Health Care Bill Passes With Sunshine Provisions
After extensive floor debate and committee compromises in Congress, President Obama has now signed a sweeping health care reform bill that will affect every American, from the uninsured to the wealthy business owner. Besides eventually offering nearly universal health care, providing subsidies to certain families and awarding tax credits to small businesses, the bill includes provisions requiring drug and device companies to publicly report payments they make to doctors. A companion bill, which is likely to be passed in the U.S. Senate, will force the public reporting of any payment or gift given to a doctor that is $5 or greater in value.

The provisions, originally part of the highly controversial Physician Payments Sunshine Act, would take effect in 2011. It appears the current $5 per payment threshold will trump earlier proposals that instead required reporting after a $100 aggregate was reached. The Reconciliation Act, the official name of the companion bill, contains only limited preemption from local action, meaning states may impose additional requirements as well.

While the entirety of the legislation won’t be felt for another four years, many of the nation’s 30 million small business owners will have difficult choices to make. For example, by 2014, employers who have more than 50 workers must offer health insurance benefits or pay penalties, possibly prompting some to cut staff. Business owners will have the opportunity, though, to take part in state-run insurance exchange pools, which could make coverage costs more manageable. In addition, companies with 25 or fewer employees who meet certain wage requirements will be able to earn credits toward health insurance purchases. However, opponents of the legislation argue any credits will be countered by higher premiums, as insurance providers try to make as much money as possible before 2014.

FDA Bans Tobacco Promotional Products
Tobacco companies will be barred from dist_aributing branded merchandise under new provisions enacted yesterday by the Food and Drug Administration (FDA). The restrictions, which go into effect June 22, have already been in place for over a decade in all but four states as a result of a 1998 legal settlement (Florida, Minnesota, Mississippi and Texas had reached separate agreements). The new regulations enforced by the FDA expand the ban nationally and covers all tobacco companies and retailers. "The regulations are designed to prevent our children from becoming the next generation of Americans to die early from tobacco-related illnesses," said Howard K. Koh, U.S. assistant secretary of health.

The FDA also ushered in a number of additional advertising restrictions. Tobacco companies cannot provide free samples of cigarettes, cannot offer gifts or other items with purchase of tobacco products and cannot have brand name sponsorship of athletic or entertainment events. Audio ads must only use words with no music or sound effects; separately, a print ad rule for tobacco companies, mandating that their ads must be in black-and-white in publications that are read by children under 18, is being challenged in court.

A spokesman for R.J. Reynolds Tobacco says that most of the provisions announced have already been followed by tobacco companies. Violators may be subject to everything from warning letters to criminal prosecution. The FDA did not have authority to pass such provisions until Congress passed legislation last year, enabling the FDA to regulate tobacco for the first time.

ASI Launches ESP Web and ESP Orders
ASI announced that beginning today it is rolling out ESP Web and ESP Orders. ESP Web is a web-based update of ASI’s flagship sourcing and marketing tool ESP Online. It includes features such as:

• Highly intelligent search engine that helps dist_aributors quickly identify the right product and price and makes suggestions for similar products.
• New end-buyer presentation tool that allows for total customization – including innovative design elements.
• Streamlined modern interface, where information and functions are presented on a single screen and users can open up new tabs right in their browser.  
• Completely integrated order management module, called ESP Orders. 

ESP Orders, which is being released with ESP Web, is a complete order management program based on the best practices of industry-leading dist_aributors. Both ESP Web and ESP Orders began rolling out to segments of ESP Online users during today’s ASI Virtual Trade Show, and a graduated rollout will continue throughout the spring.

“The growing popularity of our cutting-edge virtual trade shows presents the perfect platform for the launch of our revolutionary new ESP services,” said Timothy M. Andrews, president and chief executive officer of ASI. “ESP’s total makeover will radically improve the way users do business, allowing for instant access anytime to products, supplier data, ESP Orders and customer information.”

