Press Release

Three US companies have agreed to settle Federal Trade Commission charges that they misled consumers about their participation in the European Union-United States Privacy Shield framework, which allows companies to transfer consumer data from EU member states to the United States in compliance with EU law.

In separate complaints, the FTC alleges that human resources software company Decusoft, LLC, printing services company Tru Communication, Inc. (doing business as TCPrinting.net), and Md7, LLC, which manages real estate leases for wireless companies, violated the FTC Act by falsely claiming that they were certified to participate in the EU-US Privacy Shield. The FTC also alleged that Decusoft falsely claimed participation in the Swiss-U.S. Privacy Shield framework. Despite these claims, all three companies failed to complete the certification process for the Privacy Shield, according to the FTC complaints. The actions against the three companies are the first cases the FTC has brought to enforce the EU-U.S. Privacy Shield framework, which was put in place in 2016 to replace the U.S.-EU Safe Harbor framework. The FTC brought 39 enforcement actions against companies under the U.S.-EU Safe Harbor framework. Like the Safe Harbor, the Privacy Shield is aimed at providing companies on both sides of the Atlantic with a mechanism to comply with EU data protection requirements when transferring consumer data between the EU and the United States. These cases join the four enforcement actions the FTC has brought related to the Asia-Pacific Economic Cooperation (APEC) Cross-Border Privacy Rules (CBPR) system.

Since becoming Chairman, I have consistently emphasized the need for the Commission’s regulations to match realities of the current marketplace. Our rules must reflect today’s technological and economic conditions, not those of yesterday. And at this month’s open meeting, we will advance this objective by focusing on whether to update or scrap outdated rules. That’s why we’re dubbing September .

Sept 8, three research papers using National Telecommunications & Information Administration's Digital Nation survey data will be presented at the 45th Research Conference on Communications, Information and Internet Policy (TPRC) an annual conference attended by researchers, policymakers, and advocates from the public, academic, and private sectors. The papers serve as instructive examples of how researchers can take NTIA's survey data beyond the basic metrics to offer unique and valuable insights into Internet use in America. Policy staff from NTIA will present one of the papers, which examines the connection between digital and financial inclusion. Another paper - a TPRC Student Paper Contest winner - comes from a student from Oklahoma State University Stillwater who wrote about the behavioral relationships behind the increases in mobile-only households. And researchers from the University of Redlands School of Business used NTIA data to examine geographic patterns of Internet use in U.S. states.

Federal Communications Commission Chairman Ajit Pai announced that the following items are tentatively on the agenda for the September Open Commission Meeting scheduled for Tuesday, September 26, 2017:

Amendment of Parts 74, 76 and 78 of the Commission’s Rules Regarding Maintenance of Copies of FCC Rules – The Commission will consider a Notice of Proposed Rulemaking that proposes to eliminate rules requiring certain broadcast and cable entities to maintain paper copies of FCC rules. (MB Docket Nos. 17-105; 17-231)

Cable Television Technical and Operational Standards – The Commission will consider a Report and Order that modernizes its cable television technical rules to reflect the cable industry’s use of digital transmission systems. (MB Docket No. 12-217)

Revitalization of the AM Radio Service – The Commission will consider a Third Report and Order that will relax or eliminate certain rules pertaining to AM broadcasters employing and maintaining directional antenna arrays. (MB Docket No. 13-249)

Updating Rules for Non-Geostationary Satellites in the Fixed-Satellite Service – The Commission will consider a Report and Order and Further Notice of Proposed Rulemaking that recommends updating and streamlining the Commission’s rules to facilitate the licensing of the next generation of non-geostationary, fixed-satellite service systems. (IB Docket No. 16-408)

Revisions to Reporting Requirements Governing Hearing Aid-Compatible Mobile Handsets – The Commission will consider a Notice of Proposed Rulemaking that seeks comment on revisions to the wireless hearing aid compatibility annual reporting requirement to provide relief to non-nationwide service providers. (WT Docket No. 17-228)

Toll Free Assignment Modernization – The Commission will consider a Notice of Proposed Rulemaking that proposes to amend the Commission’s rules to allow for use of auctions to assign certain toll free numbers and considers other means by which to modernize the administration and assignment of toll free numbers. (WC Docket No. 17-192; CC Docket No 95-155)

911 Access, Routing, and Location in Enterprise Communications Systems – The Commission will consider a Notice of Inquiry that seeks comment on the provision of 911 by enterprise communications systems that serve businesses, hotels, educational institutions, and government entities. The NOI seeks comment on the capabilities of these systems to support direct calling to 911, routing to the appropriate 911 call center, and transmission of the caller’s location information, as well as to ensure that the 911 capabilities of these systems keep pace with technological developments and public expectations. (PS Docket No. 17-239)

20th Mobile Wireless Competition Report – The Commission will consider a Report analyzing the state of competition in the mobile wireless industry. (WT Docket No. 17-69)

Mapping analyses of AT&T’s 2016 broadband deployment data reported to the Federal Communications Commission for Wayne County, MI, (Detroit) and Lucas County, OH, (Toledo) show the same pattern of “digital redlining” of low income neighborhoods as National Digital Inclusion Alliance research has previously revealed in the Cleveland and Dayton areas.

