of this section after no more than one action by the recipient of the internet public communication. A mechanism may take any form including, but not limited to, hover-over text, pop-up screens, scrolling text, rotating panels, and hyperlinks to a landing page. (2) When a disclaimer described by paragraphs (b) and (c)(1) of this section cannot be provided or would occupy more than 25 percent of the communication due to character or space constraints intrinsic to the advertising product or medium, an adapted disclaimer may be used within the communication instead. Dated: December 1, 2022. PO 00000 Frm 00013 Fmt 4700 Sfmt 4700 77479 On behalf of the Commission, Allen J. Dickerson, Chairman, Federal Election Commission. Note: The following statement will not appear in the Code of Federal Regulations. Concurring Statement of Commissioner Sean J. Cooksey on the Final Rule for Internet Communication Disclaimers I supported the Commission’s final rule for internet communication disclaimers. While I opposed the Commission’s initial draft for this rule— which would have dramatically expanded our agency’s regulation of political speech online—subsequent revisions have substantially narrowed its scope. By limiting itself only to traditional paid advertising placed on the internet and providing sufficient flexibility for different kinds of ads, the revised regulation will not unduly burden freedom of speech. I believe the revised regulation also complies with the important procedural safeguards under the Administrative Procedure Act. Because of those significant improvements, I voted in favor of the revised final rule. First, I am satisfied that this rulemaking meets the notice-andcomment requirements of the Administrative Procedure Act.7 Although I maintain the Commission would benefit from additional public review and comments, this revised final rule removes novel regulatory expansions and represents a logical outgrowth of the proposals put forth in the Commission’s 2018 Notice of Proposed Rulemaking. I believe interested parties have therefore had adequate notice and opportunity to offer feedback and criticism on the proposed amendments to the Commission’s regulations, and a further comment period is not legally mandatory.8 Second, I believe that this revised regulation is tailored to address the distinct and often complex features of online communications without unnecessarily burdening political speech and association on the internet. The final rule permits small and unconventional online ads for which a full disclaimer is unreasonably cumbersome to instead include an ‘‘adapted disclaimer’’ that maintains the integrity of the advertisement. Similarly, 7 See 5 U.S.C. 553; 52 U.S.C. 30107(a)(8). rule is deemed a logical outgrowth if interested parties ‘should have anticipated’ that the change was possible, and thus reasonably should have filed their comments on the subject during the notice-and-comment period.’’ Ne. Md. Waste Disposal Auth. v. EPA, 358 F.3d 936, 952 (D.C. Cir. 2004) (quoting City of Waukesha v. EPA, 320 F.3d 228, 245 (D.C. Cir. 2003)). 8 ‘‘A E:\FR\FM\19DER1.SGM 19DER1 77480 Federal Register / Vol. 87, No. 242 / Monday, December 19, 2022 / Rules and Regulations Commission regulations will maintain exemptions from disclaimer requirements for small-item advertisements and communications for which disclaimers are impracticable, such as with exceptionally short video clips.9 Even with the revised regulation’s limited purview, these safeguards are critical to maintaining regulatory flexibility for political campaigning online. For more than two decades, the Commission has taken a light touch to regulating political activity online, in recognition of the fact that ‘‘the internet is by definition a bastion of free political speech, where any individual has access to almost limitless political expression with minimal cost.’’ 10 I believe this revised regulation for internet communication disclaimers is in keeping with that approach and will preserve the internet’s special capacity to foster the exchange of political speech, ideas, and values. I will continue to stand up for Americans’ First Amendment freedoms across all platforms for as long as I am on the Commission. Dated: December 1, 2022. Sean J. Cooksey, Commissioner. [FR Doc. 2022–27132 Filed 12–16–22; 8:45 am] BILLING CODE 6715–01–P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA–2022–1168; Project Identifier MCAI–2022–00600–T; Amendment 39–22259; AD 2022–25–03] RIN 2120–AA64 Airworthiness Directives; Airbus SAS Airplanes Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Final rule. AGENCY: 9 See 11 CFR 110.11(f). and Excessive Contributions: NonFederal Funds or Soft Money; Final Rule, 67 FR 49063, 49072 (July 29, 2002). See also, e.g., 11 CFR 100.155(a) (exempting an ‘‘individual’s uncompensated personal services related to [ ]internet activities’’ and an ‘‘individual’s use of equipment or services for uncompensated internet activities’’ from the meaning of ‘‘expenditure’’); Explanation and Justification for the Regulations on internet Communications, 71 FR 18589, 18589 (Apr. 12, 2006) (describing the internet as ‘‘a unique and evolving mode of mass communication and political speech that is distinct from other media in a manner that warrants a restrained regulatory approach,’’ due to its ‘‘accessibility, low cost, and interactive features’’). tkelley on DSK125TN23PROD with RULES 10 Prohibited VerDate Sep<11>2014 17:05 Dec 16, 2022 Jkt 259001 The FAA is superseding Airworthiness Directive (AD) 2016–16– 06, which applied to certain Airbus SAS Model A300 B4–603, B4–605R, and B4– 622R airplanes; and Model A310–304, –324, and –325 airplanes. AD 2016–16– 06 required inspections around the rivet heads of the seal retainer run-out holes at certain frames and corrective actions if necessary. This AD was prompted by a report of a crack found on a certain door frame, and a determination that other frames may also be susceptible to cracking, and that additional airplanes may be affected by the unsafe condition. This AD continues to require the actions in AD 2016–16–06 and adds airplanes, as specified in a European Union Aviation Safety Agency (EASA) AD, which is incorporated by reference. The FAA is issuing this AD to address the unsafe condition on these products. DATES: This AD is effective January 23, 2023. The Director of the Federal Register approved the incorporation by reference of a certain publication listed in this AD as of January 23, 2023. ADDRESSES: AD Docket: You may examine the AD docket at regulations.gov under Docket No. FAA–2022–1168; or in person at Docket Operations between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this final rule, the mandatory continuing airworthiness information (MCAI), any comments received, and other information. The address for Docket Operations is U.S. Department of Transportation, Docket Operations, M– 30, West Building Ground Floor, Room W12–140, 1200 New Jersey Avenue SE, Washington, DC 20590. Material Incorporated by Reference: • For material incorporated by reference in this AD, contact EASA, Konrad-Adenauer-Ufer 3, 50668 Cologne, Germany; telephone +49 221 8999 000; email ADs@easa.europa.eu; website easa.europa.eu. You may find this material on the EASA website at ad.easa.europa.eu. • You may view this material at the FAA, Airworthiness Products Section, Operational Safety Branch, 2200 South 216th St., Des Moines, WA. For information on the availability of this material at the FAA, call 206–231–3195. It is also available in the AD docket at regulations.gov under Docket No. FAA– 2022–1168. FOR FURTHER INFORMATION CONTACT: Dan Rodina, Aerospace Engineer, Large Aircraft Section, FAA, International Validation Branch, 2200 South 216th St., Des Moines, WA 98198; telephone SUMMARY: PO 00000 Frm 00014 Fmt 4700 Sfmt 4700 206–231–3225; email dan.rodina@ faa.gov. SUPPLEMENTARY INFORMATION: Background The FAA issued a notice of proposed rulemaking (NPRM) to amend 14 CFR part 39 to supersede AD 2016–16–06, Amendment 39–18604 (81 FR 51320, August 4, 2016) (AD 2016–16–06). AD 2016–16–06 applied to certain Airbus SAS Model A300 B4–603, B4–605R, and B4–622R airplanes; and Model A310– 304, –324, and –325 airplanes. AD 2016–16–06 required inspections around the rivet heads of the seal retainer run-out holes at certain frames and corrective actions if necessary. The FAA issued AD 2016–16–06 to address cracking of the door frame, which could result in reduced structural integrity of the airplane. The NPRM published in the Federal Register on September 20, 2022 (87 FR 57424). The NPRM was prompted by AD 2022–0078, dated May 4, 2022, issued by EASA (EASA AD 2022–0078) (referred to after this as the MCAI). The MCAI states that cracking on door frames could result in reduced structural integrity of the airplane. You may examine the MCAI in the AD docket at regulations.gov under Docket No. FAA–2022–1168. In the NPRM, the FAA proposed to continue to require the actions in AD 2016–16–06 and add airplanes, as specified in EASA AD 2022–0078. The FAA is issuing this AD to address cracking on door frames, which could result in reduced structural integrity of the airplane. Discussion of Final Airworthiness Directive Comments The FAA received a comment from FedEx Express, who supported the NPRM without change. Conclusion This product has been approved by the aviation authority of another country and is approved for operation in the United States. Pursuant to the FAA’s bilateral agreement with this State of Design Authority, it has notified the FAA of the unsafe condition described in the MCAI referenced above. The FAA reviewed the relevant data, considered the comment received, and determined that air safety requires adopting this AD as proposed. Accordingly, the FAA is issuing this AD to address the unsafe condition on this product. Except for minor editorial changes, this AD is adopted as proposed in the NPRM. E:\FR\FM\19DER1.SGM 19DER1

Agencies

Federal Election Commission

[Federal Register Volume 87, Number 242 (Monday, December 19, 2022)]
[Rules and Regulations]
[Pages 77467-77480]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-27132]



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Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

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Federal Register / Vol. 87, No. 242 / Monday, December 19, 2022 / 
Rules and Regulations

[[Page 77467]]



FEDERAL ELECTION COMMISSION

11 CFR Parts 100 and 110

[Notice 2022-22]


Internet Communication Disclaimers and Definition of ``Public 
Communication''

AGENCY: Federal Election Commission.

ACTION: Final rule.

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SUMMARY: The Commission is adopting final rules to amend its 
regulations concerning disclaimers on public communications on the 
internet. The Commission is implementing these amendments in light of 
technological advances since the Commission last revised its rules 
governing internet disclaimers in 2006, and to address questions from 
the public about the application of those rules to internet 
communications. The Commission's purpose in promulgating these rules is 
to apply the Federal Election Campaign Act's disclaimer requirements to 
general public political advertising on the internet. The Commission is 
also revising the definition of ``public communication'' to clarify how 
it applies to general public political advertising on the internet.

DATES: The effective date is March 1, 2023.

FOR FURTHER INFORMATION CONTACT: Mr. Robert M. Knop, Assistant General 
Counsel, or Ms. Joanna S. Waldstreicher, Attorney, 1050 First St. NE, 
Washington, DC 20463, (202) 694-1650 or (800) 424-9530. Documents 
relating to the rulemaking record are available on the Commission's 
website at https://sers.fec.gov/fosers/rulemaking.htm?pid=74739.

SUPPLEMENTARY INFORMATION: The Commission is revising its regulatory 
definition of ``public communication'' and requirements regarding 
disclaimers on certain public communications placed for a fee on the 
internet.
    The new regulations are intended to give the American public 
improved access to information about the persons paying for and 
candidates authorizing certain internet communications, pursuant to the 
Federal Election Campaign Act (the ``Act''). The regulations clarify 
how the disclaimer requirements apply to various types of internet 
communications and allow certain internet communications to provide 
disclaimers through alternative technological means.

