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Trump’s FTC Nominees Signal Agency Will Take More Relaxed Approach to Consumer Protection

Phillip Dampier February 15, 2018 Competition, Consumer News, Net Neutrality, Public Policy & Gov't Comments Off on Trump’s FTC Nominees Signal Agency Will Take More Relaxed Approach to Consumer Protection

At a hearing Wednesday to question President Donald Trump’s nominees for the Federal Trade Commission, Democrats expressed concern about some signals from the three Republican and one Democratic nominees that they intend to enforce consumer protection laws as long as there is evidence they have the indisputable authority to act.

What happens when corporate interests and special interest groups insist the FTC’s regulatory powers are uncertain, limited by precedent, blocked by court opinions, or contrary to the wishes of Congress remained uncertain after the hearing.

The Senate Commerce Committee is facing some urgency to approve the nominations to fill a large number of vacancies at the FTC, which currently prevents the agency from taking votes on actions. If all four nominees are approved, the FTC will still have a single open commissioner’s seat on the Democratic side.

The nominated FTC commissioners are:

Simons

Joseph J. Simons, nominated for chairman for the FTC, is a Republican antitrust lawyer who has taken a few trips through Washington’s revolving door, serving as chief of the FTC’s Competition Bureau, investigating mergers and anticompetitive conduct from 2001 to 2003 under President George W. Bush. During his tenure, the FTC mostly pursued high-profile cases that brought clear evidence of antitrust harm. Under Simons, the FTC blocked Libbey, Inc. from acquiring its chief glassware rival Anchor Hocking. Vlasic Foods International and Claussen Pickle found an unreceptive FTC for their merger, eventually also blocked. Simons was noted for investigating pharmaceutical companies that applied for misleading drug patents designed to delay the entry of cheaper generic versions of brand name pharmaceutical products. After his tenure at the FTC, Simons accepted a lucrative $1.9 million partnership at the law firm Paul, Weiss, Rifkind, Wharton & Garrison LLP, which handles corporate mergers and acquisitions for corporate clients.

Wilson

Christine S. Wilson, a Delta Air Lines executive, is also a frequent flyer through D.C.’s revolving door. During the George W. Bush administration, she was chief of staff for then-FTC chairman Tim Muris. She also held three other significant corporate-public policy positions that advised companies and the U.S. government about antitrust matters. In 2011, Wilson accepted a high paying partnership at Kirkland and Ellis, a firm well-regarded for helping corporations successfully complete antitrust reviews of their mergers and acquisitions. Wilson’s latest employer was Delta Air Lines, which offered her an executive position in August 2016 as the company’s senior vice president for legal, regulatory, and international affairs. In addition to the $521,000 in distributions Wilson earned from her partnership at Kirkland and Ellis, Wilson accepted an undisclosed cash signing bonus, $136,000 in bonuses in 2017 from a management incentive plan, and a regular salary of $390,000. Wilson retains various amounts of unvested Delta stock and stock options that would normally be lost after leaving the company, but Delta apparently wanted to part with Wilson on the friendliest of terms, granting her pro rata compensation for the stock and waiving the usual requirement that an employee leaving so quickly after being hired should pay back 50% of their signing bonus.

Phillips

Noah Joshua Phillips served as chief counsel for Republican Sen. John Cornyn at the Senate Judiciary Committee. Before coming to Capitol Hill, Phillips was an associate at Steptoe & Johnson LLP in Washington and at Cravath, Swaine & Moore in New York. He focused on civil litigation.

Consumer Federation of America senior fellow Rohit Chopra is a Democrat and the only nominee with a long record of representing consumer interests and pushing for increased consumer protection and better oversight of financial services and products targeting consumers. Chopra was previously assistant director of the Consumer Financial Protection Bureau, where he oversaw the agency’s agenda on students and young consumers. He specialized in targeting the student loan industry for abusive practices and secured hundreds of millions of dollars in relief for student loan borrowers.

Chopra

Because of the unprecedented number of vacancies at the Commission, President Trump’s nominees could have an enormous impact on the direction of the FTC over the next several years. Traditionally, three of the commissioners belong to the current president’s political party and two belong to the other party.

