CEO DATELINE - Grocery Manufacturers Association tries to forestall $42M in fines
CEO DATELINE - Grocery Manufacturers Association tries to forestall $42M in fines
- August 17, 2016 |
- Walt Williams
Consider joining CEO Update. Membership gives full access to the latest intelligence on association management, career advancement, compensation trends and networking events, as well as hundreds of listings for senior-level association jobs.
Attorneys for the Grocery Manufacturers Association are in a Washington state courtroom this week trying to convince a judge not to impose recommended fines of up to $42 million for allegedly violating the state's campaign disclosure laws.
A Washington state superior court judge ruled in March that the trade group failed to disclose which companies donated $11 million to its campaign to defeat a 2013 ballot measure calling for labels on foods containing genetically modified organisms. Voters rejected the measure, but Washington State Attorney General Bob Ferguson sued GMA that same year for allegedly violating state disclosure law.
A four-day trial began Monday in Thurston County Superior Court to determine GMA's penalty, the agriculture industry news site Capital Press reported. Ferguson has suggested penalties up to $42 million, but GMA attorneys argued the group should pay no more than $1 million since its violation of state law was unintentional. They said GMA relied on the advice of outside lawyers and believed it was in compliance.
GMA CEO Pamela Bailey testified that her group did not intend to deceive the public. She added GMA thought deception wasn't possible because the association's members were frequently mentioned in the media.
"I think that was well reported on and well known, very well known," she said.
GMA's attorneys also said Ferguson appeared to be targeting the association for harsh treatment given that past violators of the law usually have been fined an amount equivalent to 5 percent or less of the total contributions collected.
Senior Assistant Attorney General Linda Dalton told the court that a substantial penalty would help keep Washington's transparency laws strong, Capital Press reported.
GMA is not the only organization facing potential fines for allegedly concealing its contributors. The pro-labeling group Food Democracy Now was also found guilt of violating state disclosure laws, with a trial to determine its penalties set for September. http://bit.ly/2b4c2nN
MORE CEO DATELINE
- Former head of Federation of American Hospitals dies
- John Oliver mocks API for ‘stealing' his show's opening credits
- Associations worry FCC auction will lower attendance at events
- Head of public health schools association murdered
- Association: Half of women in advertising have been sexually harassed