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

Cameryn Morie Makes Her WIFEY Debut

Cameryn Morie stars with her husband Bobby B. and Alberto Blanco in the latest release from Vixen Media Group studio imprint WIFEY.

Ken Feels Returns to Bellesa House

Ken Feels stars with Aviana Violet in the latest scene from Bellesa House.

Coco Bae Stars in 'Futa's Curse' From Futanari XXX

Coco Bae stars with Matty Mila in “Futa’s Curse,” from Futanari XXX, directed by Mark Zicha.

Elly Clutch Stars in Latest From Ricky's Room

2024 XMAs Female Clip Creator of the Year Elly Clutch stars in the latest release from Ricky's Room, titled "An Aftershock Affair."

Isa Bella, Sage Hunter Topline 'Lesbian Hotwives 3' From Sweetheart Video

Isa Bella and Sage Hunter headline the third volume of "Lesbian Hotwives," from Mile High Media studio imprint Sweetheart Video.

LeWood Drops 5th Volume of 'Anal Crazed'

Evil Angel has released “Anal Crazed 5,” the latest title from director/performer duo LeWood (Francesca Le and Mark Wood).

Remy Rune, Ruby Moon Headline Latest 'Lesbian Seductions'

Remy Rune and Ruby Moon topline the 81st volume of “Lesbian Seductions” from Girlfriends Films.

Mature.nl Taps MsSexySaigon as Producer

Mature.nl has named MsSexySaigon as its newest studio producer.

Ny Ny Lew Returns to Brazzers

Ny Ny Lew stars with multi-XMAs winner Vince Karter in the latest scene from Brazzers, titled “Naughty Ny Ny.”

Digital Playground Premieres Ricky Greenwood's Feature Thriller 'Raw'

Digital Playground has dropped “Raw,” the latest thriller from multi-XMAs winner Ricky Greenwood.

Show More