Transmission of Final Rules to Congress

    Before final promulgation of any rules or regulations to carry out 
the provisions of the Act, the Commission transmits the rules or 
regulations to the Speaker of the House of Representatives and the 
President of the Senate for a thirty-legislative-day review period. 52 
U.S.C. 30111(d). The effective date of this final rule is March 1, 
2023.

Explanation and Justification

I. Background

1. Current Statutory and Regulatory Framework

    Under the Act and Commission regulations, a ``disclaimer'' is a 
statement that must appear on certain communications to identify the 
payor and, where applicable, whether the communication was authorized 
by a candidate. 52 U.S.C. 30120(a); 11 CFR 110.11; see Citizens United 
v. FEC, 558 U.S. 310, 366-67 (2010) (``Citizens United'') (citing 
Buckley v. Valeo, 424 U.S. 1, 64, 66 (1976).
    With some exceptions, the Act and Commission regulations require 
disclaimers for public communications: (1) made by a political 
committee; (2) that expressly advocate the election or defeat of a 
clearly identified federal candidate; or (3) that solicit a 
contribution. 52 U.S.C. 30120(a); 11 CFR 110.11(a). In addition to 
public communications by political committees, ``electronic mail of 
more than 500 substantially similar communications when sent by a 
political committee; and all internet websites of political committees 
available to the general public'' also must have disclaimers. 11 CFR 
110.11(a)(1).
    These final rules modify the definition of ``public 
communication.'' 11 CFR 100.26. Specifically, as explained below, the 
term ``public communication'' now includes ``communications placed for 
a fee on another person's website, digital device, application, or 
advertising platform.''
    The content of the disclaimer that must appear on a given public 
communication depends on who authorized and paid for the advertisement. 
If a candidate, an authorized committee of a candidate, or an agent of 
either, pays for and authorizes the communication, then the disclaimer 
must state that the communication ``has been paid for by the authorized 
political committee.'' 11 CFR 110.11(b)(l); see also 52 U.S.C. 
30120(a)(1). If a public communication is paid for by someone else, but 
is authorized by a candidate, an authorized committee of a candidate, 
or an agent of either, then the disclaimer must state who paid for the 
communication and that it is authorized by the candidate, authorized 
committee of the candidate, or an agent of either. 11 CFR 110.11(b)(2); 
see also 52 U.S.C. 30120(a)(2). If the communication is not authorized 
by a candidate, an authorized committee of a candidate, or an agent of 
either, then ``the disclaimer must clearly state the full name and 
permanent street address, telephone number, or World Wide Web address 
of the person who paid for the communication, and that the 
communication is not authorized by any candidate or candidate's 
committee.'' 11 CFR 110.11(b)(3); see also 52 U.S.C. 30120(a)(3). Every 
disclaimer ``must be presented in a clear and conspicuous manner, to 
give the reader, observer, or listener adequate notice of the identity 
of the person'' that paid for the communication. 11 CFR 110.11(c)(1).
    Commission regulations contain certain exceptions to the general 
disclaimer requirements. For example, under the ``small items 
exception,'' disclaimers are not required for public communications 
placed on ``[b]umper stickers, pins, buttons, pens, and similar small 
items upon which the disclaimer cannot be conveniently printed.'' 11 
CFR 110.11(f)(1)(i). Under the ``impracticable exception,'' disclaimers 
are not required for ``[s]kywriting, water towers, wearing apparel, or 
other means of displaying an advertisement of such a nature that the 
inclusion of a disclaimer would be impracticable.'' 11 CFR 
110.11(f)(1)(ii).

[[Page 77468]]

2. History of Disclaimers on Internet Communications

a. 1994 Rulemaking
    The Commission first addressed internet disclaimers in its 1994 
rulemaking regarding communications disclaimer requirements. The 
Commission's initial proposal was silent as to internet communications. 
See Communications Disclaimer Requirements, 59 FR 50708 (Oct. 5, 1994). 
However, after publishing the Notice of Proposed Rulemaking, the 
Commission considered an advisory opinion request from a political 
committee that intended to ``provide a forum for publicly available 
information on selected public officials'' on its website. Advisory 
Opinion 1995-09 (NewtWatch) at 1. The Commission concluded that the 
committee's use of a website was ``a form of general public political 
advertising under 11 CFR 110.11'' \1\ that required a disclaimer. 
Advisory Opinion 1995-09 (NewtWatch) at 2. The Commission codified this 
interpretation in its final rule, explaining that ``internet 
communications and solicitations that constitute general public 
political advertising require disclaimers'' and that ``[t]hese 
communications and others that are indistinguishable in all material 
aspects from those addressed in [Advisory Opinion 1995-09 (NewtWatch 
PAC)] will now be subject to'' disclaimer requirements. Communications 
Disclaimer Requirements, 60 FR 52069, 52071 (Oct. 5, 1995).
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    \1\ Commission regulations at the time did not define or 
otherwise reference ``public communications.'' Instead, in 
determining whether a communication required a disclaimer, the 
Commission considered whether the communication used a specific 
format (i.e., any broadcasting station, newspaper, magazine, outdoor 
advertising facility, poster, yard sign, direct mailing), or if it 
otherwise constituted ``general public political advertising.'' See 
11 CFR 110.11(a)(1) (1995).
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b. BCRA and the 2002 Rulemaking
    In 2002, Congress enacted the Bipartisan Campaign Reform Act of 
2002, Public Law 107-155, 116 Stat. 81 (2002) (``BCRA''). In BCRA, 
Congress added new specificity to the disclaimer requirements, expanded 
the scope of communications covered by the disclaimer requirements, and 
enacted ``stand-by-your-ad'' requirements. Congress also added a new 
term, ``public communication,'' which did not reference the internet: 
``The term `public communication' means a communication by means of any 
broadcast, cable, or satellite communication, newspaper, magazine, 
outdoor advertising facility, mass mailing, or telephone bank to the 
general public, or any other form of general public political 
advertising.'' See 52 U.S.C. 30101(22).
    In implementing BCRA, the Commission promulgated a new regulatory 
definition of ``public communication'' that mirrored the statutory 
language but added that ``[t]he term public communication shall not 
include communications over the internet.'' 11 CFR 100.26 (2002); 
Prohibited and Excessive Contributions: Non-Federal Funds or Soft 
Money, 67 FR 49064, 49111 (July 29, 2002). The Commission also 
promulgated new rules to implement BCRA's changes to the disclaimer 
provisions of the Act. See Disclaimers, Fraudulent Solicitations, Civil 
Penalties, and Personal Use of Campaign Funds, 67 FR 76962 (Dec. 13, 
2002). The new disclaimer rules applied to ``public communications'' as 
well as political committee websites and the distribution by political 
committees of more than 500 substantially similar emails. Other than 
these two specific types of internet-based activities by political 
committees, however, internet communications were not subject to the 
disclaimer requirements. Id. at 76963-64 (explaining that ``[t]his is 
the Commission's only divergence from the 11 CFR 100.26 definition of 
`public communication' '').
c. The Shays Litigation and Subsequent Internet Communications 
Rulemaking
    In 2004, the U.S. District Court for the District of Columbia 
considered a case in which the plaintiffs alleged, inter alia, that the 
Commission had erred in requiring that a ``coordinated communication'' 
could only be a ``public communication'' or ``electioneering 
communication'' because this would mean that internet communications, 
``no matter how closely they are coordinated with political parties or 
a candidate's campaign, cannot be considered `coordinated' under the 
[Commission's] regulations'' by virtue of being specifically excluded 
from the definition of ``public communication.'' Shays v. FEC, 337 F. 
Supp. 2d 28, 65 (D.D.C. 2004) (``Shays''), aff'd, 414 F. 3d 76 (D.C. 
Cir. 2005), reh'g en banc denied (Oct. 21, 2005). The court agreed with 
the plaintiffs, finding that ``Congress intended all other forms of 
`general public political advertising' to be covered by the term 
`public communication.' '' Shays at 70. The court reasoned that 
``[w]hile all internet communications do not fall within this 
descriptive phrase, some clearly do.'' Id. at 67. The court concluded 
that ``[w]hat constitutes `general public political advertising' in the 
world of the internet is a matter for the FEC to determine.'' Id. at 
70.
    Following that ruling, the Commission amended the definition of 
``public communication'' to include ``internet communications placed on 
another person's website for a fee.'' 11 CFR 100.26; internet 
Communications, 71 FR 18589 (Apr. 12, 2006) (``2006 Internet E&J''). 
Under the new definition, ``when someone such as an individual, 
political committee, labor organization or corporation pays a fee to 
place a banner, video, or pop-up advertisement on another person's 
website, the person paying makes a `public communication.' '' 2006 
Internet E&J, 71 FR at 18593-94. Furthermore, ``the placement of 
advertising on another person's website for a fee includes all 
potential forms of advertising, such as banner advertisements, 
streaming video, popup advertisements, and directed search results.'' 
Id at 18594; see also id. at 18608 n.52 (noting that, as used in a 
different context, the ``terms `website' and `any internet or 
electronic publication' are meant to encompass a wide range of existing 
and developing technology'' including ``social networking software''). 
The Commission explained that the revised definition of ``public 
communication'' also affects, among other provisions, ``the requirement 
to include disclaimer statements on certain communications pursuant to 
11 CFR 110.11.'' Id. at 18589 n.2.
    After the adoption of these regulations in 2006, the Commission 
considered several advisory opinion requests that concerned the 
application of disclaimers to internet communications. The queries 
centered on whether certain communications are exempt from the 
disclaimer requirements under the impracticable or small items 
exceptions at 11 CFR 110.11(f)(1) or whether they may incorporate 
technological modifications to satisfy the disclaimer requirements.\2\
---------------------------------------------------------------------------

    \2\ See Advisory Opinion 2017-12 (Take Back Action Fund); 
Advisory Opinion 2010-19 (Google); see also Advisory Opinion Request 
2013-18 (Revolution Messaging) (Sept. 11, 2013); Advisory Opinion 
Request 2011-09 (Facebook) (Apr. 26, 2011). In addition to the 
advisory opinion requests concerning internet advertisements, 
another advisory opinion request asked the Commission to apply the 
impracticable exception in support of truncating a political 
committee's name in disclaimers on its mass emails and on its 
website. See Advisory Opinion 2013-13 (Freshman Hold'em JFC et al.) 
at n.4.
---------------------------------------------------------------------------

    The Commission was first asked to apply the small items exception 
or impracticable exception to text-limited

