WASHINGTON, DC - The Subcommittee on Commerce, Manufacturing, and Trade, chaired by Rep. Michael C. Burgess, M.D. (R-TX), today examined a number of bills aimed at bringing needed, 21st century reforms to the Federal Trade Commission (FTC). The bills unveiled by the subcommittee and discussed today focus on reforming the agency to make it more transparent to consumers, businesses, and better able to address emerging issues.
Leading up to today’s hearing the subcommittee launched The Disrupter Series, which examined the dramatic innovation within various industrial sectors and helped shape many of the bills.
“A key takeaway from The Disrupter Series is that if the law lags behind technology, capital shrinks and new products and services will not emerge. … We must enact policies that keep the U.S. at the forefront of innovation. With the marketplace getting increasingly more competitive it’s critical that the FTC innovate itself to protect consumers, and create jobs, and I believe each of the bills works to accomplish just that," said Burgess.
Abigail Slater, General Counsel of the Internet Association, expressed support for H.R. 5111, the Consumer Review Fairness Act, sponsored by Subcommittee Vice Chairman Leonard Lance (R-NJ). H.R. 5111 would void provisions that restrict the ability of consumers to review products, services, or conduct. She highlighted how American consumers make significantly more informed decisions about how and where to spend their money thanks to Internet innovation.
Slater testified, “A great example of the Internet consumer surplus in action is consumer reviews. In today’s digital economy, nearly 70 percent of consumers now rely on online consumer reviews for information on where to eat, shop, travel, and more. … The Consumer Review Fairness Act is narrowly tailored to non-disparagement clauses in form contracts that do not allow individuals a meaningful chance to negotiate a contract, and provides the necessary protections for businesses, including for medical, trade secrets, and confidential information."
Slater also praised Chairman Burgess for spearheading H.R. 5093, the Technological Innovation through Modernizing Enforcement (TIME) Act, which would place an eight-year cap on consent orders from the FTC. She said, “Under the TIME Act, any consent order entered into by the Commission shall include a presumptive termination clause sun setting the order no later than eight years after it is entered into. Additionally, should the Commission see the need for a consent order to remain in force longer than eight years, the TIME Act requires that the Commission consider a list of factors in making this determination." This would still be longer than the consent decrees issued by the Federal Communications Commission (FCC) and the Consumer Financial Protection Bureau (CFPB).
Joshua Wright, Professor at the Antonin Scalia Law School at George Mason University, explained that with technology ever evolving, having a rigorous economic analysis is critical to better protect consumers. “As technology evolves, and the FTC’s consumer protection mission shifts into digital markets, privacy regulation, the Internet of Things, and the world of ‘Big Data,’ it is more important than ever that rigorous economic analysis anchors the FTC’s activities," he said. H.R. 5136, the Revealing Economic Conclusions for Suggestions (RECS) Act, sponsored by Rep. Mike Pompeo (R-KS) addresses this very issue.
“Many of the bills we unveiled are a step forward and an invitation to begin the real work of reconciling differences. We commit to honest and open inquiry with the commission, experts, and industry and to consider all options to achieve our shared goals of protecting consumers, competition, and innovation. These thoughtful solutions that modernize the FTC for the 21st century and put innovation first will greatly benefit folks in Michigan and across the country," Chairman Fred Upton (R-MI) concluded.
