ICYMI: Designer Gear for Obama Raising a Ruckus

Excerpts from The Wall Street Journal
By: Brody Mullins and Elizabeth Williamson
February 7, 2012
 
“Move over, PACs. The latest campaign-finance flap is about sacks.
“At a New York fund-raising event Tuesday called ‘Runway to Win,’ President Barack Obama’s re-election campaign plans to begin selling campaign-themed tote bags, T-shirts and accessories designed by more than two dozen famous designers.
“Attendees can purchase a tote bag designed by Derek Lam for $75. A collectible makeup bag created by Richard Blanch with nail polish in Red-y To Win Red, Victory White and Bo Blue is going for $40. And a silk scarf featuring Mr. Obama’s likeness by Thakoon Panichgul is $95. Profits from the sales will go to Mr. Obama’s campaign chest.
“Republicans contend the sale might violate campaign-finance rules. The gear will sell for a fraction of the price the designers’ merchandise typically fetches at department stores. Republicans say that suggests they relied on corporate resources to keep costs low, which could amount to illegal campaign contributions. On Mr. Lam’s website, handbags range in price from $340 to $1,890…three scarves offered on Mr. Thakoon’s website go for $325 apiece.
“‘This raises serious questions about whether corporate money, property and employees were improperly used in the design and production of these items without reimbursement,’ said Sean Spicer, a spokesman for the Republican National Committee…
“Designers can’t ask employees to work on political projects unless they willingly volunteered their time…If the designer or staff are paid by anyone other than the campaign, it would be considered a campaign contribution from a company to a candidate…
“The fund-raising effort will be launched before the start of Fashion Week in New York. It was a project of Vogue magazine editor Anna Wintour, who rounded up Obama supporters to apply their creativity—and more important, their names—to otherwise pedestrian campaign gear…
“Election finance regulations govern almost everything a campaign does, down to how singers, artists and designers can volunteer their time. One of the first rulings on the topic came in 1975, just a year after the Federal Election Commission was created…entertainers can volunteer their time to perform, but ancillary costs such as travel expenses had to be paid by the campaign or counted as an ‘in-kind’ donation…”
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