FTC Testifies Before House Energy and Commerce Subcommittee
The FTC recently testified before the House Energy and Commerce Subcommittee on Consumer Protection and Commerce regarding its efforts in fiscal year 2018 to protect consumers and promote competition. The FTC highlighted the following activities, as well as several others, in a prepared statement.
The FTC reported that its months-long Hearings on Competition and Consumer Protection in the 21st Century are coming to a close. These public hearings were initiated to better enable the FTC to understand evolving technology and business practices and how well current laws and enforcement policies are responding to these evolving practices. More than 850 public comments have already been received; additional public comments will be accepted through at least the end of June.
In 2018, The FTC’s enforcement actions resulted in returns to consumers in the amount of more than $1.6 billion. Furthermore, the FTC collected civil penalties worth more than $2.4 million and forwarded $8.5 million to the U.S. Treasury last year.
The FTC noted an expanded focus last year on protecting consumer data privacy and highlighted some of its enforcement efforts toward that goal. The FTC has also implemented various public outreach programs, such as the recently launched “Cybersecurity for Small Businesses” campaign, to educate consumers and businesses on privacy matters.
Despite these successes, the FTC explained, it still faces significant obstacles in effectively regulating consumer data privacy. Particularly, under existing laws, the FTC is unable to issue civil penalties for a company’s first violation and does not currently have jurisdiction over nonprofits or common carriers. Furthermore, the FTC claimed, it lacks the financial resources to keep pace with current technology and modern business practices. The FTC urged Congress to enact data security legislation and expand the FTC’s rulemaking authority, jurisdiction, and budget to better enable it to protect consumer data privacy.
The FTC also reported several successful enforcement actions in the realm of consumer fraud protection. These actions defeated schemes such as robocalling, business opportunity scams, and false advertising in the pharmaceutical industry, many of which target older adults. Various educational materials were also released to help consumers avoid these scams, including a new “Consumer Protection Data Spotlight Series” designed to keep law enforcement and the public informed of data trends and new threats to consumers.
Finally, the FTC described its ongoing cooperation with international agencies to address consumer protection matters and anticompetitive conduct involving companies outside our borders. Much of this cooperation depends on the U.S. SAFE WEB Act, which allows for international information-sharing and which is set to expire in 2020. The FTC requested that Congress consider reauthorizing the SAFE WEB Act and removing the sunset provision permanently to ensure uninterrupted international cooperation and continued protection for American consumers.
