PREPARED STATEMENT OF THE FEDERAL TRADE COMMISSION OVERSIGHT OF THE FEDERAL TRADE COMMISSION Before the COMMITTEE ON COMMERCE SCIENCE AND TRANSPORTATION SUBCOMMITTEE ON CONSUMER PROTECTION PRODUCT SAFETY INSURANCE AND DATA SECURITY UNITED STATES SENATE WASHINGTON DC NOVEMBER 27 2018 I INTRODUCTION Chairman Moran Ranking Member Blumenthal and members of the Subcommittee the Federal Trade Commission “FTC” or “Commission” is pleased to appear before you today to discuss the FTC’s work to protect consumers and promote competition 1 The FTC is an independent agency with three main bureaus the Bureau of Consumer Protection “BCP” the Bureau of Competition “BC” and the Bureau of Economics “BE” which supports both BCP and BC The FTC is the only federal agency with a broad mission to both protect consumers and maintain competition in most sectors of the economy Its jurisdiction ranges from privacy and data security to mergers and acquisitions to anticompetitive tactics by pharmaceutical and other companies We enforce the law across a range of sectors including high technology and emerging industries The FTC has a long history of bipartisanship and cooperation and we work hard to maintain it The FTC has broad law enforcement responsibilities under the Federal Trade Commission Act 2 and enforces a wide variety of other laws ranging from the Clayton Act to the Fair Credit Reporting Act In total the Commission has enforcement or administrative responsibilities under more than 70 laws 3 The Commission pursues a vigorous and effective law enforcement program and the impact of its work is significant In addition to its consumer protection work its competition enforcement program is critically important to maintaining competitive markets across the country vigorous competition results in lower prices higher quality goods and services and innovative and beneficial new products and services 1 This written statement presents the views of the Federal Trade Commission The oral statements and responses to questions reflect the views of individual Commissioners and do not necessarily reflect the views of the Commission or any other Commissioner 2 15 U S C § 41 et seq 3 See https www ftc gov enforcement statutes The FTC investigates and prosecutes those engaging in unfair or deceptive acts or practices or unfair methods of competition and seeks to do so without impeding lawful business activity The agency has a varied toolkit to advance its mission For example the Commission collects consumer complaints from the public and maintains one of the most extensive consumer protection complaint databases Consumer Sentinel The FTC and other federal state and local law enforcement agencies use these complaints in their law enforcement and policy efforts The FTC also has rulemaking authority In addition to the FTC’s Magnuson-Moss rulemaking authority Congress has given the agency discrete rulemaking authority under the Administrative Procedure Act “APA” over specific topics The agency regularly analyzes its rules including seeking public feedback to ensure their continued efficacy The FTC also educates consumers and businesses to encourage informed consumer choices compliance with the law and public understanding of the competitive process Through its research advocacy education and policy work the FTC seeks to promote an honest and competitive marketplace and works with foreign counterparts to harmonize competition and consumer protection laws across the globe To complement its enforcement efforts the FTC pursues a consumer protection and competition policy and research agenda to improve agency decision-making and engages in advocacy and education initiatives This past September the Commission began holding its Hearings on Competition and Consumer Protection in the 21st Century 4 These multi-day multipart public hearings are exploring whether broad-based changes in the economy evolving business practices new technologies or international developments might require adjustments to competition and consumer protection law enforcement priorities and policy To date we have 4 FTC Hearings on Competition and Consumer Protection in the 21 st Century https www ftc gov policy hearingscompetition-consumer-protection see also FTC Press Release FTC Announces Hearings On Competition and Consumer Protection in the 21st Century June 20 2018 https www ftc gov news-events press-releases 2018 06 ftcannounces-hearings-competition-consumer-protection-21st heard from more than 200 panelists and received more than 700 public comments This project is ongoing and the FTC will continue to hold public hearings through early 2019 This testimony provides a short overview of the FTC’s work to protect U S consumers and competition including highlights of some of the agency’s major recent activities and initiatives It also discusses the Commission’s international efforts to protect consumers and promote competition II CONSUMER PROTECTION MISSION As the nation’s primary consumer protection agency the FTC has a broad mandate to protect consumers from unfair deceptive or fraudulent practices in the marketplace It does this by among other things pursuing law enforcement actions to stop unlawful practices and educating consumers and businesses about their rights and responsibilities The FTC’s enforcement and education efforts include working closely with federal state international and private sector partners on joint initiatives The Commission’s structure research capacity and committed staff enable it to pursue its mandate of protecting consumers and competition in an ever-changing marketplace Among other issues the FTC works to protect privacy and data security helps ensure that advertising claims to consumers are truthful and not misleading addresses fraud across most sectors of the economy and combats illegal robocalls The FTC’s law enforcement orders prohibit defendants from engaging in further illegal activity impose data security and other compliance obligations and in some cases ban defendants from engaging in certain conduct altogether When possible the FTC collects money to return to harmed consumers During FY 2018 Commission actions resulted in over $1 6 billion being returned to consumers Specifically the Commission returned more than $83 3 million in redress to consumers and FTC orders—including in the Volkswagen 5 Amazon 6 and NetSpend7 matters— required defendants to self-administer consumer refund programs worth more than $1 6 billion The FTC also collected civil penalties worth more than $2 4 million pursuant to these orders in FY 2018 In addition the Commission deposited an additional $8 5 million into the U S Treasury A Protecting Consumer Privacy and Data Security The FTC has served as the primary federal agency charged with protecting consumer privacy dating back to the 1970 enactment of the Fair Credit Reporting Act “FCRA” 8 The FTC has played a key role enforcing this law which protects sensitive data used for credit employment insurance and other decisions from disclosure to unauthorized persons Beginning in the mid-1990s with the development of the Internet as a commercial medium the FTC expanded its focus on privacy to reflect the growing collection use and sharing of consumer data in the commercial marketplace At that time the FTC began concentrating on children’s privacy and in 1998 Congress enacted the Children’s Online Privacy Protection Act to address the unique privacy and safety risks created when young children—those under 13 years of age—access the Internet 9 Since then the Commission also has used Section 5 of the FTC Act 10 which empowers the Commission to take action against