Antitrust Law Daily Wrap Up, CONSUMER PROTECTION: Ohlhausen concerned reclassification of broadband would curb FTC’s enforcement role, (Nov 14, 2014)

By John Curran,TRDaily

Federal Trade Commissioner Maureen Ohlhausen said yesterday that she is concerned that a move by the FCC to reclassify broadband service under Title II of the Communications Act will reduce the FTC’s ability to protect consumers because Internet service providers will be moved outside of the agency’s jurisdiction.

Speaking at an event organized by the Federalist Society, Commissioner Ohlhausen, a Republican, noted a recent FTC action against AT&T Mobility in which agency asked a federal court to stop the company from “throttling” the wireless broadband service of customers on data plans that it has marketed as “unlimited” and to require the company to make financial redress for past throttling. The FTC said the company’s actions amount to changing the terms of customers’ service while they were under contract, and criticized AT&T for not adequately disclosing the throttling provisions when customers renewed their unlimited data plan contracts and for charging early termination fees (ETFs) to customers who sought to end their contracts when they discovered how throttling affected them.

Because broadband service is now classified as a Title I information service, the FTC was able to bring its case against AT&T Mobility. However, if broadband service is classified under Title II, the agency would not have been able to do so because of the existing common carrier exemption, Ohlhausen said.

“I’m concerned about that,” she said, adding, “one of the concerns I have is losing the ability of the FTC to act as an enforcer on the antitrust and consumer side.”

Ohlhausen said she was “not sure” that the loss of FTC authority in that regard would be balanced by any gains that might be realized by consumers if broadband service is reclassified under Title II.

News: ConsumerProtection FederalTradeCommissionNews