For more information on ESP Web and ESP Orders, visit www.asicentral.com/espweb.

Survey: Ad Spending Expected To Rebound in 2010
Stifled by the economy, ad spending in the U.S. dropped 12.3% last year, according to a report from research firm Kantar Media. The fall was triple the rate of decline compared to 2008, but analysts believe the fourth quarter of 2009 showed signs of recovery. “The advertising recession began to ease in the final two months of 2009 and preliminary figures from the first quarter of 2010, when compared against the abyss of a year ago, indicate many sectors are experiencing growth,” said Jon Swallen, senior vice president of research at Kantar. “As we get deeper into 2010, the pace of consumer activity will be a key determinant of the strength and durability of the advertising recovery.”

While analysts expect ad spending to increase by the second quarter of this year, 2009 will be remembered as a dark time for many marketers and mainstream media. Local magazines, for example, suffered through a 28% ad revenue decline in 2009 and ad sales at newspapers fell 20%. Revenue from spot sales of national radio commercials dropped nearly 25% and spot TV commercials generated 24% less revenue, according to Kantar research. However, continuing recent trends, Internet-based ad revenue actually increased 7.3% in 2009.

Among leading advertisers, Proctor & Gamble slashed ad spending by 7.3% in 2009, while General Motors increased spending by 1.3%. Additionally, Verizon cut ad spending by 7%, while Sprint Nextel expanded spending by 30%. Leading a spending charge by pharmaceutical companies, Pfizer increased ad spending by 33% last year

The Joe Show: New Products
In this episode of The Joe Show, Counselor Managing Editor Joe Haley shows off some of the newest items to hit the ad specialty market. Want to show clients some innovative new items? Start with these.

Click here to see this new-products edition of The Joe Show.

Want more videos? Subscribe now to our YouTube videos.

Congress Urges China To Revalue Currency
Attempting to pressure China to raise the value of its currency, U.S. lawmakers introduced legislation last week that could lead to retaliatory trade barriers against Chinese-made products. Backed with bi-partisan support, the bill’s sponsors have accused China of unfairly manipulating the value of the yuan to gain a global advantage in exporting, in effect stagnating the world’s economies. Congressional leaders and many analysts believe the yuan is undervalued, compared to the dollar, by as much as 40%. “President Obama has outlined a plan to double exports but you simply can’t do that if you don’t address the currency issue,” said Ohio Senator Sherrod Brown on Tuesday. “China’s current policy is out-and-out protectionism.”

If the Chinese government does allow its currency to appreciate, analysts widely agree the move would benefit the U.S. economy, creating a more competitive trade market, while potentially generating hundreds of thousands of American jobs. However, at least in the short term, some suppliers in the ad specialty industry believe raising the yuan’s value would result in rising prices on goods imported from China – and possibly a drop in product quality. “We would see costs increase and potentially quality decrease because suppliers will feel forced to buy cheaper products to keep prices steady,” said Jeff Lederer, executive vice president of Counselor Top 40 supplier Prime Line (asi/79530).

Jonathan Isaacson, president of Counselor Top 40 supplier Gemline (asi/56070), believes that the change is something the industry should definitely brace for. “It will have the immediate affect of increasing the cost of doing business in China,” he says. “Regardless of when the currency starts to move, and it is a ‘when’ and not an ‘if’ for this shift, any change in the China exchange rate will have a meaningful impact on the cost of a significant portion of the merchandise sold in our market.”

While publicly Chinese officials have rebuffed U.S. claims of currency manipulation, many economists expect China to eventually cede to growing international criticism, partially at its own benefit. If the yuan appreciates, analysts say China would gain greater protection against inflation, a strategy employed by the Asian superpower as recently as 2008. If, instead, China maintains the yuan’s value, it could counter American duty threats by dumping U.S. Treasury bonds, weakening the dollar and adding to financial unrest. "We oppose mutual accusations between countries, and even using coercion to force a country to raise its exchange rate, because that's of no help to reforming the yuan exchange rate," said Chinese Premier Wen Jiabao at a news conference this week. "The responsibility for the serious disruption in U.S.-China ties does not lie with the Chinese side but with the U.S."

