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Appeals Court Says First Amendment Limits

Regulation of Online Political Advertising:

Implications for Congress



January 10, 2020
The proliferation of online political advertising has sparked a national conversation about its perceived
harms. Some have argued that online political ads are more likely than their offline counterparts to
include false claims and facilitate foreign influence in U.S. elections. These criticisms have led to calls for
more government regulation of online political advertising, and some government officials have
responded to that call. For example, in June, the chair of the Federal Election Commission (FEC), the
federal entity that generally regulates political campaign communications, advanced a rule proposal that
would require certain online political advertisements to contain attribution statements, known as
disclaimers. Another example is the Honest Ads Act, which would extend federal campaign finance law
disclosure and disclaimer requirements to online platforms for paid internet and paid digital
communications and would require online platforms to maintain a publicly available file of requests to
purchase certain political advertising. That bill was incorporated into H.R. 1 (116th Cong.), which passed
the House in March 2019, and has been reintroduced as a stand-alone bill in both the House and the
Senate. While there have been few, if any, enacted federal laws focusing on online political
advertisements, a number of states have passed legislation on this front.
However, regulation of political speech can raise free speech concerns, and laws regulating online
political advertising may be susceptible to constitutional challenges. On December 6, 2019, the U.S.
Court of Appeals for the Fourth Circuit (Fourth Circuit) ruled in Washington Post v. McManus that parts
of a Maryland law regulating online political advertising violated the First Amendment because they
impermissibly burdened political speech, as applied to certain online publications. This Sidebar discusses
the McManus decision and what it suggests about possible constitutional limitations on Congress's ability
to regulate in this area.

Background
Maryland enacted the Online Electioneering Transparency and Accountability Act (OETA or the Act) in
May 2018. The Act extends the state's campaign finance disclosure requirements for television, radio, and
print advertisements to online political advertisements, requiring adpurchasers to make specific
                                                               Congressional Research Service
                                                               https://crsreports.congress.gov
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