The new maps, showing Census blocks in the two counties where AT&T offers fast fiber-enhanced “VDSL” broadband service — and blocks where it doesn’t — are part of NDIA’s ongoing research into the FCC’s Form 477 Fixed Broadband Deployment data for June 2016. NDIA has found a high correlation between neighborhoods where AT&T has chosen not to deploy the newer fiber-to-the-neighborhood technology, and those with poverty rates of 35 percent or more. In areas where the company hasn’t installed VDSL capacity, households as well as small businesses are still dependent on older, slower, all-copper ADSL2 service with maximum downloads speeds as low as 1.5 mbps or even 768 kbps.

Federal agencies, especially the Department of Defense (DoD), don’t face normal marketplace pressures to economize their use of spectrum. While the potential societal gains of reallocating federal spectrum for commercial use are likely in the hundreds of billions of dollars, attempts at addressing this problem have met many roadblocks. Today, I’m offering another idea for consideration: the option of allowing agencies to free up some of their spectrum holdings in exchange for budgetary relief. While I still believe the imposition of Agency Spectrum Fees is the best course of action, this new proposal represents a compromise between differing carrot and stick approaches. And it is particularly timely today, as many of these federal agencies face increasing budgetary pressure. I suggest that federal agencies be permitted to use their spectrum holdings to offset the annual budgetary caps and sub caps. This would mean that, in achieving its respective budget limits, a federal agency could substitute the market value – as determined by an average of Congressional Budget Office and Office of Management and Budget estimates – of their surrendered spectrum to offset other cuts or even expand its spending options. It amounts to a spectrum-for-cash swap.

Modernizing Lifeline for broadband is critical for poor people and people of color, who are more likely to be on the wrong side of the digital divide and who cite cost as a major barrier to adoption. Lifeline is the only federal program poised to increase broadband adoption and provide a pathway out of poverty for millions of people. When talking about Lifeline, we hear a lot about waste, fraud and abuse. But this narrative is overblown and frankly offensive.

I have long been troubled by the tenor of the Lifeline debate: There’s a tendency to wage war on the poor, to demonize and assume the worst about Lifeline recipients. And I cannot sit here today, especially as white supremacy is on the rise around the country and in the White House, without directly confronting the racist undertones of these assumptions. We should avoid inflated stories of waste, fraud and abuse at the expense of poor people and people of color, who rely on Lifeline to meet basic needs. The first priority should be expedient implementation of the 2016 Order. We should reject radical measures such as moving Universal Service funds to the U.S. Treasury “to offset other national debts,” as the FCC Chair’s office evidently suggested to the GAO. This could undermine all USF programs, including Lifeline and others designed to connect rural Americans, schools and libraries.

I can summarize my testimony in three sentences. First, promoting universal access to modern communication services and the Internet, especially for low-income and disadvantaged Americans, is a noble cause and a pragmatic objective which deserves Federal support. Second, the Federal Communications Commission’s current lifeline program is not an effective or efficient means of achieving these goals, nor are current reform efforts likely to make it so. Third, we cannot give up: the doors of digital opportunity must be opened for low-income and disadvantaged Americans, and it is therefore incumbent on policymakers to develop a new approach that is both effective and a good investment for the American taxpayer.

Federal Communications Commission Chairman Ajit Pai visited Houston and Austin (TX) this week to survey the damage caused by Hurricane Harvey and meet with local, state, and federal officials engaged in recovery efforts. The Chairman was particularly focused on the performance of communication networks during and after the storm, and how the FCC can better enable Americans to communicate and learn critical information in an emergency.

Acting Federal Trade Commission Chairman Maureen K. Ohlhausen announced that she has selected Ian R. Conner, a partner in the Antitrust & Competition group at the law firm of Kirkland & Ellis LLP, to be an Acting Deputy Director of the FTC’s Bureau of Competition, effective Sept. 18, 2017. In private practice, Conner represented clients before the Federal Trade Commission, the U.S. Department of Justice and various state attorneys general. Prior to entering private practice, Conner was a trial attorney in the Transportation, Energy and Agriculture Section of the U.S. Department of Justice, Antitrust Division, which he joined through the Attorney General’s Honors Program. He also served as a Special Assistant U.S. Attorney in the Eastern District of Virginia. Conner received his law degree from William & Mary Law School. He served as an adjunct professor from 2008 to 2010 at William & Mary, teaching a course on antitrust and merger review.