This custom F-150 Super Crew raised $30,100 at auction to benefit Childhelp and Victory Junction Gang Camp.

Customized with product donations by SEMA-member companies, this 2009 Ford F-150 Super Crew 4X4 was available through eBay auction to benefit childrens charities Childhelp and Victory Junction Gang Camp. The vehicle was sold to Ron Schmucker of San Ramon, California, for $30,100.

Organized by the SEMA Cares Committee, the truck was upfitted inside and out with mods from such companies as Leer, Street Scene Equipment, DuPont Hot Hues, Amp Research, Roadwire, Audiovox, Kicker, Scosche, Wise Industries, Pro Comp, Bushwacker and Magnaflow.

Making its first appearance at the 2008 SEMA Show, the SEMA Cares F-150 was also showcased at the inaugural SEMA Cares 2009 Show ‘N Shine Car Show and returned for display at the 2009 SEMA Show.

Established by the SEMA Board of Directors in 2007, the SEMA Cares Committee aims to bring the voices and resources of the SEMA community together to make a positive difference in the lives of others.

Read more about the vehicle’s journey and transformation from a charitable idea into an industry partnership to benefit children in need.

	This custom F-150 Super Crew raised $30,100 at auction to benefit Childhelp and Victory Junction Gang Camp.

Customized with product donations by SEMA-member companies, this 2009 Ford F-150 Super Crew 4X4 was available through eBay auction to benefit childrens charities Childhelp and Victory Junction Gang Camp. The vehicle was sold to Ron Schmucker of San Ramon, California, for $30,100.

Organized by the SEMA Cares Committee, the truck was upfitted inside and out with mods from such companies as Leer, Street Scene Equipment, DuPont Hot Hues, Amp Research, Roadwire, Audiovox, Kicker, Scosche, Wise Industries, Pro Comp, Bushwacker and Magnaflow.

Making its first appearance at the 2008 SEMA Show, the SEMA Cares F-150 was also showcased at the inaugural SEMA Cares 2009 Show ‘N Shine Car Show and returned for display at the 2009 SEMA Show.

Established by the SEMA Board of Directors in 2007, the SEMA Cares Committee aims to bring the voices and resources of the SEMA community together to make a positive difference in the lives of others.

Read more about the vehicle’s journey and transformation from a charitable idea into an industry partnership to benefit children in need.

	This custom F-150 Super Crew raised $30,100 at auction to benefit Childhelp and Victory Junction Gang Camp.

Customized with product donations by SEMA-member companies, this 2009 Ford F-150 Super Crew 4X4 was available through eBay auction to benefit childrens charities Childhelp and Victory Junction Gang Camp. The vehicle was sold to Ron Schmucker of San Ramon, California, for $30,100.

Organized by the SEMA Cares Committee, the truck was upfitted inside and out with mods from such companies as Leer, Street Scene Equipment, DuPont Hot Hues, Amp Research, Roadwire, Audiovox, Kicker, Scosche, Wise Industries, Pro Comp, Bushwacker and Magnaflow.

Making its first appearance at the 2008 SEMA Show, the SEMA Cares F-150 was also showcased at the inaugural SEMA Cares 2009 Show ‘N Shine Car Show and returned for display at the 2009 SEMA Show.

Established by the SEMA Board of Directors in 2007, the SEMA Cares Committee aims to bring the voices and resources of the SEMA community together to make a positive difference in the lives of others.

Read more about the vehicle’s journey and transformation from a charitable idea into an industry partnership to benefit children in need.

	This custom F-150 Super Crew raised $30,100 at auction to benefit Childhelp and Victory Junction Gang Camp.

Customized with product donations by SEMA-member companies, this 2009 Ford F-150 Super Crew 4X4 was available through eBay auction to benefit childrens charities Childhelp and Victory Junction Gang Camp. The vehicle was sold to Ron Schmucker of San Ramon, California, for $30,100.

Organized by the SEMA Cares Committee, the truck was upfitted inside and out with mods from such companies as Leer, Street Scene Equipment, DuPont Hot Hues, Amp Research, Roadwire, Audiovox, Kicker, Scosche, Wise Industries, Pro Comp, Bushwacker and Magnaflow.

