Commissioner Christine S. Wilson of the U.S. Federal Trade Commission gave an important keynote address at the Free State Foundation's Twelfth Annual Telecom Policy Conference. "Broadband Beyond 2020: Competition, Freedom, and Privacy" was held on Tuesday, March 10 at the National Press Club in Washington, DC. As in previous years, a stellar lineup of presenters offered valuable insight and food for thought on a wide range of topics. Commissioner Wilson's speech was no exception.In an address entitled "Free Markets, Regulation, and Legislation: A Place for Everything, and Everything in Its Place," the Commissioner proclaimed her strong support for free markets, competition, and deregulation; explained how government intrusion leads to "toxic outcomes" for consumers; touted the benefits of the FCC's Restoring Internet Freedom Order; and laid out both high-level principles and specific objectives that federal privacy legislation should achieve.
Using the Interstate Commerce Commission and the Civil Aeronautics Board as historical examples, Commissioner Wilson described how consumers suffer when government prioritizes other "public interest" objectives over competition. A better approach, she argued, is limited intervention.
In that vein, she expressed her strong support for the President's deregulatory agenda. In particular, his Executive Order requiring that, for every new regulation created, two must be eliminated. She highlighted the FTC's efforts to date to eliminate unnecessary rules and expressed her belief that there is more work to be done.
The Commissioner also praised the FCC's Restoring Internet Freedom Order and, more broadly, touted the benefits of competition laws over proscriptive rules, asserting that "[t]he replacement of the FCC's extensive regulatory framework with the FTC's broad and flexible Section 5 principles will protect consumers while also facilitating investment and innovation."
On the topic of consumer privacy, Commissioner Wilson identified specific market failures (i.e., asymmetric information and "privacy resignation") that, in her opinion, justify federal privacy and data security legislation. Such a bill, she argued, should (1) incorporate a harm-focused, risk-based approach; (2) hold entities that handle data accountable; (3) empower informed consumer decision making through transparency; and (4) take competition into account.
In addition to these "high-level principles," she recommended that federal privacy legislation accomplish the following specific objectives: designate the FTC as the enforcing agency; provide for civil monetary penalties; apply to non-profits and common carriers; include "targeted and narrow" rulemaking authority; preempt state laws; and NOT create a private right of action.
Commissioner Wilson's prepared remarks are available on the FTC's website here.
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