From David Williams <[email protected]>
Subject The Ugly European Model and Another FDA Misstep - TPA Weekly Update: May 27, 2022
Date May 27, 2022 7:49 PM
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Monday is Memorial Day, a time to remember those who died in active military service. The country is going through some very difficult times right n

Monday is Memorial Day, a time to remember those who died in active military service. The country is going through some very difficult times right now. We don’t want you to ignore what is happening in the country, we would like for you to spend the weekend remembering those who gave the ultimate sacrifice for their country. It’s a long weekend to spend with family and friends and appreciate everything the country has to offer. Be safe and let’s get back at it on Tuesday.

The Ugly European Model… of Big Tech Regulation

Many conservatives lately have turned their ire towards big tech companies. Much of that emanates from both real and perceived bias exhibited by some of these companies towards right-leaning organizations and individuals. These are real grievances that ought to be discussed and resolved in the free market. Unfortunately, too many conservative lawmakers have turned their attention towards European-style antitrust legislation as a means of punishing big tech companies and forcing favorable outcomes for conservatives online. This approach will backfire spectacularly. The American Innovation and Choice Online (AICO) Act would initiate antitrust proceedings against tech companies that are deemed to have unfairly advantaged their own products over those of their competitors. It would also do so for companies that are believed to employ “discrimination in the application or [sic] enforcement of the covered platform’s terms of service.” It is language like this that makes conservatives falsely
believe that this effort will resolve the pain they feel online. Rep. Ken Buck (R-Colo.) a longtime conservative lawmaker – and member of the House Freedom Caucus – is one of the lead sponsors of AICO in the House of Representatives. Buck and fellow AICO sponsor Rep. David Cicilline (D-R.I.) recently signed a joint declaration with members of the European Parliament. The declaration affirmed shared interests and principles in approaching “digital transformation” and to create a “fair and dynamic” marketplace online.

It is clear that some form of European model is driving American antitrust pushes for bills like AICO. Europe, for its part, just recently agreed on language for two sweeping bills, the Digital Markets Act (DMA) and the Digital Services Act (DSA). The latter mandates that big tech companies take a more active role in policing disinformation, “hate speech,” and other types of “harmful online content.” This is exactly the type of vague censorship standards about which conservatives like Buck have been complaining for some time now. Most all lawmakers pushing greater regulation of big tech companies – whether in Europe or in the United States – are pursuing a goal of having tech companies more strictly regulate speech online. In fact, Sen. Amy Klobuchar (D-Minn.) said the quiet part out loud when she introduced legislation to get social media companies to censor more content online to weed out more supposed hate speech and disinformation. This is worth noting as Klobuchar is the primary
sponsor of the Senate version of AICO. The people leading this effort are not concerned with open discourse on the web.

One market-based fix to the problems that supposedly plague conservatives online came when billionaire Elon Musk had his bid to buy Twitter approved by the board of the company. Musk is viewed as unorthodox and more willing to hear out a diverse array of viewpoints. Conservatives online and in the media cheered, hailing a potential new era in online speech with Musk’s takeover of the tech giant. This move required no government intervention whatsoever and was clearly a market response to some of the grievances outlined above. Buck cheered the move, describing Musk as a “benevolent billionaire” and even loosely likened the move to Donald Trump winning the presidency in 2016. However, Buck’s main co-sponsor on AICO, Rep. Cicilline reacted to the move by saying, “Something is deeply wrong with this country.” He followed that up by saying Congress needed to address the underlying issues with the deal.

Another group that did not like that move was the Open Markets Institute. In a statement, the group called for the Department of Justice (DOJ), Federal Communications Commission (FCC), and Federal Trade Commission (FTC) to block the deal. They went as far as to say Musk’s acquisition was a “threat to free communications and debate in the United States.” This is notable, as the current head of the FTC, Lina Khan, is a former employee of the Open Markets Institute. Buck’s AICO would grant sweeping new antitrust powers to the FTC. For her part, Khan has called for antitrust to be more aggressively weaponized to accomplish social justice goals. She’s routinely been described by conservatives as too progressive to be objective in FTC proceedings.

It is abundantly clear that many conservatives want to feel a better sense of fairness and openness online. However, it is also abundantly clear that their strange bedfellows on this issue have no such concerns. In fact, they’ve made every effort to drag online discourse and government power in the opposite direction. While they may be on the front lines now, conservatives ought to know they are playing with fire by attaching their names to these antitrust pushes. We need only look to Europe to know how that will play out.

Not Much Hope for New Tobacco Director

It was recently announced that Dr. Brian King will lead the U.S. Food and Drug Administration’s (FDA) Center for Tobacco Products (CTP). The Center’s previous director retired in April of this year, and an acting director is currently in place until King takes on the role in July. King is the wrong choice and the FDA itself needs reforms, especially concerning its funding and regulation of tobacco products. While other centers at the FDA receive taxpayer funding through the Congressional budget process, the CTP is solely funded by user fees paid for by certain tobacco product manufacturers based upon a percentage of their sales. Only six classes of tobacco products are subject to user fees and FDA has acknowledged that e-cigarettes are not subject to user fees. This is not only bad budgeting, but it forces the FDA to rely on cigarettes (arguably the most harmful form of tobacco) to fund research on less harmful tobacco products before allowing consumers to even use those products. As it
is now, tobacco manufacturers are paying for the regulation of other tobacco products – which aren’t paying for any of their regulation.

