Free-distribution newspapers, such as The Examiner, would be allowed to compete for legal advertisements in Maryland through a bill proposed by Del. Sandy Rosenberg, a Baltimore City Democrat.
“Free-market competition would result in lower costs for legal notification advertisements,” Rosenberg told his colleagues on the House Judiciary Committee, of which he is vice chairman. “Maryland citizens as well as state and local governments would benefit,” by reducing advertising rates.
Publishers of free newspapers overwhelmingly supported the bill, saying it would reduce costs for consumers, but the many paid-circulation news journals said the bill would harm the public interest.
“Competition means lower prices for consumers,” said Michael Phelps, CEO of the Baltimore and Washington Examiner, which each has a circulation of about 250,000. Those papers provide better advertising rates for businesses but cannot compete for legal ads, Phelps said.
“With less competition, legacy newspapers can keep their rates high,” Phelps said. “That is the principal reason they oppose the change. But it does not make sense for taxpayers, who in these tough budget times must not be asked to protect paid newspapers.”
According to figures from Phelps, a full-page legal ad in The Examiner costs $278, but $710 in the Sun, and $1,150 in the Daily Record, Baltimore?s century-old legal and business paper with a circulation of 4,500.
Legal ads must now run in paid-circulation papers that have periodical mailing permits from the U.S. Postal Service, which determines the minimum editorial content in these publications. Maryland law requires governments to publish notice of meetings, tax sales, highway plans and other matters. Private citizens, auctioneers and businesses are required by law to publish advertisements about estate sales, foreclosures, renunciation of debts of a divorced spouse and other items involving the courts.
Jack Murphy, executive director of the Maryland-Delaware-D.C. Press Association, said the requirement of paid circulation guarantees that the reader wants to get the publication and will complain if he doesn?t get it.
Daily Record Publisher Chris Eddins said the bill would severely hurt his paper and cause a loss of jobs. He and the press association noted that free newspapers go only to audiences that advertisers wish to target.
Two Judiciary Committee delegates, Susan Lee of Montgomery County and Jill Carter of Baltimore, were also concerned that many of their constituents do not get free newspapers in their neighborhoods, a concern also raised by the Maryland Minority Contractors Association. The Examiner also provides its newspaper free in thousands of boxes scattered throughout the Baltimore and Washington region.
