Nearly 4.9 million customer or parent accounts and about 6.4 million related kid profiles worldwide were affected by the VTech data breach (see 1511300026), said the supplier of electronic learning toys Tuesday in an updated FAQ about the incident. The company said its Learning Lodge app store customer database was affected and its Kid Connect servers were accessed. "Kid profiles unlike account profiles only include name, gender and birthdate," the company said. VTech also listed the number of parent accounts and child profiles affected across 12 countries, the U.K., Latin America and a section called "Others." In the U.S., more than 2.2 million parent accounts and nearly 2.9 million child profiles were affected, followed by France where about 870,000 parent accounts and 1.2 million child profiles were breached. VTech also said there's no evidence any compromised data has been used or distributed criminally. It said "appointed data security legal specialists" are in the process of "liaising with local authorities" in the investigation.

Ad fraud, infringed content and malvertising are costing the U.S. digital advertising industry about $8.2 billion annually, the Interactive Advertising Bureau and Ernst & Young said in report released Tuesday. In a joint news release on the report, the groups said ad fraud accounts for about $4.6 billion of the waste. "Seventy-two percent of the loss associated with the Web's fraudulent traffic happens on desktops and 28 percent on mobile," the release said. Infringed content -- stolen video programming, music and other illegally distributed editorial content -- accounts for about $2.4 billion in costs. "The findings show that unless the industry takes significant steps, there is a likelihood that the number of people consuming stolen content on digital platforms will increase," they said. Malware-related activities account for about $1.1 billion with $781 million of the losses generated by ad blocking and $204 million from costs related to investigating, remediating and documenting incidents of malicious advertising. The report provides guidance to eliminate corruption by fixing business processes, among other flaws, and encouraging the industry to collaborate on a "trustworthy supply chain," the release said.

A new auction simulation showed very few TV stations getting repacked into the duplex gap, said former Expanding Opportunities for Broadcasters Coalition Executive Director Preston Padden in a blog post Tuesday. Conducted by auction economist Peter Cramton at the request of a former EOBC member, the simulation showed “only between 1 and 3 TV Stations” being assigned a channel in the duplex gap, Padden said. The simulation showed the auction clearing 114 MHz of spectrum, with “96.8 percent of the spectrum blocks offered to bidders in the top 40 markets” classified as unimpaired, Padden said. The simulation assumed that affiliates of the top five commercial networks and PBS in the top 50 markets wouldn't participate in the auction, Padden said. “The results of the new Cramton analysis should give comfort to television broadcasters, to wireless carriers and to the FCC Officials.”

The FCC should address the likely problems of broadcasters sharing TV white spaces (TVWS) with unlicensed devices, said the North American Broadcasters Association (NABA) in a letter and white paper posted online in docket 12-268 Monday. The white paper urges the FCC to adopt a joint solution proposed by broadcasters and unlicensed device manufacturers based on an accurate database of device locations to prevent interference. “Broadcasters understand the need to use spectrum effectively and efficiently, have a long history of sharing with other services and do not oppose sharing with unlicensed services provided adequate safeguards are in place,” said NABA. “To date, that is not the case with TVWS.”

Don't let ISPs "hide poor, inconsistent performance" on broadband "behind methodologies that provide a misleading 'average' performance statistic" in disclosure to customers, Level 3 said in an FCC filing on a meeting with officials. "Consumers should have access to data that tells them, for each provider, whether the provider offers consistent, high-speed performance to Internet broadly, or whether the provider offers inconsistent performance, with better connectivity to some resources than to others." Level 3 used a recent Consumer Advisory Committee proposal (see 1511040030) that consumer ISPs report average download speed, upload speed, latency and packet loss as a starting point for its own plan. For ISPs that can measure performance across their interconnections to other networks, Level 3 recommended "calculating average performance for each destination network, and disclosing the average performance for the destination networks with the best, median, and slowest averages." ISPs also should disclose a "Connectivity Rating" showing if "there is a significant likelihood that performance to some parts of the Internet could become degraded during peak hours because of lack of adequate interconnection capacity," said the backbone provider, which has feuded with ISPs and others over interconnection and other Web issues. Its filing posted Friday in docket 14-28 recounted Assistant General Counsel-Federal Affairs Joseph Cavender’s meeting with FCC Chief Technologist Scott Jordan and a officials from the Wireline and Consumer and Governmental Affairs bureaus.

