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For Immediate Release

Contact: 

Bob Biersack

September 4 , 2007

George Smaragdis

Michelle Ryan

 

FEC Resolved Two Matters Involving Internet Activity;

Applies Media Exemption to Political Blogs

WASHINGTON – The Federal Election Commission announced today that it has unanimously resolved two complaints alleging that Internet blog activity is subject to Commission regulation, finding that the activity is exempt from regulation under the media or volunteer exemption.

In Matter Under Review (MUR) 5928, the Commission determined that Kos Media, L.L.C., which operates the website DailyKos, did not violate the Federal Election Campaign Act.  The Commission rejected allegations that the site should be regulated as a political committee because it charges a fee to place advertising on its website and it provides “a gift of free advertising and candidate media services” by posting blog entries that support candidates.  The Commission determined that the website falls squarely within the media exemption and is therefore not subject to federal regulation under the Act.

Since 1974, media activity has been explicitly exempted from federal campaign finance regulation.   In March 2006, the Commission made clear that this exemption extends to online media publications and that “costs incurred in covering or carrying a news story, commentary, or editorial by any broadcasting station. . . , Web site, newspaper, magazine, or other periodical publication, including any Internet or electronic publication,” are not a contribution or expenditure unless the facility is owned by a political party, committee, or candidate.  With respect to MUR 5928, the FEC found that Kos Media meets the definition of a media entity and that the activity described in the complaint falls within the media exemption.   Thus, activity on the DailyKos website does not constitute a contribution or expenditure that would trigger political committee status.  The Commission therefore found no reason to believe Kos Media, DailyKos.com, or Markos Moulitsas Zuniga violated federal campaign finance law.

In MUR 5853, the Commission rejected allegations that Michael L. Grace made unreported expenditures when he leased space on a computer server to create a “blog” which advocated the defeat of Representative Mary Bono in the November 2006 election.  The Commission also rejected allegations that Grace coordinated these expenditures with Bono’s opponent in the race, David Roth, and found that no in-kind contributions to Roth’s campaign resulted from Grace’s blogging activity.  The Commission also found that the respondent did not fraudulently misrepresent himself in violation of 2U.S.C. § 441h. 

The Act exempts from regulation volunteer activity by individuals.  In the FEC’s Internet regulations, the Commission clarified that an individual’s use, without compensation, of equipment and personal services for blogging, creating, or hosting a website for the purpose of influencing a Federal election are not expenditures subject to the restrictions of campaign finance law.  Even if there were some costs or value associated with Mr. Grace’s blog, these costs are exempt from Commission regulations.  The FEC therefore found no reason to believe Mr. Grace or the Roth campaign violated federal campaign finance law. 

Additional information regarding MURs can be found on the FEC website at http://www.fec.gov/em/mur.shtml.

This release contains only summary information.  For additional details, please consult publicly available documents for each case in the Enforcement Query System (EQS) on the FEC website at http://eqs.fec.gov/eqs/searcheqs .

1.

MUR 5928

RESPONDENTS:

  • Kos Media, LLC
  • DailyKos.com
  • Markos Moulitsas Zuniga

COMPLAINANT:

John C.A. Bambenek

SUBJECT:

Failure to register as a political committee

DISPOSITION:

(a-c) No reason to believe there was any violation of the Federal Election Campaign Act

The Commission found that Kos Media, LLC, and DailyKos are media entities. As a result, the activities described in the complaint are exempt from the definitions of contribution or expenditure.

DOCUMENTS ON PUBLIC RECORD:

Documents from this matter are available from the Commission’s web site at http://www.fec.gov by entering 5928 under case numbers in the Enforcement Query System. They are also available in the FEC’s Public Records Office at 999 E St. NW in Washington.

2.

MUR  5853

RESPONDENTS:

  • Michael L. Grace
  • Roth for Congress and Shaun Shenassa in his official capacity as treasurer

COMPLAINANT:

William Canfield, counsel for Representative Mary Bono

SUBJECT:

Unreported expenditures; coordination; fraudulent misrepresentation of campaign authority

DISPOSITION:

  • No reason to believe the law was violated
  • No reason to believe the law was violated

DOCUMENTS ON PUBLIC RECORD:

Documents from this matter are available from the Commission’s web site at http://www.fec.gov by entering 5853 under case numbers in the Enforcement Query System. They are also available in the FEC’s Public Records Office at 999 E St. NW in Washington.

*There are four administrative stages to the FEC enforcement process:

1. Receipt of proper complaint

2. Reason to believe stage

3. Probable cause stage

4. Conciliation stage

FEC decisions require the votes of at least four of its six Commissioners.

The FEC can close a case at any point after reviewing a complaint.  If a violation is found and conciliation cannot be reached, then the FEC can institute a civil court action against a respondent.

The Federal Election Commission (FEC) is an independent regulatory agency that administers and enforces federal campaign finance laws. The FEC has jurisdiction over the financing of campaigns for the U.S. House, the U.S. Senate, the Presidency and the Vice Presidency. Established in 1975, the FEC is composed of six Commissioners who are nominated by the President and confirmed by the U.S. Senate.

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