Monday, July 27, 2020

In Senate Subcommittee Testimony, FTC Seeks Additional Privacy Authority

On July 21, the Federal Trade Commission (FTC) appeared before the Senate Commerce Committee's Subcommittee on Manufacturing, Trade, and Consumer Protection.

In written testimony, Andrew Smith, Director of the Bureau of Consumer Protection, focused primarily on the agency's recent and ongoing actions to protect consumers from scams, deceptive advertising, illegal robocalls, and other threats relating to the COVID-19 pandemic.

However, Mr. Smith also used this opportunity to advocate for additional FTC authority in the privacy and data security space. Specifically, he urged Congress to pass federal legislation that:
  • Amends Section 5 of the FTC Act, which prohibits deceptive or unfair commercial practices, to allow the agency to impose fines for first-time violations;
  • Expands the FTC's authority under Section 5 to include non-profits and common carriers; and
  • Provides it with targeted rulemaking authority under the Administrative Procedure Act (APA).