By: Linda L. Goodman
At a recent Congressional hearing with the House Energy and Commerce Committee’s Consumer Protection and Commerce Subcommittee, all five commissioners of the FTC testified that need data privacy legislation, power to levy fine and more staff to protect data privacy of consumers.
During the hearing, the commissioners stressed the importance of having a national data privacy law to solve the patchwork of state legislation. The laws need to address terms of use contracts for consumers and making data protections apply to companies based on the nature of the information they are collecting.
The commissioners also asked for independent levy power. Currently, the FTC has to take offenders to court to request injunctive relief and settlement of fines with the offenders.
“Do not give us broad rulemaking authority. Please do not do it,” FTC Chairman Joseph Simons said. “Give us targeted rulemaking authority, so that we can keep up to date and make technical changes for developments in technology or business methods.”
“If handed too much rulemaking power, the agency could risk falling into a partisan tug of war — and laying the law of the land is Congress’ job,” Commissioner Joshua Phillips said.
“When you give broad rulemaking authority, you’re asking five of us or maybe even just three of us to decide what we want,” Phillips said. “That is not a substitute for the democratic process.”
When the commissioners were questioned as to why the FTC wasn’t doing more to protect consumers’ data privacy, they stressed that the agency was doing the best it could with only 40 people dedicated to the task. The agency has less employees than it did in the 80s, before it had the internet to deal with.
For more information and to follow the House Energy and Commerce Committee’s Consumer Protection and Commerce Subcommittee, go to their website here: https://energycommerce.house.gov/subcommittees/consumer-protection-commerce-116th-congress
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This article is a publication of The Goodman Law Firm and is intended to provide information on recent legal developments. This article does not create an attorney-client relationship, nor should it be construed as legal advice or an opinion on specific situations. This may constitute “Attorney Advertising” under the Rules of Professional Conduct and under the law of other jurisdictions.
Linda L. Goodman is the founder of The Goodman Law Firm, concentrating its practice in internet business and law. Her firm’s clients include Advertisers, Affiliates, Affiliate Networks, and ISP’s.
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