Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: FTC Commissioner Ohlhausen sees competition advocacy as key tool, but one to be used selectively, (Nov 4, 2013)

By Brian Hammond, TR Daily

The FTC’s competition advocacy power can be “one of the most effective tools in our arsenal,” but one that the Commission must be careful and selective in using, FTC Commissioner Maureen Ohlhausen said on November 1 in response to a question about using such authority to clear state and local hurdles to broadband and wireless services.

During a public “Ask Me Anything” (AMA) chat at reddit.com last Friday, Ohlhausen was asked by Berin Szoka, president of TechFreedom, about the FTC’s role in competition and whether it could take a more active role in competition advocacy. “We at TechFreedom love it when the FTC urges state and local governments to remove barriers to competition - like the FTC’s recent comments urging the taxicab commissions to lay off Uber,” Szoka wrote.

Szoka asked if the FTC could “clear the way for more broadband competition and better wireless service” by getting involved in urging local governments to “make it easier to build competitive broadband networks by using rights of way and fairly pricing pole attachments. … And what about all the applications to build or upgrade cell phone towers and small cells on buildings that are tied up in local governments because of NIMBYism?”

Commissioner Ohlhausen, a Republican, said competition advocacy is a “subject near and dear to me” and called it “one of the most effective tools in our arsenal and one that we should always consider using.”

“But we have to be careful in selecting where and when to advocate,” Ohlhausen added. “We typically do this only in response to invitations from policymakers or where public comments are sought. We also want to make sure we have a thorough understanding of the industries at issue and, wherever possible, empirical evidence to support our advocacies. As a Commissioner, I will continue to push the agency to advocate for procompetitive policies.”

Data protection.

Ohlhausen also was asked how the FTC can encourage small companies to take the necessary steps to safeguard any consumer data that they collect. Ohlhausen said that in many ways, “good data security practices cost next to nothing.”

“Shredding confidential paperwork, training staff to keep personal information safe, and limiting what you collect in the first place are all cost-effective examples,” she said. “Here’s something else to consider. In the long run, NOT implementing reasonable data security can wind up costing small businesses even more.” She added that the FTC has resources available on its website to help small businesses handle data appropriately.

Ann Adair, president of Thinkamingo, Inc., a company that makes mobile apps for kids, asked if the FTC planned to support industry-led initiatives like the Association for Competitive Technology’s Know What’s Inside (KWI) program and to help developers comply with the Children’s Online Privacy Protection Act.

“Self-regulation is an important way to offer consumers additional privacy choices,” Commissioner Ohlhausen said. “The best self-regulatory programs are nimble, keeping pace with rapid changes in technology and business practices in ways legislation and regulation cannot.”

“The Commission has long supported industry self-regulation as an efficient way of securing consumer benefits and promoting a robust and competitive marketplace,” she added. “Voluntary codes of conduct and industry-led enforcement are particularly appropriate in dynamic sectors of the economy where traditional regulation may stifle innovation and slow growth. The self-regulatory activity taking place around COPPA and apps is a great example of how private efforts can augment our work at the FTC.”

Asked about what the FTC is doing related to data brokers, Commissioner Ohlhausen said the FTC is aware of consumers’ concerns about some practices and recently began a formal study of the data broker industry.

“We sent out formal requests for information to nine large data brokers to learn more about their practices, including how they use, share, and secure consumer data,” she said. “It is vital that we have a good understanding of how data brokers operate because appropriate use of data can greatly benefit consumers through better services and convenience while inappropriate use or insecure maintenance of data could cause significant harm to consumers. We will carefully analyze the submissions from the companies and use the information to decide how to proceed in this area.”

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