deceptive or unfair commercial practices 11 as its primary source of legal authority in the privacy and data security arena Year after year privacy and data security top the list of consumer protection priorities at 5 FTC v Volkswagen Group of America Inc No 3 15-md-02672-CRB N D Cal May 17 2017 https www ftc gov enforcement cases-proceedings 162-3006 volkswagen-group-america-inc 6 FTC v Amazon com Inc No 2 14-cv-01038 W D Wash Apr 4 2017 https www ftc gov enforcement casesproceedings 122-3238 amazoncom-inc 7 FTC v NetSpend Corp No 1 16-cv-04203-AT N D Ga Apr 10 2017 https www ftc gov enforcement casesproceedings netspend-corporation 8 15 U S C § 1681 9 Children’s Online Privacy Protection Act of 1998 15 U S C §§ 6501-6506 10 15 U S C § 45 11 The Commission also enforces sector-specific statutes containing privacy and data security provisions such as the Gramm-Leach-Bliley Act “GLB Act” Pub L No 106-102 113 Stat 1338 1999 codified as amended in scattered sections of 12 and 15 U S C and the Children’s Online Privacy Protection Act “COPPA” 15 U S C §§ 6501-6506 the Federal Trade Commission These issues are critical to consumers and businesses alike Press reports about privacy practices and data breaches are increasingly common—such as the reports about Facebook and Equifax just to name two companies both of which the FTC is currently investigating 12 Some consumers are concerned when their data are used in ways they do not expect or understand Hackers and others seek to exploit vulnerabilities obtain unauthorized access to consumers’ sensitive information and potentially misuse it in ways that can cause serious harms to consumers as well as businesses These incidents are not a new phenomenon In fact we have been hearing about data breaches for well over a decade These incidents fuel the debate about both privacy and data security and the best ways to ensure them The FTC has long used its broad authority under Section 5 of the FTC Act to address consumer harms arising from new technologies and business practices and consequently has challenged certain deceptive or unfair privacy and security practices 13 The FTC’s privacy and data security program—which includes enforcement as well as consumer and business education—helps to promote a well-functioning market Privacy and data security will continue to be an enforcement priority at the Commission and the agency will use every tool at its disposal to address consumer harm Many of the FTC’s investigations and cases in this arena involve complex facts and technologies and well-financed defendants often requiring outside experts which can be costly It is critical that the FTC have sufficient resources to support its investigative and litigation needs including expert work particularly as demands for enforcement in this area continue to grow See e g Statement by the Acting Director of FTC’s Bureau of Consumer Protection Regarding Reported Concerns about Facebook Privacy Practices Mar 26 2018 https www ftc gov news-events pressreleases 2018 03 statement-acting-director-ftcs-bureau-consumer-protection 13 15 U S C § 45 a The FTC also enforces sector-specific statutes that protect certain health credit financial and children’s information See 16 C F R Part 318 Health Breach Notification Rule 15 U S C §§ 1681-1681x Fair Credit Reporting Act 16 C F R Parts 313-314 Gramm-Leach-Bliley Privacy and Safeguards Rules implementing 15 U S C §§ 6801-6809 16 C F R Part 312 Children’s Online Privacy Protection Rule implementing 15 U S C §§ 6501-6506 12 To date the Commission has brought more than 60 cases alleging that companies failed to implement reasonable data security safeguards as well as more than 60 general privacy cases 14 The FTC has aggressively pursued privacy and data security cases in myriad areas including financial privacy children’s privacy health privacy and the Internet of Things 15 For example the Commission recently gave final approval to an expanded settlement with ride-sharing platform company Uber Technologies related to allegations that the company failed to reasonably secure sensitive consumer data stored in the cloud 16 As a result an intruder allegedly accessed personal information about Uber customers and drivers including more than 25 million names and email addresses 22 million names and mobile phone numbers and 600 000 names and driver’s license numbers Under the final settlement Uber must notify the FTC about future incidents and meet other order requirements relating to privacy or data security with the threat of strong civil penalties if it fails to comply And earlier this year the Commission approved a settlement with PayPal Inc to resolve allegations that its Venmo peer-to-peer payment service misled consumers about their ability to control the privacy of their Venmo transactions and the extent to which their financial accounts were protected by “bank grade security systems ”17 Among 14 See generally FTC Privacy Data Security Update 2017 Jan 2018 https www ftc gov reports privacy-datasecurity-update-2017-overview-commissions-enforcement-policy-initiatives 15 Id 16 See Press Release FTC Federal Trade Commission Gives Final Approval to Settlement with Uber Oct 26 2018 https www ftc gov news-events press-releases 2018 10 federal-trade-commission-gives-final-approval-settlementuber Uber suffered a second larger breach of drivers’ and riders’ data in October-November 2016 and failed to disclose that breach to consumers or the FTC for more than a year despite being the subject of an ongoing FTC investigation of its data security practices during that time 17 PayPal Inc No C-4651 May 24 2018 https www ftc gov enforcement cases-proceedings 162-3102 paypalinc-matter other order requirements Venmo must make certain disclosures to consumers or face the threat of civil penalties for the failure to do so The Commission takes seriously its obligation to protect children’s privacy In the Commission’s first children’s privacy case involving Internet-connected toys the FTC announced a settlement—including a $650 000 civil penalty—with electronic toy manufacturer VTech Electronics for violations of the Children’s Online Privacy Protection Rule 18 The FTC alleged that the company collected children’s personal information online without first obtaining parental consent and failed to take reasonable steps to secure the data it collected 19 Section 5 however is not without limitations For example Section 5 does not provide for civil penalties reducing the Commission’s deterrent capability The Commission also lacks authority over non-profits and over common carrier activity even though the acts or practices of these market participants often have serious implications for consumer privacy and data security Finally the FTC lacks broad APA rulemaking authority for data security generally 20 The Commission continues to reiterate its longstanding bipartisan call for comprehensive data security legislation The Commission also must continue to prioritize examine and address privacy and data security with a fresh perspective Under the umbrella of the 21st Century Hearings the Commission recently announced panels taking place over four days specifically addressing consumer privacy and data security 21 The Commission’s remedial authority with respect to privacy and data security 18 U S v VTech Elec Ltd et al No 1 18-cv-00114 N D Ill Jan 8 2018 https www ftc gov enforcement casesproceedings 162-3032 vtech-electronics-limited 19 In addition to law enforcement the FTC also undertakes policy initiatives such as its workshop co-hosted with the Department of Education on educational technology and student privacy See Student