[[Page 77469]]

internet advertisements in 2010. Google proposed to sell AdWords search 
keyword advertisements limited to 95 text characters; the proposed 
advertisements would not include disclaimers but would link to a 
landing page (the purchasing political committee's website) on which 
users would see a disclaimer. See Advisory Opinion 2010-19 (Google). 
The Commission concluded that Google's proposed AdWords program ``under 
the circumstances described . . . [was] not in violation of the Act or 
Commission regulations,'' but the advisory opinion did not answer 
whether Google AdWords ads would qualify for the small items or 
impracticable exception. Id. at 2.
    In response to two subsequent advisory opinion requests concerning 
the possible application of the small items exception or impracticable 
exception to small internet advertisements, the Commission was unable 
to issue advisory opinions by the required four affirmative votes. See 
Advisory Opinion Request 2011-09 (Facebook) (Apr. 26, 2011) (concerning 
application of exceptions to zero-to-160 text character ads with 
thumbnail size images); Advisory Opinion Request 2013-18 (Revolution 
Messaging) (Sept. 11, 2013) (concerning application of exceptions to 
mobile banner ads).
    Finally, the Commission considered an advisory opinion request in 
2017 asking whether paid image and video ads on Facebook ``must . . . 
include all, some, or none of the disclaimer information specified by 
52 U.S.C. 30120(a).'' Advisory Opinion Request 2017-12 (Take Back 
Action Fund) at 4. The Commission issued an opinion concluding that the 
proposed Facebook image and video advertisements ``must include all of 
the disclaimer information'' specified by the Act, but, in reaching 
this conclusion, Commissioners relied on two different rationales, 
neither of which garnered the required four affirmative votes. Advisory 
Opinion 2017-12 (Take Back Action Fund) at 1.
d. Current Rulemaking
    On October 13, 2011, the Commission published in the Federal 
Register an Advance Notice of Proposed Rulemaking (``ANPRM'') 
soliciting comment on whether to modify disclaimer requirements at 11 
CFR 110.11 for certain internet communications, or to provide 
exceptions thereto, consistent with the Act. The Commission received 
eight comments in response. Six of the commenters agreed that the 
Commission should update the disclaimer rules through a rulemaking, 
though commenters differed on how the Commission should do so.
    On October 18, 2016, the Commission solicited additional comment in 
light of legal and technological developments during the five years 
since the ANPRM was published. The Commission received six comments, 
all but one of which supported updating the disclaimer rules. 
Commenters, however, differed on whether the Commission should allow 
modified disclaimers for all online advertisements or exempt paid 
advertisements on social media platforms from the disclaimer 
requirements.\3\
---------------------------------------------------------------------------

    \3\ On November 2, 2016, the Commission published in the Federal 
Register a Notice of Proposed Rulemaking in a separate rulemaking: 
Technological Modernization, 81 FR 76416 (Nov. 2, 2016); see also 87 
FR 54915 (Sept. 8, 2022) (request for additional comment). That NPRM 
proposed changing the reference to ``website'' in the definition of 
``public communication'' to ``website or internet-enabled device or 
application.'' The purpose of the proposed change was to reflect 
post-2006 changes in internet technology--such as the development of 
mobile applications (``apps'') on smartphones and tablets, smart TVs 
and devices, interactive gaming dashboards, e-book readers, and 
wearable network-enabled devices such as smartwatches and headsets--
and to make the regulatory text more adaptable to the development of 
future technologies. The Commission asked several questions about 
its proposed change, including whether the term ``internet-enabled 
device or application'' is a sufficiently clear and technically 
accurate way to refer to the various media through which paid 
internet communications can be sent and received; whether there is a 
better way to refer to them; and whether it would help to provide 
examples of such paid media. The Commission has decided to amend the 
definition of ``public communication'' in the instant rulemaking 
because the term is closely tied to the internet communication 
disclaimer requirements. See NPRM at 12865.
---------------------------------------------------------------------------

    On October 10, 2017, the Commission again solicited additional 
comment in light of the ongoing legal, factual, and technological 
developments in this area. During this reopened comment period, the 
Commission received submissions from 149,772 commenters (including 
persons who signed on to others' comments), of which 147,320 indicated 
support for updating or strengthening the disclaimer rules or other 
government action; 2,262 indicated opposition to such efforts; and 190 
did not indicate a discernable preference.
    On March 26, 2018, the Commission published in the Federal Register 
a Notice of Proposed Rulemaking in this rulemaking. See Notice of 
Proposed Rulemaking, Internet Communication Disclaimers and Definition 
of ``Public Communication,'' 83 FR 12864 (Mar. 26, 2018) (``NPRM''). 
During the comment period, the Commission received submissions from 
165,801 commenters (including persons who signed on to others' 
comments), of which a large majority supported one or the other of two 
alternative proposals or supported revising disclaimer rules generally. 
In addition, the Commission received three comments and twelve ex parte 
communications after the comment period.
    As discussed above, this NPRM proposed to revise the definition of 
``public communication'' to include communications placed for a fee on 
another person's ``internet-enabled device or application,'' in 
addition to communications placed for a fee on another person's 
website. Id. In addition, the Commission requested comment on two 
proposed revisions to its disclaimer rules that were intended to 
clarify, for various types of paid internet public communications, the 
disclaimers required and, in certain circumstances, when a paid 
internet public communication could employ a modified approach to the 
disclaimer requirements. Alternative A proposed applying the full 
disclaimer requirements that apply to radio and television 
communications to public communications distributed over the internet 
with audio or video components. Alternative A also proposed applying 
the type of disclaimer requirements that apply to printed public 
communications to text and graphic public communications distributed 
over the internet. Finally, Alternative A proposed allowing certain 
small text or graphic public communications distributed over the 
internet to satisfy the disclaimer requirements through an ``adapted 
disclaimer.'' Alternative B proposed to treat internet public 
communications differently from public communications disseminated via 
print and broadcast media. Alternative B proposed a requirement that 
disclaimers on internet communications be clear and conspicuous and 
meet the same general content requirements as other disclaimers, 
without imposing the additional disclaimer requirements that apply to 
print, radio, and television communications. Alternative B also 
proposed to allow certain paid internet advertisements to satisfy the 
disclaimer requirements through an adapted disclaimer, depending on the 
amount of space or time necessary for a clear and conspicuous 
disclaimer as a percentage of the overall advertisement. In the event 
that an advertisement could not provide a disclaimer even through a 
technological mechanism, Alternative B proposed to create an exception 
to the disclaimer requirement specifically for paid internet 
advertisements.
    In May 2018, the Commission held a hearing on the regulatory 
changes

[[Page 77470]]

proposed in the NPRM and received testimony from 18 witnesses over the 
course of two days. The witnesses included campaign finance reform 
organizations, experts in technology and advertising, and political 
party committees. The witnesses testified on issues relating to 
defining ``public communications,'' how internet advertising has 
evolved and how it is used, incorporating flexibility in the 
regulations to accommodate new technologies as well as business 
decisions, and how internet communications are different from print and 
broadcast media.
    Finally, on June 20, 2019, the Commission made public two 
alternative proposals from Commissioners, seeking additional public 
comment on updated proposed revisions. Proposal A would have provided 
that ``[t]he term general public political advertising shall not 
include communications over the internet, except for (1) communications 
produced for a fee and those placed or promoted for a fee on another 
person's website or digital device, application, service, or platform, 
and (2) such communications included in section (1) that are then 
shared by or to a website or digital device, application, service, or 
platform.'' \4\ It would have provided that internet public 
communications must include full disclaimers similar to those already 
required for print, radio, and television communications, including the 
stand-by-your-ad requirements for radio and television advertisements. 
Proposal A also provided that the small items and impracticable 
exceptions would not apply to internet public communications, but that 
an adapted disclaimer may be used for a communication containing text 
or graphic components when it would be impracticable to include a full 
disclaimer ``due to factors inherent to the technology.'' internet Ad 
Disclaimers Rulemaking Proposal (June 20, 2019) (``Proposal A'').\5\
---------------------------------------------------------------------------

    \4\ https://sers.fec.gov/fosers/showpdf.htm?docid=402921.
    \5\ https://sers.fec.gov/fosers/showpdf.htm?docid=402921.
---------------------------------------------------------------------------

    Proposal B did not include a proposed revision to the definition of 
``public communication,'' and provided that an adapted disclaimer may 
be used for ``[a]ny internet public communication that cannot 
reasonably provide a disclaimer on the face of the communication.'' 
Internet Communication Disclaimers, Proposed Rule (June 20, 2019) 
(``Proposal B'').\6\ In response to these proposals, the Commission 
received five comments, three of which did not express a preference for 
one of the alternative proposals, and two of which supported Proposal 
A.
---------------------------------------------------------------------------

    \6\ https://sers.fec.gov/fosers/showpdf.htm?docid=403127.
---------------------------------------------------------------------------

II. Revised 11 CFR 100.26--Definition of ``Public Communication''

    As set forth below, the Commission is revising section 100.26, 
defining ``public communication,'' to clarify how it applies to general 
public political advertising over the internet, and--in light of the 
nuances of internet advertising and the rapid pace of technological 
change--to ensure that the disclaimer rule also applies appropriately 
to newer forms of general public political advertising over the 
internet.
    Commission regulations require a disclaimer for any ``public 
communication'' that contains express advocacy or solicits a 
contribution, and for all public communications by political 
committees. 11 CFR 110.11(a). The current definition of ``public 
communication'' includes only those internet communications ``placed 
for a fee on another person's website.'' 11 CFR 100.26. Since the 
Commission promulgated this definition in 2006, internet activity has 
expanded from blogging, websites, and listservs to include social media 
networks (Facebook, Twitter, and LinkedIn), media sharing networks 
(YouTube, Instagram, TikTok, and Snapchat), streaming applications 
(Netflix, Hulu), and mobile devices and applications, as well as 
wearable devices (smart watches, smart glasses), home devices (Amazon 
Echo), virtual assistants (Siri, Alexa), and smart TVs and devices 
(home appliances, digital commercial billboards, and displays). As one 
commenter noted in response to the ANPRM, ``[a]s consumers move toward 
virtual and augmented reality services, wearable technology, screenless 
assistants, and other emerging technologies, there is every reason to 
predict that advertisers will demand the ability to reach voters and 
customers on those technologies, and, in turn, new advertising 
configurations that have not yet been imagined will be developed.''
    In the instant NPRM, the Commission cited its earlier proposal in 
the Technological Modernization rulemaking to update the definition of 
``public communication'' to account for new technologies. NPRM at 12868 
(citing Technological Modernization (``Technology NPRM''), 81 FR 76416 
(Nov. 2, 2016)). In both NPRMs, the Commission proposed to revise the 
definition of ``public communication'' to clarify how the definition 
applies to newer forms of general public political advertising on the 
internet. NPRM at 12868 (citing Technology NPRM). Specifically, the 
Commission proposed to revise the definition to include communications 
placed for a fee on another person's ``internet-enabled device or 
application,'' in addition to the existing inclusion of communications 
placed for a fee on another person's website. Id.; Technology NPRM at 
76433-34. In both NPRMs, the Commission highlighted the fact that when 
it promulgated the existing definition of ``public communication'' in 
2006, it ``focused on websites because that was the predominant means 
of paid internet advertising at the time,'' and explained that in 2006 
it ``analogized paid advertisements on websites to the forms of mass 
communication enumerated in the definition of `public communication' in 
the [Act] because `each lends itself to distribution of content through 
an entity ordinarily owned or controlled by another person.' '' NPRM at 
12864 (citing 2006 internet E&J, 71 FR at 18594); 52 U.S.C. 30101(22)); 
see also Technology NPRM at 76433.
    The purpose of the change proposed in both NPRMs was ``to reflect 
post-2006 changes in internet technology--such as the development of 
mobile applications (`apps') on smartphones and tablets, smart TVs and 
devices, interactive gaming dashboards, e-book readers, and wearable 
network-enabled devices such as smartwatches and headsets--and to make 
the regulatory text more adaptable to the development of future 
technologies.'' NPRM at 12864-65; see also Technology NPRM at 76433-34. 
In pursuit of its goal of updating the definition of ``public 
communication'' to reflect recent technological changes and to 
accommodate future changes, the Commission asked ``whether revising the 
definition to include communications placed for a fee on another 
person's `internet-enabled device or application,' in addition to 
communications placed for a fee on another person's website, would be a 
clear and technically accurate way to refer to the various media 
through which paid internet communications can be and will be sent and 
received.'' NPRM at 12868. The Commission asked whether it was clear 
that both the placement-for-a-fee element and the third-party element 
would apply to websites, internet-enabled devices, and internet 
applications.
    All but one commenter supported the revisions proposed by the 
Commission, though a subset of supporters suggested

