[A2k] FTC Chief Pipes Up Again on "Net Neutrality"

[Seth Johnson]

(Text pasted below.  -- Seth)

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Subject: FTC chief warns against 'unnecessary' Net rules
From: "Dewayne Hendricks" <dewayne@warpspeed.com>
Date: Tue, 7 Nov 2006 18:18:52 -0800

FTC chief warns against 'unnecessary' Net rules
By Anne Broache, Staff Writer, CNET News.com

	CNET News.com reports the head of the Federal Trade Commission
on Monday voiced reluctance toward adopting consumer protection
laws that target technological concerns du jour, saying the
"collective voice" of consumers often prompts change.

<http://news.com.com/FTC+chief+warns+against+unnecessary+Net+regulations/2100-1028_3-6132772.html?tag=html.alert>


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End of Dewayne-Net Digest

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> http://news.com.com/FTC+chief+warns+against+unnecessary+Net+regulations/2100-1028_3-6132772.html


FTC chief warns against 'unnecessary' Net rules

Deborah Platt Majoras says consumer voices, market forces,
existing laws are often good enough to remedy problems.

By Anne Broache

Staff Writer, CNET News.com

Published: November 6, 2006, 8:10 AM PST

Last modified: November 6, 2006, 8:54 AM PST


WASHINGTON--The head of the Federal Trade Commission on Monday
voiced reluctance toward adopting consumer protection laws that
target technological concerns du jour, saying the "collective
voice" of consumers often prompts change.

Deborah Platt Majoras, the agency's Republican chairman, said she
prefers relying on a combination of existing laws, vigorous
competition and user pressure to address complaints about new
products or potentially worrisome uses of technology.

For proof, look no further than a situation in September in which
hundreds of thousands of people who use the popular
social-networking site Facebook rebelled against a new feature
that some charged was Big Brother-esque, Majoras said. Within
days, the site's founder had quieted some of the fury by giving
people the option of turning off the "minifeed," which shows
people whenever someone in their network makes a change to their
relationship status, favorite music or other profile information.

"On the Internet, consumers appear to reign supreme, and they can
be very powerful and tough customers," Majoras told an audience
of about 300 people in a morning speech here that kicked off a
series of public hearings hosted by the FTC.

Dubbed "Protecting Consumers in the Next Tech-ade," the three-day
event is billed by the agency as a counterpart to global
consumer-protection hearings held in 1995. This week's lineup is
scheduled to include panelists predicting how topics like
communication, social networking, advertising, computing power
and security will change over the next 10 years.

Despite the vast differences in technology use between 1995 and
today, existing laws that cover "unfair and deceptive practices"
have proven elastic enough in many cases for Internet Age
adaptations, Majoras said in her opening remarks.

Ten years ago, "we weren't even talking about spyware as a
potential problem. But when it emerged, we determined we needed
no new law or regulation to begin combating the scourge," she
said.

Majoras said the FTC would nonetheless "continue to vigorously
enforce all the laws at our disposal," such as the Can-Spam Act
of 2003, which critics charge has done little to curb the rise of
unsolicited e-mail.

The FTC chief on Monday stayed away from an issue that advocates
have flagged as a major consumer protection issue this year: Net
neutrality, the idea that network operators such as Verizon
Communications and AT&T must be prohibited from charging Internet
content providers premium prices for speedier delivery.

Whether new regulations are necessary to prevent what Net
neutrality proponents refer to as an Internet "fast lane" has
generated a significant split. Network operators and hardware
manufacturers generally reject the need for new laws, while
Internet companies such as Google and Yahoo, as well as consumer
groups, have been lobbying for their passage.

But Majoras said during an August speech that she didn't see the
need for new regulations because there has been no demonstrated
harm to consumers, that normal market forces will likely prevent
any problems, and that new laws will cause more problems than
they solve.

The FTC is currently undertaking a study on Net neutrality and
plans to issue policy recommendations. That step was lauded by
FTC Commissioner Jon Leibowitz, a Democrat, when he took the
stage later Monday morning.

"Will carriers block, slow or interfere with applications?"
Leibowitz asked. "If so, will consumers be told about this before
they sign up? In my mind, failure to disclose these procedures
would be...unfair and deceptive."

Unlike Majoras, Leibowitz said there's still room for Congress to
act in at least one realm--specifically, to devise a "consensus
antispyware law."

Right now, federal regulators may only require spyware purveyors
found to violate consumer protection laws to hand over ill-gotten
profits--as they did in a settlement announced Friday with adware
manufacturer Zango. Congress needs to grant the FTC the power to
levy fines on top of that, creating an added deterrent, Leibowitz
said.

The "Tech-ade" hearings continue through Wednesday in George
Washington University's Lisner Auditorium and via Webcast. A
private session for law enforcement and government officials is
slated for Thursday.

CNET News.com's Declan McCullagh contributed to this report.