FC: Conservative group uses politech post to shut down grassroots.com

[Declan McCullagh <declan () well com>]

***********

I placed the forwarded internal memo online yesterday by sending it out:
  http://www.politechbot.com/p-01074.html

I'm not quite happy about a politech message being used as a lever against 
grassroots.com and the League of Women Voters. I think you should know how 
the company is planning to respond to charges before the FEC. But I also 
think grassroots.com's site is protected by the First Amendment and should 
not be closed.

Grassroots.com's previous press release is at the end.

-Declan

***********

> Date: Thu, 13 Apr 2000 12:24:50 -0400
> From: "Dan Rene" <drene () nlpc org>
> To: declan () wired com
> Subject: FEC Letter
>
> Following is a letter from National Legal and Policy Center to the Office 
> of the Inspector General of the Federal Election Commission.  This deals 
> with the internal memo of grassroots.com
>
> If you have any questions please call (703) 847-3088
>
> Thanks!
>
> Dan Rene
>
>
>
>
> April 13, 2000
>
> Office of the Inspector General
> Federal Election Commission
> 999 Tenth Street, N.W.
> Washington, D.C. 20463
>
>
> HAND DELIVERED
>
>
> Dear Sir or Madam:
>
> As you are aware, the National Legal and Policy Center filed this week a 
> Complaint with the Federal Election Commission ("Commission) against 
> Grassroots.com, Inc., the League of Women Voters, Center for Governmental 
> Studies and Democracy Network ("DNet").
>
> Following several news articles regarding our Complaint, an internal memo 
> apparently from Grassroots.com was posted yesterday on the Internet and 
> subsequently forwarded to our offices. A copy of the Grassroots.com 
> internal memo is attached.
>
> I would direct your attention to the reference(s) in the memo regarding an 
> apparent ex parte communication with individual(s) at the Commission 
> concerning the acquisition of DNet by Grassroots.com. "We had a follow-up 
> informal discussion with the FEC a month ago confirming the October 1999 
> ruling is not changed under Grassroots."
>
> If, indeed, such an 'informal discussion' took place, it would seem that 
> such contacts are wholly inappropriate. Further, it appears that the 
> Respondents have not only initiated such contact(s) but are also relying 
> on the contact(s) as though formally rendered by the Commission.
>
> The additional reference in the memo that "Our lead attorney on the case 
> is a former head of the FEC and is well apprised of both the law and the 
> commission's workings' is a representation that, because the lead counsel 
> is a former Commissioner, some inside knowledge and advantage exists."
>
> We hereby request that the 'informal discussion' referenced in the 
> memorandum be investigated and that all information related to the 
> conversation(s) be made part of the public record as soon as possible.
>
> We further demand that all person(s) at the Commission involved in the 
> referenced 'informal discussion' be disqualified from participating in any 
> manner whatsoever in the review, investigation, consideration, 
> deliberation(s) or decision(s) relating to our Complaint against the 
> various Respondents.
>
> We appreciate your immediate response to this request.
>
> Sincerely,
>
>
>
> Peter Flaherty
> President

**************

Contact:
Ruder Finn
Monica Riebli
(415) 348-2725
rieblim () ruderfinn com   podesta.com
Lauren Maddox
(202) 393-1010
lmaddox () podesta com



Grassroots.com Says Complaint Filed with
Federal Election Commission HAS NO MERIT

Earlier FEC Advisory Opinion Already Disposed of this Matter

SAN BRUNO, CALIF.  April 13, 2000  In response to the complaint filed with 
the Federal Election Commission (FEC) on April 10 by the National Legal and 
Policy Center, located in McLean, Va., Grassroots.com states that the 
complaint misunderstands both the law and the facts involved and has no 
merit.

Grassroots.com noted that the FEC has already disposed of this matter in an 
Advisory Opinion that it issued in the Democracy Network's (DNet's) favor 
last year.  That ruling concluded that DNet was in compliance with federal 
law as a valuable source of voter information.  DNet is currently operated 
by the Center for Governmental Studies and the League of Women Voters, and 
has a linking arrangement with Grassroots.com pending final approval of its 
acquisition by Grassroots.com.

Craig Johnson, Grassroots.com interim CEO and co-founder, said, "This 
complaint raises questions that have already been answered by the FEC in 
DNet's favor.  On October 29, 1999, DNet received an Advisory Opinion from 
the FEC (AO 1999-25), concluding that DNet was in compliance with federal 
election law, since it operated in a non-partisan manner and allowed all 
legitimate federal candidates to post their communications on the DNet 
site.  The FEC issued a second Advisory Opinion to Election Zone LLC (AQ 
1999-24) on November 15, reaching a similar conclusion for a for-profit web 
site.

"Both of these sites allow all candidates to provide uncensored materials 
to all voters who wish to visit the site.  In the DNet and Election Zone 
opinions, the FEC concluded that websites such as DNet can post candidate 
views on issues and other information so long as that opportunity is 
non-partisan and offered equally to all candidates.  Such activities 
encourage individuals to vote or to register to vote and thus are exempted 
from the federal prohibition on corporate contributions," Johnson continued.

The complaint was filed with the FEC against Grassroots.com, the League of 
Women Voters, the League of Women Voters Education Fund, DNet and CGS.  The 
complaint alleges that the DNET voter information site violates FEC rules 
by providing corporate assistance to candidates for federal office.

Grassroots.com is a non-partisan media and technologies company creating 
the Internet's premier political action destination  a website containing 
rich media and everyday communication-collaboration tools.  Grassroots.com 
is an online community that will enable citizens and their representatives 
to effect positive, democratic change.  Founded in September 1999, the 
private venture-backed company is based in San Bruno, Calif., with offices 
in Washington, D.C.  Major investors in Grassroots.com include Advanced 
Technology Ventures, Knight Ridder Ventures, and AIG Global Investments 
Corp.  The company can be found on the Internet at http://www.grassroots.com.

###

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