Observers suggest the nominees are not atypical for a Republican president to nominate and some have served at the FTC before. None have attracted the kind of controversy that followed Makan Delrahim, Trump’s pick for head of the U.S. Department of Justice’s Antitrust Division. Most expect the Republican majority-led FTC will bend towards the interests of businesses unless there is clear and convincing evidence of significant consumer harm, especially in cases of mergers and acquisitions.

“Traditionally, Republican commissioners tend to be more lenient in merger enforcement on the marginal case, and we haven’t seen any evidence to indicate that [Simons] would depart from the traditional Republican posture,” said Mary Lehner, a partner with Freshfields and a former FTC attorney who also served as an adviser to two chairmen of the agency.

A major concern for some Democrats is that the FTC is now being tasked with protecting what remains of net neutrality, the open internet protocol that was swept away by the Republican majority at the Federal Communications Commission. The FCC reclassified internet service providers once again as “information services,” under Title 1 of the Communications Act. That transfers oversight back to the FTC — an agency not known for careful oversight of internet providers’ business practices.

At the hearing, Simons equivocated on how the FTC will deal with allegations of ISP abuse and signaled his concern that a Ninth Circuit court ruling found that telecommunications companies that also serve as common carriers (ie. telephone companies) are completely exempt from FTC authority.

Some Democrats interpreted Simons’ remarks as suggesting he could adopt a “my hands are tied” approach to ISP oversight, claiming that the FTC lacks the authority to keep an eye out for industry abuses.

Sen. Ed Markey (D-Mass.) seized on such comments, asking Simons to confirm if he believes the FTC specifically “lacks rulemaking authority” on net neutrality while the FCC, directly responsible for transferring net neutrality enforcement away from itself, “does have rulemaking authority to prevent blocking, throttling and paid prioritization by ISPs.”

Simons prevaricated in his answer, telling Markey, “We both have rulemaking, and they’re different types of rulemaking.”

Markey

“I’d want to talk to the general counsel’s office before I gave a specific answer to that, but I’m not entirely clear,” Simons said in response to a followup question pressing the issue.

“We are going to take the [statutory] authority we have and use it as best we can,” Simons told senators at the Senate Commerce Committee hearing. “I don’t know exactly what types of anti-competitive or deceptive and unfair practices may come up. If something comes up that we can’t reach under our statute, then I would certainly talk to you about a federal legislative fix.”

But observers note such a fix could take years, and the FTC often takes a year or more to complete investigations of alleged wrongdoing before starting to act.

Chopra, the lone Democratic nominee, agreed with Democrats that he also feared the FTC’s authority to act is uncertain, and that lack of certainty is likely to delay any enforcement actions. Chopra comments suggested the telecom industry is likely to use the Ninth Circuit court ruling to their advantage.

“I share a lot of the skepticism and concerns,” Chopra told the committee. “The FTC may face an unlevel playing field where some major market participants are exempt from the commission’s authority while others are subject to it.”

Blumenthal

Sen. Richard Blumenthal (D-Conn.) said that single Ninth Circuit court ruling could provide the telecom industry with a ready-made loophole to escape the FTC’s jurisdiction altogether. An ISP could acquire “a minor side business” like a small rural telephone company subject to common carrier rules and win blanket corporate immunity from FTC oversight. Although Simons said he would support striking the common carrier exemption from the Federal Trade Commission Act which defines the FTC’s authority, such a change could take several years to get through Congress and a well-funded telecom industry lobbying effort.

Phillips seemed impatient about the net neutrality debate which occupied a significant part of the hearing, characterizing it as a side issue worth sidestepping to focus on broader issues.

“We can’t allow contentious issues to distract us from the bread and butter of the agency […] looking out for children, veterans, the elderly and Americans generally,” Phillips said.

