Digital Room LLC (dba Next Day Flyers): Alleged violation of RCW 42.17A.345 & WAC 390-18-050 for failure to respond to a commercial advertiser request. (EY'23 MAR'24)

Case

#150742

Respondent

Digital Room LLC (dba Next Day Flyers)

Complainant

Conner Edwards

Description

PDC staff reviewed the allegation(s); the applicable statutes, rules, and reporting requirements; the response(s) provided by the Respondent; and other relevant information, to determine whether the record supports a finding of one or more violations.

Based on staff’s review, we found the following:

Staff found that Next Day Flyers, the original Respondent named in the complaint, is a brand of Digital Room, LLC. Digital Room has been in business for nearly three decades helping “business to reach their customers, promote their products and built their brands.” Through more than a dozen ecommerce websites, including www.NextDayFlyers.com, Digital Room produces marketing and branding materials accessible to political campaigns in Washington state. Based on applicable activities, Digital Room, LLC, and its brands, is a “commercial advertiser” as defined in RCW 42.17A.005(10) & WAC 390-18-050.
RCW 42.17A.345 & WAC 390-18-050 require commercial advertisers to make their documents and books of account open for public inspection during normal business hours for five years following the election to which the records pertain. Pursuant to RCW 42.17A.345, the documents and books of account shall specify 1) the names and addresses of persons from whom it accepted political advertising or electioneering communications; 2) the exact nature and extent of the services rendered; and 3) the total cost and the manner of payment for the services. WAC 390-18-050(3) states that commercial advertisers can provide such information to the requester in person during normal business hours or electronically (if requested electronically) by email or online publication.
Conner Edwards emailed customercare@nextdayflyers.com requesting to view the commercial advertiser books of account for expenditures by the Washingtonians to Recall Inslee – 2023 committee. He then followed up the request several times and did not hear back from the company. PDC confirmed receipt of the request at the customercare@nextdayflyers.com address.
During the case review PDC staff also emailed the “customercare” email address and did not receive a response. This email address is the email address listed on the Next Day Flyers website for their contact and customer care team. PDC Staff then called the ‘855’ phone number, also listed on the website, and did reach customer service. Unfortunately, the customer service staff was not familiar with how to handle the type of request made by PDC staff but eventually gave an email address for the Accounting Department. PDC staff sent the original complaint notification to the Accounting Department but again did not receive a response.
Upon reviewing data on the Better Business Bureau website, several other business locator sites, and the California Secretary of State’s business search website, PDC staff were able to determine that Next Day Flyers is a brand of Digital Room. Staff then called the Digital Room headquarters and after leaving several messages the Corporate Controller confirmed the relationship between Digital Room and Next Day Flyers and supplied a response to the complaint.
On April 22, 2024, Digital Room supplied the requested books of account materials to PDC staff, and you received the same materials, from the company, on May 3, 2024. A review of the materials shows substantial compliance with maintenance of records and supplying the information as asked (albeit belatedly).
As part of the resolution of this case, PDC staff requested Digital Room explain the future handling of an inspection request for books of account. Mr. Michael Green, Corporate Controller for Digital Room, said they are rolling out similar practices across all brands and specifically for Next Day Flyers “the measures we have put in place since becoming aware of this request:
- “Accounts Receivable and Customer Service teams have received additional training on how to handle similar requests in the future, mainly escalating this issue to myself and a back-up to further ingest and process requests of this nature and ensure a timely response.
- “A filter has been put in place to re-direct requests of this nature to myself and a back-up to further ingest and process requests of this nature and ensure a timely response.
- “We have added a ‘Legal Matters’ link to the footer pages of the NextDayFlyers website with contact information for our legal department and information specifically addressing PDC matters such as RCW 42.17A.345 / WAC 390-18-050. Click here to view the experience: https://www.nextdayflyers.com/legal-matters”
Neither Digital Room, nor any of its brands, have other similar warnings or violations of PDC requirements.

Based on our findings staff has determined that, in this instance, failure to respond to a commercial advertiser inspection of the books of account does not amount to a finding of a violation that calls for further investigation.

Per WAC 390-37-060(1)(d), however, Digital Room will receive a formal written warning concerning the requirement under RCW 42.17A.345 and WAC 390-18-050 for not responding to a commercial advertiser request for inspection of the books of account. Staff expects, moving forward, that Digital Room, and its brands, follow all laws and rules on requirements associated with commercial advertisers and political advertisements in Washington state. If violations of PDC laws or rules occur in the future, the Commission will consider this formal written warning in deciding on further Commission action.

Based on this information, the PDC finds that no further action necessary and has dismissed this matter per RCW 42.17A.755(1).

Disposition

Case Closed with Written Warning

Date Opened

March 22, 2024

Areas of Law

RCW 42.17A.345, WAC 390-18-050

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