Amid Protests, FTC Chairman Simons Says Agency Is Self-Reflecting
The FTC is examining how it can better protect consumers and promote privacy and competition, Chairman Joe Simons said during the agency’s latest policy hearing. The Electronic Privacy Information Center organized a demonstration outside the hearing Monday at agency headquarters, where the group sought a conclusion to the FTC’s investigation into potential Facebook privacy violations. EPIC seeks enforcement of the agency’s privacy consent order with the social network, President Marc Rotenberg tweeted.
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Simons described “significant changes” in the economy since 1995, citing more interconnected and global markets and huge growth in international organizations. Jurisdictions have adopted or substantially updated competition, consumer protection and data privacy laws, he said. “Our task at the FTC is to understand and respond to these changes as we work to promote competition and protect American consumers.”
Commissioner Rohit Chopra noted it's more than a year since the agency voted to file a lawsuit blocking “an unconsummated merger outright,” citing a busy year for mergers and acquisitions in a tweet. “While the number of lawsuits we file shouldn't be the only data point we look at, we should all be asking whether antitrust enforcement is doing enough to keep our economy competitive,” he wrote.
Cross-border enforcement was discussed widely at Monday’s hearing. The FTC has issued more than 115 civil investigative demands in some 50 probes on behalf of foreign agencies involving the U.S. Safe Web Act, Simons noted. The law was designed to increase cooperation with foreign law enforcement officials through confidential data sharing. Enforcement has concerned internet pyramid schemes, sweepstakes telemarketing scams, and advertising and privacy, Simons said.
The FTC should form a collective effort with DOJ to explain where the two agencies stand on competition issues internationally, ex-Chairman William Kovacic said.
The “data explosion” is only going to continue, said Department of Commerce Deputy Assistant Secretary-Services James Sullivan. Maintain cross-border data flows, he said, citing benefits to consumers trying to access better services and companies looking to increase efficiency. A flourishing industry helps countries create jobs, grow and compete internationally, he said.
The general data protection regulation allows seamless cooperation between EU members, said European Commission acting Director-Consumer Affairs Directorate-General Justice and Consumers Marie-Paule Benassi. That seamlessness should be extended internationally, she said. The EC wants to start discussing an agreement with the FTC to better enable efficient cooperation, she added.
These issues at stake are too large and important to be left “solely to the private sector,” said Microsoft Corporate Vice President Julie Brill, citing a need for FTC rulemaking authority. Privacy is one area of law that demands attention above all others, said the ex-commissioner. She said technology’s impact has never been greater.