Lobbying

The Fans First Coalition, formed in May 2011, appears to be a consumer group formed to oppose scalpers who buy event tickets and then re-sell them to the public at prices greater than face value. What is less apparent is that the Fans First Coalition is and astroturf group created with the help of a Washington, D.C. public relations firm and funded by Live Nation Entertainment, the parent company of online ticket seller Ticketmaster. The Fans First Coalition sprang out of a fight between Live Nation and a website called StubHub (a division of EBay) where people can buy and sell event tickets. To defeat ticket re-sellers, Ticketmaster started using a paperless ticketing system in which tickets are issued electronically. Ticket purchasers must present identification to collect their tickets when they arrive at the event venue. To battle Ticketmaster's new paperless ticketing system, StubHub created its own fake grassroots group, the similar-sounding Fan Freedom Project, which, like the Fans First Coalition, was created with the help of a Washington, D.C. public relations firm. The Fan Freedom Project argues that Ticketmaster's restrictive electronic ticketing system infringes on consumers' rights to possess, transfer or resell tickets as they desire. Such fake, grassroots front groups are unusual in the entertainment business, but all too familiar to those involved in politics. Ellen Miller, executive director of the Sunlight Foundation, which monitors lobbying activity, says "This is a classic -- where you find many so-called grassroots organizations financed by interested industries" to do battle with one another. Miller says, "The campaigns present themselves as ground-up activities, but they are really nothing more than fronts for particular interests."

To try and transform their image among the American public, tobacco companies have been trying to keep much of their lobbying and political donations out of view. The companies now channel campaign donations and lobbying expenses through harder-to-track organizations connected to the candidates they favor, like leadership PACs and 527 groups. Contributions directly to candidates and the committees that support them have decreased by more than $6 million between the 2002 and 2010 election cycles. "One thing the tobacco industry has done is stay out of the public view and disguise its efforts in politics," said Stanton Glantz, professor of medicine at the University of California-San Francisco and director of the Center for Tobacco Control Research and Education. The two highest-ranking Republican leaders in the House of Representatives -- Speaker John Boehner (R-Ohio) and Majority Leader Eric Cantor (R-Virginia) -- are top recipients of tobacco industry money. In the 2010 election cycle, Boehner took almost $50,000 from tobacco interests, and Cantor took $27,850. Boehner, a smoker, voted against the Food and Drug Administration's regulation of tobacco, calling it a "boneheaded idea." Cantor voted in favor of the bill. Altria Group, one of Cantor's biggest campaign contributors, is the parent company of cigarette maker Philip Morris -- the tobacco company that planned and helped draft the regulation, and thus the only company that supported it.

Americans for Prosperity North Carolina is running deceptive robo-calls in predominantly African-American voting districts in North Carolina to try and drum up support for House Bill 810, a measure that loosens regulations on payday lenders and that is backed by financial interests. In the call, a woman identifies herself as "Joan with Americans for Prosperity North Carolina." "Joan" then tells call recipients they can "help create local jobs by supporting hometown lenders" by contacting Democratic House Representative Winkie Wilkins and asking him to support HB 810. "Joan" says the HB 810 will help "hometown lenders" and increase access to credit for "small businesses and families." The call does not mention that the bill raises the amount of interest lenders can charge on small loans from 25 to 36 percent, and provides for new fees and other measures that increase lender profits. The Center for Responsible Lending finds that the additional interest would cost North Carolina consumers between $50 million and $70 million, and that two thirds of that amount would accrue to CitiFinancial and American General, two big financial companies that have already received federal bailout money.