Making its first appearance at the 2008 SEMA Show, the SEMA Cares F-150 was also showcased at the inaugural SEMA Cares 2009 Show ‘N Shine Car Show and returned for display at the 2009 SEMA Show.

Established by the SEMA Board of Directors in 2007, the SEMA Cares Committee aims to bring the voices and resources of the SEMA community together to make a positive difference in the lives of others.

Read more about the vehicle’s journey and transformation from a charitable idea into an industry partnership to benefit children in need.

SEMA News - February 2010

 

There were 290 tire exhibitors at the 2009 SEMA Show in Las Vegas last November, and tire buyers accounted for 9.4% of the total buyers who attended. In fact, their ranks made up the second-largest buyer group at the Show. This issue of SEMA News focuses on tire and wheel business. From the new products article that showcases some of the best technology and innovation the segment has to offer to the trends story where tire and wheel industry experts weigh in on the trends and challenges that face the segment, this issue is filled with information about the marketplace and the companies that have built it.

Like other segments in the industry, tire makers and marketers were hit hard by the recession, and even though there are now positive economic signs, changes in the landscape of our industry have shown that SEMA must be proactive in developing programs and features that help the tire segment as it steers toward recovery. To that end, SEMA and the Tire Industry Association (TIA) have begun joint discussions intended to maximize the Tires, Wheels & Equipment section of the SEMA Show so that we might better understand the industry’s changing needs and respond accordingly.

These challenging economic times have made it all the more important for SEMA, TIA and the tire manufacturers to pull together to get the most from the two associations’ programs and services as well as the SEMA Show.

Working together starts with communication, allowing all parties to understand the challenges and opportunities and putting them on a path toward achieving common goals. Executives from SEMA, TIA and the tire manufacturers recently began a series of meetings to lay a foundation for their cooperative efforts. TIA’s top officials made it clear that they will work with SEMA to explore their needs and provide guidance on solutions to their most pressing problems. SEMA pledged its best efforts aimed at bringing those solutions to fruition.

As part of the wheel and tire information contained in this issue, we’ve included brief conversations and comments from two of TIA’s leaders: President Wayne Croswell and Executive Vice President Roy Littlefield. Both understand the value that the trade associations represent and that through collaboration, the industry can be better served in areas such as training and education, market reports, government affairs and maximizing ROI from the SEMA Show.

We look forward to building those relationships and to shaping a future together, where the member companies of TIA and SEMA continue to grow and prosper.

SEMA News - February 2010

	SEMA Chairman Rick Rollins (left) and PWA President Donnie Eatherly (right) recognize PWA Persons of the Year Chris Thomson (second from left) and Adrian Murray.

Every year, the Performance Warehouse Association (PWA) announces its Manufacturer and Person of the Year awards at the SEMA Show. This year, PWA selected a duo in each category, naming Airaid Filter Company’s Chris Thomson and Adrian Murray of Painless Performance its Persons of the Year. PWA also recognized Airaid and K&N Engineering as its Manufacturers of the Year. The award winners shared their gratitude with the industry that helped them achieve their recognition.

“K&N is honored to have been voted Manufacturer of the Year by the members of the Performance Warehouse Association,” said Steve Rogers, president and CEO of K&N Engineering. “There are many great manufacturers in our industry, and it is a great accomplishment to be identified as one of the best. The last few years have been challenging for our industry, and we have tried to be a good supplier and listen to our customers. We’ve continued to expand our product line while making improvements in quality, shipping performance and customer service. K&N has continued to work to generate business for our dealers with one of the most extensive marketing and advertising programs in the industry. In 2009, we made more than 1 million consumer referrals to local K&N brick-and-mortar dealers. This award is the result of the work and dedication of the entire K&N team as well as the support of our suppliers, distributors and retail dealers. We thank PWA for this award.”

Adrian Murray, president of Painless Performance, said that he was “…deeply honored to have been recognized as Person of the Year by the Performance Warehouse Association and also to share this honor with my good friend, Chris Thomson. I am very mindful of the fact that it takes a lot of people in the background doing very great things in order for me to receive this type of recognition. We have a superb team at Painless who never hesitate to go the extra mile and put forth that extra effort to ensure the success of the company; they make my job very easy. To the members of PWA—and indeed to all of our customers and friends—thank you for this honor. I will always strive to live up to the ideals and the principles this award represents.”

