Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Technology should be used to connect rather than separate people: Commissioner Ohlhausen, (Jan 8, 2014)

By John W. Arden, J.D., LL.M.

In a speech delivered today at the Consumer Electronics Show in Las Vegas, FTC Commissioner Maureen K. Ohlhausen spoke of the importance of using technology to connect people who may not have easy access to information, entertainment, and education, rather than to “separate the tech-savvy people from those who may not immediately understand or embrace its benefits.” The FTC can pursue policies that help the proliferation and adoption of technologies that can provide services to hard-to-reach groups, such as those living in rural areas, the elderly, or the poor, she said.

Introducing a panel discussion about the “Internet of Things,” the Commissioner related how Balaji Srinivasan, co-founder of genomics company Counsyl, has recently argued that Silicon Valley should use technology to exit the U.S. regulatory establishment and “leave behind those who have resisted technological changes.” Ohlhausen took issue with this concept, preferring to focus on the power of technology to connect people, just as the Internet of Things connects more things and people to the Internet—and ultimately to each other.

“Rather than using new technologies to escape society and regulation, we should point out the incredible potential of innovative new technologies to benefit society (including society’s most vulnerable) as compelling evidence for adopting a regulatory scheme that allows innovation, even disruptive innovation, to thrive,” she said. As an example of the good that can come from such innovation, the Commissioner cited how doctors can monitor and make diagnoses through phone handsets and wearable devices for populations located far from medical personnel.

The success of the Internet has been driven, in large part, by the freedom to experiment with business models, the best of which have survived and thrived in the face of initial unfamiliarity and unease about the impact on consumers and competitors, she said. “It is vital that government officials, like myself, approach new technologies with a dose of regulatory humility.” Regulators can educate themselves about innovation, understand its effects on consumers and the marketplace, and identify benefits and likely harms.

Consumer privacy and data security are real concerns raised by the Internet of Things (the interconnectedness of everyday physical objects, which can communicate with other objects and individuals), she observed. “Because interconnected devices and services often collect and share large amounts of personal information, policymakers, and members of the tech community must be sensitive to consumer privacy and data security issues,” said Ohlhausen. Thus, it is crucial that companies offering products as part of the Internet of Things act to safeguard the privacy of users as not to give new technology a bad name from the start.

“In this dynamic environment, the FTC’s approach of doing policy R&D to get a good understanding of the technology, educating consumers and businesses about how to maximize its benefits and reduce its risks, and using our traditional enforcement tools to challenge any harms that do arise offers, in my opinion, the best approach,” she observed. This informed action will maintain a federal role in protecting consumers, ensure a level playing field for competitors, and allow free markets and technological innovation to connect more things and more people to the Internet and each other, the Commissioner concluded.

News: ConsumerProtection Privacy FederalTradeCommissionNews