[[Page 77471]]

the Commission make additional revisions. For instance, one commenter 
stated that the proposed definition of ``public communication'' ``is 
generally appropriate and will remain relevant as technology advances, 
but that it could be modified slightly to be clearer''--specifically, 
to ``more accurately capture[ ] the requirement for payment and a 
website, platform or device other than the speaker's own.'' Several 
commenters argued that ``placed for a fee'' should be included in the 
definition to include any future communication methods. Others 
suggested revising the definition by adding the term ``services'' in 
order to make the term more expansive to include future technology, or 
to add the term ``promoted for a fee'' to capture individuals paid to 
share content in cases where no payment is made to a platform. One 
commenter supported adding those who promote advertisements to the 
definition on the grounds that promotion multiplies the benefit of a 
given advertisement by widening its distribution to different audiences 
and all audiences should be aware of the sponsorship information. One 
commenter opined that the cost of producing content should trigger a 
disclaimer even if the content is posted for free. Other commenters 
proposed adding references to additional types of digital media, such 
as social media, platforms or video games.
    Only one commentator opposed revision of the current definition, 
recommending instead that the Commission evaluate each new technology 
under the current definition on a case-by-case basis. In the 
alternative, this commenter suggested that if the definition is to be 
revised, it should apply only to communications above a specific 
monetary threshold, whether calculated on a per-communication basis, or 
based on an aggregate amount per speaker. The commenter also proposed 
that the term ``internet-enabled device or application'' be replaced 
with references to specific technologies.
    Based on the comments received, the Commission has decided to 
revise the definition of ``public communication'' to better accommodate 
technological changes and reflect the range of ``media through which 
paid internet communications can be and will be sent and received.'' In 
doing so, it intends to regulate only communications placed for a fee 
``through an entity ordinarily owned or controlled by another person,'' 
analogous to the forms of ``public communication'' already included in 
the definition. NRPM at 12868. The Commission is not otherwise altering 
its existing interpretation of the term ``public communication'' or 
``general public political advertising.''
    The new definition of ``public communication'' includes 
``communications placed for a fee on another person's website, digital 
device, application, or advertising platform.'' This new definition 
implements the Commission's goals of including the range of current 
internet media and being adaptable to the development of future 
technologies. It also reflects the Commission's determination that--for 
purposes of the definition of ``public communication''--there is no 
basis to distinguish between paid advertising on a ``website'' and paid 
advertising via other internet-enabled technologies. The new definition 
therefore explicitly includes communications not only in the form of 
paid ads on websites, but also paid ads that otherwise meet the 
definition of ``general public political advertising'' and are 
disseminated via the internet or media that rely on the connectivity of 
the internet (including social media networks, streaming platforms, 
mobile applications, and wearable devices). This is because, like the 
more traditional forms of paid communications that are specifically 
listed in the existing definition of ``public communication,'' these 
forms of paid internet communications are inherently owned or 
controlled by third parties.
    In response to the NPRM, the Commission received numerous comments 
stating that while the proposed additions to the definition were 
appropriate, they were not sufficient to cover the range of paid 
internet communications in current use or flexible enough to cover 
those yet to be developed. The Commission also received comments 
stating that in addition to ``placing'' a communication for a fee, 
internet advertising is generally understood to include ``promoting'' a 
communication for a fee to amplify its reach and that omitting paid 
promotion from the definition of ``public communication'' would 
similarly leave the definition incomplete.
    The Commission is further revising the definition of ``public 
communication'' to clarify that it covers general public political 
advertising on various types of internet media that may not be captured 
by the existing definition (i.e., communications on digital devices, 
applications, or advertising platforms). This is to ensure that the 
same disclaimer requirements apply to general public political 
advertising across the internet ecosystem. As one commenter stated, 
``[w]ebsites are only one type of digital communication that use the 
internet, and they are carrying a decreasing portion of internet 
traffic. Indeed, many, and perhaps most, political communications are 
not on websites.'' This commenter also noted that smartphones, tablet 
apps and video streaming are better characterized as ``devices,'' 
``platforms,'' or ``applications,'' rather than websites, and that the 
``Internet of Things'' will likely become increasingly prevalent in the 
future. The Commission agrees and has revised the definition of 
``public communication'' to include not only communications on another 
person's ``website,'' but also those on another person's ``digital 
device, application, or advertising platform.'' See NPRM at 12865 
(``[t]he Commission has decided to reintroduce the proposed change to 
the definition of `public communication' in this rulemaking for the 
limited purpose of determining whether the term `internet-enabled 
device or application' is a sufficiently clear and technically accurate 
way to refer to the various media through which paid internet 
communications can be sent and received.'').
    The Commission does not agree with a commenter who opposed changing 
the definition on the theory that it ``presumptively extend[s] federal 
regulation to all future technology indefinitely'' and that the 
Commission instead should continue to assess emerging technologies on a 
case-by-case basis to see whether they are included in the definition. 
The definition does not extend to ``all future technology,'' but only 
to general public political advertising whose ``placement'' is ``for a 
fee,'' and which is distributed via a ``website, digital device, 
application, or advertising platform'' or analogous form of internet-
enabled technology owned or controlled by a third party. Moreover, a 
system wherein the Commission would be called upon to determine whether 
a given technology falls within the definition on a case-by-case basis 
is inefficient and cumbersome for both regulated parties and the 
Commission. As internet communications continue to constitute greater 
proportions of political speech, revising the definition to explicitly 
encompass more than website communications provides clearer guidance to 
the public as to how the rule applies.

[[Page 77472]]

New 11 CFR 110.11--Disclaimer Requirement for Internet Public 
Communications and Adapted Disclaimers

1. New 11 CFR 110.11(c)(5)--Disclaimer Requirement for Internet Public 
Communications

    The Act and Commission regulations impose specific requirements for 
disclaimers on printed, radio, and television communications. See 52 
U.S.C. 30120(a), (d); 11 CFR 110.11(c)(2)-(4). For printed 
communications, requirements for type size, color contrast, and 
placement on the page are designed to ensure that the disclaimers will 
be visible. 11 CFR 110.11(c)(2). Requirements for disclaimers on radio 
and television communications vary, depending on whether a candidate or 
another person pays for or authorizes the communication. Radio 
communications paid for or authorized by a candidate must include an 
audio statement spoken by the candidate, identifying the candidate and 
stating that the candidate has approved the communication. 52 U.S.C. 
30120(d)(1)(A); 11 CFR 110.11(c)(3)(i). Radio communications that are 
not paid for or authorized by a candidate must include an audio 
statement identifying the person paying for the communication and 
stating that that person ``is responsible for the content of this 
advertising.'' 52 U.S.C. 30120(d)(2); 11 CFR 110.11(c)(4)(i). 
Television, broadcast, cable, or satellite communications paid for or 
authorized by a candidate must include a statement by the candidate, 
identifying the candidate and stating that the candidate has approved 
the communication, either through a full-screen view of the candidate 
making the statement or by a voice-over accompanied by a ``clearly 
identifiable photographic or similar image'' of the candidate; these 
communications must also include a similar statement ``in clearly 
readable writing'' at the end of the communication. 52 U.S.C. 
30120(d)(1)(B); 11 CFR 110.11(c)(3)(ii)-(iii). Television, broadcast, 
cable, or satellite communications that are not paid for or authorized 
by a candidate must include the audio statement required by 11 CFR 
110.11(c)(4)(i) and conveyed by a ``full-screen view of a 
representative'' of the person making the statement or in a voice-over 
by such person; these communications must also include a similar 
statement ``in clearly readable writing'' at the end of the 
communication. 52 U.S.C. 30120(d)(2); 11 CFR 110.11(c)(4)(ii)-(iii).
    In the years since the definition of ``public communication'' was 
revised to include paid website advertising, technological developments 
have expanded the available formats and functionality of internet 
advertising. Many internet advertisements today include video, audio, 
and graphic components beyond the limited text available in earlier 
internet advertising considered by the Commission, as well as beyond 
the text and audiovisual components of print and broadcast media.
    Thus, the Commission proposed in the NPRM to add regulatory 
provisions clarifying, for various types of paid internet public 
communications, when and how the disclaimer requirements apply. The 
Commission sought comment on two alternative approaches, noting that 
``[t]he two proposals need not be considered as fixed alternatives; 
commenters are encouraged to extract the best elements of each, or 
suggest improvements or alternatives, to help the Commission fashion 
the best possible rule.'' NPRM at 12864. Alternative A would have 
applied the full disclaimer requirements that now apply to radio and 
television communications, including the stand-by-your-ad content 
requirements, to public communications distributed over the internet 
with audio or video components, ``based on the premise that these 
advertisements are indistinguishable from offline advertisements that 
may be distributed on radio or television, broadcast, cable, or 
satellite in all respects other than the medium of distribution.'' Id. 
at 12870. Further, the Commission noted that the disclaimer 
requirements for radio and television communications ``have been in 
operation for 15 years and are, therefore, familiar to persons paying 
for, authorizing, and distributing communications. Moreover, by 
applying the specifications for radio and television communications to 
audio and video communications distributed over the internet, the 
proposed regulations would ensure that internet audio ads could air on 
radio and internet video ads could air on television without having to 
satisfy different disclaimer requirements.'' Id. at 12870. Alternative 
A also proposed to apply disclaimer requirements that now apply to 
printed public communications to text and graphic public communications 
distributed over the internet and proposed to establish a ``safe 
harbor'' for disclaimers appearing in ``letters at least as large as 
the majority of the other text in the communication''--tracking the 
current approach for disclaimers in printed materials--without making 
it a requirement.
    Alternative B proposed to treat internet communications differently 
from communications disseminated via print and broadcast media, on the 
basis that the internet is a unique medium of communication and 
internet advertising is ``inherently more diverse than a simple 
transition of similar content from print or broadcast television,'' as 
it includes varying platforms, sizes, devices, individualized settings, 
interactivity, and duration. Id. at 12871. Alternative B, therefore, 
would have required disclaimers on internet communications to be clear 
and conspicuous and to meet the same general content requirement as 
other disclaimers, but without imposing additional specific disclaimer 
requirements that apply to print, radio, or television communications, 
such as type sizes, duration, or specific content.
    Both alternatives also proposed to allow alternative means of 
satisfying the disclaimer requirement for internet public 
communications that could not accommodate full disclaimers. These 
proposals, discussed further below, would have allowed for adapted 
disclaimers that provided the name of the person who paid for a 
communication and a technological means of accessing a full disclaimer.
    The Commission received comments supporting and opposing aspects of 
both proposals. On the question of applying existing radio and 
television stand-by-your-ad requirements to their analogues in internet 
communications, commenters were roughly equally divided.
    Commenters supporting Alternative A noted that under this 
alternative, more information would be available to the viewer, that it 
was flexible while promoting transparency, and that Alternative A was 
more likely to lead to disclaimer information appearing on the face of 
the communication, which, they argued, should be the default position. 
One commenter noted that where there is a divergence between the nature 
of online and traditional advertising, this difference supported more 
Commission scrutiny rather than less because of the availability of 
microtargeting for internet advertising.
    One commenter argued that it would be anomalous to apply the stand-
by-your-ad requirements to a television advertisement distributed 
through a cable television network, but not to apply those requirements 
to the same advertisement distributed on a streaming internet platform 
by the same television station. The commenter also argued that stand-
by-your-ad requirements do not impose any additional cost on the 
advertiser in the

