Friday, February 10, 2012

Groups Divided Over New FTC Powers

October 28, 2009

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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Juliana Gruenwald

Tech Writer

E-Mail: jgruenwald@nationaljournal.com.


Juliana Gruenwald has been covering tech and telecom issues for more than a decade for National Journal, Interactive Week, BNA and Congressional Quarterly. This is her second stint with National Journal. She was recruited by NJ in 1998 to help launch its first tech policy publication, Technology Daily. She left in 2000 to cover international tech and telecom issues for Ziff Davis Media's Interactive Week magazine. She started her career at United Press International as the wire service's first Helen Thomas Intern. She has a Bachelor of Arts degree from the University of Minnesota. A Minneapolis native, she misses the lakes but not the cold.


Josh Smith

Tech Reporter

E-Mail: joshsmith@nationaljournal.com.


Josh Smith covers technology policy as a staff reporter for National Journal. He previously interned at National Journal Daily, a Senate press office, and the Deseret News in Salt Lake City where he covered the state legislature, courts, and crime. In 2009 he graduated with honors from Southern Utah University after managing an award-winning student newspaper as editor-in-chief. Josh has received state, regional and national awards for his political and policy reporting, including first place in CapitolBeat’s 2009 Best of Statehouse Reporting college competition. A native of drop-dead-gorgeous Utah, Josh lives in Virginia with his wife, Amber.