Privacy and Ed Tech Dec 1 2017 https www ftc gov news-events events-calendar 2017 12 student-privacy-ed-tech 20 The Commission has been granted APA rulemaking authority for discrete topics such as children’s privacy financial data security and certain provisions of credit reporting 21 See Press Release FTC FTC Announces Sessions on Consumer Privacy and Data Security as Part of Its Hearings on Competition and Consumer Protection in the 21st Century Oct 26 2018 https www ftc gov news-events press- will be a key topic in these panels and the comments and discussions on these issues will be one source to inform the FTC’s enforcement and policy priorities In addition the Commission recently announced its fourth PrivacyCon an annual event that reviews evolving privacy and data security issues 22 Recently the European Union put into effect its General Data Protection Regulation “GDPR” GDPR like the EU’s data protection directive before it imposes certain restrictions on the ability of companies to transfer consumer data from the EU to other jurisdictions The EU-U S Privacy Shield Framework is a voluntary mechanism companies can use to promise certain protections for data transferred from Europe to the United States—and the FTC enforces the promises made by Privacy Shield participants under its jurisdiction 23 The Commission is committed to the success of the EU-U S Privacy Shield Framework a critical tool for protecting privacy and enabling cross-border data flows The FTC has actively enforced Privacy Shield— bringing four cases in just the last two months—and will continue to do so when Privacy Shield participants fail to meet their legal obligations 24 Chairman Simons recently participated along with the Secretary of Commerce in the second annual review of the functioning of the Privacy Shield framework with our European government counterparts The Commission also will continue to work with the Department of Commerce other agencies in the U S government and with its partners in Europe to ensure businesses and consumers can continue to benefit from Privacy Shield releases 2018 10 ftc-announces-sessions-consumer-privacy-data-security-part-its 22 See Press Release FTC FTC Announces PrivacyCon 2019 and Calls for Presentations Oct 24 2018 https www ftc gov news-events press-releases 2018 10 ftc-announces-privacycon-2019-calls-presentations 23 See www privacyshield gov and www ftc gov tips-advice business-center privacy-and-security privacy-shield Companies can also join a Swiss-U S Privacy Shield for transfers from Switzerland 24 See Press Release FTC FTC Reaches Settlements with Four Companies That Falsely Claimed Participation in the EU-U S Privacy Shield Sept 27 2018 https www ftc gov news-events press-releases 2018 09 ftc-reachessettlements-four-companies-falsely-claimed Finally the Commission urges Congress to consider enacting privacy legislation that would be enforced by the FTC While the agency remains committed to vigorously enforcing existing privacy-related statutes Congress may be able to craft federal legislation that would more seamlessly address consumers’ legitimate concerns regarding the collection use and sharing of their data and provide greater clarity to businesses while retaining the flexibility required to foster competition and innovation The Commission and its staff are prepared to share our expertise and assist with formulating appropriate legislation as we did with the Children’s Online Privacy Protection Act CAN-SPAM and the Gramm-Leach-Bliley Act This process understandably will involve difficult value judgments and tradeoffs that are appropriately left to Congress No matter the specific laws Congress enacts in the privacy and or data security arenas the Commission commits to using its extensive expertise and experience to enforce them vigorously consistent with its ongoing and bipartisan emphasis on privacy and data security enforcement B Truthfulness in National Advertising Ensuring that advertising is truthful and not misleading has always been one of the FTC’s core missions because it allows consumers to make well-informed decisions about how to best use their resources and promotes the efficient functioning of market forces by promoting the dissemination of accurate information Below are a few recent examples of the Commission’s work in this area This past year the agency has continued to bring cases challenging false and unsubstantiated health claims including those targeting older consumers consumers affected by the opioid crisis and consumers with serious medical conditions The Commission has brought cases challenging products that claim to improve memory and ward off cognitive decline relieve joint pain and arthritis symptoms and even reverse aging 25 We have challenged bogus claims that treatments could cure treat or mitigate various serious diseases and ailments including those affecting children and older consumers 26 The Commission also has sued companies that claimed allegedly without scientific evidence that using their products could alleviate the symptoms of opioid withdrawal and increase the likelihood of overcoming opioid dependency 27 Finally the Commission obtained an order barring a marketer from making deceptive claims about its products’ ability to mitigate the side effects of cancer treatments 28 When consumers with serious health concerns fall victim to unsupported health claims they may put their health at risk by avoiding proven therapies and treatments Through consumer education including the FTC’s advisories the agency urges consumers to check with a medical professional before starting any treatment or product to treat serious medical conditions 29 The FTC also protects consumers from illegal practices in the financial area For example last month the Commission alleged that online student loan refinancer Social Finance made deceptive claims about the average savings members could achieve by refinancing—sometimes doubling the average savings 30 The Commission also filed a complaint against Lending Club an 25 See e g Telomerase Activation Sci Inc et al No C-4644 Apr 19 2018 https www ftc gov enforcement casesproceedings 142-3103 telomerase-activation-sciences-inc-noel-thomas-patton-matter FTC v Health Research Labs Inc No 2 17-cv-00467 D Maine Nov 30 2017 https www ftc gov enforcement cases-proceedings 1523021 health-research-laboratories-llc 26 FTC v Regenerative Med Grp Inc No 8 18-cv-01838 C D Cal filed Oct 12 2018 https www ftc gov enforcement cases-proceedings 172-3062 regenerative-medicalgroup-inc A O Enters Inc No 1723016 Sept 20 2018 https www ftc gov enforcement cases-proceedings 172-3016 ao-enterprises-doingbusiness-iv-bars-aaron-k-roberts-matter 27 FTC v Catlin Enters Inc No 1 17-cv-403 W D Tex May 17 2017 https www ftc gov enforcement casesproceedings 1623204 catlin-enterprises-inc In addition in conjunction with the FDA the FTC issued letters to companies that appeared to be making questionable claims in order to sell addiction or withdrawal remedies See Press Release FTC FTC FDA Warn Companies about Marketing and Selling Opioid Cessation Products Jan 24 2018 https www ftc gov news-events press-releases 2018 01 ftc-fda-warn-companies-about-marketing-selling-opioidcessation 28 FTC v CellMark Biopharm No 2 18-cv-00014-JES-CM M D Fla Jan 12 2018 https www ftc gov enforcement cases-proceedings 162-3134 cellmark-biopharma-derek-e-vest 29 FTC Consumer Blog Treatments and Cures https www consumer ftc gov topics treatments-cures 30 Press Release FTC Online Student Loan Refinance Company SoFi Settles FTC Charges Agrees to Stop Making False Claims About Loan Refinancing Savings Oct 28 2018 https www