[[Page 77473]]

online space, and that if questions arise concerning their application 
to unusual formats, the Commission should address these scenarios case-
by-case rather than afford digital communications a general exemption.
    In support of requiring disclaimers to appear on the face of a 
communication, one commenter stated that the click-through rate for ads 
containing links is less than 1 percent. Some commenters expressed 
their conviction that technical innovation will increasingly enable the 
requisite information to appear on the face of the communication, and 
that Alternative B would remove an incentive for technology companies 
to innovate by exempting communications from disclaimer requirements 
even when technical constraints would not preclude a disclaimer. Some 
comments noted that under Alternative B it would be possible to 
manipulate the content of the ad, such as the name of the sponsor, in 
order to qualify for exemption from disclaimer requirements. One 
commenter stated that ``[a]lthough at first glance 10% appears to be an 
objective standard, in reality it is largely within the control of the 
advertiser. For example, a person seeking to avoid disclaimers might 
form an independent-expenditure-only committee or a 501(c)(4) nonprofit 
with an intentionally overlong name that would exceed 10% of many 
digital advertisements.''
    One commenter, expressing a preference for Alternative A, 
recommended modifying it to require ad sponsors to report their 
shortened as well as their full names (see discussion below for more 
detail) if they use their shortened names in the communication, and to 
require that disclaimers be placed in text as a title or headline of 
ads containing multimedia aspects. One commenter supported Alternative 
A's rule for allowing an adapted disclaimer (discussed below) but 
opposed specific requirements for internet ads. One commenter 
recommended that the Commission require that disclaimers be made 
accessible to those with disabilities, who constitute, according to the 
commenter, nearly 20 percent of the population.
    Commenters supporting Alternative B stated that they preferred its 
flexibility, with one commenter suggesting modifying Alternative B to 
allow audio disclaimers of no more than four seconds. These commenters 
stated that Alternative B's greater flexibility would render it more 
readily applicable to potential future technologies.
    Several commenters also questioned whether Alternative A's 
extension of current radio and television disclaimer specific 
requirements to internet communications is supported by statutory 
authority, noting that section 30120(a) applied to radio and television 
communications when originally enacted, and that it might be overbroad 
for the Commission to apply the law to internet activity. In response, 
other commenters argued that current statutory authority would support 
extending the current disclaimer regime to the internet, with one 
commenter noting that although section 30120(a) does not refer to the 
internet, it does not expressly preclude application to the internet 
either.
    One commenter observed that Alternative B has parallels in existing 
regulatory exceptions for small and impracticable items. One commenter 
stated that ``Alternative B's most important feature is its inclusion 
of a safe harbor provision, allowing speakers to use alternative 
disclaimers when the standard disclaimer would occupy more than 10% of 
the time or space of the underlying communication. Adopting this policy 
would ensure the Commission does not unduly burden speakers, interfere 
with their communications, or increase the cost of their 
communications.'' One commenter argued that Alternative B provides a 
bright line for advertisers that could be further enhanced by defining 
other phrases, such as ``on the face of the communication'' or ``clear 
and conspicuous.'' The commenter stated that if the Commission were to 
adopt a more nuanced approach, the standards should be geared to the 
advertiser's chosen communication medium. Another commenter argued 
that, to the extent that it might render certain short-form 
advertisements too expensive or impractical, Alternative A might be 
unconstitutional. Several commenters stressed the degree to which the 
current communicative landscape differs from that contemplated when the 
stand-by-your-ad requirements were enacted. One commenter noted that 
the current disclaimer regime dates from a time when radio and 
television were prominent, while the Commission's 2006 internet 
rulemaking contemplated graphic website advertisements. This commenter 
opined that rules promulgated now, in an environment of social media 
and apps, need flexibility for future technical innovation. One 
commenter noted that the former advertising environment was simpler; 
there were radio, television, newspapers, magazines and billboards, in 
which there were one-to-one relationships between stations, companies 
and advertisers. The commenter stated that in the online environment, 
in contrast, different components of an advertisement might be 
delivered or mediated by different servers. Other commenters noted that 
the online advertisement differs from the traditional advertisement by 
virtue of its greater interactivity with the user.
    Some commenters found aspects of both alternatives unsatisfactory. 
One commenter urged the Commission to allow the market to determine the 
appropriate threshold for when an adapted disclaimer would be 
appropriate. The commenter argued that disclaimers are not as important 
as the substance of the advertising, that individuals click on links in 
advertisements not so much to find disclaimers as to learn whether the 
advertisement is true, and that making assumptions based on an 
organization's name can be misleading. Another commenter stated a 
preference for not applying disclaimer rules to ordinary internet users 
and expressed the view that both alternatives are overbroad and need to 
incorporate more technical specifications. Other commenters argued that 
both alternatives could impose a burden on speech and that any 
disclaimer requirement would detract from the speaker's ability to 
communicate a message.
    The Commission agrees with the commenters who generally support the 
establishment of a disclaimer rule specific to internet public 
communications. Some commenters also noted that private standards 
enforced by platforms vary widely and that some form of standardization 
is necessary to ensure consistency. One platform apprised the 
Commission of efforts it had undertaken in this regard, but as another 
commenter pointed out, these may change at any time for legitimate 
commercial reasons. The Commission disagrees with the argument that any 
application of disclaimer rules to general public political advertising 
on the internet would be unconstitutional.
    Based on the comments received, the Commission is adding a new 
paragraph (c)(5) to section 110.11, setting forth specific disclaimer 
requirements for internet public communications. New section 
110.11(c)(5)(i) first defines ``internet public communication'' as 
``any public communication over the internet that is placed for a fee 
on another person's website, digital device, application, or 
advertising platform.'' This language parallels the revised definition 
of ``public communication'' in section 100.26, and is similar to 
language proposed in Alternative B. The definition of ``internet public

[[Page 77474]]

communication'' applies for the purposes of section 110.11 and serves 
to streamline references to this type of communication in the text of 
the regulations.
    The Commission does not agree with one commenter's argument that 
providing a definition of ``internet public communication'' that 
includes those who adopt others' political speech as their own by 
paying to place that speech on the internet (such as by paying a social 
media platform to ensure more advantageous treatment of a third-party's 
advertisement in the platform's search or prioritization algorithm), 
rather than confining the definition to those who originally pay to 
place the speech, would present a ``constitutional infirmity'' under 
the final rule. Like the revised definition of ``public 
communication,'' the defined term ``internet public communication'' 
relies on the characteristics of the communication itself, not the role 
any persons may have had in its creation or distribution, and it 
encompasses only paid communications. Therefore, individuals who share 
someone else's speech without paying to distribute it will not be 
affected by this revision.
    New paragraph (c)(5)(ii) provides that ``[a]n internet public 
communication must include a disclaimer that complies with the 
requirements of paragraphs (b) and (c)(1) of this section. The 
disclaimer requirement under this paragraph applies to any person that 
pays to place an internet public communication, regardless of whether 
that person originally created, produced, or distributed the 
communication.'' This provision states the requirement that disclaimers 
must be included on internet public communications, and clarifies that, 
as with the existing disclaimer requirements, the provision applies to 
any communication that meets the definition of an ``internet public 
communication,'' without examining who may have played various roles in 
the creation and dissemination of the communication beyond the identity 
of the payor and whether a candidate authorized the communication.
    Finally, new 11 CFR 110.11(c)(5)(iii) sets forth the disclaimer 
requirements that are specific to particular types of internet public 
communications, in addition to the existing requirements of paragraphs 
(b) and (c)(1) that apply to all communications requiring disclaimers. 
Paragraphs (c)(5)(iii)(A)-(C) provide that a disclaimer required for an 
internet public communication must: (a) for such communications with 
text or graphic components, include the required written disclaimer, 
such that the disclaimer can be viewed without the viewer taking any 
action; (b) be of sufficient type size to be clearly readable by the 
recipient of the communication; and (c) be displayed with a reasonable 
degree of color contrast between the background and the disclaimer's 
text. New paragraph (c)(5)(iii) also includes requirements specific to 
video and audio communications. The new provision at paragraph 
(c)(5)(iii)(D) requires that for an internet public communication in 
which the disclaimer is displayed within a video, the disclaimer must 
be visible for at least 4 seconds and appear without the recipient of 
the communication taking any action. For an internet public 
communication with an audio component and no video, graphic, or text 
components, paragraph (c)(5)(iii)(E) states that the disclaimer must be 
included within the audio component of the communication.
    New paragraph (c)(5) therefore combines aspects of Alternatives A 
and B by treating internet public communications similarly to print, 
radio, and television communications insofar as it imposes specific 
requirements on particular types of communications that are analogous 
to those imposed on print and broadcast media, while also accounting 
for the ways in which internet public communications differ from print 
and broadcast media in other respects. The new internet disclaimer 
provisions do not impose the stand-by-your-ad requirements applicable 
to radio and television advertisements on internet public 
communications.
    Paragraphs 110.11(c)(5)(iii)(A)-(C) do not apply to audio-only 
internet public communications. These provisions concern written 
disclaimers and set readability requirements for their text size and 
contrast, and thus are inapplicable to audio-only communications. In 
contrast, paragraph (c)(5)(iii)(E) applies solely to audio-only 
internet public communications, specifying that for such communications 
the disclaimer must be an audio statement contained within the audio 
communication.
    One commenter stated that because disclaimers on video 
communications may appear only for four seconds, a viewer who does not 
watch the part of the ad with the statement would not see the 
disclaimer. The Commission acknowledges that not all recipients of 
internet public communications will necessarily see or hear required 
disclaimers, but does not consider this a sufficient reason to not 
require their inclusion. The new rule is similar to the longstanding 
rule for television communications, which likewise requires disclaimers 
to appear for at least four seconds. See 11 CFR 110.11(c)(3)(iii)(B), 
(c)(4)(iii)(B).
    The new regulation follows aspects of Alternative A by treating 
internet public communications similarly to print and broadcast media 
depending on the type of communication: (1) type size and contrast of 
written disclaimers must meet readability requirements similar to those 
required of print media and television; (2) disclaimers for internet 
communications consisting solely of an audio component (that is, 
without video, graphics, or text) must be provided within the audio 
component of the communication, similar to the existing requirement 
that radio communications must include audio disclaimers; and (3) 
disclaimers within internet video communications must be visible for at 
least 4 seconds, similar to the existing duration requirement for 
disclaimers on television communications. See 11 CFR 110.11(c)(2), 
(3)(i), (3)(iii).
    The new regulation retains the principle of Alternative B that 
internet public communications may differ from print and broadcast 
media. First, new paragraph (c)(5)(iii)(A) requires that ``an internet 
public communication with text or graphic components must include the 
written disclaimer required by this paragraph, such that the disclaimer 
can be viewed without taking any action.'' Therefore, any internet 
public communication that contains text or graphic elements must 
include a written disclaimer, even if the communication also includes 
video or audio components. For example, an audio advertisement might be 
presented on a social media platform within a panel also containing a 
written description. Paragraph (c)(5)(iii)(A) requires that because the 
communication includes a text component, it must include a written 
disclaimer.
    In addition, in some cases a viewer must take action to access some 
or all of the components of an internet public communication by, for 
example, clicking on a link or opening a pop-up window. New paragraphs 
(c)(5)(iii)(A) and (D) specify that disclaimers must be viewable 
without the recipient of the communication taking any additional 
action. For example, a graphic or video advertisement may be 
accompanied by a caption that contains a link to additional 
information. In the case of such a communication, new paragraph (c)(5) 
requires that the disclaimer be visible in the graphic or video, or in 
the caption, without the viewer having to take any additional action 
beyond