Aside from the net neutrality debate, the Republican nominees signaled their interest in the possibility of investigating large tech companies like Google, Amazon, and Facebook for antitrust activities. Republicans have been especially critical of Google, and some conservatives believe Twitter and Facebook exhibit political bias against them. The president has also frequently attacked Amazon and its CEO Jeff Bezos. Bezos owns the Washington Post, one of the many news outlets Trump said has been unfair to him. Trump has also accused Amazon of stiffing the government on sales taxes.

“Oftentimes companies get big because they are successful with the consumer, they offer a good service at a low price,” Simons said. “And that’s a good thing, and we don’t want to interfere with that. On the other hand, companies that are already big and influential can sometimes use inappropriate means — anticompetitive means — to get big or to stay big. And if that’s the case then we should be vigorously enforcing the antitrust laws.”

Another issue the FTC nominees promised to prioritize: online security/data breaches which expose consumers’ private information.

Here Comes the First FAKE Net Neutrality Bill, Courtesy of Rep. Marsha Blackburn (R-AT&T)

Rep. Marsha Blackburn (R-Tennessee, but mostly AT&T and Comcast)

Rep. Marsha Blackburn, who claims to represent the interests of voters in Tennessee but generally prefers the views (and campaign contributions) from AT&T and Comcast, is the first Republican to propose a bait-and-switch “net neutrality” broadband bill she claims will protect a free and open internet, but will actually prohibit net neutrality as America has known it over the last two years.

“No blocking. No throttling. The Open Internet Preservation Act will ensure the internet is a free and open space,” Blackburn tweeted to her followers shortly after giving an exclusive interview introducing her bill to Breitbart News. An early copy was also furnished to TechFreedom, an industry-funded front group that has opposed net neutrality. “This legislation is simple, it provides light-touch regulation so companies can invest and innovate, and make sure our internet is up to 21st century standards.”

Congresswoman Blackburn hopes you will take her word on that and not bother to actually read and understand what her bill actually does to the concept of a free and open internet.

We did read the bill and are prepared to help you understand it.

No overt censorship but plenty of “reasonable network management”

Blackburn’s bill non-controversially forbids the censorship of “lawful content, applications, services, or non-harmful devices.” Virtually every ISP in the country has already volunteered they have no intention of censoring legal content on the internet. But Blackburn’s bill includes a safety clause that allows ISPs to avoid accusations of tinkering with traffic — “reasonable network management,” which in this case is vaguely defined in the bill as “a practice that has a primarily technical network management justification.” Blackburn also defines a network management practice “reasonable” if “it is primarily used for and tailored to achieving a legitimate network management purpose, taking into account the particular network architecture and technology of the broadband internet access service.”

Despite that word salad, there is nothing in her bill that clearly defines what is “legitimate” and what is not. Comcast, for example, has its own view about how it manages and prices traffic on its broadband service. Stream XFINITY content and it does not count against your Comcast cap. Stream Hulu and it does. Comcast claims that is fair if one considers the ‘particular network architecture’ that delivers Comcast’s own content is allegedly different from the public internet. Blackburn’s bill would treat data caps, zero rating, and Comcast’s version of “fairness” as all perfectly legal.

Large telecommunications companies have insisted there is no need to pass laws or enact regulations governing internet censorship because they would never contemplate blocking legal content,  making the need for legislation unnecessary. But they are strongly likely to favor her bill, creating a direct contradiction to their repeated insistence net neutrality was “a solution in search of a problem.” There is a reason for the sudden support among many Republicans for Blackburn’s concept of net neutrality — blocking regulatory agencies from oversight of internet service provider interference and abuse.

The “Specialized Services” Hindenburg-sized loophole

Blackburn’s bill covers all the bases for the telecom industry she routinely supports.

Most importantly, her bill creates an enormous loophole allowing internet service providers to offer “specialized services” to the public any way they choose, as long as they do not “threaten the meaningful availability of broadband internet access service or [offer services] that have been devised or promoted in a manner designed to evade the purposes of this section.”

Blackburn defines a “specialized service” as “services other than broadband internet access service that are offered over the same network as, and that may share network capacity with, broadband internet access service.’’

