Jack Loughridge started the day tending to his Pensacola,
Florida, printing shop and ended it participating in one of the
state's most controversial legal brawls. The transition came in
the innocuous form of a fax, which turned out to be sent from
Florida's largest lobbying group warning that a new law could
have damaging effects on businesses. Loughridge expressed his
support for the law . . . until he later found out the group had
misleadingly persuaded him to side with the tobacco industry.
Loughridge, whose father died of emphysema caused by smoking,
was appalled that he had been unknowingly lumped with an industry
he despised. "It was explained strictly as legislation that
could harm business-it was misrepresented to me," says
Loughridge. "I felt I was hoodwinked into siding with the
tobacco industry."
Lobbying groups' efforts can trick a small business as
easily as that fax seeped into Loughridge's office. And when
lobbyists' aggressive and sometimes deceptive tactics intersect
with entrepreneurs' political blind spots, small-business
owners are often thrown into a panic.
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Directly soliciting support from entrepreneurs, even if that
means leaving out crucial facts, "is a very common tactic
[among lobbyists]," says Christo Lassiter, an associate
professor at the University of Cincinnati College of Law.
"It's part of the harm in using the courts to establish
public policy in this country."
It's the nature of the beast, agrees Jordan Leibman, a
professor of business law at Indiana University in Indianapolis.
"Telling somebody the law is going to have a certain result
and leaving out details that would qualify what you said-that goes
on all the time," Leibman says. "That's what
lobbyists do; that's what politicians do. That's the name
of the game."
The lobbying group that approached Loughridge implied that if
the tobacco industry were sued, small retailers selling cigarettes
could also be liable. In reality, Lassiter says, when large
industries are involved in big liability suits, the chances that
the liability will trickle down to small businesses are slim to
none.
"I'm not aware of any individual stores [being held
liable for selling cigarettes]," says Lassiter, who notes that
a similar effort, in which lobbying groups attempted to pass a law
that would hold bullet manufacturers and retailers liable for
murders and wrongful killings, went nowhere.
Lassiter points out, however, that such overblown threats are
often used to frighten business owners when controversial issues
are involved. "Serious issues ought to be dealt with in an
honest fashion," he says, "but when advocacy is too
zealous, that doesn't happen."
As elections approach, entrepreneurs should beware not only the
threat of legislation but also the threat of lobbying groups. If
you are approached by a lobbying group, Lassiter recommends asking
your lawyer if its claims are true before you take action or pledge
your support.
Leibman also suggests joining trade organizations or
small-business associations-some of whom have their own
lobbyists-to protect you from unscrupulous lobbying efforts and
inform you of legitimate legislative threats. Though the tobacco
industry's assertions of small-business liability are "a
real stretch," Leibman says, they are not beyond the realm of
contemplation.
"If you're a small-business owner who's interested
in doing the right thing and also protecting your own economic
interests but don't have the time to become sophisticated [in
these matters], you at least ought to join a trade group and read
their articles on a regular basis," Leibman adds.
"That's just part of doing business."
As for Loughridge, his brush with lobbyists, big industry, and
the legislative system have left him somewhat bitter. "I wish
it wasn't the case," he says, "but it's gotten to
the point where I consider politics a dirty word."
-J.C.