[[Page 77475]]

viewing or watching the advertisement, such as clicking on or hovering 
over a link. Similarly, new paragraph (c)(5)(iii)(E) requires that for 
an internet public communication that contains an audio component but 
no video, graphic, or text component, the disclaimer must be included 
in that audio component, so that a recipient need not take any 
additional action beyond listening to the advertisement to obtain the 
disclaimer information.
    New paragraph (c)(5)(iii) also accounts for the variability and 
flexibility of internet communications by setting forth requirements 
for text size and contrast that allow for varying platforms, formats, 
and devices. New paragraph (c)(5)(iii)(B) requires that a disclaimer on 
an internet public communication ``must be of sufficient type size to 
be clearly readable by the recipient of the communication. A disclaimer 
that appears in letters at least as large as the majority of other text 
in the communication satisfies this requirement.'' New paragraph 
(c)(5)(iii)(C) requires that the disclaimer ``must be displayed with a 
reasonable degree of color contrast between the background and the 
disclaimer's text. A disclaimer satisfies this requirement if it is 
displayed in black text on a white background, or if the degree of 
color contrast is no less than the color contrast between the 
background and the largest text used in the communication.''
    The safe harbor for disclaimer text size is similar to that 
proposed in Alternative A, which provided that the text size 
requirement is satisfied if the disclaimer appears in ``letters at 
least as large as the majority of the other text in the 
communication.'' NPRM at 12873.
    In addition to the text size requirement, which parallels the text 
size requirement for print and television communications to ensure 
readability and prevent circumvention of the disclaimer requirement, 
the new rule also incorporates a color contrast requirement that 
similarly parallels the contrast requirement for print communications. 
Also, like the text size requirement, the color contrast requirement 
offers safe harbors: a disclaimer will satisfy the requirement if it is 
``displayed in black text on a white background, or if the degree of 
color contrast is no less than the color contrast between the 
background and the largest text used in the communication.'' As with 
the text size requirement, the color contrast requirement is intended 
to ensure readability.
    In adopting these provisions, the Commission is not applying the 
stand-by-your-ad requirements to internet communications. The statutory 
provision requiring stand-by-your-ad statements expressly applies only 
to radio and television ads. 52 U.S.C. 30120(d). Accordingly, the 
Commission does not have statutory authority to require stand-by-your-
ad statements in internet public communications.
    The Commission is not adopting two commenters' suggestions that any 
required disclaimers be machine-readable. These commenters pointed out 
that having machine-readable disclaimers would provide certain 
advantages for users. One commenter suggesting this observed that with 
machine-readable disclaimers, users could opt to receive monthly 
reports of ads they receive over time. Smart disclosure, which this 
commenter recommended be adopted in conjunction with machine 
readability, could warn users of bad links and could allow groups of 
users using browser extensions to track malicious links and alert the 
Commission of these. The Commission is not adopting this proposal 
because it is beyond the scope of the Commission's statutory authority.

2. New CFR 110.11(g)--Adapted Disclaimers

    To clarify how the disclaimer requirements apply to internet public 
communications that are not capable of including a full disclaimer, the 
Commission is adding a new paragraph (g) to section 110.11, setting 
forth an alternative that applies specifically to internet public 
communications where a full disclaimer cannot be included due to 
character or space constraints intrinsic to the advertising product or 
medium. As discussed above, Commission regulations already contain 
certain exceptions to the general disclaimer requirements, namely the 
small items and impracticable exceptions. 11 CFR 110.11(f)(1).
    Alternatives A and B both proposed that some internet public 
communications could satisfy the disclaimer requirement by means of an 
``adapted disclaimer,'' which would include an abbreviated disclaimer 
on the face of the communication, and an indicator that a technological 
mechanism was available to access a full disclaimer. Both alternatives 
proposed that ``an internet public communication that provides an 
adapted disclaimer must provide some information on the face of the 
advertisement, and both alternatives require such information to be 
clear and conspicuous and to provide notice that further disclaimer 
information is available through the technological mechanism.'' NPRM at 
12875.
    The two alternatives differed as to when an adapted disclaimer 
could be used in place of a standard disclaimer. Alternative A would 
have allowed the use of an adapted disclaimer when a full disclaimer 
could not fit on the face of a text or graphic internet communication 
``due to external character or space constraints.'' Id. at 12874. Under 
this alternative, the determination of whether an internet 
communication could use an adapted disclaimer was intended to be an 
objective one: ``the character or space constraints intrinsic to the 
technological medium are intended to be the relevant consideration, not 
the communication sponsor's subjective assessment of the `difficulty' 
or `burden' of including a full disclaimer.'' Id.
    Alternative B would have allowed the use of an adapted disclaimer 
when a full disclaimer would occupy more than a certain percentage of 
an internet public communication's available time or space. Further, 
under Alternative B, two tiers of adapted disclaimers would have been 
permissible, depending on the time or space available in the 
communication to accommodate the disclaimer. The proposed first-tier 
adapted disclaimer would have required the identification of the payor 
plus an indicator on the face of the communication, while the proposed 
second-tier adapted disclaimer would have required only an indicator on 
the face of the communication.
    The two alternatives also differed as to what information must be 
presented on the face of the communication. Alternative A proposed that 
an ``adapted disclaimer'' would have consisted of ``an abbreviated 
disclaimer on the face of a communication in conjunction with an 
indicator through which a reader can locate the full disclaimer'' 
required. Id. at 12875. Alternative A would have further required that 
the adapted disclaimer identify the person or persons who paid for the 
communication, ``in letters of sufficient size to be clearly readable 
by a recipient of the communication.'' Id. at 12875-76.
    Under Alternative B's proposed two-tiered approach, the first tier 
would have allowed for an adapted disclaimer that included both the 
payor's name, either in full or by ``a clearly recognized abbreviation, 
acronym, or other unique identifier by which the payor is commonly 
known,'' along with an indicator similar to that included in 
Alternative A. Id. at 12876. Under Alternative B, the flexibility to 
use either a payor's full name or a clearly

[[Page 77476]]

recognized abbreviation or acronym was ``intended to address internet 
public communications that might not otherwise conveniently or 
practicably accommodate the payor's name, such as character-limited 
ads, or where the payor's name is unusually lengthy, or where the payor 
wishes to use the ad to promote its social media brand.'' Id. at 12877. 
If the space or time necessary for a clear and conspicuous tier-one 
adapted disclaimer would occupy more than ten percent of the 
communication, the proposed second tier would have required only an 
indicator on the face of the communication. Id.
    Both alternatives proposed ``that a technological mechanism used to 
provide access to a full disclaimer must do so within one step,'' that 
the additional step be ``apparent in the context of the 
communication,'' and that the disclaimer, once reached, be clear and 
conspicuous. Id. at 12877-78. Both alternatives also provided similar 
illustrative lists of examples of technological mechanisms that could 
be used as part of an adapted disclaimer. For both alternatives these 
included, but were not limited to, ``hover-over mechanisms, pop-up 
screens, scrolling text, rotating panels, or hyperlinks to a landing 
page with the full disclaimer.'' Id. at 12878. Alternative B also 
proposed to include ``voice-over,'' ``mouse-over,'' and ``roll-over'' 
mechanisms. Id. at 12880.
    Alternative B also proposed an exception to the disclaimer 
requirements for ``any internet public communication that can provide 
neither a disclaimer in the communication itself nor an adapted 
disclaimer.'' Id. at 12879. This exception was intended to replace, for 
internet public communications, the existing small items and 
impracticable exceptions.
    Commenters were generally split on whether an adapted disclaimer 
should be available when a full disclaimer cannot fit due to external 
constraints, as proposed in Alternative A, or when a full disclosure 
would exceed a bright line in terms of space or time, as proposed in 
Alternative B. Several commenters felt that adapted disclaimers should 
only be used as a last resort when ``character or space constraints 
intrinsic to the technological medium,'' as opposed to self-imposed 
limitations merely reflecting the preferences of an online advertiser 
or platform, would not allow for a full disclaimer. One commenter noted 
that Alternative A's ``cannot fit'' language references impossibility 
and is, therefore appropriate. Another commenter believed that 
permitting adapted disclaimers on ``public communications with text or 
graphic features but without a video or audio component'' that had 
character or space limits intrinsic to the medium was a ``forward-
thinking'' approach applicable to all platforms.
    Other commenters found Alternative A's use of ``technological 
constraints'' that ``cannot fit'' too ambiguous, needing further 
clarification. Two commenters noted that rules or a framework based on 
communication size are not practical or effective, because the same ad 
could be used ``across different platforms.'' Another found that 
Alternative A did not account for the ``burden'' experienced by the 
speaker and is too restrictive. One commenter noted that rules focused 
on pixels, characters, seconds, font size, contrast and other visual 
factors were ``too inflexible to withstand future technological'' 
advancements. Another commenter recommended allowing ``business 
decisions'' about ad size, made in the ordinary course of business by 
ad sellers, to justify the use of an adapted disclaimer. One commenter 
expressed strong support for adapted disclaimers, preferring 
Alternative B because it allows more flexibility, arguing that 
Alternative A is too oriented toward print and broadcast media. 
However, the commenter stated that both alternatives are insufficiently 
sensitive to future technological changes, predicting that speech 
recognition technology will one day be the primary means of interacting 
with the internet. At the same time, this commenter argued that both 
alternatives should develop an adapted disclaimer scheme for all audio, 
video and banner ad formats; Alternative A in particular did not do 
this for video and audio, according to the commenter.
    At least two commenters suggested that the advisory opinion process 
could resolve when an adapted disclaimer was appropriate on a case-by-
case basis and viewed the advisory opinion process as a way to handle 
questions surrounding digital advertisements' continuing complexity and 
one commenter suggested that perhaps an expedited advisory opinion 
process could be designed for these questions. Another commenter 
expressed skepticism, however, about the utility of resorting to the 
advisory opinion process to resolve ambiguities in interpretation and 
expressed a preference for bright-line rules because of this while a 
second commenter opined that it would be difficult to resort to the 
advisory opinion process for this purpose close to an election; rather, 
if this situation were faced, the commenter would be inclined not to 
run the advertisement.
    Commenters were also split on the 10% rule proposed in Alternative 
B. Several commenters noted that a 10% bright line would provide 
advertisers with the ``opportunity to game the rules to deny the public 
disclaimer information.'' One commenter felt that the choice of 10% was 
based on untested assumptions rather than empirical data. Others 
described the 10% proposal as ``arbitrary'' and ``not technologically 
neutral'' or ``impractical and confusing'' and ``hard to apply and 
enforce.'' Two commenters opined that Alternative B's two-step process 
was too complicated and unclear, and sacrificed clarity for expediency.
    Some commenters found 10% to be a reasonable percentage that 
``provides for disclosure but does not infringe on the message of the 
ad.'' Other commenters supported a ``bright line'' because it imposes 
less of a burden on speech. For example, one commenter stated that 
``[r]equiring potential speakers to spend the time and resources to 
seek an advisory opinion [ ] imposes burdens of a constitutional 
magnitude, especially in a medium conducive to speakers with limited 
resources.'' Another commenter stated that ``[w]hile the First 
Amendment does not require that a speaker's message take a certain 
percentage of the advertisement space, taking 10% of the advertisement 
space for which a speaker has paid is far more reasonable than taking 
33% of the space.'' Other commenters worried that any bright line was 
arbitrary and a ``one-click away rule'' would be a better choice. Some 
commenters, while agreeing in principle with a defined percentage, 
suggested different percentages. One suggested 4%, while another, 
interpreting the Citizens United decision to tolerate 4-second 
disclaimers in 10-second advertisements, argued that any percentage up 
to 40% would be tolerable. Other commenters, however, argued against a 
40% threshold.
    Several commenters argued that even with an adapted disclaimer, the 
face of the advertisement should at a minimum contain a ``paid for by'' 
statement with the name of the sponsor. Certain commenters favoring 
this position cited empirical studies showing that only a small 
percentage of links in online advertisements are actually clicked by 
users. Commenters also stated their preference for having the full 
information appear only one click away if a technological mechanism 
were to be used. Two commenters in this category opined that in 
addition to these, the user should be able to learn why he or she 
received the advertisement--one commenter referring to this as