ftc gov news-events press- online lender alleging that its marketing was deceptive because it claimed its loans had “no hidden fees ” when in fact consumers later learned they were charged hundreds and even thousands of dollars in origination fees 31 C Protecting Consumers from Fraud Fighting fraud is a major focus of the FTC’s law enforcement efforts The Commission’s anti-fraud program tracks down and stops some of the most egregious scams that prey on U S consumers—often the most vulnerable consumers who can least afford to lose money For example reports about imposter scams have been on the rise over the past few years and many of these scams target older Americans 32 Fraudsters falsely claiming to be government agents including the IRS and even the FTC family members or well-known tech companies contact consumers and pressure them to send money often via cash-like payment methods such as gift cards or money transfers or trick them into providing personal information Fraudsters also target small businesses sometimes cold-calling businesses to “collect” on invoices they do not owe In 2017 the FTC joined federal state and international law enforcement partners in announcing “Operation Tech Trap ” a nationwide and international crackdown on tech support scams that dupe consumers into believing their computers are infected with viruses and malware and then charge them hundreds of dollars for unnecessary repairs 33 The FTC brought actions to shut down these deceptive operations and also developed consumer education materials to help releases 2018 10 online-student-loan-refinance-company-sofi-settles-ftc-charges 31 FTC v Lending Club Corp No 3 18-cv-02454 N D Cal Apr 25 2018 https www ftc gov enforcement casesproceedings 162-3088 federal-trade-commission-v-lendingclub-corporation 32 FTC Fiscal Year 2019 Congressional Budget Justification https www ftc gov reports fy-2019-congressionalbudget-justification 33 Press Release FTC FTC and Federal State and International Partners Announce Major Crackdown on Tech Support Scams May 12 2017 https www ftc gov news-events press-releases 2017 05 ftc-federal-state-internationalpartners-announce-major-crackdown “Operation Tech Trap” is just one example of a law enforcement “sweep”— coordinated simultaneous law enforcement actions with partners—that the FTC uses to leverage resources to maximize effects Another example of a recent sweep is “Game of Loans ” the first coordinated federal-state law enforcement initiative targeting deceptive student loan debt relief scams Press Release FTC State Law Enforcement Partners Announce Nationwide Crackdown on Student Loan Debt Relief Scams Oct 13 2017 https www ftc gov newsevents press-releases 2017 10 ftc-state-law-enforcement-partners-announce-nationwide-crackdown consumers avoid falling victim to tech support scams in the first place 34 This past June the FTC announced “Operation Main Street ” an initiative to stop small business scams The FTC jointly with the offices of two U S Attorneys’ Offices the New York Division of the U S Postal Inspection Service eight state Attorneys General and the Better Business Bureau announced 24 actions targeting fraud aimed at small businesses and released new education materials to help small businesses identify and avoid potential scams 35 In September the Commission brought an action against Sunkey Publishing alleging that the lead generation operation falsely claimed to be affiliated with the military and promised to use consumers’ information only for military recruitment purposes Instead the FTC alleged that Sunkey used the information it collected to make millions of illegal telemarketing calls and sold the information to post-secondary schools 36 This action is part of the FTC’s work in the area of lead generation which is the process of identifying and cultivating individual consumers who are potentially interested in purchasing a product or service 37 The FTC strives to stay ahead of scammers who are always on the lookout for new ways to market old schemes For example there has been an increase in frauds involving cryptocurrencies—digital assets that use cryptography to secure or verify transactions 38 The Commission has worked to educate consumers about cryptocurrencies and hold fraudsters 34 FTC Guidance Tech Support Scams July 2017 https www consumer ftc gov articles 0346-tech-supportscams#How 35 Press Release FTC FTC BBB and Law Enforcement Partners Announce Results of Operation Main Street Stopping Small Business Scams Law Enforcement and Education Initiative June 18 2018 https www ftc gov newsevents press-releases 2018 06 ftc-bbb-law-enforcement-partners-announce-results-operation-main 36 Press Release FTC FTC Takes Action against the Operators of Copycat Military Websites Sept 6 2018 https www ftc gov news-events press-releases 2018 09 ftc-takes-action-against-operators-copycat-military-websites 37 See generally FTC Staff Perspective “Follow the Lead” Workshop Sept 2016 https www ftc gov system files documents reports staff-perspective-followlead staff_perspective_follow_the_lead_workshop pdf 38 See e g FTC What to Know About Cryptocurrency Oct 2018 https www consumer ftc gov articles what-knowabout-cryptocurrency accountable 39 In March the FTC halted the operations of Bitcoin Funding Team which allegedly falsely promised that participants could earn large returns by enrolling in moneymaking schemes and paying with cryptocurrency 40 And in June the FTC hosted a workshop to explore how scammers are exploiting public interest in cryptocurrencies like Bitcoin and Litecoin and discussed ways to empower and protect consumers against this growing threat 41 In addition to targeting scammers the FTC also brings actions against companies that facilitate fraud often by ignoring red flags associated with fraudulent transactions Money transfers are a preferred method of payment for fraudsters because money sent through money transfer systems can be retrieved quickly at locations all over the world and once retrieved the money is all but impossible to recover Earlier this month MoneyGram agreed to pay $125 million to settle allegations that the company failed to take steps required under a 2009 FTC order to crack down on fraudulent money transfers that cost U S consumers millions of dollars and also to resolve allegations that the company violated a 2012 deferred prosecution agreement with the U S Department of Justice “DOJ” 42 D Illegal Robocalls Illegal robocalls also remain a significant consumer protection problem and consumers’ top complaint to the FTC They repeatedly disturb consumers’ privacy and frequently use fraud and deception to pitch goods and services leading to significant economic harm In FY 2018 the FTC 39 See e g FTC Consumer Blog Know the risks before investing in cryptocurrencies https www ftc gov newsevents blogs business-blog 2018 02 know-risks-investing-cryptocurrencies FTC Consumer Blog Protecting your devices from cryptojacking https www consumer ftc gov blog 2018 06 protecting-your-devices-cryptojacking 40 FTC v Thomas Dluca et al Bitcoin Funding Team No 0 18-cv-60379-KMM S D N Y Mar 16 2018 https www ftc gov enforcement cases-proceedings 172-3107 federal-trade-commission-v-thomas-dluca-et-al-bitcoinfunding 41 FTC Workshop Decrypting Cryptocurrency Scams June 25 2018 https www ftc gov news-events eventscalendar 2018 06 decrypting-cryptocurrency-scams 42 Press Release FTC MoneyGram Agrees to Pay $125 Million to Settle Allegations that the Company Violated the FTC’s 2009 Order and Breached a 2012 DOJ Deferred Prosecution Agreement Nov 8 2018 https www ftc gov news-events press-releases 2018 11 