Corporations

The Hidden Battle of the Corporate TicketMeisters

The Fans First Coalition, formed in May 2011, appears to be a consumer group formed to oppose scalpers who buy event tickets and then re-sell them to the public at prices greater than face value. What is less apparent is that the Fans First Coalition is and astroturf group created with the help of a Washington, D.C. public relations firm and funded by Live Nation Entertainment, the parent company of online ticket seller Ticketmaster. The Fans First Coalition sprang out of a fight between Live Nation and a website called StubHub (a division of EBay) where people can buy and sell event tickets. To defeat ticket re-sellers, Ticketmaster started using a paperless ticketing system in which tickets are issued electronically. Ticket purchasers must present identification to collect their tickets when they arrive at the event venue. To battle Ticketmaster's new paperless ticketing system, StubHub created its own fake grassroots group, the similar-sounding Fan Freedom Project, which, like the Fans First Coalition, was created with the help of a Washington, D.C. public relations firm. The Fan Freedom Project argues that Ticketmaster's restrictive electronic ticketing system infringes on consumers' rights to possess, transfer or resell tickets as they desire. Such fake, grassroots front groups are unusual in the entertainment business, but all too familiar to those involved in politics. Ellen Miller, executive director of the Sunlight Foundation, which monitors lobbying activity, says "This is a classic -- where you find many so-called grassroots organizations financed by interested industries" to do battle with one another. Miller says, "The campaigns present themselves as ground-up activities, but they are really nothing more than fronts for particular interests."

ALEC Exposed: The Koch Connection

Hundreds of ALEC's model bills and resolutions bear traces of Koch DNA, raw ideas that were once at the fringes but that have been carved into "mainstream" policy through the wealth and will of Charles and David Koch.

ALEC, For-Profit Criminal Justice, and Wisconsin

As the first half of 2011 has revealed, Wisconsin is not a moderate "purple" state, but a state divided between staunchly "blue" progressives and righteous "red" right-wingers. That rift is particularly apparent in legislative conflicts over the criminal justice system, a debate spurred by corporate interests represented in the American Legislative Exchange Council (ALEC) and perpetuated by ALEC legislative members, including Wisconsin Governor Scott Walker.

Wisconsin's history and public policy reflects the red/blue divide. It is the state that gave birth to the Republican Party, which supported slavery abolition, and the John Birch Society, which opposed the civil rights movement. In the first half of the 20th Century, the state elected both progressive hero Robert "Fighting Bob" LaFollette and right-wing extremist Joe McCarthy. It is the state that elected both former Senator Russ Feingold (D) and Representative Paul Ryan (R).

Wisconsin also produced Paul Weyrich, who in 1973 co-founded both the Heritage Foundation and ALEC (and in subsequent years, Free Congress and Moral Majority). Weyrich's ALEC, it seems, has been a factory for many of the state's most recent right-wing policy initiatives.

ALEC Hotels

The American Legislative Exchange Council's Annual Meetings and Task Force Summits are held in some of the nation's top travel destinations, at swanky hotels where state legislators and corporate executives enjoy lavish accommodations and exclusive excursions. A registration form for ALEC's 21st Annual Meeting in Tampa, Florida invited members to "come and experience endless sandy beaches, sunny days, beautiful sunsets and the cool gulf breezes," at the posh Hyatt Regency, which features more than 17 golf courses within 35 minutes of the hotel. In fact, a golf tournament and clinic sponsored by the R.J. Reynolds Tobacco Company was one of the event's top activities.

Common Cause Alleges ALEC Violates Non-Profit Status

Common Cause has asked the Internal Revenue Service (IRS) to investigate the American Legislative Exchange Council (ALEC) for possibly violating its tax-exempt status. The request came one day after the Center for Media and Democracy unveiled "ALEC Exposed," a website uncovering more than 800 model bills created by the corporate-funded organization.

ALEC and the Tobacco Industry

The American Legislative Exchange Council (ALEC) is an influential, under-the-radar organization that facilitates collaboration between many of the most powerful corporations in America and state-level legislative representatives. Elected officials then introduce legislation approved by corporations in state houses across the U.S., without disclosing that the bills were pre-approved by corporations on ALEC task forces.

