Jan Teague

President/CEO

360.943.9198, ext. 19

jteague@retailassociation.org

Mark Johnson

Vice President of Government Affairs

360.943.9198, ext. 15

mark.johnson@retailassociation.org

Tammie Hetrick

Vice President of Retail Services (RASI)

360.943.9198, ext. 13

 tammie@retailassociation.org

Jim Szymanski

Social media promotions raise endorsement issues

By Jan Teague, President/CEO

The Federal Trade Commission recently put out a warning for retailers to carefully consider whether their promotions raise endorsement issues.  If they do, the retailer needs to disclose it's a promotion. 

Now that retailers are using more social media, they need to watch how they use it.  Social media is such a new frontier that it is easy for retail promoters to slip up and not make proper disclosures.  It's still not clear with social media just how the FTC wants retailers to do promotion disclosure.  The FTC has indicated that disclosures such as #ad and #sponsored may be sufficient to disclose an incentivized relationship in certain social media postings.

According to a May 13 article published by Jason Howell and David Cromwell of the law firm Perkins Coie, the FTC may be ramping up monitoring and enforcement associated with endorsements and testimonials. Brands should take extra care that their media policies and marketing programs incorporating bloggers and other influences comply with the FTC Endorsement Guidelines.

The Perkins Coie article talks about how a Cole Haan contest required an entrant to post Cole Haan products and that the most creative pin to Haan's Pinterest board would win a $1,000 shopping spree.  But the FTC explained that because the contest required Cole Haan products to be in the pins, it was a form of product endorsement. It should have been disclosed to viewers. 

The FTC didn't take formal enforcement action because this is all emerging technology and they hadn't yet addressed it.  Now that social media is on the FTC's mind, expect the commission to be taking a closer look at websites.  If you are promoting a product, make sure visitors to your website understand that they're looking at a promotion. 

Most retailers have been pushed to have websites and to use social media in order to compete with online retailers.  These emerging new technology applications and new promotions used for attracting people to a website will keep retailers on their toes to make sure that they comply with the FTC's  truth- in-lending, endorsement and testimonial guidelines.  If you don't have an internal policy on how to use social media, now might be a good time to consider adopting one.  

Increasing the minimum wage - who's next?

By Mark Johnson, VP Government Affairs

While Seattle rushes through its ordinance to raise the minimum wage to $15 an hour, other cities are watching and making their own plans. 

This week I attended a meeting in Tacoma where there are rumblings from the labor community about increasing the minimum wage and imposing a Seattle style paid time off ordinance. One of my members asked me to guess which cities in Washington might also follow Seattle's lead. I wagered possibly Bellingham, Vancouver and maybe my home city of Olympia. 

Other cities around the country are also considering a higher minimum wage.  I have received calls from my counterparts asking me about the Seattle efforts.  Seattle is a major battle in an all-out national war to increase the minimum wage.  I say major battle, because the City of Sea Tac approved a $15 wage for targeted industries last year.  This is the most expensive per vote election in our state's history. 

I hear the President talking about increasing the federal minimum wage to $10.10 an hour. If the President is successful and Seattle adopts $15 an hour,  there will be a $4.90 difference per hour or almost $40.00 in an 8-hour day!

Right now,  I'm worried about what an increase of this magnitude will do to the business of Seattle. If I have a business in Seattle and I have 100 employees making the state minimum wage of $9.32 an hour and they are all full-time,  I have a payroll obligation of $149,120.00 per month.  If the City of Seattle moves to $15 an hour, my monthly payroll cost would be $240,000.00 per month or an increase of $90,880.00!  Keep in mind this doesn't include workers' compensation, unemployment insurance or any other taxes and benefits that may be provided.

WRA works for insurance rate fairness

By Tammie Hetrick, VP Retail Services

I met today the Department of Labor and Industries as part of a business coalition working on the issue of common ownership, how it relates to Retrospective Rating enrollment and the experience rating tied to all similarly owned companies. 

Of concern is the common ownership of businesses that are in different industries but, because of common ownership,  the lower risk company is sharing the same experience rating as the higher risk company even though the risks and exposure are very different.  This has recently impacted a member retailer with a very low experience rating, below .80, who also owns an auto repair shop with an experience rating of over 1.0. 

The higher the experience rating number, the greater the risk of injury. A higher number also equates to a higher insurance premium than a lower rating number.

Because the businesses are commonly owned, the retail store's experience is combined with the auto repair shop to determine the experience for both.  This benefits the auto repair shop but harms the retail store and the employees who will see an increase in their L&I premium contribution.  The result is that employees of the lower risk business get smaller paychecks because they're paying a higher insurance premium for the higher risk business that could be located miles away from the retail store.

I'm asking that L&I adopt a rule that would change how commonly owned companies of differing industries are experience rated to protect employers and employees from significant premium increases.

 Safeway praised for promoting family meals

Safeway stores have won an honorable mention citation from the Food Marketing Institute for encouraging family meals.