That effectively means any website, streaming service, cloud storage or app could qualify as a “specialized service.” Blackburn’s bill would allow an ISP to establish paid prioritization (fast lanes) for selected content, usage cap non-preferred content, or steer web users to preferred websites and services. It effectively makes all internet content open to ISP manipulation. Just to be certain ISPs are protected from net neutrality rules for next generation applications and services, her bill also permanently forbids regulatory agencies from expanding the definition of net neutrality.

Obliterating the concept of states’ rights

Republicans are usually strong proponents of limiting the power of the federal government, especially when it comes to preempting state laws, but that concept is turned on its head when Big Telecom campaign contributions are at stake. Blackburn completely abandons any pretense of a state being able to write its own laws governing internet openness by specifically banning that option:

“No State or political subdivision of a State shall adopt, maintain, enforce, or impose or continue in effect any law, rule, regulation, duty, requirement, standard, or other provision having the force and effect of law relating to or with respect to internet openness obligations for provision of broadband internet access service.”

Permanently assuring ISPs easy court victories if net neutrality violations are uncovered

Blackburn’s bill ignores several years of court rulings on net neutrality cases that have called out the flaw of the FCC’s earlier dependence on defining the internet as an “information service” subject to oversight under Section 706 of the 1996 Telecom Act. The courts have ruled this foundation is inadequate to enforce net neutrality. The foundation that has proved adequate and has so-far survived court challenge exists in Title II of the Communications Act, made applicable when the internet was redefined as a common carrier “telecommunications service.” Rep. Blackburn’s bill would return net neutrality enforcement to the same flawed authority courts have already ruled does not apply, neutering net neutrality in the courts.

Critics contend Rep. Blackburn’s real motive is to permanently end oversight of large cable and phone companies and prevent federal agencies from coming to the rescue of content providers and consumers.

“Blackburn’s legislation fails at the very thing it claims to accomplish. It prohibits a few open-internet violations, but opens the door to rampant abuse through paid-prioritization schemes that split the internet into fast lanes for the richest companies and slow lanes for everyone else,” said Craig Aaron, Free Press Action Fund President and CEO. “This bill’s true goal is to let a few unregulated monopolies and duopolies stifle competition and control the future of communications.”

“Congress must reject last week’s FCC ruling and restore Title II authority at the agency,” Aaron added. “The 2015 rules worked extraordinarily well from the get-go, with investment and innovation flourishing across the sector. That’s because they gave the FCC the authority to prevent paid prioritization and other forms of discrimination, while promoting competition, open markets, universal service and equal access.”

Kansas’ Double-Down on Trickle-Down, Deregulation Flops as Residents Leave the State

We will mail it to you on floppy disks because your internet connection is too slow to download it.

While FCC Chairman Ajit Pai and Sen. Ron Johnson (R-Wisc.) decry government regulation as responsible for destroying capital and incentives to invest, the state of Kansas this week ended its all-out experiment with deregulation and trickle-down economics on steroids, with a Republican-dominated state legislature calling it a giant flop.

In charge of the Grand Experiment in Trickle-Down, Doubled-Down is Gov. Sam Brownback, who has systematically hobbled the state’s social spending and investment programs since becoming governor in 2011. He adopted his ‘vision thing’ from Reaganomics proponent Art Laffer, who apparently forgot the Reagan Administration’s penchant for all things deregulation was not all sweetness and light and had to be tempered by President George H.W. Bush after he was elected in 1988.

But what if history could have a second chance? What if a state kept its pledge of no new taxes and slashed regulation and oversight to the bone. Would it result in a free market paradise where government got out of the way for the public good? Would lower taxes result in more tax revenue as Kansas businesses boomed? Would infrastructure take care of itself?

To find out, Brownback slashed the state’s income tax, eliminated the top income tax bracket and delivered a disproportionate share of the tax cut benefits to the economic motivators (also known as Kansas’ richest families) who would supposedly use the surplus to invest in businesses and jobs. At the urging of the powerful small business lobby, backed by the Koch Brothers and their octopus of astroturf anti-tax groups demanding reform, Brownback zeroed out taxes on “pass-thru” income, which effectively allowed anyone running a LLC or small business to evade taxes.