Chris Thomson accepted both the Person of the Year award and the Manufacturer of the Year award on behalf of Airaid.

“We’d like to thank the members of PWA for this distinguished Manufacturer of the Year Award,” Thomson said. “During these tough economic times, it is an honor to be recognized with this award. We gladly accept it and take it as a challenge to continue performing at the highest level.”

About his Person of the Year award Thomson added: “Thank you members of the PWA for this true honor. I was proud to be considered alongside my friends Rick Sparks and Adrian Murray, both of whom I admire greatly. I also want to thank my boss and friend John Levitz and everyone at Airaid for their everyday support of my efforts, and most of all, my wife Kathie and daughters Kristin and Emily for their understanding of the passion and time that I put into my job.”

 

SEI Manufacturer Product Library—The One-Stop Info Shop to Close the Sale at the Counter

Join SEMA’s Manufacturer Product Library (MPL) to take advantage of a no-cost resource that will promote your brand and your products.

What Is it? Located at SEMA.org, the MPL is a repository of manufacturers’ marketing, product and training materials. Presented in searchable databases, the MPL will help retailers/resellers become more familiar with your product and brand while giving them the tools they need to close the sale immediately. Examples of marketing materials include product-demonstration videos, warranty information, product images, sales brochures, installation instructions and others.

What’s the Cost? SEMA-member manufacturers can participate in this program at no charge.

What’s the Benefit? Reach a greater number of jobbers, warehouse distributors and enthusiasts through this online product-information program. Reduce your printed material costs by uploading your marketing and support materials to the library. Get the information quickly to the people who need it the most, and help them close sales on your products faster! Contact SEI at 913/851-3355 or SEIinfo@sema.org to get started today.

 

Linda Vaughn: SBN Recognizes First Lady of Motorsports

The SEMA Businesswomen’s Network (SBN) presented a Lifetime Achievement Award to Linda Vaughn, a founding member of the SBN, at the annual SEMA Speed Networking Breakfast—Powered by the SBN, in recognition of Vaughn’s lifelong participation and exceptional achievements within the automotive aftermarket.

Vaughn may well be the most traveled ambassador of motorsports in the United States, visiting more racetracks, race events and race honorariums than anyone in the sport. She is in demand because generations of people—men and women—have searched her out in a crowd, and she has a singular way of bringing focus to a worthwhile product, cause or person. This was never more apparent than during her tour of military bases in Vietnam, when she accompanied Don Garlits and Richard Petty to encourage the troops overseas.

Vaughn began her career as a beauty queen in 1961, and she carried the title of Miss Pontiac the following year. She used her assets—wit, intelligence and a natural curiosity and love of motorsports—to nudge into a mostly male domain and became a valued spokesperson and representative of one of the largest aftermarket companies in the United States. For years, Vaughn was Ms. Hurst Golden Shifter, working side by side with the parent company and the top executives of Mr. Gasket Company to promote one of its most valued brands. She was part beauty and part brains, and in the ’60s, this was a perfect formula for getting attention and paving a road for women to participate in all aspects of the aftermarket. She was successful because of her drive to be a part of this industry in a big way, and she was not content to rest on her laurels as a beauty queen.

Vaughn has endured and changed, but she has always remained a staunch supporter of the vitality of motorsports in all of its forms, and she has been an endearing friend to the people whom she has met along the way. Jim Feeman, director of the International Motorsports Hall of Fame in Talladega, Alabama, once commented, “Lots of people consider Linda to be the First Lady of Racing. She is the only female non-racer who continually gets votes to be inducted into the Motorsports Hall of Fame.”

In 1988, SEMA honored Vaughn’s lifetime achievements with a special citation during its “Salute to the American Automotive Performance & Motorsports Industry” program in Washington, D.C. She is a respected member of the SEMA Hall of Fame and is beloved by many all over the world.

