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FTC Could Gain Enforcement Power Over Internet

Hugh Pickens writes "The Washington Post reports that under a little-known provision in financial overhaul legislation before Congress the Federal Trade Commission could become a more powerful watchdog for Internet users with the power to to issue rules on a fast track and impose civil penalties on companies that hurt consumers. 'If we had a deterrent, a bigger stick to fine malefactors, that would be helpful,' says FTC Chairman Jon Leibowitz, who has argued in favor of bolstering his agency's enforcement ability. This power would stand in stark contrast to a besieged FCC, whose ability to oversee broadband providers has been cast into doubt after a federal court ruled last month that the agency lacked the ability to punish Comcast for violating open-Internet guidelines. The provision to strengthen the FTC is in the regulatory overhaul legislation passed by the House, and although it is absent from the legislation before the Senate, some observers expect the measure to be included when the House and Senate versions are combined."

9 of 134 comments (clear)

  1. It should be the FCC by Wyatt+Earp · · Score: 4, Informative

    The FCC has the jurisdiction, they should be enforcing the rules. But since they don't have the teeth, let the FTC do it, those guys are sharks.

    Oh and the summary says FTC when it would say FCC - "FTC Chairman Jon Leibowitz, who has argued in favor of bolstering his agency's enforcement ability. This power would stand in stark contrast to a besieged FTC, whose ability to oversee broadband providers has been cast into doubt after a federal court ruled last month that the agency lacked the ability to punish Comcast for violating open-Internet guidelines."

    1. Re:It should be the FCC by Wyatt+Earp · · Score: 4, Interesting

      I think the government getting into this is the right choice.

      I remember talking to my old boss about this 12 years ago. He is very socially conservative and didn't trust government at all, but he agreed that the Feds should be in control of this after having to deal with GTE and Comcast when it came to E-Rate and how they jerked around the schools, police and governments they were supposed to be offering services to in exchange for a monopoly.

      I don't get why the Telcos think they have the right to shape traffic, my friends work for a rural electric co-op and the power company doesn't give three hoots what you do with your electrons. Why can't AT&T, Comcast, Verizon, etc be the same? Just sell the bandwidth and let us do whatever we want, within legal boundaries.

      I can get in trouble for using too much electricity to grow weed, so I could get in trouble for using my bandwidth for terrorism, child pr0n, etc.

      Well when the companies cry about it on Capital Hill, we all know why the FTC is getting involved, because the companies farked up an easy thing.

  2. Power Over Internet ? by psergiu · · Score: 4, Funny

    What are the improvements vs. IEEE 802.3af Power Over Ethernet ?
    Will the old devices be compatible ?

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  3. Re:Uh... by T+Murphy · · Score: 5, Insightful

    I'm no scholar on what agency does what, but the article mentions privacy issues, which sounds more like FTC than FCC. I can understand the FCC being concerned about how ISPs handle traffic, but not what the actual content is. It makes perfect sense for the FTC to be concerned about exactly what information is being collected and how it is used. Of course, traffic shaping and net neutrality can be seen as affecting trade and consumers, so that may fall under FTC jurisdiction too. Although I would think it best for the FTC and FCC to collaborate where their interests overlap, overall I think FTC is more relevant with most internet-related issues that get brought up on slashdot.

    That said, someone better informed could probably be much more insightful and probably poke a few holes in what I'm saying.

  4. Be Careful What You Wish For by bill_mcgonigle · · Score: 3, Insightful

    You guys are all gonna be crying a river when the FCC mandates all packets get cryptographically labelled with an asserted certificate before transit is allowed.

    Most all of the real problems with Internet companies that can hurt users are already covered under fraud laws - no new powers are required. So, ask yourself why it is they want these new powers.

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    1. Re:Be Careful What You Wish For by NevarMore · · Score: 4, Insightful

      Most all of the real problems with Internet companies that can hurt users are already covered under fraud laws - no new powers are required. So, ask yourself why it is they want these new powers.

      Because when the only tool you have is more regulation every problem appears to be solvable by more regulation.

  5. The FTC is less of a threat than the FCC by voss · · Score: 5, Insightful

    The FTC doesnt give a crap about censoring content only regulating anti-fraud and commercial transactions. The FTC could go after internet companies
    under anti-trust and anti-competitive practices laws.

  6. Bad Idea... by Darkness404 · · Score: 3, Insightful

    While this might stop Comcast, regulation is -never- the answer when it comes to the economy. If you can mandate net neutrality over all the net* who is to say that the government can't force ISPs to block certain sites? Track 'piracy', etc.

    *I believe that the way to regulate ISPs is that if the ISP has lines running through public property, the public has a say on their policies. If they don't use public land, they are free to do whatever.

    Regulation usually cuts off one head of the hydra only to replace it with 2, 3 or 4 more problems. Mix this with the fact you can't vote these people out of office and they are accountable to essentially no one and you have a system ripe for abuse.

    Let the citizens choose what their public land is used for. If an ISP wants to use that land to lay cable, they should be accountable to the citizens because their land is being used.

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  7. Re:Uh... by IndustrialComplex · · Score: 3, Insightful

    And what of those ISPs that operate wholly-and-completely within a state (like Mom&Pop Internet of Fargo)? The U.S. government's power does not extend to them. I guess that job will be left to the state.

    Their bits compete with the bits of carriers who go out of state. They also have the ability to travel out of state. Therefore it will be deemed within the scope of the Commerce Clause.

    Haven't you learned by now that the Federal Government has the authority to regulate anything by virtue of the fact that it chooses to regulate it? Hell, they recently decided that even though they BANNED interstate commerce of an item (Cannabis), if you even look at it funny that somehow manipulates the interstate trade of the item and thus falls under the jurisdiction of the Federal Government.

    In essence what that means: If the Federal government decides to regulate something at ALL, it has the authority to regulate it anywhere.

    An abomination of a Supreme Court decision.

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