moneygram-agrees-pay-125-million-settle-allegationscompany see also FTC v The Western Union Co No 1 17-cv-00110 M D Pa Jan 19 2017 https www ftc gov enforcement cases-proceedings 122-3208 western-union-company received more than 3 7 million robocall complaints 43 The FTC has used many methods to fight these illegal calls including 136 enforcement actions to date 44 Technological advances however have allowed bad actors to place millions or even billions of calls often from abroad at very low cost and in ways that are difficult to trace This phenomenon continues to infuriate consumers and challenge enforcers Part of the huge uptick in illegal calls including robocalls is attributable to relatively recent technological developments that facilitate telemarketing without requiring a significant capital investment in specialized hardware and labor 45 Today robocallers benefit from automated dialing technology inexpensive international and long distance calling rates and the ability to move internationally and employ cheap labor The result law-breaking telemarketers can place robocalls for a fraction of one cent per minute Moreover technological changes have also affected the marketplace by enabling telemarketers to conceal their identities and “spoof” caller IDs when they place calls 46 43 Total unwanted-call complaints for FY 2017 including both robocall complaints and complaints about live calls from consumers whose phone numbers are registered on the Do Not Call Registry exceeded 7 million See Do Not Call Registry Data Book 2017 Complaint Figures for FY 2017 https www ftc gov reports national-do-not-call-registrydata-book-fiscal-year-2017 44 See FTC Robocall Initiatives https www consumer ftc gov features feature-0025-robocalls Since establishing the Do Not Call Registry in 2003 the Commission has fought vigorously to protect consumers’ privacy from unwanted calls Indeed since the Commission began enforcing the Do Not Call provisions of the Telemarketing Sales Rule “TSR” in 2004 the Commission has brought 136 enforcement actions seeking civil penalties restitution for victims of telemarketing scams and disgorgement of ill-gotten gains against 444 corporations and 358 individuals As a result of the 125 cases resolved thus far the Commission has collected over $121 million in equitable monetary relief and civil penalties See Enforcement of the Do Not Call Registry https www ftc gov news-events media-resources do-notcall-registry enforcement In August the FTC and its law enforcement partners achieved an historic win in a longrunning fight against unwanted calls when a federal district court in Illinois issued an order imposing a $280 million penalty against Dish Network—the largest penalty ever issued in a Do Not Call case U S et al v Dish Network L L C No 309-cv-03073-JES-CHE C D Ill Aug 10 2017 https www ftc gov enforcement casesproceedings 052-3167 dish-network-llc-united-states-america-federal-trade 45 FTC Workshop Robocalls All the Rage Oct 18 2012 https www ftc gov news-events eventscalendar 2012 10 robocalls-all-rage-ftc-summit A transcript of the workshop is available at https www ftc gov sites default files documents public_events robocalls-all-rage-ftcsummit robocallsummittranscript pdf 46 Recently the FTC filed a complaint against two related operations and their principals who allegedly facilitated billions of illegal robocalls to consumers nationwide The complaint charged that these operations provided the computer-based dialing platform and “spoofed” caller IDs for robocallers to pitch everything from auto warranties to Recognizing that law enforcement while critical is not enough to solve the problem of illegal calls the FTC has taken steps to spur the marketplace to develop technological solutions For instance from 2013 to 2015 the FTC led four public challenges to incentivize innovators to help tackle the unlawful robocalls that plague consumers 47 The FTC’s challenges contributed to a shift in the development and availability of technological solutions in this area particularly call-blocking and call-filtering products Consumers can access information about potential solutions available to them on the FTC’s website 48 In addition the FTC regularly works with its state federal and international partners to combat illegal robocalls For example this spring the FTC and the Federal Communications Commission “FCC” co-hosted a Joint Policy Forum on illegal robocalls to discuss the regulatory and enforcement challenges posed by this activity as well as a public expo featuring new technologies devices and applications to minimize or eliminate the number of illegal robocalls that consumers receive 49 As described in more detail in the International Cooperation section the Commission also participated in several international initiatives focusing on robocalls and other calling abuses 50 home security systems and supposed debt-relief services FTC v James Christiano et al No 8 18-cv-00936 C D Cal June 5 2018 https www ftc gov enforcement cases-proceedings 162-3124 james-christiano-et-alnetdotsolutions-inc 47 The first challenge in 2013 called upon the public to develop a consumer-facing solution to block illegal robocalls One of the winners “NomoRobo ” was on the market within 6 months after being selected by the FTC NomoRobo which reports blocking over 600 million calls to date is being offered directly to consumers by a number of telecommunications providers and is available as an app on iPhones See Press Release FTC FTC Announces Robocall Challenge Winners Apr 2 2013 https www ftc gov news-events press-releases 2013 04 ftc-announces-robocallchallenge-winners see also Press Release FTC FTC Awards $25 000 Top Cash Prize for Contest-Winning Mobile App That Blocks Illegal Robocalls Aug 17 2015 https www ftc gov news-events press-releases 2015 08 ftcawards-25000-top-cash-prize-contest-winning-mobile-app-blocks Press Release FTC FTC Announces Winners of “Zapping Rachel” Robocall Contest Aug 28 2014 https www ftc gov news-events press-releases 2014 08 ftcannounces-winners-zapping-rachel-robocall-contest 48 See https www consumer ftc gov features how-stop-unwanted-calls 49 Press Release FTC FTC and FCC to Host Joint Policy Forum on Illegal Robocalls Mar 22 2018 www ftc gov news-events press-releases 2018 03 ftc-fcc-host-joint-policy-forum-illegal-robocalls Press Release FTC FTC and FCC Seek Exhibitors for an Expo Featuring Technologies to Block Illegal Robocalls Mar 7 2018 www ftc gov news-events press-releases 2018 03 ftc-fcc-seek-exhibitors-expo-featuring-technologies-block-illegal 50 See e g Memorandum of Understanding Among Public Authorities of the Unsolicited Communications Also for many years the Commission has testified in favor of eliminating the common carrier exemption The exemption is outdated and no longer makes sense in today’s marketplace where the lines between telecommunications and other services are increasingly blurred It impedes the FTC’s work tackling illegal robocalls and more broadly circumscribes other enforcement initiatives For example a carrier that places or assists and facilitates illegal telemarketing may be beyond the Commission’s reach because of the common carrier exemption Likewise the exemption may frustrate the Commission’s ability to obtain complete relief for consumers when there are multiple parties some of whom are common carriers It also may pose difficulties when a company engages in deceptive or unfair practices involving a mix of common carrier and noncommon carrier activities Finally litigation has been complicated by entities that attempt to use their purported status as common carriers to shield themselves from FTC