 

Fast Facts

	John Passante

Automotive aftermarket executive, trainer and inspirational speaker John Passante has joined Brenton Productions Inc. as executive vice president. He will continue his role as president of The Organizational Development Group Inc. as he assists Brenton Productions in its production of automotive series for national TV networks. Prior to this appointment, Passante was senior vice president for CarQuest, senior vice president of human resources for Moog Automotive and senior director worldwide human resources for Delphi Products and Service Solutions. Brenton Productions Inc., Swansea, MA; 800/572-7798.

Vortex Splash Guards Technologies Inc., developers and patent holders of what the company says is the world’s first aerodynamic (air routing) mud guards, has recently designed a memorandum of understanding with Papp Plastics to manufacture and distribute to the OEM accounts. Vortex said that, in addition to stealth styling, the technology affords fuel savings and other performance advantages over existing designs. Vortex partnered with Hopkins Manufacturing in 2007 to service the aftermarket. Hopkins has had great success garnering sales through retailers, such as O’Reilly Auto Parts and a recent launch with Pep Boys. Hopkins Manufacturing, Emporia, KS; 620/342-7320.

	Heath Breedlove

Heath Breedlove joined Beck/Arnley as its new vice president of retail and program group sales. In this position, Breedlove calls on and facilitates sales growth with program groups and retailer customers. Prior to joining Beck/Arnley, Breedlove served as regional director of store sales for General Parts Inc., where he managed sales activities for more than 20 CarQuest Auto Parts stores’ corporate sales.

Tire Group International opened a new sales office in Houston, Texas. The new office is headed by Tom Wilbur, who joined the company with more than 12 years of experience in the tire industry.

JATO Dynamics appointed David Di Girolamo business development manager for the retail sector. Before joining JATO, Di Girolamo was instrumental in the development and management of performance improvement programs for dealers and importers globally, including Volkswagen group, Peugeot and Toyota.

Jotto Desk and Snugtop announced a new distribution agreement allowing Snugtop to offer the Jotto-Cargo Slide line of cargo-management products through its dealer network in conjunction with Snugtop products. The agreement fills a distribution gap for Jotto-Cargo Slide on the West Coast while providing new sales opportunities for existing Snugtop dealers. Jotto Desk, Rogers, AR; 479/936-8059. Snugtop, Long Beach, CA; 562/432-5454.

Philips Automotive Lighting North America, a division of Royal Philips Electronics, appointed Dave Illes as its senior sales manager for the North American automotive aftermarket. He will be responsible for all sales channels and customers in the United States, Canada and Mexico. Prior to joining Philips, Illes spent 10 years with Tenneco Inc., working in both Canada and the United States in a variety of sales management and operations roles.

	Rollin Hansen

Rollin Hansen of Auto Tech and Body in Roselle, Illinois, was named the Tech-Net Professional Auto Service/ASE Master Automotive Technician of the Year for 2009. Hansen will receive more than $20,000 worth of prizes, including an all-expense-paid trip for two to the ASE board meeting, where he will be presented with a trophy and a gold ring.

The American International Automobile Dealers Association announced a new affinity partnership with Financial Transaction Services to provide dealer members with exclusive pricing on end-to-end payment processing solutions for credit, debit, electronic benefit transfer, gift card/loyalty, biometric authentication and automated clearinghouse check processing. American International Automobile Dealers Association, Alexandria, VA; 703/519-7800.

Continental Tire and Hoosier Racing Tire announced a strategic alliance that will allow both companies to drive new growth prospects and technologies and have the potential to transform a variety of motorsports platforms. The alliance will consist of Continental and Hoosier partnering for advanced performance solutions and motorsports integration. A team of industry veterans will be the driving force behind the collaborative marketing, product development and implementation process. Both companies will invest substantially into resources for the marketing, business development and delivery of specific products. Continental Tire, Charlotte, NC; 704/583-3900.

	John Hagan

Toyo Tire U.S.A. Corp. hired John Hagan as senior director of sales operations. A 20-year veteran of the tire industry, Hagan will have full responsibility for the management of all Toyo Tire U.S.A. Corp.’s sales operations while reporting directly to the company’s president and CEO, Yasushi Takagi. Hagan’s tire industry experience includes serving as vice president of original-equipment sales for Pirelli Tire. Toyo Tire U.S.A. Corp. also hired Glen D. Watson as sales manager for the region that includes Alabama, Mississippi and Tennessee. Watson previously worked for Toyo Tires from 1996–2001 in regional sales. Most recently, he worked for ABSCO Fireplace & Patio, providing retail support and training and serving as a retail coordinator. Toyo Tire U.S.A. Corp., Cypress, CA; 714/236-2080.

