The FTC created a rulemaking group within the General Counsel’s Office with the goal of strengthening existing rules and creating “new rulemakings to prohibit unfair or deceptive practices and unfair methods of competition,” acting Chair Rebecca Kelly Slaughter announced Thursday. Rulemaking is “a critical part of the FTC’s toolbox to stop widespread consumer harm and to promote robust competition,” especially given threats to the agency’s FTC Act section 13(b) authority (see 2102040049), the agency said. The FTC’s “rulemaking power under section 18 has gotten a bad reputation for being too hard to use, but longstanding FTC rules, such as the Funeral Rule and the Eyeglass Rule, have provided significant benefits to consumers,” Slaughter said. The agency should “activate its unfair methods of competition rulemaking authority” due to the concentrated economy, she added. The commission wouldn't disclose now the names of those who comprise this group. The panel “will streamline rulemaking at the FTC, resulting in rules that are faster, more efficient, and more effectively address anticompetitive conduct than antitrust litigation alone,” said Public Knowledge Competition Policy Director Charlotte Slaiman, saying it's "a much-needed change.” Consumer Reports thinks this “sends a clear message that the FTC is going to prioritize rulemaking going forward, which we hope will lead to stronger consumer protections and greater corporate accountability,” said Senior Researcher-Technology Competition Sumit Sharma.

President Joe Biden will nominate Lina Khan to be an FTC commissioner, the White House announced Monday, as expected (see 2103170066). An associate professor at Columbia Law School, Khan previously was a staffer for the House Antitrust Subcommittee and FTC Commissioner Rohit Chopra. Khan’s “creative energy, groundbreaking antitrust work, and passion for the FTC’s mission make her an excellent nominee,” said acting FTC Chair Rebecca Kelly Slaughter. “I wish her a speedy confirmation.”

Akin Gump launched an online “centralized resource” for executive orders issued by the new administration that will include the firm’s “thought leadership" commentary on policy and regulatory actions, it said Thursday. Content at the Biden-Harris Administration Actions Center “is easily searchable and can also be accessed by categories, and federal departments and agencies,” it said.

The FTC ordered Wellco to pay $650,000 in a settlement over allegations it deceived consumers about TV antenna products, the agency announced Monday. Wellco and its CEO, George Moscone, violated the FTC Act by “making deceptive performance claims” for “over-the-air television antennas and related signal amplifiers,” commissioners alleged 4-0. The complaint was filed with U.S. District Court for the Southern District of New York in Manhattan. The company used “deceptive consumer endorsements” and misrepresented some of its own webpages as "objective news reports about the antennas,” the agency said. An FTC order imposed a $32 million judgment against the company, which will be suspended if the defendants pay $650,000 to the commission, “based on their inability to pay the full judgment,” the FTC said. An attorney for the defendant didn’t comment.

Columbia Law School professor Tim Wu is joining the Biden administration as member of the National Economic Council and special assistant to the president for technology and competition policy, Wu and the White House confirmed Friday. This doesn’t mean President Joe Biden fully subscribes to Wu's support for breaking up big tech companies (see 1907160064), White House Press Secretary Jen Psaki told reporters. “His hiring is a reflection of the value of his expertise,” she said. “If administration policy was determined by every person that was hired, we'd have 400 different policies.” Wu was one of net neutrality’s earliest advocates and was considered a potential contender to be Biden’s pick for FTC chair (see 2101210067).

Lincoln Networks urged the FCC to act on equipment authorization rules proposed by CTA, as long as devices aren't accessible until authorized. A December NPRM was approved 5-0. “The policy behind the current Commission’s rules on pre-approval marketing and importation is sound but the rules need to be updated to current business practices,” Lincoln said. In other comments posted in docket 20-382 before Wednesday's midnight deadline, the R Street Institute and Information Technology Industry Council supported the change. “Technological innovation often moves fast, leaving outdated regulations designed for different environments and markets in the proverbial dust,” R Street said.