enforcement 51 E Consumer and Business Education and Outreach Public outreach and education is another critical element of the FTC’s efforts to fulfill its consumer protection mission The Commission’s education and outreach programs reach tens of millions of people each year through the FTC’s website the media and partner organizations that disseminate consumer information on the agency’s behalf The FTC delivers actionable practical plain-language guidance on dozens of issues and updates its consumer education materials whenever it has new information to share The FTC disseminates these tips through articles blog posts social media infographics videos audio and campaigns For example in response to the Enforcement Network Pertaining to Unlawful Telecommunications and SPAM May 2016 https www ftc gov policy cooperation-agreements international-unlawful-telecommunications-spam-enforcementcooperation Press Release FTC FTC Signs Memorandum of Understanding With Canadian Agency To Strengthen Cooperation on Do Not Call Spam Enforcement Mar 24 2016 https www ftc gov news-events pressreleases 2016 03 ftc-signs-memorandum-understanding-canadian-agency-strengthen 51 See e g Answer and Affirmative Defenses of Defendant Pacific Telecom Communications Group at 9 17-20 Dkt 19 FTC et al v Carribbean Cruise Line et al No 0 15-cv-60423 S D Fla June 2 2015 https www ftc gov enforcement cases-proceedings 122-3196-x150028 caribbean-cruise-line-inc enactment of the Economic Growth Regulatory Relief and Consumer Protection Act 52 which allows consumers to freeze their credit and place one-year fraud alerts for free the Commission updated its IdentityTheft gov website to help consumers take advantage of the new protections 53 Among the key audiences served by the FTC are older adults as described in a recent report to Congress that details how older adults experience scams 54 For example according to the FTC’s 2017 data people 60 and over are much more likely to report fraud than people in their 20s but far less likely to say they lost money 55 However when people 80 and over report losing money to a scam they lose much more than do their younger counterparts 56 As a response to older adults’ experience with scams the FTC created its Pass It On campaign 57 which gives older adults the information they need to start a conversation about scams with family and friends The Commission also works to provide companies with resources on a variety of issues that affect businesses Just last month we released our “Cybersecurity for Small Business” campaign based on concerns we heard from small businesses The campaign discusses a dozen need-to-know topics such as “Cybersecurity Basics ” “Tech Support Scams ” and “Hiring a Web Host ”58 III COMPETITION MISSION In addition to the work of BCP described above the FTC enforces U S antitrust law in many sectors that directly affect consumers and their wallets such as health care consumer 52 Pub L No 115-174 See Press Release FTC Starting Today New Federal Law Allows Consumers to Place Free Credit Freezes and Yearlong Fraud Alerts Sept 21 2018 https www ftc gov news-events press-releases 2018 09 starting-today-newlaw-allows-consumers-place-free-credit-freezes 54 FTC Report Protecting Older Consumers 2017-2018 Oct 2018 https www ftc gov reports protecting-olderconsumers-2017-2018-report-congress-federal-trade-commission 55 Id at 5 56 Id at 6 57 See www ftc gov PassItOn and www ftc gov Pasalo The campaign has distributed more than 9 5 million print publications since its creation including 2 2 million in fiscal year 2018 58 See Cybersecurity Resources for Your Small Business Oct 18 2018 https www ftc gov newsevents blogs business-blog 2018 10 cybersecurity-resources-your-small-business 53 products and services technology manufacturing and energy The Commission shares federal antitrust enforcement responsibilities with the Antitrust Division of the Department of Justice One of the agencies’ principal responsibilities is to prevent mergers that may substantially lessen competition Under U S law parties to certain mergers and acquisitions must file premerger notification and observe the statutorily prescribed waiting period before consummating their transactions Premerger filings under the Hart-Scott-Rodino “HSR” Act have increased steadily since FY 2013 In FY 2017 the antitrust agencies received over 2 000 HSR filings for the first time since 2007 bringing filings in the past fiscal year to the average over the past 20 years 59 The vast majority of reported transactions do not raise competitive concerns and the agencies clear those non-problematic transactions expeditiously But when the evidence gives the Commission reason to believe that a proposed merger likely would be anticompetitive it does not hesitate to intervene Since the beginning of FY 2017 the Commission has challenged 45 mergers after the evidence showed that they would likely harm consumers Although many of these cases were resolved through divestiture settlements in FY 2018 alone the Commission voted to initiate litigation to block five mergers each of which has required a significant commitment of resources Three of the challenges ended successfully when the parties abandoned the transactions before the district court could issue a decision 60 while the other two are still being litigated 61 In two of these matters a 59 In FY 2017 the agencies received notice of 2 052 transactions compared with 1 326 in FY 2013 and 2 201 in FY 2007 For historical information about HSR filings and U S merger enforcement see the joint FTC DOJ Hart-ScottRodino annual reports https www ftc gov policy reports policy-reports annual-competition-reports 60 FTC v DraftKings Inc No 17-cv-01195 D D C June 19 2017 https www ftc gov enforcement casesproceedings 161-0174 draftkings-fanduel-ftc-state-california-district-columbia-v Press Release FTC FTC Challenges Proposed Acquisition of Conagra’s Wesson Cooking Oil Brand by Crisco owner J M Smucker Co Mar 5 2018 https www ftc gov news-events press-releases 2018 03 ftc-challenges-proposed-acquisition-conagras-wessoncooking-oil In re CDK Global Auto Mate Dkt 9382 Mar 20 2018 https www ftc gov enforcement casesproceedings 171-0156 cdk-global-automate-matter 61 Tronox Ltd Dkt 9377 Dec 5 2017 https www ftc gov enforcement cases-proceedings 171-0085 tronoxcristalusa Otto Bock HealthCare North America Inc Dkt 9378 Dec 20 2017 https www ftc gov enforcement casesproceedings 171-0231 otto-bock-healthcarefreedom-innovations federal district court granted the Commission’s motion for a preliminary injunction pending an administrative trial and issued a decision resolving important issues of merger law 62 One increasing challenge for the Commission in litigating competition cases is the continuing need to hire testifying economic experts Qualified experts are a critically important component in all of the FTC’s competition cases heading toward litigation While the agency thus far has managed to find sufficient resources to fund the experts needed to support its cases the FTC is reaching the point where it cannot meet these needs without compromising its ability to fulfill other aspects of the agency’s mission The Commission appreciates Congress’s attention to its resource needs including the need to hire outside experts The Commission also maintains a robust program to identify and stop anticompetitive conduct and it currently has a number of cases in active litigation 63 For over twenty years and on a bipartisan basis the Commission has prioritized ending anticompetitive reverse-payment patent settlements in which a brand-name drug firm pays its potential generic rival to delay