There were moderate Republicans in Kansas that warned about the prospects of Brownback’s questionable assertion that low taxes and low funding of the state government would bring a new era of growth and prosperity. But dark money and Koch’s political machine saw to it those politicians were “de-elected” and replaced with Brownback’s army of minions.

In addition to creating budgetary ruin with tax revenue cratering, essential digital infrastructure crashed and burned. Deregulation and a mediocre state broadband expansion effort didn’t make internet service in Kansas better. In fact it got worse, along with the finger-pointing over who was responsible.

Last fall, Kansas Sen. Pat Roberts brought then FCC commissioner Ajit Pai to the community of Allen to meet with executives working for a dozen small telephone companies who were having trouble upgrading their networks across the great expanse of rural Kansas.

Brownback

Roberts wasn’t ready to claim federal government regulation was responsible for the mess. But Pai’s reflexive claims that deregulation incentivizes for-profit companies to invest in better broadband simply wasn’t working in Kansas either. The only solution for The Free Marketeers in rural Kansas turns out to be handing out government money to expand rural broadband, except in Kansas, there was very little money to be had after Brownback took an ax to the state budget.

The Wichita Eagle unintentionally drew a contrast between the thinking of providers that want to blame everyone else for the problem and plain reality for Brian Thomas, who works for the Blue Valley Tele-Communications Company.

“It really all comes down to a quality of life perspective,” Thomas told the newspaper. “I think we all live that. That’s our jobs, to provide that.”

The newspaper noted that without government money, the only way private companies could afford to pay to replace thousands of miles of ancient copper phone wiring in favor of fiber would be to make internet service so expensive that only businesses and the ultra-wealthy would be able to afford it.

So while Brownback’s great social experiment carried on, internet expansion and upgrades stalled in many communities across Kansas. In Allen, where Pai met to extol the virtues of private investment, the town librarian at Allen’s public library got some help from the Manhattan (Kansas) library system to install an inexpensive Wi-Fi hotspot that, once switched on, almost immediately filled its parking lot day and night with what the newspaper called “internet-starved townspeople.”

Allen County, Kan.

“There are several people who will watch movies outside” after hours, town librarian Nikki Plankington said. “The kids use it for the Pokemon Go thing. I don’t know what that’s all about, but the kids use it.”

While the public library did its part, Kansas’ for-profit private internet providers are going in a different direction – complaining a lot and asking for handouts with no strings attached.

The Eagle reported Pai’s meeting with rural telecom executives turned into a ‘whine and cheese’ reception. The phone companies had a laundry list of dislikes they wanted the deregulation-minded Pai to fix for them while they pondered upgrades:

  • The Universal Service Fund/Connect America Fund, financed by ratepayers through surcharges on their phone bills, was “obsolete” and didn’t provide enough money.
  • The federal government didn’t allow ISPs to chase after the deepest pockets to pay for their upgrades — popular online websites like Netflix and Amazon.com.
  • The FCC’s definition of broadband as 25Mbps ignored the fact Kansas phone companies wanted to deliver considerably lower speed service, claiming customers don’t want more than 10Mbps.

If the government could be lobbied to lower standards, eliminate regulation, and deliver or at least compel a cash welfare infusion from content providers and ratepayers, there was no need to ask rich Kansans to stop counting their money long enough to invest some of it in better broadband.

Catherine Moyer from Pioneer Communications claimed it was unfair to ask companies and customers to pay for upgrades when those internet titans like Netflix, Amazon, and Google make countless billions in profits using Pioneer’s network with absolutely no compensation for doing so.

“My customers and the customers here in Allen and all the customers in Wichita for that matter that have voice service pay a proportion of their bill,” she said. But, “there’s a whole group of people and companies utilizing the network that don’t pay into the fund in any meaningful way … so they haven’t helped build out this network.”

When the newspaper suggested she was effectively asking for higher taxes and paid lanes for internet content companies like Netflix that Moyer claimed was consuming 35% of Pioneer’s available bandwidth, she didn’t seem to have any objections.

