Yellow Pages Legislation Would be a Boon to Local Economy, Environment, Report Says

The economic analysis of the Yellow Pages legislation is a real page-turner

​Earlier this year, SF Weekly concluded that Supervisor David Chiu's jihad to cutback on the number of Yellow Pages directories piling up in recycling centers is a keen political move. And a new report shows it's a smart economic move as well.

A day before city supervisors are scheduled to vote on the legislation, which would force people to opt-in before receiving the Yellow Pages, the City Controller's Office released a economic analysis that says the legislation would save the city and businesses hundreds of thousands of dollars while simultaneously pumping some $12 million into the local economy annually.

Here's the gist:

Right now Yellow Pages distributes the directories for free every year. But because most of those books end up dumped at recycling centers, it's sort of a money-suck. The legislation would reduce result in an 80 percent decline in overall distribution of the directories.

Sales generate through Yellow Pages would then fall, but the cost of producing the directories will fall even more, the report concludes.

Subsequently, businesses will receive more sales-per-dollar invested in Yellow Pages advertising. Businesses would presumably take that money saved and invest it into other advertising sources, thus creating 111 new jobs and expanding the economy by $12 million, the reports says.

SF Weekly called the Yellow Pages Association which, more than once, called the city's report "ludicrous." The notion that limiting advertising for business in any way is positive for the economy is just dead wrong, says Amy Healy, vice president of public policy and sustainability with the Yellow Pages Association.

"There's a reason why businesses use it -- Yellow Pages works," she says.

But Chiu was obviously pleased with the analysis, which aside from the economic benefits, details how cutting back on Yellow Pages will benefit the environment. The 80 percent reduction in distribution would also be a huge savings for ratepayers who are shelling out for recycling.

Yellow Pages cost $300 per-ton to recycle, and each directory weighs over four pounds, according to the report.  Quick math shows that the legislation would result in a $600,000 savings annually for San Francisco ratepayers.

"These are all reasons we should move forward on this," Chiu told SF Weekly.