Fighting for You: May 2025 Legislative and Regulatory Update - Articles

Articles

Summer is almost here, and legislative and regulatory issues facing the insights industry are blooming all over, including: a new FTC commissioner; proposed reform of the federal government research process; U.S. House-passed legislation to empower insights professionals with more training, while also prohibiting state AI regulation; state sales taxes advancing for insights-related services; a proposed ban on polling by public universities; new compliance guidance for the federal ban on sensitive data transfers to certain foreign actors; new TCPA consent rules for calls and texts; and a change in federal enforcement of independent contractor status rules for research subjects receiving incentives.

Federal leadership transitions continue

The U.S. Senate confirmed Mark Meador as a new Republican commissioner on the Federal Trade Commission (FTC), the lead regulator of the insights industry in the U.S. However, with the Democrat commissioners having recently been fired, the near future of the FTC and its enforcement and rulemakings are uncertain.

Federal government research

Noting that the U.S. government’s current approach “to survey, opinion and market research, unchanged since 2006, wastes taxpayer resources and hurts the private sector,” the Insights Association filed comments with the U.S. Office of Management and Budget (OMB) urging “OMB to finally modernize federal statistical policy as it relates to survey, opinion and market research by”:

  • “streamlining the research approval process”;
  • “accepting modern survey methods and technology, particularly online panels”;
  • ”stopping the demands for arbitrarily-high response rates that waste resources and harass research subjects”;
  • “allowing flexibility in offering and valuing participant incentives, instead of discouraging their use and arbitrarily capping their value”;
  • “increasing competition in the marketplace for the provision of research services to the federal government, which will provide more opportunities for small businesses and spark innovation”; and
  • “recognizing ISO standards as a mark of quality in research, which will help federal agencies more easily identify trustworthy research partners.”

Human Resources

Congressional budget reconciliation legislation passed the U.S. House of Representatives with a provision sought by IA to empower the insights industry’s workforce with more training. The Freedom to Invest in Tomorrow’s Workforce Act, which would expand qualified expenses under 529 savings plans to include postsecondary training and credentialing, such as licenses and professional certifications and certificates, passed the House by a 215-214 vote early on May 22, 2025 as part of H.R. 1 (the One Big Beautiful Bill Act).

Artificial Intelligence

That same bill that passed the U.S. House included a provision that would prevent states from regulating artificial intelligence (AI) and automated decision-making systems, such as recent laws in California, Colorado and Utah, for the next decade.

New York legislation would require clear notice to users that they are interacting with an artificial intelligence chatbot, including in an insights context, and prohibit impersonation of licensed professionals or lawyers.

Tax

A Nebraska bill would remove the tax exemption for marketing services, potentially exposing some insights-related services to sales tax.

A new Washington state law that IA opposed would, among many sales and excise tax provisions, levy a new sales tax on digital advertising services that includes measurement and effectiveness research.

Political Polling

IA opposed a Florida bill that would ban public universities from polling on political candidates, while still allowing issue-based surveys. IA shared a 1-page position paper.

IA endorsed a Massachusetts bill modeled on New Hampshire‘s law that targets push polls for disclosures and transparency while protecting bona fide research. IA shared a 1-page position paper.

Privacy and Data Security

The U.S. Department of Justice (DOJ) released compliance guidance for a new federal regulation now in effect that prohibits transferring or sharing personal data (mostly sensitive, and mostly in bulk amounts) with countries of concern (China, Cuba, Iran, North Korea, Russia, and Venezuela), people located in such countries, or companies under significant control of those countries. It also outlined good faith efforts that will help companies avoid enforcement during the first 90 days.

In addition to IA's recent extensive comments to a Congressional committee on how best to craft federal privacy legislation, IA also joined a coalition letter supporting a set of broad policy principles to guide such a bill.

Senate Democrats urged the FTC to “take action to protect Americans’ neural data from potential exploitation or sale, as brain-computer interface (BCI) technologies rapidly advance.”

Telephone

The Telephone Consumer Protection Act (TCPA) regulations have long required that consumers can revoke consent for calls and texts to cell phones made using automatic telephone dialing systems (autodialers) by any reasonable means. New regulations from the Federal Communications Commission (FCC) "clarify and strengthen" those "consumers’ rights under the TCPA to grant and revoke consent to receive robocalls and robotexts" and set a quick timeframe in which requests must be granted.

Independent Contractors = Research Subjects

While the Department of Labor reviews the Biden-era rules on determining whether someone is an independent contractor or an employee (including for research subjects who receive a participant incentive), the agency says it will not enforce those rules.

The U.S. Senate will again consider proposals to improve the classification of independent contractors (including research subjects who receive incentives for participation in research studies), and to provide them with portable benefits.

Rousing support for the insights industry

In the face of all these opportunities and threats, on these issues and many others, the insights industry only has one organization fighting for it across the U.S. However, the Insights Association couldn’t keep up that fight without the membership and support of insights industry leaders like you.

We remain available to answer your questions on these and other legislative/regulatory/legal issues – please just drop us a line.

This information is not intended and should not be construed as or substituted for legal advice. It is provided for informational purposes only. It is advisable to consult with private counsel on the precise scope and interpretation of any laws/regulation/legislation and their impact on your particular business.

About the Author

Howard Fienberg

Howard Fienberg

Based in Washington, DC, Howard is the Insights Association's lobbyist for the marketing research and data analytics industry, focusing primarily on consumer privacy and data security, the Telephone Consumer Protection Act (TCPA), tort reform, and the funding and integrity of the decennial Census and the American Community Survey (ACS). Howard has more than two decades of public policy experience. Before the Insights Association, he worked in Congress as senior legislative staffer for then-Representatives Christopher Cox (CA-48) and Cliff Stearns (FL-06). He also served more than four years with a science policy think tank, working to improve the understanding of scientific and social research and methodology among journalists and policymakers. Howard is also co-director of The Census Project, a 900+ member coalition in support of a fair and accurate Census and ACS. He has also served previously on the Board of Directors for the National Institute for Lobbying and Ethics and and the Association of Government Relations Professionals. Howard has an MA International Relations from the University of Essex in England and a BA Honors Political Studies from Trent University in Canada, and has obtained the Certified Association Executive (CAE), Professional Lobbying Certificate (PLC) and the Public Policy Certificate (PPC). When not running advocacy for the Insights Association, Howard enjoys hockey, NFL football, sci-fi and horror movies, playing with his dog, and spending time with family and friends.

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