FEC Approves Three Advisory Opinions

WASHINGTON – The Federal Election Commission today approved three advisory opinions.

Advisory Opinion 2019-08 (Omar2020) The Commission approved an advisory opinion in response to a request from Omar2020, a congressional campaign committee. The Commission concluded that the committee’s proposal to distribute valueless digital blockchain tokens as an incentive to engage in volunteer activities is permissible under the Federal Election Campaign Act of 1971, as amended (the Act), because they are materially indistinguishable from traditional forms of campaign souvenirs and the campaign-created tokens have no monetary value. During the discussion, the Commission heard from the requestor.

Advisory Opinion 2019-09 (Mad Dog PAC) The Commission approved an advisory opinion in response to a request from Mad Dog PAC, a nonconnected committee. The Commission concluded that the committee may sell t-shirts bearing the facial likenesses and names of certain candidates because the committee will treat the full amount of the proceeds it receives from the sales as contributions and will comply with the applicable disclaimer, source and amount restrictions, and reporting requirements of the Act. During the discussion, the Commission heard from a consultant to the requestor.

Advisory Opinion 2019-12 (Area 1 Security, Inc. II) The Commission approved an advisory opinion in response to a request from Area 1 Security, Inc. The Commission concluded that Area 1’s proposal to offer cybersecurity services to federal candidates and political committees under a low- to no-cost pricing system is permissible under the Act and would not result in prohibited in-kind contributions because Area 1 would offer the services in the ordinary course of business and on the same terms and conditions as offered to similarly-situated non-political clients. During the discussion, the Commission heard from counsel for the requestor.

Internet Ad Disclaimers Rulemaking Proposal for REG 2011-02 (Internet Communication Disclaimers and Definition of “Public Communication”). The Commission held over discussion of this agenda item until the next open meeting scheduled for July 25, 2019.