Safeway, a member of WRA, won the recognition for a partnership with Mexico-born chef Marcela Valladolid and the introduction of her line of easy-to-prepare Mexican dishes. This year's winners will be recognized at an FMI meeting June 10-13 in Chicago.

FMI also cited Safeway for honorable mention status last year in the same competition for its partnership with Coca Cola to transform its deli departments into destinations for quick service family meals. Click here for more background on FMI's annual competition.

Source: FMI

Walmart invites "made in USA" companies to a July summit meeting

Walmart is inviting Washington State-based manufacturers and suppliers to a national summit meeting at its Bentonville, Ark. headquarters on July 8.

The networking opportunity will help Walmart meet its commitment to spending an additional $250 billion on products made in the U.S. over the next decade.

The potentially new Walmart suppliers could gain access to the estimated 140 million Walmart customers. The all-day "open call" summit will focus on new business development. Walmart will make senior leaders, buyers and merchandise officials available to discuss potential business.

Click here to register for the event and learn more background.

Source: Walmart

Review all candidates for Congress, Legislature

Party control of the state Senate will be among the most closely watched outcomes of the upcoming fall elections.

Last week, Washington candidates for the U.S. Congress and most state Legislature seats formally filed as candidates with the Secretary of State.

Click here for the complete list of those who filed as candidates.

Of special note will be the 48^th district race for the state Senate. The outcome could determine whether Republicans retain control in the Senate. Democrats control the governorship and seats in the House of Representatives.

At stake in the 48^th is who will replace Democratic Sen. Rodney Tom, who sided with Republicans to achieve GOP control of the Senate. Tom resigned for family and health reasons in recent weeks.

Democrat Rep. Cyrus Habib had been the lone declared candidate for the vacancy until late Friday, when paralegal and former delegate to the state Republican convention Michelle Darnelle filed to oppose Habib.

For more political observations, click here.

Sources include Crosscut

AG seeks public input on use of surplus utility funds

Attorney General Bob Ferguson is seeking public input on a pending opinion regarding the use of surplus utility funds and the impact on rates.

Interested members of the public are required to express their interest to comment by May 28, 2014 by sending an e-mail to jeff.even@atg.wa.gov or by writing to the Office of the Attorney General, Solicitor General Division, Attention Jeff Even, Deputy Solicitor General, P.O. Box 40100, Olympia, Wa. 98504-0100.

Rep. Shelly Short, R-Addy, has asked Ferguson to render an opinion regarding public utility rates. She wants to know if a city is required to reduce rates if the utility accumulates a financial surplus and to report on which authority determines if a city's utility rates are considered "reasonable" under the law.

The May 28 deadline is not the same as a deadline to comment. The AG first requires members of the public to express their interest in commenting. The comment deadline is at a later date.

After notifying the Attorney General, the office may provide a written copy of the legal questions at hand and instructions on how to submit comments including due dates.

Click here for more information on Attorney General opinions.

Source: Office of Attorney General 

Gas tax increase, fuel rate hikes could be in the offing

Two recent newspaper articles highlight the increased costs consumers could be facing in environmental moves being contemplated by Gov. Inslee.

Last week, state Senate Republican Leader Mark Schoesler, (Ritzville), wrote an opinion piece in The Columbia Basin Herald about rising gasoline prices that could result from Inslee's executive order to curb carbon pollution, which the Legislature is expected to debate next year. The predicted carbon fuel tax could add anywhere from 30 cents to $1 per gallon of gas, Schoesler reports .

Over the weekend, as Associated Press report carried in the Kitsap Sun talked of Inslee's plan to wean the state off dependency on electricity generated from coal-fired power plants in Montana and Wyoming.

In a meeting WRA attended with officials of Puget Sound Energy in March at the Attorney General's office, PSE officials predicted monthly power bills would rise 5 percent if the state ended its reliance on coal-generated power. Coal is regarded as a reliable and relatively inexpensive source for generating power that helps to hold down bills, PRE officials explained.

The developments bear watching as gasoline and power bills are crucial overhead expenses that determine the health and survival of retail businesses.

Click here to read Sen. Schoesler's piece and here to read the Associated Press report on cutting off coal-fired power to the state.

Sources: Kitsap Sun, Columbia Basin Herald

Obamacare problems summed up in Washington Policy essay

Since it became law four years ago, Obamacare has been fraught with a host of problems.

Health care premiums have risen beyond expectations while nearly 300,000 state residents were forced to change insurance policies, many against their wishes. Costs have skyrocketed beyond expectations while computer technical breakdowns and customer service shortcomings have spoiled the roll out of health care exchange services in a host of states including Washington.

Doctor Roger Stark, in a recent opinion piece published by the Washington Policy Center, chronicles the rocky implementation to date for Obamacare. In the piece, Dr. Stark, an analyst with the Policy Center, concludes there have been numerous shortcomings in implementation of Obamacare that have driven an increasing number of patients to seek alternative sources for care.

