Excerpt from Term Paper:

.... to allow companies doing business in host cities to support conventions. Businesses can spend as much as they like and their only obligation is to report their donations to the FEC. In addition, theres a lot of unreported activity because sponsorship of off-site events need not be reported because these are not considered to be campaign related. There are several problems with these practices in addition to the obvious implications for currying political favor.
First, all money spent is a tax-deductible business expense so the public indirectly finances corporate lobbying at conventions. The public is helping finance lavish $400,000 parties such as the one thrown by utility, telecom and cable companies at the August 2000 event in Philadelphia for Republican W.J. Billy Tauzin of Louisiana who chaired the House telecom subcommittee. So, the public is paying for the obvious lobbyist influence of this politician. And, the public is paying for the marketing efforts of large corporations at conventions who give away expensive products to promote their companies. Further, the public is paying for what many would consider events that are in conflict with their own personal ethics such as parties at the Playboy Mansion.
The decision by the FEC

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