U.S. District Court for the District of Columbia should reject the FTC’s $5 billion privacy settlement with Facebook (see 1908060022) because the deal’s release from liability is too broad, consumer groups argued Tuesday. Public Citizen, Campaign for a Commercial-Free Childhood, Common Sense Media and U.S. Public Interest Research Group filed (in Pacer) an amicus brief (in Pacer) in opposition to the agency’s consent decree. The settlement releases Facebook from claims prior to June 12 that the company violated a 2012 commission order and any FTC Act Section 5-related claims the agency was aware of before the same date. “Because of the release clause’s breadth, the proposed consent decree was not fair or reasonable and should be rejected by the court,” the groups argue. The Electronic Privacy Information Center's brief (in Pacer) argued the deal's “both procedurally and substantively unfair and must be rejected due to the expansive and vague release of liability granted.” The Center for the Legalization of Privacy in a third opposition brief said (in Pacer) the FTC order can be interpreted to grant the FTC and DOJ warrantless access to Facebook user data.
Karl Herchenroeder
Karl Herchenroeder, Associate Editor, is a technology policy journalist for publications including Communications Daily. Born in Rockville, Maryland, he joined the Warren Communications News staff in 2018. He began his journalism career in 2012 at the Aspen Times in Aspen, Colorado, where he covered city government. After that, he covered the nuclear industry for ExchangeMonitor in Washington. You can follow Herchenroeder on Twitter: @karlherk
Even minor changes to Section 230 of the Communications Decency Act could have “outsized consequences” for the tech industry and consumers, Reddit CEO Steve Huffman plans to testify Wednesday. Consumer advocates and academics prepared testimony blaming the industry for not doing enough to combat illegal platform activity. House Commerce Committee lawmakers meet Wednesday to discuss the industry’s content liability shield (see 1910090059).
The FTC’s lawsuit against Qualcomm has observers debating whether the agency is properly applying antitrust authority in a case with major implications for the tech industry (see 1908230057). The 9th U.S. Circuit Court of Appeals is considering oral argument in early 2020.
A federal privacy law shouldn’t be “less strict” than any existing state law, a National Association of Attorneys General official said Tuesday. Based on Congress’ progress, it doesn’t seem there will be a federal law in effect by January, when the California Consumer Privacy Act takes effect, said NAG Training and Research Institute Center for Consumer Protection program counsel Blake Bee. So industry will need to comply with a patchwork of laws, he told a New America event.
Congress should consider legislation to require social media platforms disclose sponsors of political advertisements, the Senate Intelligence Committee reported Tuesday on a two-year investigation on Russia’s 2016 election meddling. The recommendation mirrors the Honest Ads Act (S-1356), from Senate Intelligence Committee ranking member Mark Warner, D-Va.; Sen. Amy Klobuchar, D-Minn.; and Senate Judiciary Committee Chairman Lindsey Graham, R-S.C. (see 1905080075). The bill would require online political ads have the “same transparency and disclosure requirements as ads sold on TV, radio and satellite.” The report recommended the executive branch “publicly reinforce the danger of attempted foreign interference in the 2020 election,” through an interagency task force to monitor social media and public media literacy initiatives. Social media companies should facilitate more public-private information-sharing, the panel said.
The FTC doesn’t intend to weaken Obama-era changes to the Children's Online Privacy Protection Act, Commissioner Christine Wilson said Monday at the agency’s COPPA workshop. Republican colleague Noah Phillips defended the innovation and economic growth spurred by the rule. The agency’s COPPA review (see 1910040026) isn’t an attempt to roll back 2013 changes to the children’s online privacy rule, and the FTC knows protecting innovation can’t be done at the expense of children, Wilson said. The agency wants to make sure COPPA keeps pace with online technology, she said, citing modern data collection methods and ways children interact with media.
A bipartisan group of senators warned the FTC not to weaken children’s online privacy protections as it reviews the Children's Online Privacy Protection Act. The agency’s “failure now and in recent years to fully enforce COPPA compliance has us concerned that an update at this time could diminish children and parents’ control of their data or otherwise weaken existing privacy protections,” wrote Sens. Ed Markey, D-Mass.; Richard Blumenthal, D-Conn.; Josh Hawley, R-Mo.; and Marsha Blackburn, R-S.C., Thursday: “Now is not the time to pull back.”
House Consumer Protection Subcommittee Chair Jan Schakowsky, D-Ill., hopes for a bipartisan agreement with ranking member Cathy McMorris Rodgers, R-Wash., on privacy legislation (see 1909060046). If one isn't reached, Schakowsky's prepared to move forward alone. “I’m more and more hopeful that we’re going to have a bipartisan bill, and once we confirm that, we can put out a draft for people to see,” Schakowsky told us last week. “If not, we’re still going to move forward, but I’m hopeful.”
It’s key that DOJ and the FTC clearly divide tech industry investigations to avoid wasted resources and contradictory findings, Senate Judiciary Committee members said in recent interviews. The FTC confirms it’s investigating Facebook for potential antitrust violations, and DOJ is reportedly weighing its own probe of separate but related Facebook conduct. FTC Chairman Joe Simons and DOJ Antitrust Division Chief Makan Delrahim recently acknowledged the agencies wasted resources on interagency squabbling (see 1909170066).
Sen. Marsha Blackburn, R-Tenn., plans to visit Silicon Valley and meet with companies to better understand their algorithms and operations, she told C-SPAN's The Communicators to have been televised Saturday. Her office declined to provide specifics when we asked Friday. Congress should protect important provisions in Section 230 of the Communications Decency Act for smaller companies and new entrants, she said, but the tech industry’s content liability shield deserves a review from Congress. Whether large platforms like Facebook and Google deserve to keep those protections should be part of the broader discussion, she said. Blackburn suggested ISPs would be “well-served” to scrutinize unmoderated platforms like 8chan and review the information originating from those outlets. The 50 state attorneys general investigating Google and nine states probing Facebook reflect the frustration from consumers and small businesses within their states, she said: “They feel as if they have the right to move forward, and indeed they do.” Competition is a topic the Senate Judiciary Committee Task Force, which the legislator leads, will address early next year, Blackburn said. She’s heard anecdotal evidence that smaller companies like Yelp are stifled by incumbents like Google. The task force learned there’s agreement Congress needs to get a privacy law with one set of rules and one regulator, she said. It’s important to establish a basic, simple standard for privacy, and Congress can add and amend as needed, she said: Consumers need to know their privacy rights are protected.