Law Firm Delivers 'Earth-Shattering' 2257 Letter to Feds

WASHINGTON — Experts on the Regulatory Flexibility Act asserted in a letter submitted during the recent 2257 public comment period that the Justice Department has failed to meet their requirement under the RFA to consider the impact of 2257 regulations on small businesses.

The letter, primarily authored by David E. Frulla, a partner in the firm Kelley, Drye, Collier & Shannon, honed in on the fact that the Justice Department apparently has done no research whatsoever on the economic impact of 2257 and the burden that compliance would impose on small businesses within the industry.

FSC Chairman Jeffrey Douglas told XBIZ that the RFA concerns cited by Frulla in his letter are “earth-shattering” for the Justice Department’s continuing efforts to enforce 2257.

“I don’t know how the Justice Department is going to proceed,” Douglas said. “If they ignore [the RFA claims] the statute will be enjoined — hopefully root and branch. If they comply, then they have to start all over again, and consider the economic impact of the entire statute.”

The Kelley, Drye, Collier & Shannon firm was retained by the Free Speech Coalition, along with Georgetown Economic Services (GES), to help communicate to the Justice Department concerns over the economic impact of 2257. GES conducted a study on the costs, and Kelley, Drye, Collier & Shannon was retained to present the legal arguments surrounding the RFA.

The firm previously has represented clients on RFA issues initiated by a wide range of federal rulemaking proceedings, including ones initiated by the Commerce Department, the Environmental Protection Agency, the U.S. Army Corps of Engineers, the Agriculture Department and the Federal Communications Commission.

“[T]here are thousands of small businesses in the adult entertainment industry that will experience a significant adverse economic impact if the proposed rule is implemented,” Frulla wrote. “Accordingly, pursuant to the RFA … the Justice Department is required to conduct detailed regulatory flexibility analyses … in connection with developing this rule.”

Frulla also observed that “while the adult entertainment industry’s overall economic contribution to the U.S. economy is large, the overwhelming majority of industry participants (and, likewise, of the FSC's members) are small businesses.”

Frulla argued that small businesses in the industry will “suffer substantial economic, administrative and other injury, which almost assuredly will force a significant number of them (particularly Internet-based businesses) out of business should the proposed rule proceed to final rule in its current form.”

Whatever the true economic impact of 2257 may be, Frulla asserted that the Justice Department simply has not met its responsibilities under the RFA with respect to researching that impact.

“In its proposed rule, the Justice Department states, in conclusory fashion, that it ‘drafted the rule to minimize its effect on small businesses while meeting its intended objectives,” Frulla wrote. “Yet nowhere in the proposed rule does the Department explain how it sought to minimize impacts on small businesses, nor is such consideration otherwise evident.”

This unsupported assertion on the part of the Justice Department “falls far short of what is required of agencies under the RFA, the SBA Guide and controlling case law,” Frulla wrote.

Douglas noted that the Justice Department not only failed to conduct any real analysis of the statute’s economic impact with respect to the newly proposed revisions to the regulations, the agency never considered the impact of the statute and regulations in their original form.

“They haven’t even gotten to step one of a long, complicated road,” Douglas said.

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Pure Taboo Debuts 'Behind the Scenes Documentary' for Latest 'Under the Bed'

Pure Taboo has released a behind-the-scenes documentary on its series “Under the Bed,” spotlighting the episode “The Growth.”

Connie Perignon Toplines David Perry's 'Sexual Desires 2'

Connie Perignon headlines director David Perry's “Sexual Desires 2” from Evil Angel.

Proposed New Hampshire AV Bill Appears to Violate Constitution

A bill in the New Hampshire state legislature, aimed at requiring adult sites to age-verify users in that state, contains a provision that seemingly contradicts the Supremacy Clause in Article VI of the U.S. Constitution.

Rae Sixty Nine Makes Her TransAngels Debut

Rae Sixty Nine has made her TransAngels debut opposite Adam x Lee in the studio’s latest release, titled “Cock Ride.”

Ariel Demure Toplines 'TS MILFs' From TransSensual

Reigning XMAs Trans Performer of the Year Ariel Demure headlines “TS MILFs,” the latest title from Mile High Media studio imprint TransSensual.

AEBN Publishes Report on Fetish Trends

AEBN has published a report on fetish categories from its straight and gay theaters.

Online Child Protection Hearing to Include Federal AV Bill

A House subcommittee will hold a hearing next week on a slate of bills aimed at protecting minors online, including the SCREEN Act, which would make site-based age verification of users seeking to access adult content federal law.

Lana Wolf Returns to Immoral Productions

British star Lana Wolf stars in a new two-part scene from Immoral Productions alongside Dean Van Damme and studio honcho “Porno” Dan Leal.

Lulu Chu, Connie Perignon Star in 'Locked, Cocked & Loaded' From Brazzers

Lulu Chu and Connie Perignon star with Victor Ray in the latest release from Brazzers, titled "Locked, Cocked & Loaded."

Adriana Chechik Returns to Evil Angel With Blowbang From Jonni Darkko

Adriana Chechik has returned to Evil Angel with a blowbang from director Jonni Darkko.

Show More