[[Page 77477]]

``algorithmic transparency,'' signifying that advertisers should be 
required to disclose their targeting methods and that voters should be 
able to learn why they have been targeted.
    One commenter argued that the Commission should adopt a provision 
that the disclaimer requirements could be satisfied by an icon it had 
developed in the online commercial advertising domain that would be 
adapted by the commenter's organization to the realm of political 
advertising, and which it characterized as widely recognized and 
understood. Other commenters opined on this proposed self-regulatory 
approach, arguing that Commission oversight would still be needed, and 
noting that as a private entity, the commenter or any other provider of 
an online advertising medium could modify or rescind the program at any 
time based upon considerations unrelated to ensuring implementation of 
the Act.
    After considering the comments received, the Commission has decided 
to provide an adapted disclaimer option for internet public 
communications. The new 11 CFR 110.11(g) provides that the disclaimer 
requirement may be satisfied with an adapted disclaimer when the full 
disclaimer ``cannot be provided or would occupy more than 25 percent of 
the communication due to character or space constraints intrinsic to 
the advertising product or medium.'' The Commission has previously 
allowed for a modified disclaimer under certain circumstances, 
recognizing that, although the ``physical and technological 
limitations'' of a communication medium may ``not make it impracticable 
to include a disclaimer at all,'' technological or physical limitations 
may extend to ``one particular aspect of the disclaimer'' requirements. 
Advisory Opinion 2004-10 (Metro Networks) at 3. In such circumstances, 
the Commission concluded that a disclaimer was required but permitted 
modifications or adaptations of the technologically or physically 
limited aspects of the communication medium. See id. at 3-4 (concluding 
that reporters reading sponsorship message live from aircraft or mobile 
units could read stand-by-your-ad language, rather than candidate who 
was not physically present). In the new 11 CFR 110.11(g), an ``adapted 
disclaimer'' is defined as ``a clear statement that the internet public 
communication is paid for, and that identifies the person or persons 
who paid for the internet public communication using their full name or 
a commonly understood abbreviation or acronym by which the person or 
persons are known, which is accompanied by: (1) an indicator and (2) a 
mechanism.'' New 11 CFR 110.11(g)(1)(i). An ``indicator'' is defined as 
``any visible or audible element associated with an internet public 
communication that is presented in a clear and conspicuous manner and 
gives notice to persons reading, observing, or listening to the 
internet public communication that they may read, observe, or listen to 
a disclaimer satisfying the requirements of paragraphs (b) and (c)(1) 
of this section through a mechanism.'' New 11 CFR 110.11(g)(1)(ii). A 
``mechanism'' is defined as ``any use of technology that enables the 
person reading, observing, or listening to an internet public 
communication to read, observe, or listen to a disclaimer satisfying 
the requirements of paragraphs (b) and (c)(1) of this section after no 
more than one action by the recipient of the internet public 
communication.'' New 11 CFR 110.11(g)(1)(iii).
    The new 110.11(g) combines elements of both Alternative A and 
Alternative B in setting forth the threshold for use of an adapted 
disclaimer. An adapted disclaimer may be used instead of a full 
disclaimer when a standard disclaimer ``cannot be provided or would 
occupy more than 25 percent of the communication due to character or 
space constraints intrinsic to the advertising product or medium.'' 
This rule incorporates the concept of time and space constraints 
inherent to the advertising medium from Alternative A, and the proposal 
from Alternative B to permit an adapted disclaimer depending on the 
percentage of the communication that would be occupied by a full 
disclaimer. In doing so, the Commission has adopted an objective and 
bright-line standard that will give the sponsors of internet public 
communications clear guidance as to when an adapted disclaimer may be 
used.
    The new rule's reference to ``character or space constraints 
intrinsic to the advertising product or medium,'' similar to language 
proposed in Alternative A, is based on long-standing Commission 
precedent where the Commission allowed communications to include 
modified disclaimers due to the technological or physical limitations 
of the communication medium. The language is intended to make clear 
that the time or space available for a disclaimer depends on the 
limitations of the medium or technology used in a particular 
advertisement.
    The Commission has decided to also use a percentage of the 
communication as the threshold for use of an adapted disclaimer, as 
proposed in Alternative B, with the intention that this will serve as a 
bright-line rule that enables speakers to determine for themselves 
whether they may avail themselves of this provision, rather than seek 
advisory opinions before engaging in political advertising online. The 
Commission has chosen not to specify how to measure the percentage 
(i.e., by pixels, seconds, characters, etc.), in order that the rule 
may remain flexible as new technologies are developed, and that 
speakers may use the most appropriate measurement for their 
communication. The Commission's proposal of 10% in Alternative B 
elicited several comments opposing this threshold. Although one 
commenter approved of this threshold, some commenters noted that such a 
threshold would be easy to evade by lengthening or shortening of the 
name of the sponsoring organization appearing in the ad. Some 
commenters also argued that this percentage approach would be hyper-
technical. Nevertheless, the Commission agrees with one commenter's 
observation that a fixed-percentage approach is preferable to a 
potentially more complicated approach tailored to particular kinds of 
communications, which might then necessitate new definitions of the 
terms relating to the medium and additional revisions to the rule. The 
Commission has adopted a 25% threshold.
    The definition of ``adapted disclaimer'' requires that the 
communication state on its face that it is a paid communication, as 
proposed in Alternative A. It is especially important to clearly 
identify paid communications on the internet, where paid content can be 
targeted to a particular user and appear indistinguishable from the 
unpaid content that user views, unlike print and broadcast media, where 
paid content is transmitted to all users in the same manner and is 
usually offset in some way from editorial content. As one commenter 
observed, ``[w]ith many forms of social media, a political ad may be 
transmitted and retransmitted such that a viewer would have no idea 
that it is paid advertising.'' The Commission agrees with another 
commenter that ``paid for'' is necessary to ensure that the adapted 
disclaimer is easily interpreted by the viewer. An adapted disclaimer 
that includes an indicator but does not state that it is a paid 
communication would make it less likely that a viewer would understand 
the function of the indicator and access the mechanism to obtain the 
full disclaimer. As one commenter noted, ``[t]he average click-through 
rate . . . for Facebook ads across all industries is .90%.''

[[Page 77478]]

    The definition of ``adapted disclaimer'' requires that the payor be 
identified ``using their full name or a commonly understood 
abbreviation or acronym by which the person or persons are known.'' 
This is similar to language proposed in Alternative B, which would have 
permitted an adapted disclaimer to identify the payor by full name or 
by ``a clearly recognized abbreviation, acronym, or other unique 
identifier by which the payor is commonly known.'' NPRM at 12876. 
Including the payor's name on the face of the communication ensures 
that even persons viewing the communication without accessing the full 
disclaimer will be able to know who is speaking and will be better able 
to evaluate the content of the advertisement. Allowing a payor to use 
an acronym or abbreviation will offer flexibility for internet public 
communications that might not otherwise conveniently or practicably 
accommodate the payor's name, such as character-limited ads, or where 
the payor's name is unusually lengthy. Most commenters supported 
allowing an acronym or abbreviated name of a payor organization. 
However, some questioned whether an abbreviated name or acronym would 
likely be recognized. The Commission opted not to constrain the use of 
abbreviated names or acronyms beyond the condition that any such 
abbreviation or acronym be commonly understood or be one by which the 
payor is known. The provision is modeled after a longstanding provision 
in the Commission's regulations that allows a separate segregated fund 
to include in its name a ``clearly recognized abbreviation or acronym 
by which [its] connected organization is commonly known.'' 11 CFR 
102.14(c). Thus, many political speakers are already familiar with this 
standard and may have adopted abbreviations or acronyms for frequent 
use that are already ``commonly understood.''
    The Commission has decided not to adopt the second-tier adapted 
disclaimer proposed as part of Alternative B, which would have 
permitted a speaker to include only an indicator on the face of a 
communication, without the name of the payor, if the space or time 
necessary for a clear and conspicuous tier-one adapted disclaimer would 
exceed a certain percentage of the overall communication.
    By requiring that an indicator be ``clear and conspicuous,'' the 
new rule will aid voters in evaluating the message they are viewing or 
hearing. As set forth in paragraph (c)(1), a disclaimer ``is not clear 
and conspicuous if it is difficult to see, read, or hear, or if the 
placement is easy to overlook.'' 11 CFR 110.11(c)(1). An indicator also 
must be presented in a clear and conspicuous manner and therefore must 
not be difficult to see, read, or hear, or have a placement that is 
easy to overlook. The definition further provides that ``[a]n indicator 
may take any form including, but not limited to, words, images, sounds, 
symbols, and icons.'' This provides flexibility to speakers in 
determining the type of indicator that best serves their needs and 
their communication so long as it also satisfies the requirements of 
the regulation. Because the final rules permit an adapted disclaimer to 
be used for audio and video communications as well as text and graphic 
communications, the Commission is adopting the ``clear and 
conspicuous'' requirement as proposed in Alternative B, rather than 
``clearly readable'' as proposed in Alternative A, in order to afford 
further flexibility to speakers in determining how to satisfy the 
requirement. See NPRM at 12876.
    Similar to the definition of an ``indicator,'' the definition of 
``mechanism'' makes clear that a wide array of technologies may be used 
to provide access to full disclaimers, ``including, but not limited to, 
hover-over text, pop-up screens, scrolling text, rotating panels, and 
hyperlinks to a landing page.'' The Commission agrees with commenters 
who recommended that the adapted disclaimer be ``tech-agnostic.'' This 
non-exhaustive list of technologies affords speakers a great deal of 
flexibility in determining the best way to provide access to a full 
disclaimer depending on the platform or type of message, as well as 
flexibility to accommodate changes in technology and types of 
mechanisms that have yet to be developed.
    Alternatives A and B both proposed one of the key characteristics 
of a technological mechanism used in an adapted disclaimer: that the 
technological mechanism allow the person reading, observing, or 
listening to an internet public communication to read, observe, or 
listen to a full disclaimer ``without navigating more than one step 
away'' from the communication. NPRM at 12880; see also 12877-78. Both 
proposals explained that this meant ``the additional technological step 
should be apparent in the context of the communication'' and the 
disclaimer, once reached, should be ``clear and conspicuous.'' Id. at 
12878. There was nearly universal agreement by commenters that the 
mechanism require no more than one action by the viewer in order to 
reach the full disclaimer information. The final rule incorporates this 
principle into the definition of a ``mechanism,'' providing that a 
mechanism used as part of an adapted disclaimer must enable access to a 
full disclaimer ``after no more than one action by the recipient of the 
internet public communication.'' The Commission is incorporating this 
requirement into the final rule to ensure that recipients of 
communications can access full disclaimer information with a minimum of 
additional effort beyond what would ordinarily be required to view a 
full disclaimer on the face of a communication.

