Utah's Third Attempt To Regulate Keywords Fails
Eric Goldman writes "Earlier this month, we discussed HB 450, the Utah Legislature's third attempt to regulate keyword advertising after the past two efforts failed miserably. The latest attempt barely passed the Utah House, aided in part by a 'yes' vote from Representative Jennifer Seelig, who also happens to be a lobbyist-employee of 1-800 Contacts, the principal advocate of HB 450. Nevertheless, HB 450 died in the Utah Senate without a vote when the Utah Legislature adjourned last night. Despite the seeming good news, it would be surprising if the Utah Legislature didn't try a fourth time to regulate keyword advertising in a future session."
I can't imagine any legislature would even consider this seriously since there is no way for them to enforce this except for those businesses that deal in keywords and have servers in Utah and the company only deals in Utah (i.e. not on the internet). I would think that other than that, the interstate commerce clause of the Constitution applies and they would not be able to regulate it at the state level. Is this the case? I am usually wrong so I would like someone with a better sense of the law to comment on this.
Any time you have a law like this being proposed (especially one being proposed again and again), there is some special interest group or big company or lobby group pushing for it. Who is doing it in this case and why pick Utah as the place to lobby for it? (a testbed to get similar laws passed in other states?)