Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: FTC testifies on its competition, consumer protection record as its 100th anniversary approaches, (Dec 3, 2013)

By Linda O’Brien, J.D., LL.M.

The House Energy and Commerce Subcommittee on Commerce, Manufacturing, and Trade held a hearing today to review the FTC’s current mission of protecting consumer welfare and promoting competitive markets and to ensure the agency’s focus on its goals in the future.

At the hearing—entitled “The FTC at 100: Where do we go from here?”—FTC Chairwoman Edith Ramirez and Commissioners Julie Brill, Maureen K. Ohlhausen, and Joshua D. Wright testified before the subcommittee on the agency’s long track record of protecting consumers and promoting competition in the U.S. economy, as well as its ongoing work and future challenges as the 100th anniversary of the agency approaches next year, the FTC announced.

Ramirez began her prepared remarks by stating that the FTC is a highly productive and efficient, small independent agency with a mission to protect consumers and maintain competition in broad sectors of the economy. The impact of the FTC was significant. Over the past three years, the agency saved consumers $3 billion in economic injury by stopping illegal competitive practices and mergers, returned $196 million to victims of deceptive or unfair practices, and forwarded $117 million in disgorgement of ill-gotten and civil penalties to the U.S. Treasury. “Our agency structure, research capacity, continued commitment to bipartisanship and cooperation, and exceptional staff will allow the FTC to continue to adapt to external changes and successfully fulfill its mission of protecting consumers and competition into its next century, “ noted Ramirez.

President Woodrow Wilson signed the Federal Trade Commission Act and Clayton Act in 1914, and the FTC opened its doors on March 16, 1915. The Commission was given enforcement authority and empowered to conduct investigations, gather information, and publish reports. Congress has since expanded the FTC’s responsibilities through several statutes, such as the Fair Credit Reporting Act; the Fair Debt Collection Practices Act; and the 1994 Telemarketing and Consumer Fraud and Abuse Prevention Act, which led to the establishment of the National Do Not Call Registry.

Wright testified how the unique structure of the FTC—with its three bureaus—enhances its ability to protect consumers. The Bureau of Competition endeavors to promote and protect free markets and vigorous competition; the Bureau of Consumer Protection works to prevent fraud, deception, and unfair business practices in the marketplace; and the Bureau of Economics provides guidance and support to the agency’s antitrust and consumer protection activities. Wright also outlined how the reduction of burdens on the business community has been a main component of the FTC’s modernization efforts.

Ramirez described the FTC’s current work to protect consumers from unfair, deceptive, and fraudulent practices in the marketplace. In recent years, the FTC has emphasized protecting financially-distressed consumers from fraud, protecting consumer privacy and data security, prosecuting false and deceptive health claims, and safeguarding children in the marketplace.

In fiscal year 2013, the FTC filed 72 new consumer protection complaints in federal district court and obtained 100 permanent injunctions and orders requiring defendants to pay $198 million in consumer redress and disgorgement of ill-gotten gains, the testimony outlined. In addition, the Commission has issued 13 reports on consumer protection topics, released 256 new consumer and business education publications, and released 33 consumer and business videos and audio public service announcements.

The FTC’s efforts to maintain its competition focus on stopping anticompetitive mergers and other business practices in a wide range of industries is of critical importance to U.S. consumers, Ramirez stated. The industries include health care, technology, energy, consumer goods and services, and manufacturing. The FTC’s work is critical to protect and strengthen free and open markets that are the cornerstones of a vibrant economy, she said.

In fiscal year 2013, the agency pursued 27 new competition law enforcement actions and undertook several important workshops, reports, and advocacy opportunities to promote competition and educate business stakeholders about the importance of competition to consumers.

The testimony next described the challenges facing the FTC as it approaches its 100th anniversary, including its work to keep pace with vast technological advances and an increasing global economy. In light of resource constraints and a growing workload, the FTC will continue to leverage its resources through careful case selection, by partnering with public and private entities, and by improving its own technological infrastructure to allow its staff to work more effectively.

As technology evolves, the agency will continue to ensure that it has the appropriate information, tools, and staff to address new issues. As examples, the FTC convenes public meetings, such as its recent Internet of Things workshop, to gather information from those at the cutting edge of technological advances. The agency also has invested in new technology, such as mobile devices and software, to ensure that its staff has the tools to investigate fraud in the high-tech arena.

Finally, the FTC will seek to address challenges posed by the increased globalization and an international marketplace, and will continue its longstanding initiative to review FTC rules and guides to ensure that they enhance consumer welfare without imposing undue burdens on business.

“As we approach our 100th anniversary, the FTC remains committed to finding ways to enhance its effectiveness in protecting consumers and promoting competition, to anticipate and respond to changes in the marketplace, and to meet current and future challenges,” Ramirez concluded.

News: Antitrust ConsumerProtection FederalTradeCommissionNews