Meanwhile, efforts continue in Congress to amend the law including a bill to change the definition of an eligible full time employee from working 30 hours a week, as specified in the law, to the traditional 40-hour work week.

Source: Washington Policy Center

Retailers launch center for sharing cyber spying information

Major national retailers last week announced they had launched the Retail Cyber Intelligence Sharing center (www.r-cisc.org) to develop a strategy to reduce crimes committed via the internet.

WRA members including Lowe's, Safeway, Target and Walgreens participated in the launch.

The website is a resource for retailers to receive and share cyber threat intelligence, said the Retail Industry Leaders Association.

The site was researched collaboratively and launched in response to an increase in cyber crimes aimed at stealing personal identities for profit. Components of the website include a section to share background, train and perform research with academia on emerging criminal trends.

Stakeholders in the project include the U.S. Department of Homeland Security, U.S. Secret Service and the Federal Bureau of Investigation. Click on the website for more background information.

Source: RILA

Help elect pro-retail candidates by donating to the PAC

By Mark Johnson, VP Government Affairs

The election season is upon us.  This is an important year with all of the state House members and half of the state Senate up for election. 

WRA's Retail Action Council Political Action Committee, or as we call it the RAC PAC, will be a major player in helping elect pro-retail candidates to the legislature.  Our process is very involved and thorough to ensure the greatest chance for success. 

First, we are diligently working on a voting record for all current members of the legislature.  We select approximately 10 bills per chamber that we were involved in and score the legislators on whether they voted with us or sponsored something we liked or didn't like.  We then combine the 2014 scores with the 2013 scores for a biennium or two-year total.  This gives a better representation of the legislators overall support or lack thereof.  Once the voting record is done the RAC PAC will make its first round of endorsements. 

Surveys will be sent to all candidates who don't have a voting record and who have filed to run for the legislature.  After scoring the surveys we will decide which candidates to interview based on their scores and the viability of their districts to elect them.  Recommendations will then be sent to the RAC PAC for consideration of endorsements and contributions.

RAC PAC contributions are very important to help the pro-retail candidates to get the word out.  Yard signs, letters, websites, radio, bill boards and TV all cost money.  A contested House race can run anywhere from $100,000 to $300,000 and an average Senate race can cost upwards of $500,000. 

Individual donation limits to candidates this year are $950 per election, so for the primary and general you can give $1,900.  Contributions to PACs are unlimited.  We can also accept corporate dollars.

In order to secure a pro-retail legislature it is critical that contributions to the RAC PAC be made.  If you are in a position to donate please mail a contribution made out to:  The Washington Retail Association Retail Action Council PAC, P.O. Box 2227, Olympia WA  98507-2227.  We appreciate all of the WRA members who have already donated.

If you would like to discuss giving opportunities please give me a call directly:  360-943-9198 ,  Ext. 15  We appreciate your serious consideration of this very important component of our political program.

Safety tip: (one in a series)

Training deadline for safe chemical use is June 1

An important training deadline is fast approaching on June 1 of this year.

That is the date employers with workers who use chemicals on the job are due to train those employees about new federal standards for labeling containers. The state has the power to levy fines against companies that have failed to train employees about the new chemical labeling and handling procedures.

The idea is to implement a universal, worldwide system of consistent labeling of chemicals.

Rick Means, WRA's Safety & Claims Administrator, reminds employers that they must maintain electronic or paper data sheets for each hazardous chemical in use on the property. How such chemical are handled should be in the Hazardous Communication Plan , which should be part of an Accident Prevention Program. Such a plan should outline how to respond if a dangerous exposure occurred, including proper first aid and clean up.

Companies unfamiliar with this requirement are urged to follow the link http://www.lni.wa.gov/Safety/TrainTools/Trainer/Kits/hazcom/ to get up to speed.

WRA employs Means, who is available to members to help draw up safety plans and suggest topics for safety meetings. Contact him at 360-943-9198, Ext. 18 or rick.means@retailassociationservices.com.  

Shippers save thousands of dollars with WRA partner

Shipping customers saved an average $3,100 in 2013 by shipping with PartnerShip, a partner with WRA.

Enrolled WRA members can save up to 27 percent on select FedEx services.

WRA encourages all members to explore this service. Visit www.PartnerShip.com/99WRA to enroll. Shipping customers with further questions are encouraged to call Partnership at 800-599-2902 or e-mail sales@PartnerShip.com. You also may click here to receive a free rate analysis to help with your shipping decision.

Links to help with Oso recovery effort

The Everett Herald newspaper has printed a comprehensive list of contacts that businesses or individuals may reach if they wish to offer needed assistance in recovery from the fatal March landslide in Snohomish County.

The list includes contacts at banks, hospitals and charitable organizations and includes updates on fund raising efforts.

Click here to review the full list.