The Patent and Trademark Office reopened comments on “best practices” for developing a “public-private national consumer awareness campaign” to curb counterfeit and pirated goods trafficking, said Wednesday’s Federal Register. PTO wants input on strategies for consumers to make more “informed” buying decisions, “red flag’’ indicators for suspicious e-commerce listings and incentives to “empower” consumers to help thwart bad actors. Comments are due March 12 in docket PTO-C-2020-0044. They originally closed Jan. 4 from a Nov. 17 solicitation.

Amazon will pay about $62 million to settle allegations that it deceived Amazon Flex drivers about promised tips 2016-19, the FTC announced with a 4-0 vote Tuesday. The company allegedly withheld about $62 million from drivers and started delivering all promised tips only when it learned of an agency investigation in 2019. Amazon stopped paying drivers the “promised rate of $18-25 per hour plus the full amount of customer tips" and started giving them "a lower hourly rate,” the agency alleged. The platform didn’t tell drivers about the change, despite promises they would earn 100% of tips, the agency said: “Amazon used the customer tips to make up the difference between the new lower hourly rate and the promised rate.” Acting Chair Rebecca Kelly Slaughter and Commissioner Noah Phillips were pleased that drivers will get “every dollar” back, saying agency authority can be improved: “Congress can give us direct penalty authority to deter deception aimed at workers in the internet-enabled gig economy and rulemaking authority under the Administrative Procedure Act to address systemic and unfair practices that harm those workers.” The threat of civil penalties will deter wrongdoing, they said. Commissioner Rohit Chopra said he agrees with them that “preying on workers justifies punitive measures far beyond the restitution provided here, and I believe the FTC should act now to deploy dormant authorities to trigger civil penalties and other relief in cases like this one.” Amazon fielded hundreds of complaints after the change “as drivers became suspicious when their overall earnings decreased,” the FTC said. Complainants received Amazon responses falsely claiming they were still making 100% of tips, the agency said. Amazon returned to paying drivers the full amount in August 2019, the agency said. The company is barred from making such changes again without receiving the driver’s informed consent. "While we disagree that the historical way we reported pay to drivers was unclear, we added additional clarity in 2019 and are pleased to put this matter behind us," a company spokesperson said. "Amazon Flex delivery partners play an important role in serving customers every day, which is why they earn among the best in the industry at over $25 per hour on average.”

Amazon has continuously tried to stifle competition from other broadband non-geostationary orbit satellite operators, demanding exclusive access to orbit protection from earlier processing round systems and holding 30 ex parte meetings to object to SpaceX's system but none regarding authorization of its own. That's according to SpaceX staffers in a call with an aide to acting FCC Chairwoman Jessica Rosenworcel, said an International Bureau ex parte posting Monday. Amazon didn't comment Tuesday.

Zoom must implement a “comprehensive security program” and adhere to biennial independent third-party privacy assessments, the FTC announced Monday in a finalized deal (see 2011100024). The company must “review any software updates for security flaws prior to release and ensure the updates will not hamper third-party security features,” the agency said. Commissioners voted 3-2, with the two Democrats dissenting, as they did in the initial vote. Acting Chair Rebecca Kelly Slaughter noted “widespread opposition” comments. The decision is “particularly troubling in light of" DOJ recently charging a “Zoom employee with allegedly participating in a scheme to surveil, disclose, and censor political and religious speech of individuals” worldwide at the direction of Chinese leadership, she said. The agency “must think beyond its status quo approach of simply requiring more paperwork, rather than real accountability relying on a thorough investigation,” said Commissioner Rohit Chopra. Commissioner Christine Wilson noted the inclusion of “targeted fencing in relief that provides privacy protections to consumers.” Provisions address the type of conduct seen with the DOJ charges, she said. “Advancements we have made to our platform are well-documented, and we are continuously improving our privacy and security programs,” a company spokesperson emailed. “We remain committed to fulfilling the expectations of the millions of people who trust and rely on our platform.”