Groups Divided Over New FTC Powers
High-tech, consumer, health and child advocacy groups wrote to House Energy and Commerce Chairman Henry Waxman and ranking member Joe Barton on Wednesday backing legislation that would ramp up the FTC's authority. The letter from the Center for Democracy and Technology, Center for Digital Democracy, Consumers Union, Public Knowledge, Media Access Project and others was sent on the eve of the committee's scheduled vote on the bill.
The measure, which would also create a separate Consumer Financial Protection Agency, would allow the FTC to conduct consumer protection rulemakings under expedited processes; provide it with aiding and abetting liability for violations of the Section 5 of the FTC Act involving unfair or deceptive practices; and enable it to seek civil penalty liability for unfair and deceptive practices found to violate Section 5. The watchdog groups also support giving the FTC independent litigating authority in civil penalty cases.
Advertising and marketing interests are worried about several provisions of the bill. Association of National Advertisers lobbyist Dan Jaffe wrote to Waxman Tuesday arguing that "critical aspects of this proposal have received inadequate focus and analysis." The bill, which was approved by the House Financial Services Committee last week, could confusion among regulators and harm business interests groups like the ANA, Interactive Advertising Bureau and Direct Marketing Association have warned.
Read a Wednesday CongressDaily PM Edition story here about adjustments that Waxman may make to the bill; FTC Chairman Jon Leibowitz's thoughts on the measure here; and an earlier story here that details advertisers' complaints (subscription required).
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