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.”

The Consumer Product Safety Commission warned Thursday of increased risk of injury or death from TV and furniture tip-overs, with families spending more time indoors due to COVID-19 restrictions. Millions of consumers will watch the Super Bowl Feb. 7, it said, urging consumers to anchor all TVs in the home. From 2000 to 2019, 451 children 17 and under were killed by furniture and TV tip-over incidents, said CPSC, and from 2017-19, an average 11,100 children annually were treated in hospital emergency rooms for tip-over-related injuries. Some 75% of children's fatal tip-over incidents involved a TV.

A lawyer for the Environmental Health Trust and other plaintiffs in the lawsuit asking the U.S. Court of Appeals for the D.C. Circuit to force the FCC to update 25-year-old exposure rules complained the agency went beyond the scope of what the court asked in answering questions on work by the Radiofrequency Interagency Work Group and Technical Electronic Product Radiation Safety Standards Committee (TEPRSSC). A letter (in Pacer) from the commission doesn’t limit itself to “purely factual matters” and introduces new arguments on why neither the FCC nor the Food and Drug Administration “sought input from the TEPRSSC,” said Wednesday's filing (in Pacer) by Edward Myers in docket 20-1025. “This goes well beyond the scope of the Court’s request and is generally improper since the time for submitting briefs in these cases is long past.” Judges heard the case Monday (see 2101250051).

The U.S. should help the EU "contain the immense power" of big digital companies, European Commission President Ursula von der Leyen said Tuesday at Davos Agenda Week. For digitization to be successful, governments must tackle the darker sides of the digital world such as the storming of the U.S. Capitol, she said. The business model of online platforms "has an impact -- and not only on free and fair competition, but also on our democracies, our security and on the quality of our information ... We want it clearly laid down that internet companies take responsibility for the manner in which they disseminate, promote and remove content." The Digital Services Act and Digital Markets Act are intended to be "our new rulebook for our digital market" (see 2012230096), Von der Leyen said, inviting the U.S. to join the initiatives.

Three companies bought tens of thousands of tickets through Ticketmaster and resold them for millions, “often at significant markups,” DOJ and the FTC alleged in three settlements totaling more than $3.7 million. It was the first enforcement action under the Better Online Ticket Sales Act, which prohibits brokers from reselling tickets at inflated costs. Just in Time Tickets, Concert Specials and Cartisim violated the Bots Act, circumventing Ticketmaster’s “restrictions on users holding multiple accounts by creating accounts in the names of family members, friends, and fictitious individuals, and using hundreds of credit cards,” DOJ said. “They also allegedly used ticket bots to fool tests designed to prevent nonhuman visitors.” Defendants used programs to conceal their IP addresses, DOJ said. A court levied civil penalties of $11.2 million against Just in Time Tickets, $16 million against Concert Specials and $4.4 million against Cartisim. The penalties will be suspended if the defendants pay $1.6 million, $1.6 million and about $500,000, respectively, while adhering to other terms, DOJ said: “Due to their inability to pay, the judgment will be partially suspended, requiring them to pay $3.7 million.” An attorney for the companies declined comment. “Not only does this deprive loyal fans of the chance to see their favorite performers and shows, it is against the law,” said FTC Consumer Protection Bureau Director Andrew Smith.

Comments are due March 22 in docket 2019-0005 on the Commerce Department’s interim final rule for “securing" the information tech supply chain against threats from foreign adversaries, said Tuesday’s Federal Register. Though the interim rule will take effect the day comments are due, Commerce “continues to welcome public input.” Once it evaluates additional comments, it’s “committed to issuing a final rule,” the agency said. “Some foreign adversaries are known to exploit the sale of software and hardware to introduce vulnerabilities that can allow them to steal critical intellectual property” or data, the department said: "Unrestricted acquisition or use" of IT supply chains that were designed by people “subject to the jurisdiction or direction of a foreign adversary constitutes an unusual and extraordinary threat to the national security.”

FTC Chairman Joe Simons will step down Jan. 29, the agency announced Tuesday (see 2011130044). Also, Commissioner Rohit Chopra will leave the commission to head the Consumer Financial Protection Bureau, the Biden transition team announced Monday. Chopra previously was CFPB assistant director. Simons said “as technology and our economy continue to evolve through the digital age, the FTC’s staff work tirelessly so that consumers continue to benefit from a fair and competitive marketplace.” Other senior staff leaving: General Counsel Alden Abbott (see personals section, Jan. 14), Competition Bureau Director Ian Conner, Competition Bureau Deputy Directors Gail Levine and Daniel Francis, Consumer Protection Bureau Director Andrew Smith, Economics Bureau Director Andrew Sweeting, Office of Public Affairs Director Cathy MacFarlane and Office of Policy Planning Director Bilal Sayyed.

Chairman Ajit Pai’s final FCC commissioners' meeting Wednesday included condemnations of President Donald Trump by Republicans and speculation about future action on social media moderation. Pai said he had planned pre-election to leave the post after a single term, declining to comment on his plans or President Donald Trump's second impeachment. Trump made “a terrible mistake” in strategizing to overturn the election results and responding to last week's attack on the Capitol, Pai told a news conference. Republican Commissioner Brendan Carr made similar comments during his own news conference. “It is clear to me that President Trump bears responsibility,” Carr said, repeatedly emphasizing he's focused on “the peaceful transfer of power.” In meeting remarks, Commissioner Jessica Rosenworcel also condemned the attack on the Capitol. “To watch those disowning the hatred that brought us here when for too long they walked too casually alongside it is difficult,” said Rosenworcel. Pai said the decisions social media companies have been making to ban accounts over incitements to violence illustrate the current “very fluid situation” and lack of transparency about how such decisions are being made. It's “unclear” whether social media moderation policies are being applied equally or consistently, Pai said. Carr, who had been vocal on the issue, said he expected the matter of social media moderation to remain important after the presidential transition. He said current policies are “producing errors in both directions” because newspaper content is being taken down while threats and fighting words remain up.

Everalbum “deceived consumers” about face scanning technology and retention of user photos and videos, the FTC alleged in a 5-0 settlement with the photo app developer, which the agency called a first-of-its-kind enforcement action. The developer enabled face scanning by default for all mobile app users when it launched a 2017 feature and misled users from 2018-19 about consent, feature activation and turning it off, the FTC alleged. The company allegedly failed to delete photos and videos from deactivated accounts when it promised to remove the content. The company faces a $43,280 fine per future violation and is required to delete content from deactivated accounts. The agency should “take further steps to trigger penalties, damages, and other relief for facial recognition and data protection abuses,” said Commissioner Rohit Chopra. He suggested the commission could issue a rule under Section 18 of the FTC Act to better seek first-offense penalties. He noted users in Illinois, Texas and Washington were “treated with greater care, due to state protections on facial recognition.”

The Copyright Office issued a final rule Thursday for transition period cumulative reporting and royalty transfers to the mechanical licensing collective (see 2012310019). The rule requires digital music providers to “submit cumulative statements of account to the mechanical licensing collective at the conclusion of the statutory transition period in order to be eligible for the statutory limitation on liability for prior unlicensed uses of musical works.” The rule creates a “mechanism for digital music providers to rely upon royalty input estimations and make subsequent adjustments once the inputs are finalized.”