Privacy Policy Clarity Expected From FTC Members at Oversight Hearing
The Senate Consumer Protection Subcommittee’s FTC oversight hearing Tuesday (see 1811200051) is an opportunity for lawmakers to show bipartisan interest in federal privacy legislation, industry lobbyists told us. With all five commissioners set to testify, it’s also a chance to find out where there's consensus and disagreement within the FTC (see 1811210031), they said.
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Expect FTC members to be questioned on whether the agency has proper funding, if it should have rulemaking authority under a new privacy law and whether legislation should pre-empt state laws, said Wiley Rein telecom lobbyist Hap Rigby. Lawmakers will want to determine if it’s possible to balance privacy concerns with the interests of data-driven platforms, he said. Telecom interest in data monetization models is growing, he said, expanding the reach of the issue.
Lawmakers will want to know if the agency needs additional resources to address the privacy issue, agreed McGuireWoods Consulting tech lobbyist Michael Drobac. The tech industry will want to do its part to drive a “balanced” discussion to avoid compliance burdens like those associated with the EU’s general data protection regulation, he said. The “sweet spot” will be a framework that protects consumers but doesn’t hinder innovation, he said.
E-commerce companies like Amazon, which Drobac represents, are aware industry has entered a “new era,” Drobac said, noting the size and importance of a business like Amazon can’t be ignored. Drobac also represents Digital Content Next, a trade group representing major media outlets including The New York Times, The Washington Post and ESPN. Publishers have lingering questions about platform oversight and how to navigate privacy issues while selling ads and collecting data. “As much as we enjoy these platforms, the success of digital content providers depends on being able to monetize it,” Drobac said, urging Congress to find a “balance.”
The most important thing is for policymakers to understand online platform business models, said Digital Citizens Alliance Executive Director Tom Galvin. If Congress doesn’t understand the business models, it can’t write good policy. Sen. Lindsey Graham, R-S.C., a favorite to replace Senate Judiciary Committee Chairman Chuck Grassley, R-Iowa, said recently that looking at Silicon Valley business models will be a priority in 2019 (see 1811140053). It will be interesting to see how the FTC defines its role in relation to Congress, DOJ, state attorneys general and EU enforcers, Galvin said. It’s unfortunate online platforms are now dealing with ballooning enforcement issues they should have taken more seriously years ago, he added.
Facebook hired consultant Definers to target platform critic George Soros and rival competitors, Communications and Policy chief Elliot Schrage blogged Wednesday, confirming details from a New York Times story that sparked Facebook’s latest controversy (see 1811150039). Definers’ work was useful in helping Facebook respond “to unfair claims where Facebook has been singled out for criticism,” Schrage said, accepting blame for hiring the public relations firm. CEO Mark Zuckerberg and Chief Operating Officer Sheryl Sandberg initially denied having any knowledge of the partnership, which was terminated after the story.