Scrutiny of Facebook Cautionary Model on E-Commerce for Regulators, CBP Chief Tells US Chamber

Scrutiny of social media platforms like Facebook should be seen as a cautionary model for the regulators watching the rapid growth of e-commerce, said Customs and Border Protection Commissioner Kevin McAleenan during a speech at the U.S. Chamber of Commerce Tuesday: "Recent developments in social media and the oversight of social media provide some context I think we should reflect on." For e-commerce, as with Facebook, "the relevant regulators have to be cognizant of the potential risks that such expansion brings," he said. As the e-commerce "business model has evolved, so have the potential threats," McAleenan said. "There are digital venues that enable the direct shipment of small packages to retailers and consumers eager to find that great deal who instead may receive counterfeit items." Growth in online commerce is overwhelming, the CBP chief said. The agency will need to make internal changes, he said. "CBP will use data analytics and an array of powerful resources at our National Targeting Center and forward deploy to our ports of entry." It will work with the Department of Homeland Security. CBP recently visited Amazon headquarters with customs officials from the U.K., Australia, Canada and New Zealand, he said. "It's a dialogue we need to continue, with eBay, with Alibaba, with major retailers." CBP's e-commerce strategy also includes opportunities for collaboration with other agencies, including state and local governments (see 1805070034).