“It’s not necessarily what people want to see, but in the same light, if you want these networks and you want these speeds, you have to somehow fund that. And who should fund it?” Moyer asked.

The next issue that doesn’t work for Kansas telecom companies is the FCC’s standard that broadband service be at least 25Mbps, and if a phone or cable company wants public dollars to build out their networks, they better choose a technology capable of delivering that kind of speed.

“One thing that kind of concerns me a little bit is having the FCC dictate, or Washington dictate, the level of speed I’m required to have in order to maintain a certain level of funding,” said Archie Macias of Wheat State Telephone, which serves rural communities in Butler, Cowley, Chase and Lyon counties. Macias is upset because his system uses fiber optics that can easily handle 25Mbps, but his customers only want to pay for 10Mbps.

“I’m not going to build a network that’s like having 500 channels on a TV that you’re going to watch 12 or 13,” he told the newspaper.

Wheat State currently offers four broadband plans in areas where fiber service is available:

  • $39.99 Pro (10/2Mbps)
  • $49.99 Multi-Pro (15/3Mbps)
  • $69.99 Power-Pro (25/5Mbps)
  • $79.99 Mega-Pro (50/20Mbps)
  • $10 discount when bundled with other services

What customers choose for broadband service is often an issue of pricing, not speed.

In more populated parts of Kansas, customers are still trying to cope with DSL service that has not seen significant upgrades for a decade. Since Brownback isn’t doing much to help, and tax cuts and deregulation have failed to inspire the kind of robust broadband expansion “light touch” regulation is supposed to provoke, a lot of Kansans are leaving the state for good.

An abandoned farm.

One of those threatening to flee is Christianne Parks, who lives in Allen and endures not-even-close-to-being-broadband.

“Eventually, I probably would get bored out of my mind and leave,” 19-year old Parks told the newspaper when asked what she would do if her broadband situation did not change.

Last fall, the newspaper pinpointed some of the real problems afflicting the state’s economy and missing from the list were taxes and regulation. Deregulation-inspired consolidation in the state’s critical agribusiness sector decimated rural farms and the local economies that depended on them. When the farmers leave, Main Street businesses soon follow. The 1970s and 1980s was the era of the Rust Belt in the northeast and midwest. Now parts of the midwest including Kansas risk being labeled a Wheat Belt of economic deterioration.

Since 2000, 81 of Kansas’ 105 counties have lost population, according to the U.S. Census Bureau. The consensus is that trend will get worse, according to the newspaper – especially among young people – until and unless someone can find a way to get better internet service to the outlands. Brownback’s hands-off policies favoring providers are in contrast to New York’s more aggressive rural broadband funding program that seeks to achieve near 100% penetration of broadband service in the state over the next few years. New York regulators also compel companies doing business in the state to share some of their wealth from mergers and acquisitions, most recently requiring Charter Communications and Altice to expand their broadband networks to improve service and reach customers they don’t serve today.

The free-market-solves-everything concept celebrated by Pai and the Koch Brothers has now been tested and failed in Kansas. Among the few bright spots for broadband in Kansas are civic-minded telephone or cable providers that look beyond return on investment formulas in their community, and more commonly community-owned broadband networks or co-ops with a motive beyond profit — delivering decent broadband to maintain, sustain, and grow their local economies.

Recovery from the “free market miracle” train wreck started last fall, when a wave of moderate Democrats and Republicans were elected with a pledge to do everything possible to kill Brownback’s vision of paradise. This week, the Republican-dominated legislature had enough of living in Brownback’s PretendLand and overrode his veto of their plan to raise income taxes across the board and kill his legalized tax evasion scheme for business owners to bring in an additional $1.2 billion over the next two years to invest in Kansas.

The improved broadband that could result may give something for the state’s wealthiest citizens to do in their free time besides count their money.

Democrat Tries an End Run Around GOP’s Revocation of Internet Privacy Rules

Phillip Dampier April 19, 2017 Consumer News, Public Policy & Gov't Comments Off on Democrat Tries an End Run Around GOP’s Revocation of Internet Privacy Rules

Blumenthal

If the Federal Communications Commission can’t or won’t guarantee internet privacy and data security oversight, one Senate Democrat has proposed transferring authority to regulate ISPs and establish data security standards to the Federal Trade Commission.