R. L. Polk & Co. has renewed its corporate sponsorship of Global Automotive Aftermarket Symposium (GAAS) for the 2010 event, set for Tuesday, May 18, and Wednesday, May 19, at the Hyatt Regency O’Hare near Chicago. Under the agreement, R. L. Polk & Co. will present its prestigious Polk Inventory Efficiency Awards at GAAS 2010, marking the sixth year for the awards, which recognize and reward outstanding aftermarket companies for process improvements relative to inventory efficiency. R. L. Polk & Co., Southfield, MI; 248/728-7000.

	Phil and Jeremy Gerber

Phil and Jeremy Gerber of the Roadster Shop were presented with the Goodguys Trendsetter award at the 2009 SEMA Show. The award is presented annually to rising young talents in the realm of rod and custom car building. Past recipients of the Goodguys Trendsetter Award include Chip Foose, Troy Trepanier, Alan Johnson, Eric Peratt, Tim Strange, Dave Lane, Zane Cullen, Dean Livermore, Jesse Greening, Troy Ladd and J.F. Launier. Roadster Shop, Mundelein, IL; 847/742-1932.

Wyers Products Group Inc. recently entered into a marketing agreement with Pilot Automotive Inc. of City of Industry, California, to exclusively distribute Trimax Products to selected retailers and automotive chain stores. Pilot Automotive Inc., City of Industry, CA; 626/937-6988.

 

SEMA News - February 2010

The images and information provided in “Spy Photos” are supplied by the spy shooters at Brenda Priddy & Co. “Spy Photos” are included each week in SEMA eNews, the association’s electronic newsletter. To receive your copy of SEMA eNews, e-mail enews@sema.org.

 

 

Land Rover LRX

When it Hits: Land Rover’s bold LRX concept is inching closer to production, said Priddy. It will be unveiled next year and begin sales in 2011.

What Priddy Says: Priddy’s network of photographers caught this mule testing at Nürburgring and wearing an LR2 body with a shortened rear end and revised front fascia. Expected to carry the Range Rover badge, the LRX will likely draw power from two engine options: a 3.2L gasoline inline-six and a 2.2L four-cylinder turbodiesel. As previewed by the concept, Land Rover may also offer a hybrid 2.0L turbodiesel. The production model should be taller than the concept, allowing for more headroom, and come in three- and five-door variants.

 

Chevrolet Camaro Convertible

When it Hits: In a late-November press release for the 2011 Buick Regal, GM quietly slipped in a sentence noting that production of the 2012 Chevrolet Camaro convertible would begin in its Oshawa, Ontario, plant in the first quarter of 2011.

What Priddy Says: Priddy said her sources have narrowed the production date down to February 2011. On cue, her shooters captured this drop-top prototype in Michigan, slipping through a gate before dusk. While this is good news for Camaro enthusiasts, the bad news is that they’ll have to wait another 14 months to get one.

 

 

 

 

Mercedes-Benz C-Class

When it Hits: The updated C-Class will go on sale in 2010, just months before the all-new BMW 3 Series and the Audi A4.

What Priddy Says: Changes to Mercedes-Benz’s bestseller include new headlights, a new front bumper and a new bonnet. The rear is expected to feature a new set of lights and some modifications to the bumper. Some engine upgrades will be offered, while the interior should receive minor changes, too.

 

 

 

 

 

Volkswagen Jetta

When it Hits: Production is expected to start in the fourth quarter of 2010, making this updated VW Jetta a 2011 model when it crosses the border.

What Priddy Says: Internally known as NCS—or New Compact Sedan—this updated Jetta will be built on a re-engineered, fifth-generation Jetta platform. Publications have also referred to it as the Jetta VI. While the Jetta name will likely be carried over and assembly will continue to take place at the Volkswagen plant in Puebla, Mexico, the new model will be slightly longer and a bit wider. Volkswagen plans to sell 160,000 units annually, as it hopes to convert some potential Corolla and Civic buyers with the Jetta’s lower base price. Although cost-cutting measures may be obvious as compared to the current Jetta, there is speculation that an AWD option may be offered.

