House Subcommittee Asks FTC Commissioners About Consumer Privacy

All five FTC Commissioners were present this morning at a hearing with the House Subcommittee on Digital Commerce and Consumer Protection on Oversight of the Federal Trade Commission. The hearing discussed broadly many of the mandates of the Federal Trade Commission, with a particular emphasis on privacy because of recent events.

Overall, the U.S. Representatives were very focused on questions to the Commissioners concerning what powers need to be granted by Congress or rules put in place in order to address the data privacy and security. There were also a fair number of questions concerning acts by companies under current investigation and how the FTC handles specific issues related to those companies or investigations. They didn’t comment on these investigations specifically, but they did speak generally to the FTC’s practices.

Topics discussed around privacy included:

– Giving the FTC less burdensome rulemaking authority.

– Giving the FTC the authority to issue civil monetary penalties for first offenses in privacy, or creating a rule to specify a penalty that the FTC can enforce.

– The question of how to issue privacy regulations without hindering competition among advertising platforms.

– The FTC’s commitment to the EU-U.S. Privacy Shield.

– Web browser changes that might provide consumers less security information.

– The FTC goal of getting companies to comply with the law, not force companies out of business.

– Facebook’s 2011 consent decree.

– Scope of FTC investigations: It looks at everything (website, advertising and public statements) in determining a company’s privacy promises to consumers as well as when considering whether there has been a violation of a consent decree.

– Addressing third party data use.

– Impact of the lack of privacy regulations on consumers.

– The possibility of a Bureau of Technology at the FTC

– Children’s privacy

– IoT privacy

– FTC workshops on privacy: They have done six recently.

– Equifax data breach and how to legislatively fix the data breach problem

– Facial recognition

The hearing ran almost three hours with opening testimony followed by a question and answer period. When we get the transcript, we will fill in some more of the details of the conversation. Below are some of the highlights from the opening statements and written testimony of the FTC Commissioners.

Highlights of Statement by Full Committee Chairman Greg Walden:

Recent data security incidents involving Facebook, Equifax, Uber, and other companies continue to raise concerns about the various aspects of protecting consumers in a data-driven economy

… I would emphasize that data security incidents involving sensitive and financial information are a significant threat to U.S. consumers and businesses and we are laser focused on these issues at the committee.

The revelations surrounding Facebook and Cambridge Analytica have brought the issue of privacy of consumers’ data and information in the age of pervasive social media to the forefront.

We do not want to unduly saddle companies with unnecessary regulations or impose compliance burdens that will not result in any meaningful impact for consumers, but we will ensure companies are being responsible and that they do not misuse consumer data.

Highlights of Statement by House Digital Commerce and Consumer Protection Subcommittee Chairman Bob Latta:

With the second annual review of the Privacy Shield by the European Commission coming this fall, we want to hear about FTC’s and Commissioners’ roles, and what can this Committee do to help make sure the thirty-one hundred businesses — including many small businesses — continue to have access to the Privacy Shield.

Highlights of Commissioner Simons Testimony:

Privacy and data security top the list of consumer protection priorities at the FTC.

Privacy and data security will continue to be an enforcement priority at the Commission, and it will use every tool at its disposal to redress consumer harm.

Section 5 … cannot address all privacy and data security concerns in the marketplace. For example, Section 5 does not provide for civil penalties, reducing the Commission’s deterrent capability. The Commission also lacks authority over non-profits and over common carrier activity, even though these acts or practices often have serious implications for consumer privacy and data security generally.

The Commission is committed to the success of the EU-U.S. Privacy Shield Framework, a critical tool for protecting privacy and enabling cross-border data flows. The FTC has actively enforced Privacy Shield, and will continue to do so when Privacy Shield participants fail to meet their legal obligations.

We will add statements from the other FTC Commissioners when they are released.

The five FTC Commissioners at the hearing included Maureen Ohlhausen, rather than Christine Wilson, one of President Trump’s nominees, because Ohlhausen has not stepped down yet. She is awaiting confirmation to the U.S. Court of Federal Claims and will step down from the commission once it is approved. She will be replaced by Wilson who has already been confirmed by the U.S. Senate.

More from Clarip – Other Blog Posts on Privacy Bills in the US House:

Internet Bill of Rights for Privacy
Information Transparency and Personal Data Control Act
New Privacy Bills: APPS Act and DATA Act of 2018
Highlights of the Secure and Protect Americans’ Data Act in U.S. House
Highlights of Browser Act to Protect Privacy in U.S. House
BROWSER Act and Privacy Discussed in House Communications Subcommittee Hearing
Privacy Focus of Last Week’s DCCP Subcommittee Hearing on Digital Advertising
Do Not Track Kids Act Back in Congress

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