entering the market with a lower cost generic product Following the U S Supreme Court’s 2013 decision in FTC v Actavis Inc 64 the Commission is in a much stronger position to protect consumers Since that ruling the FTC obtained a landmark $1 2 billion settlement in its litigation involving the sleep disorder drug Provigil 65 and other manufacturers have agreed to abandon the practice 66 In 62 FTC v Wilhelmsen No 1 18-cv-00414 D D C Feb 23 2018 https www ftc gov enforcement casesproceedings 171-0161 wilhelm-wilhelmsen-et-al-ftc-v FTC v Tronox Ltd No 1 18-cv-01622 D D C Jul 10 2018 https www ftc gov enforcement cases-proceedings 171-0085 tronox-limited-et-al-ftc-v 63 In addition to the cases involving pharmaceutical firms discussed infra pending litigation alleging anticompetitive conduct includes FTC v Qualcomm Inc No 17-cv-00220 N D Cal Jan 17 2017 https www ftc gov enforcement cases-proceedings 141-0199 qualcomm-inc In re 1-800 Contacts Inc Dkt 9372 Aug 8 2016 https www ftc gov enforcement cases-proceedings 141-0200 1-800-contacts-inc-matter In re Louisiana Real Estate Appraisers Board Dkt 9374 May 31 2017 https www ftc gov enforcement casesproceedings 161-0068 louisiana-real-estate-appraisers-board In re Benco Dental Supply et al Dkt 9379 Feb 12 2018 https www ftc gov enforcement cases-proceedings 151-0190 bencoscheinpatterson-matter 64 FTC v Actavis Inc 570 U S 756 2013 65 Press Release FTC FTC Settlement of Cephalon Pay for Delay Case Ensures $1 2 Billion in Ill-Gotten Gains Relinquished Refunds Will Go To Purchasers Affected by Anticompetitive Tactics May 28 2015 https www ftc gov news-events press-releases 2015 05 ftc-settlement-cephalon-pay-delay-case-ensures-12-billion-ill addition the Commission has challenged other anticompetitive conduct by drug manufacturers including the abuse of government process through sham litigation or repetitive regulatory filings intended to slow the approval of competitive drugs 67 For example a federal court recently ruled that AbbVie Inc used sham litigation illegally to maintain its monopoly over the testosterone replacement drug Androgel and ordered $493 7 million in monetary relief to consumers who were overcharged for Androgel as a result of AbbVie’s conduct 68 The Commission also obtained a stipulated injunction in which Mallinckrodt ARD Inc agreed to pay $100 million and divest assets to settle charges that it had illegally acquired the rights to develop a drug that threatened its monopoly in the U S market for a specialty drug used to treat a rare seizure disorder afflicting infants 69 The Commission also follows closely developments in the high-technology sector From smart appliances and smart cars to mobile devices and artificial intelligence the widespread adoption of new technologies is not only changing the way we live but also the way firms operate Although many of these changes may offer consumer benefits they also raise complex competition issues Given the important role that technology companies play in the American economy it is critical that the Commission—in furthering its mission to protect consumers and promote competition—not only understand the current and developing business models but also ensure that 66 Joint Motion for Entry of Stipulated Order for Permanent Injunction FTC v Allergan plc No 17-cv-00312 N D Cal Jan 23 2017 https www ftc gov enforcement cases-proceedings 141-0004 allergan-plc-watson-laboratoriesinc-et-al Stipulated Order for Permanent Injunction FTC v Teikoku Pharma USA Inc No 16-cv-01440 E D Pa Mar 30 2016 https www ftc gov enforcement cases-proceedings 141-0004 endo-pharmaceuticals-impax-labs 67 FTC v AbbVie Inc No 14-cv-5151 E D Pa Sept 8 2014 https www ftc gov enforcement casesproceedings 121-0028 abbvie-inc-et-al 68 Statement of FTC Chairman Joe Simons Regarding Federal Court Ruling in FTC v AbbVie June 29 2018 https www ftc gov news-events press-releases 2018 06 statement-ftc-chairman-joe-simons-regarding-federal-courtruling 69 Stipulated Order for Permanent Injunction and Equitable Monetary Relief FTC v Mallinckrodt ARD Inc No 1 17cv-00120 D D C Jan 30 2017 https www ftc gov system files documents cases stipulated_order_for_permanent_injunction_mallinckrodt pdf companies in this sector abide by the same rules of competitive markets that apply to any company 70 In addition to competition enforcement the FTC promotes competition principles in advocacy comments to state lawmakers and regulators as well as to its sister federal agencies 71 and in amicus briefs filed in federal courts considering important areas of antitrust law 72 Last year the Commission concluded a comprehensive review of its merger remedies to evaluate the effectiveness of the Commission’s orders issued between 2006 and 2012 and made public its findings 73 The Commission continues to conduct merger retrospectives examining prior merger enforcement decisions to assess their impact on competition and consumers and plans to broaden this effort going forward Similarly through the series of hearings described above the Commission is devoting significant resources to refresh and if warranted renew its thinking on a wide range of cutting-edge competition issues 74 IV INTERNATIONAL COOPERATION In addition to its domestic programs the FTC engages in significant international work much of which relies on the expiring SAFE WEB Act which the Commission urges Congress to reauthorize On the competition side with the expansion of global trade and the operation of many companies across national borders the FTC and DOJ increasingly engage with foreign antitrust agencies to ensure close collaboration on cross-border cases and convergence toward sound 70 See e g 1-800 Contacts Inc No 9372 Nov 14 2017 https www ftc gov enforcement cases-proceedings 1410200 1-800-contacts-inc-matter Commissioner Phillips dissented in this matter DraftKings Inc FanDuel Ltd No 9375 July 14 2017 https www ftc gov enforcement cases-proceedings 161-0174 draft-kings-inc-fanduel-limited 71 See generally https www ftc gov policy advocacy 72 Amicus briefs are posted at https www ftc gov policy advocacy amicus-briefs 73 FTC Staff Report The FTC’s Merger Remedies 2006-2012 A Report of the Bureaus of Competition and Economics 2017 https www ftc gov system files documents reports ftcs-merger-remedies-2006-2012-report-bureauscompetition-economics p143100_ftc_merger_remedies_2006-2012 pdf 74 See Prepared Remarks of Chairman Simons Announcing the Competition and Consumer Protection Hearings June 20 2018 https www ftc gov system files documents public_statements 1385308 prepared_remarks_of_joe_simons_ announcing_the_hearings_6-20-18_0 pdf competition policies and procedures 75 The FTC effectively coordinates reviews of multijurisdictional mergers and continues to work with its international counterparts to achieve consistent outcomes in cases of possible anticompetitive conduct The U S antitrust agencies facilitate dialogue and promote convergence through multiple channels including through strong bilateral relations with foreign competition agencies and multilateral competition organization projects and initiatives When appropriate the FTC also works with other agencies within the U S government to advance consistent competition enforcement policies practices and procedures in other parts of the world 76 On the consumer protection side enforcement cooperation is the top priority of the FTC’s international consumer protection program In a global digital economy the number of FTC investigations and cases with cross-border components—including foreign-based targets and defendants witnesses documentary evidence and assets—continues to grow During