Friday 17 December 2010

SEATTLE ORDINANCE- BIG THREAT TO YP COMPANIES IN US & GULF

SEATTLE ORDINANCE TO YP INDUSTRY -- GO GREEN OR OWN UP.


Finally, I have got a straight topic specific to my own industry to jot down few inputs with my legal pen. The topic may now have been an already notified subject to many of my colleagues and friends in the industry . This posting is solely intended to those who are interested in some serious readings to know in detail about the announced Ordinance in the US, limiting the reach and usage of Yellow Pages particularly in the city of Seattle  in Washington, and the likelihood of being implemented in other US states and finally its impact in the Gulf Asian regions.


City of Seattle is familiar to most of us being spotted as the Head Quarters of the corporate giant Boeing ( HQ Now in Chicago).This legislation Per Se could cost the yellow pages industry billions of Dollars. Furthermore it could even spread to other continents. I won't be surprised if a similar kind of legislation creeps into some of  the legislative domains of the Middle East countries in the near future.  Though it is cliché to say 'Middle East catches cold when US sneezes' the usage still amuse people.


SEATTLE ORDINANCE - A BACK TRACK  


US have an impeccable history as the paradise of right's activist and  freedom fighters. Anyone who is deprived by the acts or deeds of any other individual, state or business can sue them in the Court of  Law for an appropriate remedy and may reinstate the rights. Usually these kinds of actions are mostly initiated either by some activist group or politicians to gain popularity and recognition. The alternative step being, one can individually or by forming groups could approach the authorized representatives of the state or any Senate member for initiating draft legislation . Council members can also initiate these kinds of legislations citing the public interest involved. Once the final draft is made ( Around 14 drafts were prepared before finalizing the Seattle Ordinance) the paper is put forth in the Council for ratification. Once it gains the support of the majority it will be considered as the law in force either with immediate effect or later application . Environment is a popular issue now with many US politicians and they usually leave no stone unturned to achieve their objective. It is no surprise that the issue was taken up with full vigour and steam by the Seattle City Council. 


In the mentioned case, Seattle City Council has passed an Ordinance forcing the Yellow Pages companies to cut down the number of books being published / printed keeping in mind of the environmental concerns. The ordinance also imposes certain regulations and fees to yellow pages companies. It requires the publisher to pay $100 as license and $0.14 per book and $148 per ton towards advance recovery fees. What the legislation aims is to collect the cost of recovering, recycling and disposing of the old copies from the Yellow Pages companies once the new edition is released. The Seattle city council is trying to set up a model where the producer, rather than the community, pays for the cost of recycling the products. Books becoming muncipal waste and eventually reaching as landfill were a great concern with many states.


It is speculated that if this model is adopted, three of the major Yellow Pages companies in US like AT &T, Super Media & Yellow Book would end paying more that half a million dollars yearly as expense alone. Advance recovery fees would be $10 billion if other 20 major publishers in US join the fray.


A suit is filed in the district court of Washington by Dex One, SuperMedia and Yellow Pages Association (YPA) challenging the ordinance citing the violation of interstate trade and privacy rights of Seattle residents. Subsequent to this suite a new website http://www.yellowpagesoptout.com/  is also created by the association for providing the residents to opt out from the yellow pages distribution network. Those who prefer not to receive Yellow Pages annually can log on to the site and opt out without citing any reason or explanation. This brave move is intended to get a favourable decision from the judiciary though the final out come is uncertain. Judges have ample discretion on environmental matters. To please community watch dogs many publishers are now trying to recall their other language editions from the press. The Spanish language variants published until now by some US YP companies intended for the ethnic segment  got a huge blow below their belt. The grapevine is that the editions are now off press to save millions. 


Publishers have also started using new ink which is non toxic for the printing job. The selection of paper are now from wood chip pulp  intended to considerably reduce the mass felling of trees and eventually making the used paper easily recyclable and decomposable too. Yellow Pages users are divided on this issue. Many find online content satisfying their need and search requirements. But Majority still expect the yellow book on their desk as a reference source and possibly may be to continue experiencing the classic search method.


Winning a suit at the District Court of Washington may not be a  difficult task for the consortium but there is a high probability that its contentions will be rejected by superior Courts since major environmental issues are involved here. The strange part is that News papers and magazines are exception by law on this issue being the pillar of democracy and one indispensable to the society. They need not comply with the ordinance. Freedom of expression enshrined in the US constitution would come to their rescue.Yellow pages industry is worried, not because the product is extinct or bankable no more,but its organic growth is struck with impediments which are beyond its control and purview.


THE IMPACT OF THE SEATTLE ORDINANCE IN GULF 


Yellow Pages companies in Gulf Asian regions are closely monitoring the implications of the Ordinance. The issue may be debated in the UN once taken up by any member nation who relentlessly promote Green Environment. Many countries shall become the signatories in future. The compulsions from the international community may force other nations also to follow the suite. 


 UAE is spared for the moment-- being a non signatory to the treaty on the sustainable use of environments  and it Monarchic nature is surely a game stopper. Law applicable in UAE permits no one either Resident or Citizens of UAE to approach any Court here for developing this kind of law. They also cannot challenge the rule even if it is proclaimed as a decree at a later date. UAE doesn't have a comprehensive and written constitution like US or India. Fundamental rights are something unheard of. Public demand and  and compulsion are out of question since it has no audience here. 


The situation is both Good and Bad for Yellow Pages companies here. GOOD, for the simple reason that the yellow pages companies should waste no time to plan and develop a sustainable business model  favourable to the environment. It is BAD, since the profits and revenue are affected at least in the short term.


Be glad that the Print to On line transition is now gaining momentum in UAE before any decree is made in the line with or similar to SEATTLE ORDINANCE urging companies to comply with clean environment terms.Yellow Pages companies are aware of this and I'm sure will eventually adapt to the challenges in place. 


Antony Konnoth
bizsense.blogspot.com

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