Cable officials said they had concerns with the FCC's Measuring Broadband America (MBA) program, though overall it "continues to serve the public interest." In a meeting with FCC staffers, including Chief Technologist Scott Jordan, the industry officials noted “periodic failures on the Measurement Lab test server platform” resulting in faulty test results (see 1510150052). They also discussed considerations to apply in possible guidance from Jordan under paragraph 166 of the net neutrality order. “With respect to the requirement that broadband providers disclose actual performance that is 'reasonably related' to the geographic area where the customer purchases service, we reminded the Commission that the MBA program considered reporting results at a regional level but rejected that approach because of the significant expense it would entail,” said the NCTA filing in docket 14-28 on the meeting, which also included officials from Charter Communications, Comcast and Time Warner Cable. “We also explained that individual cable operators generally deploy the same technology and follow the same operational practices across their footprint, so the nationwide results reported by the MBA program should reasonably reflect performance in each geographic area served by a particular operator.” In addition, the cable officials said smaller fixed broadband providers faced challenges complying with a duty to disclose actual performance data. Thousands of providers haven't been included in the program, depriving them of access to the MBA test platform and equipment, NCTA said. “While a handful of larger non-MBA companies have taken it upon themselves to deploy a similar testing regime, any guidance issued by the Commission should reiterate that alternative, less expensive, approaches also are permissible,” the group said. “We also encouraged the Commission to offer additional companies the opportunity to participate in the MBA program, thereby increasing the percentage of broadband consumers that are covered by the program.”

The FCC has gotten better at bringing proposed fines to conclusion over the past two years, either through settlements or by issuing a final fine, Enforcement Bureau Chief Travis LeBlanc said in a blog Wednesday. Politico recently cited what it called a "disconnect" between fines announced by agencies and amounts actually collected. LeBlanc said that EB collected 86 percent of the fines it imposed over the past two years, "a substantial increase over previous years," and that during each of the past three years it collected more than 80 percent of the money owed in imposed fines. "By comparison, in 2011, just 54.9 percent of the money owed in issued fines was collected," he said. So far this year, EB has collected $98 million in fines, he said. Resolution of cases also is faster, LeBlanc said, as notices of apparent liability averaged eight months be to be resolved via forfeiture order last year, compared with an average of 19 months in 2011. "There are, of course, special cases that take more time because they require coordination with other government entities," LeBlanc said, saying some proposed Lifeline-related fines are being reviewed by the agency's Office of Inspector General. Proposed fines against a Chinese company for selling illegal jammers -- presumably the $34.9 million fine faced by Chinese company C.T.S. Technology (see [Ref:1406230041]), though LeBlanc didn't specify -- requires complying with international treaties that govern legal processes, he said. "The Commission is actively working with the Chinese and U.S. governments to resolve this matter as expeditiously as possible," he said.

Presiding judges with the Foreign Intelligence Surveillance Court and the Foreign Intelligence Surveillance Court of Review jointly designated five individuals as eligible to be amici curiae, effective Tuesday, according to an announcement on the FISC website. As required by the USA Freedom Act (see 1405080036), duties of an amicus curiae include providing legal arguments to advance individual privacy and civil liberties protections, information related to intelligence collection or communications technology, or legal arguments or information on other issues before the court. The individuals are Jonathan Cedarbaum, a partner with WilmerHale; San Francisco attorney John Cline; Georgetown University Law professor Laura Donohue; Amy Jeffress, a partner with Arnold & Porter; and Marc Zwillinger, a managing member of ZwillGen.

The FCC released a guide to help small businesses and other small organizations comply with its net neutrality rules. The Small Entity Compliance Guide provides an overview of the commission’s net neutrality order and accompanying rules, including transparency and disclosure requirements. It's “not intended to replace the rules and, therefore, final authority rests solely with the rules,” said the guide issued Tuesday in docket 14-28. It summarized the FCC's three bright-line rules against Internet blocking, throttling and paid prioritization, and its general Internet conduct standard against unreasonable interference and unreasonable disadvantage. It also noted an enhanced transparency rule and a temporary exemption from related duties for broadband providers with 100,000 or fewer subscribers. The Consumer and Government Affair Bureau sought comment on whether to retain the exemption, and if so, at what subscriber threshold. Commenters voiced broad support for extending or making permanent the exemption, and some of the filers told us they were optimistic the bureau would keep the exemption (see 1508060057). Most reply commenters also backed expanding the definition of an exempted small broadband provider -- 100,000 or fewer broadband connections -- to the Small Business Administration's definition of 500,000 connections or fewer (see 1509110066). Some House Republicans recently asked that the exemption be made permanent (see 1511200044). A bureau decision is due by Dec. 15.

The FCC International Bureau is seeking comment on removing Cuba from the exclusion list for international Section 214 authorizations in response to a State Department request, said a public notice issued Tuesday. “The Exclusion List identifies particular facilities and/or countries that are not included in a global facilities-based Section 214 application, and, therefore, require a separate international Section 214 authorization.” Cuba is the only country currently remaining on the exclusion list, the PN said. “If Cuba is removed from the Exclusion List, U.S. international carriers would no longer be required to request specific authority to provide facilities-based telecommunications services from the United States to Cuba.” Comments on the proposal are due Dec. 4, replies Dec. 9.