the last fiscal year the FTC cooperated in 43 investigations cases and enforcement projects with foreign consumer privacy and criminal enforcement agencies To sustain this level of productive cooperation the agency often works through global enforcement networks such as the International Consumer Protection and Enforcement Network the Global Privacy Enforcement Network the Unsolicited Communications Enforcement Network and the International Mass Marketing Fraud Working Group Just last month for example the FTC organized an Unsolicited Communications Enforcement Network conference with 11 foreign enforcement agencies plus the FCC to develop international approaches on robocalls tech support scams and other online abuses 75 In competition matters the FTC also seeks to collaborate with the state Attorneys General to maximize results and use of limited resources in the enforcement of the U S antitrust laws 76 For example the Commission works through the U S government’s interagency processes to ensure that competition-related issues that also implicate broader U S policy interests such as the protection of intellectual property and non-discrimination are addressed in a coordinated and effective manner The FTC’s key tool for cross-border enforcement is the U S SAFE WEB Act 77 Passed in 2006 and renewed in 2012 this Act strengthens the FTC’s ability to work on cases with an international dimension It has allowed the FTC to share evidence and provide investigative assistance to foreign authorities in cases involving spam spyware misleading health and safety claims privacy violations and data security breaches and telemarketing fraud In many of these cases the foreign agencies investigated conduct that directly harmed U S consumers while in others the FTC’s action led to reciprocal assistance The U S SAFE WEB Act has been a remarkable success The FTC has responded to 130 SAFE WEB information sharing requests from more than 30 foreign enforcement agencies The FTC has issued more than 115 civil investigative demands in more than 50 investigations on behalf of foreign agencies both civil and criminal The Commission has also used this authority to file suit in federal court to obtain judicial assistance for one of its closest law enforcement partners the Canadian Competition Bureau 78 The FTC’s foreign law enforcement partners similarly have assisted FTC enforcement actions In cases relying on the U S SAFE WEB Act the FTC has collected millions of dollars in restitution for injured consumers both foreign and domestic For example the FTC worked with DOJ the Royal Canadian Mounted Police and other Canadian agencies to obtain a Montreal court order returning nearly $2 million to the U S victims of a mortgage assistance and debt relief scam 79 In the privacy arena the FTC used key provisions of the U S SAFE WEB Act to collaborate successfully with the Office of the Privacy Commissioner of Canada in the FTC’s first case involving Internet-connected toys Specifically in 2018 the FTC 77 Undertaking Spam Spyware and Fraud Enforcement With Enforcers Beyond Borders Act U S SAFE WEB Act Pub L No 109-455 120 Stat 3372 extended by Pub L No 112-203 126 Stat 1484 amending 15 U S C §§ 41 et seq 78 Press Release Competition Bureau Canada Bureau case against Rogers Bell Telus and the CWTA advances thanks to collaboration with US Federal Trade Commission Aug 29 2014 http www competitionbureau gc ca eic site cbbc nsf eng 03805 html 79 Press Release FTC FTC Returns $1 87 Million to Consumers Harmed by Debt Relief Scam May 9 2016 https www ftc gov news-events press-releases 2016 05 ftc-returns-187-million-consumers-harmed-debt-relief-scam brought an enforcement action against V-Tech a Hong Kong-based electronics toy manufacturer alleging COPPA violations 80 The Act sunsets in 2020 the Commission requests that Congress reauthorize this important authority and eliminate the sunset provision The Act also underpins the FTC’s ability to participate in cross-border cooperation arrangements including the EU-U S Privacy Shield Framework which facilitates billions of transatlantic data flows 81 Critically the Act also expressly confirms the FTC’s authority both to challenge practices occurring in other countries that harm U S consumers a common scenario in cases involving fraud and to challenge U S business practices harming foreign consumers such as Privacy Shield violations A key focus of the FTC’s international privacy efforts is support for global interoperability of data privacy regimes The FTC works with the U S Department of Commerce on three key cross-border data transfer programs for the commercial sector the EU-U S Privacy Shield the Swiss-U S Privacy Shield and the Asia-Pacific Economic Cooperation “APEC” Cross-Border Privacy Rules CPBR System As already explained the Privacy Shield programs provide legal mechanisms for companies to transfer personal data from the EU and Switzerland to the United States with strong privacy protections The APEC CBPR system is a voluntary enforceable code of conduct protecting personal information transferred among the United States and other APEC economies The FTC enforces companies’ privacy declarations and commitments in these programs bringing cases as violations of Section 5 of the FTC Act 82 The FTC also works closely 80 U S v VTech Elec Ltd et al No 1 18-cv-00114 N D Ill Jan 8 2018 https www ftc gov enforcement casesproceedings 162-3032 vtech-electronics-limited 81 See generally https www ftc gov tips-advice business-center privacy-and-security privacy-shield The FTC’s SAFE WEB powers enable stronger cooperation with European data protection authorities on investigations and enforcement against possible Privacy Shield violations a point cited in the European Commission’s Privacy Shield adequacy decision See Commission Implementing Decision No 2016 1250 on the adequacy of the protection provided by the EU-U S Privacy Shield 2016 O J L207 1 at ¶ 51 https eur-lex europa eu legalcontent EN TXT HTML uri OJ L 2016 207 FULL from EN 82 See e g ReadyTech Corp No C-4659 Oct 25 2018 https www ftc gov enforcement cases-proceedings 182- with agencies developing and implementing new privacy and data security laws around the world including Asia Africa and Latin America And the FTC convenes discussions on important and emerging privacy issues For example just two weeks ago senior officials from the agencyconducted meetings with government officials and other stakeholders in India together with partners from the U K and Japan on India’s proposed data security and privacy legislation VII CONCLUSION The FTC remains committed to marshalling its resources efficiently in order to effectively protect consumers and promote competition to anticipate and respond to changes in the marketplace and to meet current and future challenges We look forward to continuing to work with the Subcommittee and Congress and we would be happy to answer your questions 3100 readytech-corporation-matter Md7 LLC No C-4629 Nov 29 2017 https www ftc gov enforcement casesproceedings 172-3172 md7-llc Tru Commc’n Inc No C-4628 Nov 29 2017 https www ftc gov enforcement cases-proceedings 172-3171 tru-communication-inc Decusoft LLC No C-4630 Nov 29 2017 https www ftc gov enforcement cases-proceedings 172-3173 decusoft-llc Sentinel Labs Inc No C-4608 Apr 14 2017 https www ftc gov enforcement cases-proceedings 162-3250 sentinel-labs-inc Vir2us Inc No C-4609 Apr 14 2017 https www ftc gov enforcement cases-proceedings 162-3248 vir2us-inc SpyChatter Inc No C-4614 Apr 14 2017 https www ftc gov enforcement cases-proceedings 162-3251 spychatter-inc
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