Digital Commerce Subcommittee Expected to Weigh IoT Technology, Data Security
The House Digital Commerce Subcommittee expects to hear from e-commerce experts Wednesday on a range of consumer issues, including data security, consumer privacy and IoT technology, said Chairman Bob Latta, R-Ohio, and an executive in interviews Tuesday. The hearing is expected to examine how e-commerce altered retail and its impacts on supply chain, delivery and consumer expectations. This e-commerce trend has been made possible by modern payment methods like blockchain technology and convenient delivery options, enabled in part by emerging IoT technologies.
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
A subcommittee memo said e-commerce sales were projected to total $453.5 billion in 2017, a 16 percent increase from the prior year. E-commerce sales have been growing nine times faster than traditional in-store sales since 1998, according to Department of Commerce data.
“The committee needs to keep abreast of what’s going on out there, from the time folks pick up that telephone, make that call and also the time it takes for delivery, so we want to hear from everyone involved, how things are progressing in that, because again this is making up more and more of our economy,” Latta said, after leaving a subcommittee oversight hearing with NTIA Administrator David Redl (see 1803060048). “You’re seeing so much now being done online. Companies both small and large, the only way to survive now is by going online and selling across the country,” Latta said.
Convey Logistics CEO Rob Taylor, scheduled to testify, said in an interview that with emerging IoT technologies producing more data, there's a larger number of carriers touching customer information. It also means more technology companies like Convey, which specializes in supply chain management, have access to that data. “High standards around data privacy and data sensitivity is important,” he said.
With increasing sales for larger items like furniture and appliances, Taylor said his customers are no longer relying on one carrier to deliver goods. Instead, a company might rely on anywhere from five to 100 carriers, which allows a lot of access to consumer data. “Data security is obviously a relevant topic, not just in retail but in all industries. As we as consumers opt into more things, there is more data being produced, specifically around the delivery experience,” he said.
Blockchain technology figures to be discussed. Overstock.com board member Jonathan Johnson said in prepared testimony Overstock became the first major retailer to accept Bitcoin transactions in 2014, and now deals in 50 different cryptocurrencies. The company’s weekly revenue from digital currencies ranges from $98,000 to $256,000, a “miniscule percentage” of overall revenue. CaseStack CEO Dan Sanker will testify that the market for digital currency is about $600 billion, up from about $16 billion a year ago. The federal government is exploring how blockchain technology could address cybersecurity weaknesses (see 1802140051). And one expert Tuesday suggested it could be used for Lifeline (see 1803060024).
Hel’s Kitchen Catering Founder David Borris will testify against the influence of Amazon, calling the company “an existential threat to the millions of small-business owners who form the backbone of the American economy, creating jobs and ensuring that local wealth stays circulating in local economies.” Seventy-four percent of small-business websites don’t have the option of e-commerce, he said. Amazon didn't comment. Taylor’s testimony can be found here.