FTC Consumer Protection Chief Notes Drop in Robocall Reports

The “past few weeks” have seen a “dramatic drop” in robocall reports FTC Consumer Protection Bureau Director Andrew Smith said Monday, citing COVID-19’s economic disruption as one potential reason. Many robocalls originate in India, and stay-at-home orders might be affecting the volume, he told the American Bar Association, noting the agency’s recent warning letters with the FCC against VoIP service providers (see 2004030052). When the FTC acts against VoIP providers, it sees measurable drops in robocall volume, which shows existing laws are helping, he said.

In the past 16 weeks, the FTC has taken 15 public actions involving transactions, said Competition Bureau Director Ian Conner. These resulted in seven complaints challenging deals, two transactions abandoned during investigation, three merger complaints with settlements voted out by the commission, one conduct challenge voted on and another conduct challenge voted on with a settlement, he said: “This has been an exceptionally busy time.” In the past three weeks of teleworking, the FTC has had one party consent to a merger challenge and one challenge filed, he noted.

The Office of Policy Planning is carrying out the agency’s FTC Act Section 6(b) study of tech industry acquisitions (see 2002110023), Conner said. The study isn't an investigation but could uncover illegal activity, he said. The office is consulting with bureaus, he said, noting its purpose is to understand the acquisitions and the context in which they took place.

The FTC has proposed about 12 process-based requirements to add to its safeguards rule, Smith said. The rule requires financial institutions under FTC jurisdiction take specific measures to keep customer information secure, including steps to ensure third parties protect customer information. The commission plans to host a virtual workshop on the rule on May 13, Smith said. The rule has become the basis for a lot of FTC-issued data security orders, he said.

Some proposed requirements for the rule concern access controls for physical access to data and facilities, Smith said. Other requirements involve data inventory, encryption techniques, two-factor authentication, testing and monitoring. He noted the agency received many comments from consumers, industry and state attorneys general.

Smith cited the importance of the agency’s Children's Online Privacy Protection Act rule-related settlement with YouTube (see 1909040066). The deal established an important marker in that general audience platforms can be held accountable for COPPA violations, he said.

The FTC is looking ahead about financial distress resulting from COVID-19, said Economics Bureau Director Andrew Sweeting. The agency is collaborating closely with the FCC, Food and Drug Administration, DOJ, state AGs and the Postal Inspection Service about consumer-related items, Smith said.

Regarding artificial intelligence, Smith said the FTC wants to know whether consumers understand automated decisions made by AI and algorithms. They should know how decisions are made based on the technology, he said. The agency recommends companies self-validate to ensure models are statistically sound, he said.