Jack Loughridge started the day tending to his Pensacola,Florida, printing shop and ended it participating in one of thestate's most controversial legal brawls. The transition came inthe innocuous form of a fax, which turned out to be sent fromFlorida's largest lobbying group warning that a new law couldhave damaging effects on businesses. Loughridge expressed hissupport for the law . . . until he later found out the group hadmisleadingly 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 industryhe despised. "It was explained strictly as legislation thatcould harm business-it was misrepresented to me," saysLoughridge. "I felt I was hoodwinked into siding with thetobacco industry."
Lobbying groups' efforts can trick a small business aseasily as that fax seeped into Loughridge's office. And whenlobbyists' aggressive and sometimes deceptive tactics intersectwith entrepreneurs' political blind spots, small-businessowners are often thrown into a panic.
Directly soliciting support from entrepreneurs, even if thatmeans leaving out crucial facts, "is a very common tactic[among lobbyists]," says Christo Lassiter, an associateprofessor at the University of Cincinnati College of Law."It's part of the harm in using the courts to establishpublic policy in this country."
It's the nature of the beast, agrees Jordan Leibman, aprofessor of business law at Indiana University in Indianapolis."Telling somebody the law is going to have a certain resultand leaving out details that would qualify what you said-that goeson all the time," Leibman says. "That's whatlobbyists do; that's what politicians do. That's the nameof the game."
The lobbying group that approached Loughridge implied that ifthe tobacco industry were sued, small retailers selling cigarettescould also be liable. In reality, Lassiter says, when largeindustries are involved in big liability suits, the chances thatthe liability will trickle down to small businesses are slim tonone.
"I'm not aware of any individual stores [being heldliable for selling cigarettes]," says Lassiter, who notes thata similar effort, in which lobbying groups attempted to pass a lawthat would hold bullet manufacturers and retailers liable formurders and wrongful killings, went nowhere.
Lassiter points out, however, that such overblown threats areoften used to frighten business owners when controversial issuesare involved. "Serious issues ought to be dealt with in anhonest fashion," he says, "but when advocacy is toozealous, that doesn't happen."
As elections approach, entrepreneurs should beware not only thethreat of legislation but also the threat of lobbying groups. Ifyou are approached by a lobbying group, Lassiter recommends askingyour lawyer if its claims are true before you take action or pledgeyour support.
Leibman also suggests joining trade organizations orsmall-business associations-some of whom have their ownlobbyists-to protect you from unscrupulous lobbying efforts andinform you of legitimate legislative threats. Though the tobaccoindustry's assertions of small-business liability are "areal stretch," Leibman says, they are not beyond the realm ofcontemplation.
"If you're a small-business owner who's interestedin doing the right thing and also protecting your own economicinterests but don't have the time to become sophisticated [inthese matters], you at least ought to join a trade group and readtheir articles on a regular basis," Leibman adds."That's just part of doing business."
As for Loughridge, his brush with lobbyists, big industry, andthe legislative system have left him somewhat bitter. "I wishit wasn't the case," he says, "but it's gotten tothe point where I consider politics a dirty word."-J.C.