Live From The Virtual Trade Show
Every Tuesday morning from 10:30 a.m. eastern time to 11:00 a.m., a team of ASI editors debate the most important topics facing the industry. We also, of course, offer our own off-beat look at the market. This morning, we broadcast live from the ASI Virtual Trade Show. We talked to exhibitors and attendees, shared some cool promo items for next month’s Earth Day, and previewed hot fashions of the upcoming summer.

If you missed the show, don’t worry. A recording is now available at www.asicentral.com/radio. Plus, the ASI Virtual Trade Show is still open today until 3 p.m. eastern time. Go to www.asicentral.com/vts to attend.

And, don’t forget to join us next Tuesday, March 30, for our next radio broadcast. Log on to www.asicentral.com/radio at 10:30 a.m. eastern time and give us a call at 215-953-4979. We want to hear from you!

Vote Now For Best Ads Of 2009
The finalists have been chosen for the Advertising ASI Spirit Awards. Now, all we need is your input. Please click here to vote in the Best Ads categories for Counselor, Email Express, ESP Online, catalogs and Advantages, and for Best Innovative New Product. You can select up to three per category; limit of one ballot per person, please.

Take The State Of The Industry Survey
Counselor is currently polling professionals in the industry – both dist_aributors and suppliers – to see how the market did in 2009 and to get impressions on where the industry is headed in 2010. We need your input. Please take some time to click the appropriate link below and complete the annual State of the Industry survey. Your responses will remain anonymous and you'll be helping to create Counselor's annual State of the Industry report.

dist_aributors click here to take the dist_aributor State of the Industry survey.

New Course Available On ASI Education's OnlineLearning Center 
Be sure to register at http://www.asicentral.com/asionlinelearning for some exciting new courses available exclusively to ASI members. Brought to you by ASI Education, Online Learning is the newest and most convenient way for dist_aributors to get educated.

NEW: Social Networking Tactics That Get Results
Social networking for business? Lots of businesses are using social networking sites such as Twitter, Facebook and LinkedIn; creating videos and podcasts; and using blogs to connect with prospects and clients. We’ll cover all of these cool, social media tools in this course, so when you’re done, you’ll have an overview of which ones might be right for promoting your business. Register now! {http://www.asicentral.com/asionlinelearning}

Coming Soon:
* Business Management for dist_aributors: Customer Service Tactics to Increase Sales and Increase Market Share

In The News
A4 (asi/30121) recently coordinated with World Vision and Food For The Poor to send over 62,000 new garments to Haiti.

Boxercraft (asi/41325) has announced a new charity contest, allowing dist_aributors, screen printers and embroiderers to nominate a community organization to receive a donation of spiritwear. Beginning April 2, for more information, go to: www.boxercraft.com/liftspirits.

Prime Line (asi/79530) has announced that it is celebrating its 30th anniversary in the ad specialty industry.

R.S. Owens & Co. (asi/75530) was honored at the 2010 Awards and Recognition Show for producing the Best Supplier Retail Catalog.

Starline (asi/89320) has announced the cash prize winners of its “Find the Shenanigans” online contest. They are: Rob Kelly, Leader Promos; Candace Bauman, ID Apparel; Norm Sandvick, Apple Valley Promotions (asi/123030).

Sweda Company (asi/90305) has launched a wholly-owned subsidiary named Toue, which focuses on total product sourcing. The company can be found at: www.totaltoue.com.

People On The Move
Digispec (asi/49716) and Visstun (asi/93975) have added Jeanne Hughes as a sales counselor.

Gold Bond Inc. (asi/57653) has hired Michael Del Bucchia as director of marketing.

Senator USA (asi/86390) has announced the hiring of Eric Veres as a member of its outside sales team.