King may not be the best suited for the role. A look at what King did at his previous place of employment, the Centers for Disease Control and Prevention (CDC), shows a pattern of complete distrust of less harmful tobacco products, instances of confusing the public, and a conflict of interest in published studies. Congress should be wary of this unelected, unaccountable bureaucrat as this change in leadership comes when hundreds of thousands of novel tobacco harm reduction products are awaiting FDA authorization.

While King may be experienced to lead CTP given his extensive background on smoking issues at CDC, King is very distrustful of e-cigarettes and is likely to deny authorization for hundreds of thousands of pending products. King has repeated numerous times that the e-cigarette “advertising is bringing the horse to water. The flavors are getting them to drink and the nicotine is keeping them coming back for more.” He made this analogy in 2017 and in 2019. Moreover, King has helped drive the misinformed narrative that e-cigarettes are harmful and has overemphasized the idea of “ultrafine particulate matter, volatile organic compounds and other potentially dangerous ingredients.” King has also coauthored vaping studies paid for by none other than Michael Bloomberg – who donated hundreds of millions of dollars in an effort to ban flavored tobacco harm reduction products including e-cigarettes and smokeless tobacco.

Congress should give King the tools needed to promote tobacco harm reduction for adults who smoke and are unable to quit. King does understand that adults use e-cigarettes to help them quit smoking and they enjoy flavors as he co-authored a 2016 study that found that 92.6 percent of then-current adult e-cigarette users were current smokers and that 84.5 percent reported using the products for “cessation/health.” Moreover, the 2016 study found that respondents aged 25 to 34 years and 35 to 54 years were more likely to cite flavoring as reason for use than respondents 55 years or older. Tobacco harm reduction proponents have reason to caution this appointment. Congress has the more important job to get to work to ensure adults that smoke have access to products that are more effective than nicotine replacement in helping them quit. And to truly guarantee access, the FDA must be allowed to recognize and promote tobacco harm reduction.

BLOGS:
Monday: Watchdog Echoes Concerns of Former Treasury Secretary on Antitrust and Inflation ([link removed])

Tuesday: TPA Sends Letter to Congress to Oppose Funding for Second F-35 Engine ([link removed])

Wednesday: ICYMI – TPA President David Williams Slams Sen. Warren’s Plan to Require the IRS to Prepare Tax Returns for Most Americans ([link removed])

Thursday: TPA Slams Latest Version of American Innovation and Choice Online Act ([link removed])

Friday: Op-Ed: Big Tech Regulation Will Only Harm Conservative Speech Online ([link removed])

MEDIA:

May 21, 2022: The Boston Herald ([link removed]) (Boston, Mass.) ran TPA’s op-ed, “Elizabeth Warren’s new IRS bill out of touch with voters.”

May 22, 2022: Just the News ([link removed]) wrote a story mentioning TPA, "Democrats' gas price gouging bill could lead to 1970s gas lines, warns spending watchdog group."

May 22, 2022: The Dallas Morning News ([link removed]) (Dallas, Texas) ran TPA’s op-ed, “City’s broadband proposal is expensive, unnecessary.”

May 23, 2022: WBFF Fox45 (Baltimore, Md.) interviewed me about legislation to change the IG Advisory Board.

May 23, 2022: WBFF Fox45 (Baltimore, Md.) quoted TPA in their story, “Baltimore City leaders in Vegas for conference to 'forge relationships ([link removed]) ."

May 23, 2022: Patrick Hedger joined 'The Real Story ([link removed]) ' on OANN to discuss inflation and state of the economy.

May 24, 2022: Townhall.com ran TPA’s op-ed, “Big Tech Regulation Will Only Harm Conservative Speech Online. ([link removed]) ”

May 24, 2022: Business Insider ([link removed]) mentioned TPA in their story, “16 watchdog groups demand Joe Biden 'publicly and actively' push Congress to ban lawmaker stock trades.”

May 24, 2022: The Center Square ([link removed]) ran TPA’s op-ed, “Potential government internet project in east Texas town courts costly controversy.”

May 25, 2022: Patrick Hedger joined 'The David Webb Show' (Nationally Syndicated) to discuss gas prices, the Consumer Fuel Price Gouging Prevention Act, and inflation.

May 25, 2022: Dan Savickas joined 'The Barrett Brief' to discuss wealth tax.

May 25, 2022: Patrick Hedger joined 'The Jason Rantz Show' (Seattle, WA & Nationally Syndicated) to discuss the IRS' plan to pay interest to those receiving delayed tax refunds.

May 26, 2022: WBFF Fox45 (Baltimore, Md.) interviewed me about gas prices.

May 26, 2022: I appeared on WBOB 600 AM (Jacksonville, Fla.) to talk about housing and a potential recession.

May 26, 2022: Real Clear Markets ([link removed]) ran TPA’s op-ed, “A Wealth Tax Will Curb Investment, Jeopardize Taxpayer Privacy.”

May 26, 2022: Dan Savickas joined 'The Lars Larson Show' (Portland, Or.) to discuss the American Innovation and Choice Online Act.

Have a great weekend!
Best,

David Williams
President
Taxpayers Protection Alliance
1101 14th Street, NW
Suite 1120
Washington, D.C. xxxxxx
www.protectingtaxpayers.org ([link removed])

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