Sen. Richard Blumenthal (D-Conn.) last week alerted the media of his forthcoming bill: “The Managing Your Data Against Telecom Abuses (MY DATA) Act,” which he says will address corporate concerns over two different regulatory standards by giving the FTC oversight powers over ISPs as well as internet companies like Google, Yahoo, and others.

The bill, not yet available for review, contains language giving the FTC important rulemaking authority, something it generally lacked without specific congressional approval on a case-by-case basis. With such power, the FTC could set and enforce the rules and fine companies that break them.

The FTC has sought jurisdiction over broadband providers for years, something that has generally been left to the FCC to manage. But since the arrival of FCC chairman Ajit Pai, who has been stripping consumer protection policies and ending oversight, the FTC’s case has suddenly gotten much stronger, and more appealing to some members of Congress in both parties.

What has given the matter some urgency was Congress and President Trump’s decision to rescind FCC rules requiring ISPs to get customer consent before collecting and selling their personal information to third parties. ISPs welcomed that decision but consumers largely did not. For Blumenthal’s bill to have any chance of passage, he will need Republican co-sponsors. It is more likely Republicans will shepherd whatever final bill finally emerges from committee, if any.

If such legislation fails to win passage, expect states to begin enforcing their own privacy laws. Wisconsin and Minnesota have already enacted their own internet privacy protection laws. New York is considering one as well.

Trump Ready to Sign Repeal of Internet Privacy Regs; Net Neutrality Repeal Up Next

Phillip Dampier March 29, 2017 Consumer News, Net Neutrality, Public Policy & Gov't Comments Off on Trump Ready to Sign Repeal of Internet Privacy Regs; Net Neutrality Repeal Up Next

WASHINGTON (Reuters) – President Donald Trump plans to sign a repeal of Obama-era broadband privacy rules as a bigger fight looms over rules governing the openness of the internet, the White House said on Wednesday.

Republicans in Congress on Tuesday narrowly passed the repeal of the privacy rules with no Democratic support and over the strong objections of privacy advocates.

The fight over privacy sets the stage for an even larger battle later this year over Republican plans to overturn the net neutrality provisions adopted by the administration of former President Barack Obama in 2015.

White House spokesman Sean Spicer said he did not know when Trump would sign the bill.

The privacy bill would repeal regulations adopted in October by the Federal Communications Commission under the Obama administration requiring internet service providers to do more to protect customers’ privacy than websites like Alphabet Inc’s Google or Facebook Inc.

Under the rules, internet providers would need to obtain consumer consent before using precise geolocation, financial information, health information, children’s information and web browsing history for advertising and marketing.

The reversal is a win for AT&T Inc, Comcast Corp and Verizon Communications Inc. Websites are governed by a less restrictive set of privacy rules overseen by the Federal Trade Commission.

Republican commissioners have said the rules would unfairly give websites the ability to harvest more data than internet service providers.

Senate Democratic leader Chuck Schumer said in a tweet the vote was “Terrible for American people, great for big biz.”

Republicans next plan to overturn Net Neutrality provisions that in 2015 reclassified broadband providers and treated them like a public utility.

FCC Chairman Ajit Pai, a Republican, in December said he believes that Net Neutrality’s days are numbered.

The rules bar internet providers from obstructing or slowing down consumer access to web content and prohibit giving or selling access to speedy internet, essentially a “fast lane” on the web’s information superhighway, to certain internet services.

Critics say the rules opened the door to potential government rate regulation, tighter oversight and would provide fewer incentives to invest billions in broadband infrastructure.

Pai told Reuters in February be backs “a free and open internet and the only question is what regulatory framework best secures that” but has steadfastly declined to disclose his plans.

Trump has not talked as president about Net Neutrality but in 2014 tweeted he opposed it.

(Reporting by David Shepardson; Editing by Lisa Shumaker)

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