Sequestration Will Require Patience at FCC, FTC

Despite the rhetoric in Washington, no one really knows what effect the $85 billion in automatic spending cuts will have on the economy, consumers and business in general. But it's hard to believe that advertisers, media and telecommunications companies won't notice some differences at the Federal Communications Commission and the Federal Trade Commission, agencies that have jurisdiction over their businesses.

Post-sequestration, the best advice for companies that do business with the FCC and FTC is to have some patience. Reports are bound to take longer and decisions are bound to drag on. The FCC, which is already nearly three years late on updating media ownership rules, called the $17 million in cuts to its $342 million budget "very significant." Though no layoffs or furloughs of staff are anticipated, the FCC said staff is already the lowest it has been in nearly 30 years. The Federal Trade Commission, which has jurisdiction over consumer protection and deceptive ad enforcement, is facing a $16 million cut to its $314 million budget. In its statement, the agency said it has made strategic decisions that have positioned it to be able to "sustain sequestration cuts" such as reshaping its workforce through voluntary early buyouts in order to "absorb these reductions."