WHAT:
The Subcommittee on Digital Commerce and Consumer Protection, chaired by Rep. Bob Latta (R-OH), held a hearing today with the commissioners of the Federal Trade Commission (FTC). #SubDCCP members received an update on the FTC’s mission and current priorities including data privacy and consumer protection in the digital age.
WHY:
“We look forward to working with the FTC on specific issues relating to this Subcommittee’s jurisdiction, including self-driving cars, data security, the Internet of Things, blockchain technologies, privacy issues, deceptive advertising, robocalls, and much more. We look forward to hearing how the Commissioners and the agency will advance its dual mission to protect consumers and police anti-competitive behavior-all without unduly burdening legitimate business activity and innovation. Emerging consumer protection issues are at the forefront for this committee," said #SubDCCP Chairman Latta.
WHO:
* The Honorable Joseph Simons, Chairman, Federal Trade Commission (Opening Statement )
* The Honorable Maureen Ohlhausen, Commissioner, Federal Trade Commission (Opening Statement )
* The Honorable Noah Phillips, Commissioner, Federal Trade Commission (Opening Statement )
* The Honorable Rohit Chopra, Commissioner, Federal Trade Commission (Opening Statement )
* The Honorable Rebecca Slaughter, Commissioner, Federal Trade Commission (Opening Statement )
KEY MOMENTS:
“We don’t have control over our data. We have laws on the books in some cases, companies have trust obligations in other cases, and they don’t have the security in most cases. It is something we are all concerned about as consumers and as policymakers and enforcers. It’s something this committee is very concerned about, and we’ve been trying to find if there’s an eye in that needle to thread legislation to get to data breach, data notification, and hold people accountable," said Energy and Commerce Committee Chairman Greg Walden (R-OR).
Chairman Walden went on to ask Chairman Simons about the role antitrust plays in consumer protection.
Chairman Simons replied, “The more competition, the more likely it is the consumer is going to be benefitted…We want to have vigorous competition, we want to make sure that firms are not behaving anti-competitively, and at the same time we want to make sure that consumers have the information that is necessary for them to make the right decisions and right choices in the marketplace."
Chairman Simons expressed his support for civil penalty authority for the FTC to enforce the Safeguards Rule.
He testified, “One of the problems that we have is we are able to show in these cases that there is sufficient harm, to show a violation under the statute, but in terms of our monetary remedial authority, showing damage from any particular breach and tracing it to that specific breach is very difficult. It really hinders our ability to seek a significant monetary penalty or monetary relief, and to create sufficient deterrents so that conduct doesn’t occur in the future."
Commissioner Ohlhausen spoke to the importance of context in consumers’ interactions with online services and platforms.
She told the subcommittee, “Is the information being used in a way the consumer expects when they get the service, or is it being shared in some way that they don’t anticipate? That’s where enforcement and guidance and policy concerns need to focus."
Commissioner Chopra described the steps the FTC can take when it finds a company has violated its consent order, saying, “Violations of orders allow the FTC to seek from a court injunctions, equitable relief - which can include consumer refunds - as well as substantial civil penalties, over $40,000 per violation. We have the discretion in many ways of when to seek and how much to seek, but enforcement of our orders has to be a top priority."
RESOURCES:
The Majority Memorandum, witness testimony, and an archived webcast are available online here.
