Karl Herchenroeder

The FTC has funding to operate through 11:59 p.m. EST Friday, a spokesperson said Thursday. The agency previously said it would operate through at least mid-day Friday if there were a lapse in funding (see 1812210048). The agency’s latest contingency plan shows it operating at about 23 percent in a shutdown. Employees working Friday can complete shutdown responsibilities before the end of the work day, the spokesperson said.

Congressional hearings with executives from Facebook, Twitter and Google spurred criticism that lawmakers lack the expertise to properly question Silicon Valley. In interviews, tech-minded House lawmakers from both parties dismissed the criticism, though some said their colleagues should be better educated.

This week’s revelations about Facebook’s alleged data abuse (see 1812190039) spurred bipartisan fervor for addressing privacy issues in 2019. Incoming leadership for the Senate Commerce Committee, where the chamber’s privacy debate has centered (see 1812070039), told us to expect data privacy in the spotlight, with additional hearings.

Facebook partnerships with other companies didn’t allow access to personal data without consent, nor did they violate a 2012 consent decree with the FTC, Director-Developer Platforms and Programs Konstantinos Papamiltiadis responded Tuesday. The New York Times reported, based on 2017 documents, Facebook gave access to personal data, sometimes allegedly without consent, to Microsoft, Apple, Netflix, Spotify, Amazon, Yahoo and Russia Kremlin-linked search company Yandex. The agreements let users integrate Facebook features on other apps, Papamiltiadis said, and it has since ceased many such partnerships. Agreements remain active with Amazon, Apple, Alibaba, Mozilla and Opera, he said. Authorization to the data is granted when a user logs into apps through Facebook, he said. The FTC should consider these new allegations in its current Facebook investigation, and Congress needs to move forward with legislation in 2019, Public Knowledge Policy Counsel Charlotte Slaiman said. Washington, D.C., Attorney General Karl Racine (D) Wednesday sued Facebook for mishandling user data in the Cambridge Analytica scandal and failing to report the breach. Racine seeks “monetary and injunctive relief, including relief for harmed consumers, damages, and penalties to the District” for violating D.C.'s Consumer Protection Procedures Act. “We’re reviewing the complaint and look forward to continuing our discussions with attorneys general,” a Facebook spokesperson emailed. "If there's one complaint filed in court in the District of Columbia you consider reading today, make it this one: http://oag.dc.gov/sites/default/," tweeted FCC Commissioner Jessica Rosenworcel.

Sen. Richard Blumenthal, D-Conn., sent a letter asking the FTC and DOJ to open an investigation into Amazon’s price parity provisions, a controversial practice it ceased in Europe. Blumenthal announced the request Wednesday during a Senate Antitrust Subcommittee hearing, in which he claimed U.S. consumers are paying higher prices for goods via Amazon because of the “invisible” clause preventing merchants from charging lower prices. He called the contractual obligation for third-party sellers a barrier to entry and asked witnesses why Americans don’t deserve the same protections as Europeans. An FTC spokesperson confirmed it received the letter. DOJ didn’t comment.

Senate Intelligence Committee reports put malicious Instagram activity on Congress’ radar, lawmakers told us this week. One finding was continued meddling by Russia’s Internet Research Agency (see 1812170036). Lawmakers said such activity isn't surprising.

Tech/telecom-minded Sen.-elect Marsha Blackburn, R-Tenn., will likely sit on the Senate Judiciary Committee in 2019, lobbyists and industry officials told us. Republican leadership is seeking a female member given the criticism it took for an all-white-male majority reviewing Brett Kavanaugh’s Supreme Court confirmation. Blackburn declined comment.

The FTC should be able to levy “real” penalties, like forcing executive firings, to deter FTC order violations and data misuse, Commissioner Rohit Chopra said Thursday. “When we find blatant misconduct, settling that for a no-money, no-consequences order, I worry that that’s just a green light for other market participants to say, ‘Hey -- there’s no downside even if we get caught, except for maybe a day of press,'” he said at a Capitol Forum event. Some experts at the event also said they expect the U.S. Court of Appeals for the D.C. Circuit to affirm a lower court’s approval of AT&T’s buy of Time Warner, but that the deal nonetheless poses competitive dangers (see 1812130004).

FTC Consumer Protection Bureau Director Andrew Smith’s potential recusals (see 1812060048) don’t affect agency deliberations because of an “absolutely terrific” career staff, but conflicts like Facebook and Equifax are a "problem," Chairman Joe Simons told reporters Wednesday. He answered questions after a Senate Antitrust Law Subcommittee hearing, during which Republican and Democratic lawmakers voiced Silicon Valley monopoly concerns.

Brian Schatz, Hawaii, and 14 other Democratic senators introduced a bill Wednesday that would set parameters for companies collecting data online. The Data Care Act would require “reasonable efforts” to secure data and notify users of breaches, prohibit companies from using data to “harm” users and set confidentiality guidelines for third-party sharing of data. It would give the FTC limited rulemaking and civil penalty authority. Schatz told reporters Wednesday his office discussed the bill with Internet Association, with some IA members voicing displeasure for the content, and with Republican lawmakers. The tech industry looks forward to working with lawmakers including Schatz on "our shared goal of passing an economy-wide law that protects consumer privacy and allows companies to innovate," said IA CEO Michael Beckerman. The bill will “complement,” not compete with, any overarching bill produced by the Senate Commerce Committee, he said. Having state privacy laws bolsters Democrats’ bargaining position, he added, saying he has no problem with a state patchwork if the ultimate privacy package isn't a progressive law like California’s. He noted the bill isn't one of the items under consideration by a bipartisan working group that includes Schatz, Sen. Richard Blumenthal, D-Conn., likely Chairman Roger Wicker, R-Miss., and Sen. Jerry Moran, R-Kan.