Certification of No Effect Pursuant to 5 U.S.C. 605(b) (Regulatory 
Flexibility Act)

    The Commission certifies that the attached rules would not have a 
significant economic impact on a substantial number of small entities. 
The rules would clarify and update existing regulatory language to 
reflect changes in technology and would codify certain existing 
Commission precedent regarding disclaimers on internet communications. 
The rules would not impose new recordkeeping, reporting, or financial 
obligations on political committees or commercial vendors. The 
Commission therefore certifies that the rules would not have a 
significant economic impact on a substantial number of small entities.

List of Subjects

11 CFR Part 100

    Elections.

11 CFR Part 110

    Political committees and parties.

    For the reasons set out in the preamble, Subchapter A of Chapter I 
of Title 11 of the Code of Federal Regulations is amended as follows:

PART 100--SCOPE AND DEFINITIONS (52 U.S.C. 30101)

0
1. The authority citation for part 100 continues to read as follows:

    Authority:  52 U.S.C. 30101, 30104, 30111(a), and 30114(c).


0
2. In Sec.  100.26, revise the second sentence to read as follows:


Sec.  100.26  Public communications (52 U.S.C. 30101(22)).

* * * * *
    The term general public political advertising shall not include 
communications over the internet, except for communications placed for 
a fee on another person's website, digital device, application, or 
advertising platform.

[[Page 77479]]

PART 110--CONTRIBUTION AND EXPENDITURE LIMITATIONS AND PROHIBITIONS

0
3. The authority citation for Part 110 continues to read as follows:

    Authority:  52 U.S.C. 30101(8), 30101(9), 30102(c)(2), 
30104(i)(3), 30111(a)(8), 30116, 30118, 30120, 30121, 30122, 30123, 
30124, and 36 U.S.C. 510.


0
4. In Sec.  110.11, add paragraph (c)(5), redesignate paragraph (g) as 
paragraph (h), and add paragraph (g) to read as follows:


Sec.  110.11  Communications; advertising; disclaimers (52 U.S.C. 
30120).

* * * * *
    (c) * * *
    (5) Specific requirements for internet public communications. (i) 
For purposes of this section, internet public communication means any 
public communication over the internet that is placed for a fee on 
another person's website, digital device, application, or advertising 
platform.
    (ii) An internet public communication must include a disclaimer 
that complies with the requirements of paragraphs (b) and (c)(1) of 
this section. The disclaimer requirement under this paragraph applies 
to any person that pays to place an internet public communication, 
regardless of whether that person originally created, produced, or 
distributed the communication.
    (iii) In addition to the requirements of paragraphs (b) and (c)(1) 
of this section, a disclaimer required by paragraph (a) of this section 
that appears on an internet public communication must comply with the 
following:
    (A) Except as provided by paragraph (g) of this section, an 
internet public communication with text or graphic components must 
include the written disclaimer required by this paragraph, such that 
the disclaimer can be viewed without taking any action.
    (B) The disclaimer must be of sufficient type size to be clearly 
readable by the recipient of the communication. A disclaimer that 
appears in letters at least as large as the majority of other text in 
the communication satisfies this requirement.
    (C) The disclaimer must be displayed with a reasonable degree of 
color contrast between the background and the disclaimer's text. A 
disclaimer satisfies this requirement if it is displayed in black text 
on a white background, or if the degree of color contrast is no less 
than the color contrast between the background and the largest text 
used in the communication.
    (D) If the disclaimer is displayed within a video, the disclaimer 
must be visible for at least 4 seconds and appear without the recipient 
of the communication taking any action.
    (E) An internet public communication with an audio component but 
without video, graphic, or text components must include a disclaimer 
that satisfies the requirements of paragraphs (b) and (c)(1) of this 
section within the audio component.
* * * * *
    (g) Adapted disclaimers--(1) Definitions. For purposes of this 
section:
    (i) Adapted disclaimer means a clear statement that the internet 
public communication is paid for, and that identifies the person or 
persons who paid for the internet public communication using their full 
name or a commonly understood abbreviation or acronym by which the 
person or persons are known, which is accompanied by: an indicator and 
a mechanism. An adapted disclaimer must satisfy the requirements of 
paragraph (c)(1) and paragraphs (c)(5)(ii) and (iii) of this section.
    (ii) Indicator means any visible or audible element associated with 
an internet public communication that is presented in a clear and 
conspicuous manner and gives notice to persons reading, observing, or 
listening to the internet public communication that they may read, 
observe, or listen to a disclaimer satisfying the requirements of 
paragraphs (b) and (c)(1) of this section through a mechanism. An 
indicator may take any form including, but not limited to, words, 
images, sounds, symbols, and icons.
    (iii) Mechanism means any use of technology that enables the person 
reading, observing, or listening to an internet public communication to 
read, observe, or listen to a disclaimer satisfying the requirements of 
paragraphs (b) and (c)(1) of this section after no more than one action 
by the recipient of the internet public communication. A mechanism may 
take any form including, but not limited to, hover-over text, pop-up 
screens, scrolling text, rotating panels, and hyperlinks to a landing 
page.
    (2) When a disclaimer described by paragraphs (b) and (c)(1) of 
this section cannot be provided or would occupy more than 25 percent of 
the communication due to character or space constraints intrinsic to 
the advertising product or medium, an adapted disclaimer may be used 
within the communication instead.

    Dated: December 1, 2022.

    On behalf of the Commission,
Allen J. Dickerson,
Chairman, Federal Election Commission.

    Note: The following statement will not appear in the Code of 
Federal Regulations.

Concurring Statement of Commissioner Sean J. Cooksey on the Final Rule 
for Internet Communication Disclaimers

    I supported the Commission's final rule for internet communication 
disclaimers. While I opposed the Commission's initial draft for this 
rule--which would have dramatically expanded our agency's regulation of 
political speech online--subsequent revisions have substantially 
narrowed its scope. By limiting itself only to traditional paid 
advertising placed on the internet and providing sufficient flexibility 
for different kinds of ads, the revised regulation will not unduly 
burden freedom of speech. I believe the revised regulation also 
complies with the important procedural safeguards under the 
Administrative Procedure Act. Because of those significant 
improvements, I voted in favor of the revised final rule.
    First, I am satisfied that this rulemaking meets the notice-and-
comment requirements of the Administrative Procedure Act.\7\ Although I 
maintain the Commission would benefit from additional public review and 
comments, this revised final rule removes novel regulatory expansions 
and represents a logical outgrowth of the proposals put forth in the 
Commission's 2018 Notice of Proposed Rulemaking. I believe interested 
parties have therefore had adequate notice and opportunity to offer 
feedback and criticism on the proposed amendments to the Commission's 
regulations, and a further comment period is not legally mandatory.\8\
---------------------------------------------------------------------------

    \7\ See 5 U.S.C. 553; 52 U.S.C. 30107(a)(8).
    \8\ ``A rule is deemed a logical outgrowth if interested parties 
`should have anticipated' that the change was possible, and thus 
reasonably should have filed their comments on the subject during 
the notice-and-comment period.'' Ne. Md. Waste Disposal Auth. v. 
EPA, 358 F.3d 936, 952 (D.C. Cir. 2004) (quoting City of Waukesha v. 
EPA, 320 F.3d 228, 245 (D.C. Cir. 2003)).
---------------------------------------------------------------------------

    Second, I believe that this revised regulation is tailored to 
address the distinct and often complex features of online 
communications without unnecessarily burdening political speech and 
association on the internet. The final rule permits small and 
unconventional online ads for which a full disclaimer is unreasonably 
cumbersome to instead include an ``adapted disclaimer'' that maintains 
the integrity of the advertisement. Similarly,

[[Page 77480]]

Commission regulations will maintain exemptions from disclaimer 
requirements for small-item advertisements and communications for which 
disclaimers are impracticable, such as with exceptionally short video 
clips.\9\ Even with the revised regulation's limited purview, these 
safeguards are critical to maintaining regulatory flexibility for 
political campaigning online.
---------------------------------------------------------------------------

    \9\ See 11 CFR 110.11(f).
---------------------------------------------------------------------------

    For more than two decades, the Commission has taken a light touch 
to regulating political activity online, in recognition of the fact 
that ``the internet is by definition a bastion of free political 
speech, where any individual has access to almost limitless political 
expression with minimal cost.'' \10\ I believe this revised regulation 
for internet communication disclaimers is in keeping with that approach 
and will preserve the internet's special capacity to foster the 
exchange of political speech, ideas, and values. I will continue to 
stand up for Americans' First Amendment freedoms across all platforms 
for as long as I am on the Commission.
---------------------------------------------------------------------------

    \10\ Prohibited and Excessive Contributions: Non-Federal Funds 
or Soft Money; Final Rule, 67 FR 49063, 49072 (July 29, 2002). See 
also, e.g., 11 CFR 100.155(a) (exempting an ``individual's 
uncompensated personal services related to [ ]internet activities'' 
and an ``individual's use of equipment or services for uncompensated 
internet activities'' from the meaning of ``expenditure''); 
Explanation and Justification for the Regulations on internet 
Communications, 71 FR 18589, 18589 (Apr. 12, 2006) (describing the 
internet as ``a unique and evolving mode of mass communication and 
political speech that is distinct from other media in a manner that 
warrants a restrained regulatory approach,'' due to its 
``accessibility, low cost, and interactive features'').

---------------------------------------------------------------------------
    Dated: December 1, 2022.

Sean J. Cooksey,

Commissioner.

[FR Doc. 2022-27132 Filed 12-16-22; 8:45 am]
BILLING CODE 6715-01-P

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