Antitrust Law Daily Wrap Up, AGENCY NEWS: Bureau directors provide updates on FTC accomplishments, (Mar 28, 2014)

By Jeffrey May, J.D.

The directors of the FTC’s Bureau of Competition, Bureau of Consumer Protection, and Bureau of Economics provided an update on the agency’s latest antitrust and consumer protection enforcement and policy initiatives today at the American Bar Association Section of Antitrust Law Spring Meeting in Washington, D.C. All three were speaking at the annual FTC bureau director update session for the first time. Each was appointed to his or her post within the last year. The agency accomplishments that were highlighted by the panel also were made available in an annual report released today by the FTC.

Bureau of Competition Director Deborah Feinstein discussed some major merger cases. She noted the FTC’s challenge to Ardagh Group S.A.’s proposed $1.7 billion acquisition of Saint-Gobain Containers, Inc. over its impact on markets for glass containers supplied to distillers and brewers. Also highlighted was the agency’s challenge to St. Luke’s Health System, Ltd.’s acquisition of Saltzer Medical Group in Idaho. In January, the federal district court in Boise ordered St. Luke’s—the largest health care system in Idaho—to divest Saltzer—the state’s largest independent, multi-specialty physician practice.

Feinstein also noted an administrative action against two leading suppliers of propane exchange tanks that was just announced yesterday. The FTC filed an administrative complaint against the companies behind the Blue Rhino brand and the AmeriGas brand, alleging that they illegally coordinated on reducing the amount of propane in their tanks sold to a key customer.

Looking ahead, challenges to pay-for-delay settlements will remain a high priority for the Competition Bureau, Feinstein noted. Bureau of Economics Director Martin Gaynor reinforced Feinstein’s point on the continued focus on pay-for-delay. “This is something that has been brewing for a very long time,” he said.

Gaynor also explained the role of the Bureau of Economics in two significant actions. He highlighted the significant contributions made in the St. Luke’s case that is now on appeal to the Ninth Circuit. On the consumer protection side, the Bureau of Economics provided substantial assistance in the case against Apple Inc. for allegedly charging consumers for in-app purchases incurred by children without their parents’ consent.

Consumer protection. Bureau of Consumer Protection Director Jessica Rich talked about four themes guiding her bureau. The Consumer Protection Bureau is focusing on protecting consumers as the nation goes mobile. Other priorities include protecting consumers from the harmful uses of big data and targeting gatekeepers and facilitators that enable fraud to occur, such as affiliate marketers, robocallers, and paid endorsers. The Bureau is also working to protect diverse consumer groups, such as the elderly and foreign-language-speaking individuals. These areas will continue to be major themes in the coming year.

Rich advised attendees to watch for more cases enforcing the privacy framework, known as the U.S.-EU Safe Harbor, that enables U.S. companies to transfer consumer data from the European Union to the United States. The agency has already brought about a dozen cases in this area. In closing, Rich also reminded technology businesses and their lawyers that the same consumer protection rules apply across industries and technologies, including mobile platforms.

Administrative issues. The bureau directors also announced some administrative and personnel news. The Premerger Notification Office is moving on April 28. The offices will move to the 5th floor of the Constitution Center. A number of changes at the management level in the bureaus over the last year also were noted. Among those personnel changes in the Bureau of Competition was the appointment of Stephen Weissman, who joined the FTC in 2013 as a deputy director. At the Consumer Protection Bureau, Katherine Fallow recently joined as deputy director from Jenner & Block, according to Rich.

News: Antitrust ConsumerProtection FederalTradeCommissionNews