ALEC has had a long relationship with the tobacco industry. To explore this relationship, we studied publicly-available tobacco industry documents found in the Legacy Tobacco Documents Library (LTDL), an electronic archive created by the University of California San Francisco that contains 70+ million pages of previously-secret, internal tobacco industry documents obtained in the discovery phases of the 46 state attorneys general lawsuits against the tobacco industry. Those lawsuits were resolved in 1998. The documents were made public as a term of the 1998 Master Settlement Agreement between the states and the tobacco industry. Before now, ALEC documents in this database have not been a major focal point.

Insurance Exchanges Tilted Toward Health Insurers, Not Consumers

The insurance industry made it abundantly clear this week that it is in the driver's seat -- in both Washington and state capitols -- of one of the most important vehicles created by Congress to reform the U.S. health care system.

The Affordable Care Act requires the states to create new marketplaces -- "exchanges" -- where individuals and small businesses can shop for health insurance. In the 15 months since the law took effect, insurers have lobbied the Obama administration relentlessly to give states the broadest possible latitude in setting up their exchanges. And those insurance companies have been equally relentless at the state level in making sure governors and legislators follow their orders in determining how the exchanges will be operated.

ALEC Bills in Wisconsin

In the 2010 elections, Republicans emerged with seven more governor's mansions. They also won control of 26 state legislatures, up from 14. In many trifecta states, where a new Republican majority won control of both houses and the governorship, an odd thing happened. A steady stream of almost identical bills -- bills to defund unions, require Photo ID's make it harder for democratic constituencies to vote, bills to privatize schools and public assets, bills to enshrine corporate tax loopholes while crippling the government's ability to raise revenue, bills to round up immigrants -- were introduced and passed. An almost identical set of corporations benefited from these measures.

It is almost as if a pipeline in the basement of these state capitols ruptured simultaneously, and a flood of special interest legislation poured out. The blowout preventer -- political power-sharing -- was disabled. The source of the contamination? The American Legislative Exchange Council (ALEC).

This week, the Center for Media and Democracy unveiled its ALEC Exposed website to display an archive of over 800 ALEC "model bills." This archive will allow reporters and citizen journalists to identify the ALEC bills moving in their states. We encourage researchers to search for some of the measures written about below.

Is Rupert Murdoch's Influence Waning?

Just weeks ago, media mogul Rupert Murdoch was set to win his $12 billion bid to take over Britain's biggest satellite broadcaster, BSkyB. The U.K. government was indicating it was likely to allow the proposed takeover to happen. But then the News of the World phone hacking and bribery scandal broke, and turned British public opinion so strongly against Murdoch that he suddenly withdrew his multi billion dollar offer to take over the broadcaster. Murdoch's announcement that he was pulling the bid came just hours before British lawmakers were set to consider a measure to ask Murdoch's company, News Corp. to drop his effort to take over BSkyB. The measure was expected to pass with overwhelming support in Britain's House of Commons, demonstrating how sharply Murdoch's influence has waned since the scandal. Murdoch had previously wielded significant political influence in Britain through his media holdings. The scandal may be affecting Murdoch's influence in the U.S., too. U.S. Senators Jay Rockefeller (D-West Virginia), Barbara Boxer (D-California) and Frank Lautenberg (D-New Jersey) have all called for an inquiry into whether any of the unethical investigative techniques or bribery uncovered at Murdoch's U.K. newspaper have been used at any of his U.S. media holdings. The senators specifically question whether telephones of victims of the September 11, 2011 attacks might have also been hacked. News Corp. holds 27 U.S. broadcast licenses and owns the Fox News Channel.

About ALEC Exposed

The Center for Media and Democracy has obtained copies of more than 800 model bills approved by corporations through ALEC meetings, after one of the thousands of people with access shared them, and a whistleblower provided a copy to the Center. We have analyzed and marked-up those bills and made them available at ALEC Exposed. This article has been updated. For press inquiries, please contact Nikolina Lazic at 608-260-9713 or lisa@prwatch.org.

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