FCC, FTC Reveal Enforcement Plan Before Net Neutrality Vote

SHARE THIS ARTICLE

The Federal Trade Commission and FCC plan to coordinate their online consumer protection efforts following the adoption of the rollback of the 2015 Net Neutrality rules. The FCC plans to vote on the changes tomorrow which reclassified the internet as a utility. (see story below)

The FCC’s Restoring Internet Freedom Order would return jurisdiction to the FTC to police the conduct of internet service providers, including privacy practices. Once adopted, the order will also require ISPs to disclose their network management practices, performance, and commercial terms of service. As the nation’s top consumer protection agency, the FTC will be responsible for holding these providers to the promises they make to consumers.

Under the plan, the agencies would go after Internet Service Providers that don’t disclose their open internet practices, meaning they’re not honest with the public about throttling or blocking content based on price and other considerations. “We will work together to take targeted action against bad actors,” said FCC Chairman Ajit Pai. Acting FTC Chairman Maureen Ohlhausen said the FTC has “decades” of law enforcement experience in this area, and the Memorandum of Understanding being crafted with the FCC will help both agencies do their policing jobs.  

The draft MOU outlines ways in which the FCC and FTC will work together, including:

  • The FCC will review informal complaints concerning the compliance of ISPs with the disclosure obligations set forth in the new transparency rule. Those obligations include publicly providing information concerning an ISP’s practices with respect to blocking, throttling, paid prioritization, and congestion management. Should an ISP fail to make the required disclosures—either in whole or in part—the FCC will take enforcement action.
  • The FTC will investigate and take enforcement action as appropriate against ISPs concerning the accuracy of those disclosures, as well as other deceptive or unfair acts or practices involving their broadband services.
  • The FCC and the FTC will broadly share legal and technical expertise, including the secure sharing of informal complaints regarding the subject matter of the Restoring Internet Freedom Order. The two agencies also will collaborate on consumer and industry outreach and education.

Reaction to the news varied. House Energy and Commerce Committee Chairman Greg Walden (R-OR), Communications and Technology Subcommittee Chairman Marsha Blackburn (R-TN), and Digital Commerce and Consumer Protection Subcommittee Chairman Bob Latta (R-OH), called the move positive for consumers and the internet ecosystem. “It’s good to know that these powerful commissions are working together to protect consumers from any unfair or anticompetitive practices. The FTC has successfully provided those essential protections for decades, and we are confident they will continue to do so,” said Walden, Blackburn and Latta in a joint statement.

Committee Ranking Democrat Frank Pallone of New Jersey, meanwhile, believes the MOU “underscores the absurdity” of the roll back plan. He said Chairman Pai’s plan would be a “bureaucratic nightmare with no one left in charge” when something potentially goes wrong. FCC Commissioner Mignon Clyburn agreed, calling it “a confusing, lackluster, reactionary afterthought.”

December 13, 2017

Reader Interactions

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.