1. Monthly archive
  2. May 2016

May 2016

Tech groups want public probe of zero-rating plans

A large group of tech companies and advocates wants a public probe of new service offerings from wireless carriers, which they say could run afoul of network neutrality rules. The group (which includes the Benton Foundation) sent a letter to the Federal Communications Commission pressing the agency to take its review of zero-rating plans out from behind closed doors.

“Making decisions on these cases would set precedents for future practices, and would have implications for the Internet ecosystem that reach far beyond the stakeholders directly affected by these individual plans,” they wrote.“These decisions are too important to happen behind closed doors.” The letter was signed by companies like Yelp, Vimeo, Foursquare, Kickstarter, Medium, Mozilla and Reddit. Advocacy groups like Engine, Credo, Demand Progress and Access Now also signed on. “We urge you to open a public process to inform your evaluation of existing zero­rating plans,” the letter said. “The FCC’s process in this critical area would be immeasurably enriched by the participation of diverse stakeholders, many of whose input helped shape the Open Internet rules.”

House clears bills on FCC, dialing 911

The House cleared a trio of communications bills May 23, including one meant to make it easier to dial 911 in some situations and another that supporters say makes the Federal Communications Commission more transparent. Kari’s Law mandates that multi-line phone systems allow people to dial 911 directly. It also requires phone systems to notify people at the location where it is installed, like a hotel, that someone has dialed 911. The bill passed on a voice vote.
The House also passed a bill requiring the Federal Communications Commission to publish the content of rules it approves within 24 hours of the last dissent on the item being submitted.

The third bill, the Securing Access to Networks in Disasters Act, requires the commission to start a proceeding with the aim of making sure that people have access to mobile service during the disasters. It passed 389 to 2. One bill, however, failed to pass under suspension of the rules — a bruising outcome for House leadership. That legalisation would have required telecommunications operators to provider law enforcement with cellphone location data in emergency situations. But advocates said that it was too broadly written and had the potential to be abused by police officers.

FCC Reform Bill Passes House

The House has passed a Federal Communications Commission reform bill (HR 2589) that would require the FCC to publish changes to its rules within 24 hours of their adoption, with a caveat for dissenters. HR 2589 would amend the Communications Act to require the FCC to publish on its Web site the text of any items adopted no later than 24 hours after dissenting statements, if any, have been submitted by any of the commissioners.

The noncontroversial bill was introduced by Rep Renee Ellmers (R-NC) and passed out of the House Commerce Committee unanimously April 28. It passed the House on suspension on suspension of the rules, a parliamentary procedure for quickly approving noncontroversial legislation. While 40 minutes was allotted for debate on the House floor, 20 minutes for each side, almost all of that went unused, with both sides taking about four minutes to agree that they agreed on the bill. Communications Subcommittee Chairman Greg Walden (R-OR) said the bill would help the FCC operate in a more effective and transparent manner, and would address the FCC's "struggle" to make new rules available in a timely fashion.

Comcast Sued by Viamedia for Monopolization of ‘Spot’ Cable Ad Sales Market

Viamedia Inc. has filed a lawsuit against Comcast, alleging that the cable company violated antitrust law through its business practices in the $5 billion local cable advertising-sales market. Viamedia, which competes against Comcast in the business of local cable advertising, accused Comcast of outsize influence and business practices that are squeezing out firms like Viamedia and causing them financial harm. The suit was filed on May 23 in federal court in the Northern District of Illinois.

The US Justice Department has already been probing Comcast’s practices in the so-called “spot” cable ad sales business since late 2014. In November, the Justice Department had requested additional information from several companies in the market, including Comcast, for an investigation focused on “monopolization or attempted monopolization” in locations where Comcast offers service. Comcast said the advertising market is “robustly competitive” and local cable advertising only accounts for 7% of local ad sales because of competition with other media like radio and broadcast TV. “We are currently reviewing the suit and generally do not comment on pending litigation,” Comcast said. Viamedia is seeking damages of $225 million or more, according to the suit. The firm said it has lost potential investors and customers as a result of Comcast’s practices.

FTC Testifies Before Congress about Proposed Bills That Address the Agency’s Ability to Protect Consumers and Competition

In testimony before Congress, the Federal Trade Commission presented its views on 17 bills Congress is currently considering with respect to the agency’s jurisdiction and operations. FTC Chairwoman Edith Ramirez testified on behalf of the Commission.

The testimony before the House Subcommittee on Commerce, Manufacturing and Trade addressed the proposed bills within the framework of the agency’s overall mandate – protecting consumers and competition in an ever-changing marketplace through targeted law enforcement, research, a dedicated staff, and a commitment to bipartisanship and cooperation. While generally expressing support for several bills, the testimony noted that other proposed measures may unintentionally hamper the agency’s ability to continue to fulfill its dual consumer protection and competition missions. In particular, the testimony stated that the FTC supports two House bills, which, if enacted, would repeal certain exemptions to the FTC Act, allowing the agency to act more broadly to ensure consistent application of the law across economic sectors. One of the bills would eliminate the FTC Act exemption for telecommunications common carriers, while another would put charitable, religious, educational and other nonprofit organizations under the Commission’s enforcement jurisdiction. The testimony stated that the FTC remains committed to working with Congress to find ways to enhance its effectiveness in accomplishing its mission in a constantly evolving marketplace.

FTC To Host September Workshop On Testing Effectiveness of Consumer Disclosures

The Federal Trade Commission will host a public workshop on Sept 15, 2016, to examine the testing and evaluation of disclosures that companies make to consumers about advertising claims, privacy practices, and other information. The workshop, called “Putting Disclosures to the Test,” is aimed at encouraging and improving the evaluation and testing of disclosures by industry, academics, and the FTC. Effective disclosures are critical in helping consumers make informed decisions in the marketplace. The FTC has a long commitment to understanding and testing the effectiveness of consumer disclosures, and is especially interested in learning about the costs and benefits of disclosure testing methods in the digital age. Among the areas where disclosures play a key role in consumer protection are:

Disclosures in advertising designed to prevent ads from being deceptive.
Privacy-related disclosures, including privacy policies and other mechanisms to inform consumers that they are being tracked.
Disclosures in specific industries designed to prevent deceptive claims, including jewelry, environmental claims, and fuel economy advertisements.

The FTC’s workshop will explore how to test the effectiveness of these disclosures to ensure consumers notice them, understand them, and can use them in their decision-making.

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