 

Photos Copyright Brenda Priddy & Company. Reuse or reproduction without the copyright holder’s consent is prohibited.

SEMA News - February 2010 

While the SEMA Show is a trade-only gathering that is not open to the general public, enthusiasts and consumers are able to get a glimpse of what happens at the annual event thanks to the many editors and reporters who attend. SEMA Shows in the past have included more than 2,400 registered media, many representing consumer publications, mainstream magazines and general television programs.

Local media in Las Vegas, Nevada, were out in full force for the 2009 SEMA Show, along with reporters from major daily newspapers. Take a look at just a sampling of the coverage that resulted.

 

Las Vegas Review Journal, November 4, 2009 The photograph taken on the opening day of the Show covered about a third of the business section’s front page and included a caption noting that more than 100,000 people were in town for the convention.
Chicago Tribune, November 8, 2009 Sunday’s “Rides” section featured five of the hottest vehicles at the SEMA Show, including a 2010 Camaro customized by Droptop Customs. The reporter noted that the designer “…beat Chevy to the soft-top, originally slated for 2012 but likely delayed by issues with a supplier.”
The Detroit News, November 12, 2009 Several publications reported on the many Camaros at the 2009 SEMA Show. Here, the Detroit News declared the 2010 Camaro the SEMA Show’s Car of the Year and reported on some of the notable versions that were on display.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEMA News - February 2010

By Steve McDonald

Law and Order is an update of some of the most recent federal and state legislative and regulatory issues that could potentially impact the automotive specialty-equipment industry. These include issues affecting small-business owners and their employees.

 

Canada (Saskatchewan)

Raised Vehicles: The province of Saskatchewan is postponing the adoption of a raised-vehicle policy and will instead participate in the Canadian Council of Motor Transport Administrators (CCMTA) Excessively Raised Vehicle Working Group. The CCMTA convened the working group with a mandate to develop a national best practice for the regulation of raised vehicles. In August 2009, SEMA submitted technical comments to a regulatory proposal issued by Saskatchewan Government Insurance (SGI) to regulate raised vehicles in the province. SGI operates the province’s driver’s licensing and vehicle registration system. SGI regulators claimed that the number of raised vehicles imported into and operating in Saskatchewan had increased, prompting inquiries from the general public, raised-vehicle owners, off-road enthusiasts, vehicle inspection stations and law enforcement with requests to clarify the existing regulations and standards for raised vehicles. Under the proposed policy, all aftermarket raised vehicles operated on Saskatchewan highways would be subject to a raised-vehicle inspection after January 1, 2011. The policy would be rolled out in two phases to mitigate the impact on existing raised-vehicle owners and provide time to train and inform the public, inspection stations and law enforcement. Regulators were considering requiring owners to carry a “Letter of Authorization” issued by the province in order to operate a raised vehicle. The letter would signify that the vehicle had passed inspection and would be shown to law enforcement during roadside stops to demonstrate compliance with the applicable frame-height limit.

Ohio

Street Rods/Customs: SEMA-model legislation to create a vehicle registration and titling classification for street rods and custom vehicles and provide for special license plates for these vehicles continues to be considered by the Ohio House Transportation and Infrastructure Committee. The bill defines a street rod as an altered vehicle manufactured before 1949 and a custom as an altered vehicle at least 25 years old and manufactured after 1948. The bill allows a kit car or replica vehicle to be assigned a certificate of title bearing the same model-year designation that the body of the vehicle was constructed to resemble.

Massachusetts

Street Rods/Customs: SEMA is working with state legislators, regulators and vehicle hobbyists on a compromise to SEMA-model legislation to create a vehicle registration classification for street rods and custom vehicles. The bill defines a street rod as an altered vehicle manufactured before 1949 and a custom as an altered vehicle at least 25 years old and manufactured after 1948. The bill allows kit cars and replica vehicles to be assigned certificates of title bearing the same model-year designations as the production vehicles they most closely resemble. In late 2008, a similar measure was vetoed by Governor Deval Patrick.

