The FTC recently testified before the House Energy and Commerce Subcommittee on Digital Commerce and Consumer Protection. All five Federal Trade Commission commissioners were present and answered questions on a variety of consumer protection topics, including data security and privacy concerns for social media users as well as mergers and acquisitions in the health care industry
The FTC stated that it requires additional resources to protect consumers. It also affirmed its focus upon privacy, data security, the tech industry, illegal robocalls, anticompetitive behaviors across the digital ecosystem and fraud.
“In my view, we need more authority” Chairman Simons said. Commissioner Chopra stated that the ability for rule-making authority would be helpful. “When we do have a rule on the books we are able to ask for civil penalties,” he said. “That’s one reason why rule-making also could create deterrence as well.” He also stated that “development of rules is much more participatory process than individual enforcement actions and also gives clear notice to the marketplace.”
With respect to process reform, Simons stated that the FTC is reviewing the manner in which it pursues civil investigatory demands. “You have to write them in the right way, you have to get the company to do what it needs to do,” he said. “The way you write it is important and enforcing it is important.”
The hearing can be seen, here.
Richard B. Newman is an FTC defense lawyer at Hinch Newman LLP.
Informational purposes only. Not legal advice. Always seek the advice of an attorney. Previous case results do not guarantee similar future result. Hinch Newman LLP | 40 Wall St., 35th Floor, New York, NY 10005 | (212) 756-8777.
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