 

SEMA Federal Update

Health Care: The U.S. Senate is debating its version of health care reform legislation, following passage of a bill by the House of Representatives. The Senate legislation contains a number of elements recommended by SEMA as priorities in a letter sent last August to President Obama, including an exemption for most small businesses from employer mandates; a reliance on the private-sector insurance system; and small-business access to regional or nationwide purchasing pools. However, as introduced, the Senate legislation fails to tackle the market reforms necessary to eliminate wasteful spending. It also threatens the viability of private-sector plans with a government-run program. SEMA is joining with other trade associations comprising the Small Business Coalition for Affordable Healthcare to support amendments that will better control health care costs rather than impose new burdens on businesses. Providing access to the estimated 27 million small-business owners, employees and dependents who are now uninsured remains a SEMA priority.

Federal Lighting Standard: The National Highway Traffic Safety Administration (NHTSA) again postponed the effective date for the revised lighting standard, Federal Motor Vehicle Safety Standard No. 108, from December 1, 2009, to December 1, 2012. According to the NHTSA, the agency wants the extra time to confirm that there were no substantive changes included when the agency published the reorganized and simplified standard in 2007. The revised standard was originally scheduled to take effect in 2008. The lighting standard has been amended many times since it was first adopted in 1967 in order to address technological advances and enhance safety. As a consequence, the previous regulation was unnecessarily complex and difficult to understand. Early compliance to the revised standard is permitted.

Ethanol-15: The U.S. Environmental Protection Agency (EPA) delayed until mid-2010 a decision on whether to permit the ethanol content of gasoline to increase to 15% (from 10%). The original deadline was December 2009. The EPA indicated that it would likely accept the new level if tests confirm that the blend would not cause damage to cars. The EPA noted that it might limit use only in cars of the 2001 and later model years, since initial tests suggest that newer cars may better accommodate the fuel. The EPA needs additional time for durability testing regarding the long-term effects on vehicle components and emissions control systems. If the application is limited to model-year 2001 and newer cars, gasoline retailers would have to supply varying ethanol blends and relabel pumps, and drivers of older cars would need to be cautioned not to misfuel. Last year, SEMA submitted comments to the EPA opposing the 15% ethanol content, citing concerns that the additional content could harm automobile parts of all ages, including special-interest collector and historic vehicles. A number of other organizations expressed similar concerns.

Tax Write-Offs: Lawmakers expanded a provision enacted last year that allows small businesses (gross receipts of $15 million or less) to extend the net operating loss (NOL) carryback period from two to five years for tax years beginning in or ending in 2008. Under the new law, all businesses can now take advantage of the NOL carryback provision. The law allows companies to apply losses sustained in recent years against taxes on profits paid in earlier years. Businesses may offset 50% of the available income from the fifth year and 100% of all income in the remaining four carryback years. All businesses may carry back net operating losses for up to five years for losses incurred either in 2008 or 2009 but not both (at the option of the taxpayer). Small businesses that have already elected to carry back 2008 may also elect to carry back losses from 2009.

SEMA News - February 2010

By Joe Dysart

Protecting Your Business From the FTC Crackdown on Social Media

	The FTC is cracking down on clandestine blogger endorsements.

The Federal Trade Commission (FTC) has a stern warning for businesses secretly using bloggers and others in social media to endorse products and services: We’re coming after you. In a move that has generated a backlash as big as the blogosphere itself, the agency has put the word on the street that, as of December 1, it will be looking to haul into court the most flagrant users of cloaked endorsers.

“Social media is here to stay, and we have enough respect for advertising on the Internet and the important role of the blogosphere as a marketplace for public opinion to hold it to the same standard we apply to advertising in any other medium,” said Mary K. Engle, director of the FTC’s Division of Advertising Practices.

Not surprisingly, violent pushback to the new FTC guidelines was nearly immediate in the blogosphere, as cries of “Big Brother,” “Nineteen Eighty-Four,” and “government muzzling of free speech” sprang up like many dandelions. Jeff Jarvis, one of the medium’s most prominent spokespeople, posted on his blog, “For the FTC to go after bloggers and social media—as they explicitly do—is the same as sending a government goon into Denny’s to listen to the conversations in the corner booth and demand that you disclose that your Uncle Vinnie owns the pizzeria whose product you endorsed.” And Randall Rothenberg, CEO of the Interactive Advertising Bureau (IAB), responded with unbridled indignation, dismissing the new FTC guidelines as “constitutionally dubious,” and castigating the agency as being draconian.

“We offered to bring in bloggers, social media executives and others from among our membership and work with you to develop practical guidelines and self-regulatory mechanisms that would protect consumers from real harm, while assuring that independent opinion in digital media isn’t stifled,” Rothenberg wrote in an open letter to the FTC. “But commission staff did not follow up with us on our offer, held no public hearings on the proposed guides and ultimately dismissed our concerns.”

According to the FTC, the impetus for the new guidelines has been an ever-increasing prevalence of company endorsers—paid either in cash or in free products and services or both—who masquerade as unbiased, “everyday” consumer reviewers in all sorts of social media forums. Specifically, Engle pointed to a Proctor & Gamble social media blitz campaign in which, she said, 400,000 moms were given free products in exchange for their cheery reviews of the same in blogs and on Twitter.

Other flagrant cases, according to Engle, included a blog reviewer who received free use of an automobile—along with free gas for a year—in exchange for an endorsement, as well as bloggers who received luxurious vacations in exchange for their supposedly unbiased endorsements of a consumer electronics product.

“Our concern is with the advertisers who pay consumers to talk up their products and make it look like independent consumer opinion,” Engle said.

While IAB agrees that brazen misrepresentation in web reviewing needs to be reigned in, what really sticks in the organization’s craw is that the FTC drew a stark distinction in its new guidelines between traditional journalists and new-media bloggers. Essentially, the agency ruled that while any blogger who receives a free product or service must explicitly reveal that fact—even if the subsequent review is negative—traditional journalists will not be held to the same standard. The FTC’s reasoning? The public has long known that journalists often receive free books, theater and movie tickets and the like from companies in hopes that those products or services will be reviewed.

“What concerns us the most in these revisions is that the Internet—the cheapest, most widely accessible communications medium ever invented—would have less freedom than other media,” Rothenberg said. “These revisions are punitive to the online world.”

Given the firestorm the FTC has ignited, the tussle over what’s fair and what’s not seems destined to continue for some time. In the interim, here’s how to protect your business based on the facts on the ground right now:

Get Your Attorney to Go Over the Guidelines: The FTC has posted a complete copy of its updated “Guides Concerning the Use of Endorsements and Testimonials in Advertising” online. If you’ve ever used a blogger to endorse your company—or you plan to—this is the first stop for you and your counsel.

Assuage the Fears of Your Bloggers: While there was undoubtedly white-knuckle fear among thousands of bloggers and other social media posters when the FTC guidelines first dropped, the agency has since assured the blogosphere that its primary mission is to go after the companies who hire them. According to Richard Cleland, the FTC’s assistant director of the Division of Advertising Practices, the agency also sees as remote the prospect of seeking up to $11,000 fines through the courts for social media reviewers who fail to reveal company ties. Instead, the FTC will first write a series of warning letters to the offenders.

Cease and Desist: If your company does secretly have bloggers singing your praises or twittering away on your behalf, now would be a good time to stop. Despite the backlash, the FTC has all intentions of moving ahead with its mission to clean up the web. There’s no reason to make your company become a poster child for the FTC’s crusade.

Be Sure to Identify All Paid Research: For years, companies have been commissioning research that casts themselves or their industry in a positive light, ostensibly offering businesses and consumers an unbiased, third-party perspective. Some companies freely admit to financing such studies. Others do not. Under the new FTC guidelines, all companies must explicitly state that they have paid for such research, especially if it’s used for marketing and promotion purposes.

Disclose the Nature of All Celebrity Endorsements: The FTC is tired of celebrities who make service or product endorsements for a company without disclosing their commercial relationship with the firm. Essentially, the agency wants that relationship made explicit. When safeguarding against this provision, ask your attorney to clarify the FTC’s definition of celebrity. Not everyone has the bankroll for Paris Hilton, but they still may be using a local former football great as a hawker.

 

Joe Dysart is an Internet speaker and business consultant based in Manhattan, New York.
Voice: 646/233-4089
E-mail: joe@joedysart.com
Website: www.joedysart.com